McGrath secures auction success

McGrath secures auction success
McGrath secures auction success

Sydney's auction clearance rate stayed below 70 percent yesterday, but the battered McGrath Estate Agency bucked the weekend trend.

There was an overall 69 percent sales rate, though McGrath, whose shares were suspended from trading on Friday, secured a 75 percent success rate. 

Sales across Sydney ranged from $340,000 for a one bedroom Surry Hills unit to a pre-auction $5.775 million five bedroom Woollahra house.

CoreLogic RP Data had 330 scheduled auctions given reduced school holiday activity.

The McGrath agency secured secured sales ranging between $395,000 at Tumbi Umbi to $3.57 million at Coogee, a contemporary five bedroom home which had been tipped to fetch $3.5 million.

The real estate company asked to go into a trading halt until Tuesday as its reviews its earnings forecast from when it was listed on the ASX share market last December.

Floated at $2.10 a share, it last traded at $1.30 a share. 

McGrath, founded in Paddington by John McGrath in 1988, has a network of more than 70 offices.

The suspension came before the Reserve Bank released its half-yearly snapshot of the financial system which warned the growth in big city apartment developments was a key risk to Australia's financial system.

Sydney's declining established home sales activity and the declining auction clearance rate have not helped the McGrath share price.

Sydney's clearance rate last April was well above 80 percent.

CoreLogic figures have put the Sydney clearance rate at below 70 percent for the past five weeks after a strong February start.

Strathfield was Sydney's busiest auction suburb yesterday with the preliminary results showing four of the five offerings finding buyers, with two sales through McGrath.

Jonathan Chancellor

Jonathan Chancellor

Jonathan Chancellor is one of Australia's most respected property journalists, having been at the top of the game since the early 1980s. Jonathan co-founded the property industry website Property Observer and has written for national and international publications.

Auctions Clearance Rate

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