Red hot Richmond puts Melbourne as strong auction market

Red hot Richmond puts Melbourne as strong auction market
Red hot Richmond puts Melbourne as strong auction market

After a stellar spring selling season, the tail end of Sydney's 2016 vendors could sense a weakened pitch to secure auction success.

So having bought around the corner in Clontarf, the former fast bowler Brett Lee and wife Lana were among those to take a pre-auction offer.

Their redundant Seaforth waterfront home (above) sold just before its weekend auction.

The paperwork was being signed inside the three level home on Sydney's Spit as auction attendees were being turned away.

Clarke and Humel agents Cherie Humel and Michael Clarke had given $4.8 million price guidance, with the last minute negotiations securing the buyer at $4.91 million.

The couple paid $4.25 million for the four bedroom waterfront in 2013. Every level of the three storey home overlooks Middle Harbour, from the opulent master suite to the infinity pool and spa.

The family are trading up into a four bedroom Clontarf residence that cost more than $5 million. 

A Middle Harbour home on the southern side of the Spit was the nation's top recorded sale.

The Parriwi Road auction was slow to start with a $6.2 million opening bid and was finally knocked down at $6.48 million.

Melbourne's highest sale was $5.1 million in Hawthorn through Jellis Craig (below).

Red hot Richmond puts Melbourne as strong auction market

It was a knockdown on one of Melbourne's most highly-coveted Scotch Hill streets, listed after being held by one family for 77 years.

The graceful double brick residence located on 1038sqm had no heritage overlay but rich timber panelling, soaring ornate ceilings and open fireplaces. 

The former Richmond fire station (below) fetched well over reserve when its sold for $3.335 million at weekend auction, attracting a large Melbourne crowd.

Red hot Richmond puts Melbourne as strong auction market

It was on the market with the first bid of $2.5 million. 

There were three bidders with the Herald Sun reporting the buyer was a sculptor who planned to use the property as a studio for his works and potentially as a residence.

The property was sold by firefighter Peter Stafford, who operated a boarding house since it was purchased for $275,000 in 1992.

The fire station was built in 1893 as the MFB’s first Richmond base and decommissioned in 1966, when the base shifted to its current Church St location.

The four bedroom property came with the old watch room, billiards and locker room, fire engine bay and stables.

The combined capital city preliminary clearance rate rose this week to 75 per cent, up from last week’s final clearance rate of 73 per cent.

"This week’s auction market results indicate that clearance rates are maintaining strength coming into summer, a trend that is very different compared with last year’s performance when auctions clearance rates were tracking in the high 50 per cent to low 60 per cent range," Kevin Brogan at CoreLogic advised.

The number of properties taken to auction this week fell across the capital cities, with 3,173 reported auctions, down from 3,398 last week, which was the second busiest week for auctions this year.

The volumes were down in Melbourne and Sydney, to 1,410 and 1,158 respectively, but up across the smaller capital cities.

"Auction activity is expected to slow over the remaining weeks of December, however the strong trend in clearance rates is showing no signs of easing," Brogan noted.

Taking a late lead in the auction success rate, Melbourne’s preliminary clearance rate increased to 79.3 per cent, up from 76.1 per cent over the previous week.

Melbourne auction volumes decreased with 1,410 auctions held over the week, slightly down from 1,616 over the previous week.

Over the corresponding week last year, the clearance rate was 63.3 per cent across 1,622 auctions.

Melbourne's North East region was the best performer in terms of clearance rates, with an 88 per cent success rate across 166 auctions, followed by the North West region, with 83 per cent selling.

In Sydney, 1,158 auctions were held this week, down from 1,262 over the previous week. The preliminary clearance rate of 77.7 per cent was slightly up from 77.1 per cent last week, and also higher than the corresponding period last year, when a clearance rate of 52.9 per cent was recorded across 1,070 auctions.

The Northern Beaches region recorded the strongest clearance rate of 88.9 per cent across 112 auctions, while the North Sydney and Hornsby region had the highest volume of auctions (168).

Brisbane was host to 202 auctions this week and so far 123 results have been reported with a preliminary clearance rate of 50 per cent. 

Brisbane had the nation's cheapest sale when $220,000 was paid in Caboolture (below).

Red hot Richmond puts Melbourne as strong auction market 

The three bedroom house at 21 The Esplanade sold at $290,000 in 2011.

It was initially listed in October last year at $320,000, then $280,000 by earlier this year.

This week, Adelaide saw a preliminary clearance rate of 64 percent, with 104 reported results across a total of 165 scheduled auctions. Perth’s clearance rate of 67.3 percent across 88 auctions was well up from recent lows.

Across Canberra a total of 136 auctions were held this week, compared to 112 last week and 123 at the same time last year. Canberra’s preliminary clearance rate of 63.8 percent is lower than it was the previous week when it was 72 percent.

Canberra offerings started at $437,000 at Chisholm.

Next weekend presents a "stringent test" for the market with about 900 Sydney auctions to be conducted, according to Domain economist Dr Andrew Wilson.

Melbourne auction numbers will rise this coming weekend with well over 1,300 listed.


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.

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