Queen's Birthday long weekend disrupts gathering auction momentum

Queen's Birthday long weekend disrupts gathering auction momentum
Queen's Birthday long weekend disrupts gathering auction momentum

The long weekend disrupted the improving trend in auction results, despite most lenders announcing even lower home loan rates after the official Reserve Bank of Australia rate cut on Tuesday.

As most states enjoyed a long weekend with the Queen’s Birthday public holiday on Monday, there were just 803 homes taken to market across the combined capital cities.

Although there were fewer properties taken to auction, the overall preliminary clearance rates also softened, according to CoreLogic auction analyst Kevin Brogan.

The 51% preliminary auction clearance rate was down on the prior's week's 58% success rate when volumes were at 1,661.

One year ago, 904 homes were taken to auction returning a final clearance rate of 53.8%.

The bigger markets, Melbourne and Sydney, retained some resilience as their preliminary clearance rates came in at 64% and 62% respectively.

Brogan noted the overall weaker national weekend result "can partly be attributed to weaker results across the smaller capital cities with all returning preliminary clearance rates below 50%".

He noted just six out of 15 Sydney sub-regions returned preliminary clearance rates over 60%, which was down from the nine in the prior week and 12 in the last week of autumn.

The Ray White NSW chief auctioneer Alex Pattaro pinpointed the apartment market was "slightly lagging behind" houses.

He believes it is a consequence of investors and first-time buyers still having difficulty obtaining finance.

"We believe this will change over the coming months once the finance begins to flow," Pattaro said.

The post-election housing euphoria had fizzled out into a state of "calm and caution", BresicWhitney agent Shannan Whitney suggested.

"When you take a can a Coke, and shake it, it explodes and then starts to flatten out - that analogy is quite appropriate for the market right now," Whitney told The Weekend Australian Financial Review.

In Sydney, 310 auctions took place across the city, down on last week when 677 auctions secured a 61.8% clearance.

Its top sale was 16 Emperor Place, Kenthurst (pictured above) which fetched $2.95 million early in its auction marketing campaign through LJ Hooker agent Kerry Wilson.

The home on 2 hectares last sold at $2,185,000 in 2015.

Located in one of Kenthurst's most desired cul-de-sacs, the property with tiled garaging was marketed as providing an "opportunity for a car enthusiast, small business or tradesperson needing plenty of storage".

It came with a mechanics workshop measuring 16 metres by 12 metres with two hoists, storage, a wash area and a separate gym located on its ground floor. 

Another shed on the property took the number of cars that can be accommodated to 17.

It sold after 18 days on the market, compared with the Sydney Hills Shire suburb's 63 day average time on market.

Queen's Birthday long weekend disrupts gathering auction momentum

On the NSW south coast, a Culburra Beach home sold for $2.5 million at its mid-week Ray White auction.

The opening bid was $1.9 million, with two active bidders submitting 20 offers for the four-bedroom beachfront at 186 Penguins Head Road (pictured above).

Last sold 24 years ago for $155,000, the home was bought by a retired Sydney couple with a lot of grandchildren.

There were 216 homes auctioned across Melbourne, significantly lower than the 730 auctions held last week when 61.6% sold.

Queen's Birthday long weekend disrupts gathering auction momentum

Melbourne's top sale was $2,165,000 when 11 Nottingham Street, Kensington (pictured above) sold.

The five bedroom 1900 Victorian-era cottage that had been extended on its 566 square metre block sold through Paul Harrison at Nelson Alexander.

The pre-auction price guidance had been $1.92 million to $2.1 million.

It last traded at $1,795,000 in 2016.

Queen's Birthday long weekend disrupts gathering auction momentum

Melbourne had the nation's cheapest weekend auction listing when a one bedroom 1970s Noble Park maisonette sold at $170,000 pre-auction.

The offer was accepted two days before having had $180,000 price hopes by Biggin & Scott agent Ming Xu.

It was initially listed last October by private treaty with higher $240,000 to $260,000 price expectations.

The 9/37 Corrigan Road property (pictured above) last sold in 2013 at $168,000, so just a $2000 gain over six years.

Adelaide saw 42% of homes selling, Canberra was at 37%, Perth on 25%, while only 22% of homes sold across Brisbane.

Queen's Birthday long weekend disrupts gathering auction momentum

Adelaide's top sale was $678,000 for the five bedroom, two storey, sandstone fronted house at 10 Bell Court, Valley View (pictured above) which had been listed with $650,000 price hopes.

Also in South Australia, Ray White agent Peter Kiritsis sold 4 Brentwood Road in Flinders Park for $630,000.

More than 80 groups came through during the four-week campaign which saw it sold to a local couple.

The four-bedroom house had been a one-owner family home.

"We've seen an increase in numbers across the board since the Federal Election and that was highlighted by the three competing bidders today," Kiritsis said.

Queen's Birthday long weekend disrupts gathering auction momentum

One of Brisbane's sales came when $1 million was paid for the four bedroom Queenslander at Camp Hill by buyers who had only seen the Saturday onsite offering at 81 Lloyd Street (pictured above) on the day of the auction.

"The young family from the south of Brisbane, had been waiting four years to find their dream home and when they arrived today, they registered, and were able to achieve that dream via auction," Ray White selling agent Mel Christie said.

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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