Sydney's auction clearance rate suggests price decline possibility: Shane Oliver

Sydney's auction clearance rate suggests price decline possibility: Shane Oliver
Sydney's auction clearance rate suggests price decline possibility: Shane Oliver

The Sydney auction clearance rate was now approaching levels associated with prior price declines, AMP Capital chief economist Shane Oliver has suggested.

Oliver tweeted the Domain weekend's result of 66 percent for Sydney, and its prior weekend result being revised after late results to 56 percent, was at levels similar to when there were price declines in 2008-09 and 2011-12.

But Gaby Kennard, the first Australian woman to fly around the globe by airplane, scored the nation's top auction result when her Woolloomooloo Wharf apartment sold for $5.55 million.

The three bedroom, two bathroom harbour front apartment was snapped up pre-auction having had $5 million to $5.5 million price guiduance through BresicWhitney Darlinghurst agent Nic Krasnostein.

Kennard, who had renovated after paying $3.31 million in 2013, is remembered for her accomplishment taking 99 days to complete a journey circling the world in the late 1980s.

She covered 29,000 nautical miles (54,000 kilometres) and followed Amelia Earhart's route as much as possible.

Adelaide had the cheapest weekend sale when $222,500 was paid for a one bedroom house.

The 340 sq m Waite Street, Ethelton offering was marketed as set for demolition.

There were significantly fewer homes taken to auction across the combined capital cities on the weekend, after last weekend's year-to-date high of 3,713.

There were a total of 2,019 auctions held returning a preliminary auction clearance rate of 66.8 per cent, a tad up on last week’s final clearance rate of 64.5 per cent, CoreLogic advised.

Over the corresponding weekend last year, 73.6 per cent of the 2,517 auction held were successful.

Melbourne saw a notable decrease in volumes given the spring racing festivities, with only 309 auctions.

CoreLogic calculated 77.3 per cent sold across Melbourne with its dearest result unusually in Wheelers Hill at $2.82 million. The 2 Latrobe Court home was a modern rendered 60 square residence.

Sydney’s preliminary auction clearance rate sat at 67.4 per cent, according to Coreogic, who put last week’s final auction clearance rate at 58.3 percent, its lowest recorded since early 2016.

There were 1,217 homes taken to auction across Sydney last week, including 900 plus on Saturday, virtually unchanged from prior week.

Performances across Sydney’s sub-regions were mixed, with Baulkham Hills and Hawkesbury recording a 78.8 percent success rate across 41 auctions, while the outer South West region of Sydney recorded a much lower clearance rate of 33.3 per cent across 18 auctions.

The south west results included Sydney's cheapest notified sale when $470,000 was paid at Rosemeadow. The three bedroom Tamora Street offering was a 1960s brick veneer home on its 442 sqm Campelltown district block.

The preliminary auction clearance rate in Brisbane was 53.5 per cent, increasing from 44.8 per cent over the weekend prior.

Auction volumes were lower this week across Brisbane with 169 auctions held, down from 190 last week. 

Brisbane's top price was a modern three level riverfront that fetched $4,125,000. The 29 Laidlaw Pde, East Brisbane offering was five bedroom, three bathroom house, which Ray White agent Dean Yesberg said was "one of only 25 homes that enjoys this irreplaceable position."

Brisbane's cheapest result was a loss taker near Goodna. The sale of the three bedroom home at 5 Drysdale Avenue, Collingwood Park at $240,000 was down on its prior $293,000 sale in 2009, and just above its $232,000 sale in 2005. 

Adelaide saw an auction clearance rate of 65.5 per cent, across a total of 125 auctions, increasing from the previous week’s 62.5 per cent, and similar to the 65.6 per cent one year ago.

Adelaide's dearest sale was $1.32 million when a three bedroom house at 21 Northgate Street, Unley Park was sold. The sandstone house on 890 sqm had $1,295,000 price guidance through Scarce Real Estate. 

Canberra’s preliminary auction clearance rate of 68.2 per cent was down on the weekend prior when the final auction clearance rate was 72.6 per cent. 

Its top sale was a Forrest house designed in 1927 by Oakley & Parkes, who had previously designed The Lodge. The home on its 1500 sqm Barkly Crescent block last sold in 1997 at $525,000.

There were 48 Perth auctions this week with only 30 per cent clearing.

Shane Oliver Sydney Auctions

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