Auction clearance rates are yo-yoing, but autumnal trend is downwards

Auction clearance rates are yo-yoing, but autumnal trend is downwards
Auction clearance rates are yo-yoing, but autumnal trend is downwards

The auction clearance rates across capital cities continue to yo-yo.

CoreLogic advised the capital cities saw fewer homes taken to auction, with a total of 2,280 held, down on the prior weekend tally when 2,577 were held. 

But the lower volumes saw an improved preliminary clearance rate at 63.5 per cent, up on the weekend prior’s revised clearance rate which ranked the lowest over the year-to-date with 60.3 per cent of properties selling

The unit market outperformed houses, returning a 67.7 per cent clearance rate, with a 61.7 per cent for houses.

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Auction clearance rates are yo-yoing, but autumnal trend is downwards

The gap was greatest in Sydney where 75.5 percent of units sold compared to 62.5. The gap was narrower in Melbourne at 65.8 against units at 62.4 percent. Canberra went against the national trend as houses outperformed units, 79.4 percent to 57.1 percent.  

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Auction clearance rates are yo-yoing, but autumnal trend is downwards

Its follows the price trend where the unit market prices are outperforming house value growth, units being the more affordable segments of the market.

Although the preliminary clearance rate has shown a positive rise over the week, CoreLogic auction analyst Kevin brogan advised the trend in auction clearance rates clearly shows a downwards trend.

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Auction clearance rates are yo-yoing, but autumnal trend is downwards

"Auction markets remain more buoyant than December last year, when Sydney clearance rates reached a low point of 52 percent, however the weaker auction results suggest housing market conditions are likely to remain relatively soft," Brogan said.

"Looking at results over the corresponding year-to date period last year, the capital city auction market was performing quite differently, with an average of 10 per cent more homes selling over the same period last year, while weekly volumes continue to show similar trends," he noted.

Click here to enlarge.

Auction clearance rates are yo-yoing, but autumnal trend is downwards

Melbourne returned a preliminary clearance rate of 63.5 per cent this week across 1,137 auctions, down on last week when 1,334 auctions took place and a higher 63.9 per cent cleared.

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Auction clearance rates are yo-yoing, but autumnal trend is downwards

Sales were occurring after auctions including an Elsternwick offering.

The Block alumni reno stars Julia Treuel and Sasha Wright-Neville’s latest project fetched $2.485 million in post-auction negotiations after it passed in on a vendor bid of $2.3 million.

The Herald Sun advised Gary Peer & Associates agent Jeremy Rosens had been quoting $2.3 million to $2.5 million for the 2016 transformed four-bedroom Edwardian at 7 Willow Street.

There was a post-auction result too on a converted Fitzroy furniture factory with Provan-Ludlow design (top below).

Auction clearance rates are yo-yoing, but autumnal trend is downwards

The 51 South Little Smith Street offering fetched $2.015 million after the house had passed in at $1.925 million through Jellis Craig Fitzroy agent Bev Adam who said said the buyer and sole bidder came from St Kilda East.

Melbourne's top officially advised result was 507 Orrong Rd, Armadale, a 10 bedroom offering. 

Listed with $5.5 million to $5.95 million hopes, it fetched $6.6 million.

Set on the corner of Karbarook Ave, benefiting from a GRZ Schedule 3 zoning, the 1930's English style residence currently divided into three separate apartments, was marketed by Marshall White as "an outstanding opportunity for a luxury development."

There were just the two bidders after the property was announced on the market at $6.25 million.

There was also a $6.25 million sale in Hawthorn when the four bedroom Biasca, at 20 Riversdale Court was sold (below).

Auction clearance rates are yo-yoing, but autumnal trend is downwards

It was listed with $5.3 million to $5.8 million price guidance.

In Sydney, 774 auctions were held this week with 66.9 per cent selling, up on last week when only 55.8 per cent of auctions were successful across a slightly higher 829 auctions.

Sydney's top sale was at Balmain, in Sydney's inner west, where a three-bedroom waterfront sold $500,000 above reserve at $4.8 million.

Just two bidders competed for the house at 3 Longview Street, which had its own deep-water mooring and views across the Parramatta River.
Domain reported it sold to a Brisbane couple returning to Sydney after four years away.
Brisbane saw the nation's cheapest sale at $220,000 for 4 Dale St, Kingston. The three bedroom Logan district home that sits on a 658 sqm block last traded in 1974 at $17,000.

Results were varied across the smaller auction markets this weekend, with Canberra and Perth recording a slight increase in week-on-week volumes, while the remaining markets saw fewer auctions take place.

Canberra was the strongest performer with 74 per cent of homes selling, while only 18 per cent of Perth homes sold.

Prices in Canberra ranged between $417,000 at Casey and a $1,475,000 sale at Turner.

Jonathan Chancellor

Jonathan Chancellor

Jonathan Chancellor is one of our authors. Jonathan has been writing about property since the early 1980s and is editor-at-large of Property Observer.

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Clearance Rate Corelogic

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