Expert insights Buying Stronger weekend auction success rates, but no new boom as yet though: Louis Christopher
Stronger weekend auction success rates, but no new boom as yet though: Louis Christopher
Staff reporterDecember 7, 2020
Both Melbourne and Sydney saw their auction clearance rate sit above 70 percent, however there's no new boom, according to one auction commentator.
The final tally will revise lower as late results but sit in the commendable high 60 per cent range.
The unreported results include a Vaucluse trophy home (top) which was passed in on a $16 million vendor bid at its late Saturday afternoon auction.
There had been just the one bid taken by auctioneer, Damien Cooley of $15 million for the home of hotelier Ashton Waugh who'd listed the home with a $16 million price guide through Gavin Rubinstein, the Ray White network’s top performer.
The three-level home was completed two years ago with five bedrooms and seven bathrooms.
Peter Ahern of buck&simple Architecture redesigned the Gilliver Avenue home with a panorama that takes in the city skyline, Opera House and Harbour Bridge from its 835 square metre block that cost $6.7 million in 2004.
There were 1,292 capital city homes taken to auction over the final weekend of June, returning a preliminary national auction clearance rate above 60 percent for the third consecutive week.
It was 66.5 percent nationally, according to CoreLogic auction analyst Kevin Brogan.
The winter hibernation kicks in with lower listings down on the 1,484 homes and 1,487 auctions held over the prior weekends.
Sydney was the strongest market with volumes down to 503 auctions from the 558 auctions held over the week prior.
Sydney returned a preliminary auction clearance rate of 72 percent with the top sale being an Elizabeth Bay apartment in The Palms harbourfront complex.
The three bedroom 8/12-16 Billyard Avenue offering (below) fetched $3,815,000 with four registered bidders.
More than 100 groups went through the open homes, Ray White agent Ian Campbell said.
"There's a shortage of stock at the moment, and when you combine that with increased buyer confidence since the election, it makes sense that open home numbers and auction clearance rate numbers are up," he said.
"The buyers loved the convenience of being able to walk in to the city or take the ferry," Campbell added.
"The buyers loved the convenience of being able to walk in to the city or take the ferry," Campbell added.
The buyer was also keen on securing a berth for a boat on the adjoining block, Domain reported.
The Ray White Elizabeth Bay selling agent Renee Cross had given $3.7 million price guidance for the split level, three bedroom, 231sqm apartment with two cars spaces.
It last sold at $990,000 in 1995.
Melbourne returned a 70.6 percent preliminary auction clearance rate this week, increasing on the 68.9 percent final clearance rate last week.
Its volumes were lower week-on-week, with 536 homes auctioned down on the 635 auctions held the previous weekend.
A four bedroom Kew home was Melbourne's top sale. The 58 Alfred Street offering (below) was passed in for $4.25 million with Domain reporting it sold post auction for $4.35 million to an investor, who plans to rent it out.
Melbourne saw a pre-auction sale when $2,308,888 was paid for 48 Orchard Street, Glen Waverley.
It was a five bedroom, two storey house sold through Barry Plant having sold in 2011 at $1,998,888.
The weekend auction performance was varied across the smaller auction markets with Adelaide seeing a 68.9 percent success rate, while only 33.3 percent of homes sold across Perth.
Brisbane had a 36 percent clearance rate including the nation's cheapest sale.
It was the three bedroom at 34 Antares Avenue, Kingston (below) which fetched $195,000.
It last sold at $60,000 in 1998.
"Bring your tools," said Ray White Logan selling agent Chris Liu.
The higher auction results were aligning with the trend in housing values, Kevin Brogan said, noting the rate of decline had been consistently improving through 2019, largely driven by improved conditions across Sydney and Melbourne.
"If we see auction clearance rates holding above the 60 percent mark consistently, it’s a firm sign that buyer and seller price expectations are more balanced and housing prices are finding a new floor," he said.
Property commentator Andrew Wilson said the weekend results reflected a "steady solid winter market on the road to recovery for Sydney and Melbourne."
"Sydney and Melbourne home auction markets continue to report clearance rates at the highest levels since 2017 with solid rising buyer momentum contrasting to the fading market of a year ago," Dr Wilson noted.
"Seller numbers however remain relatively subdued – particularly in Melbourne and will remain so for at least the next month over the school holiday period.
"Lower interest rates are a key catalyst for a recovery in buyer confidence with another cut next week by the RBA - if it eventuates - to continue fuel a market revival," Dr Wilson said.
"There's no new boom as yet though" said SQM's Louis Christoper.