The Urban Developer
AdvertiseEventsWebinarsUrbanity
Industry Excellence
Urban Leader
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Urban Leader Awards Logos RGB White
NOMINATIONS CLOSE SEPTEMBER 12 RECOGNISING THE INDIVIDUALS BEHIND THE PROJECTS
NOMINATIONS CLOSING SEPTEMBER 12 URBAN LEADER AWARDS
LEARN MOREDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
1
print
Print
OtherTed TabetMon 23 Sep 19

Auction Results Bloom in Spring Selling Season

db493288-eddb-4f6f-a9dc-9386227f0468

The traditional spring selling season has picked up momentum with auctions across the major markets of Sydney and Melbourne seeing a surge in clearances.

The confidence boost across Australia's east-coast capitals after the May federal election, rate cuts and a sense that banks are easing serviceability measures instilled by regulator APRA — combined with spring — has continued to breathe life into the housing market.

According to preliminary figures from data provider Corelogic, nationally the clearance rate was 74 per cent, an increase on last week’s final result of 72.8 per cent.

High clearance rates this week were maintained even as the number of listings rose more than one fifth to near 2,000 homes listed for auction nationally.

Sydney was at 76.6 per cent and Melbourne at 77.8 per cent. Last week's final clearance rate was 75.7 per cent, and remained above 80 per cent in Sydney.

Elsewhere, Canberra was the best-performing of the smaller auction markets, with a preliminary auction clearance rate this week of 65.3 per cent on Corelogic figures. Adelaide followed closely with 59.2 per cent of homes selling at auction. Brisbane achieved a 52.7 per cent rate.

While volumes have been steadily ticking up over the past month they are still down on the previous year, when 400 more properties were taken to auction.

Sydney returned a preliminary auction clearance rate of 76.6 per cent as volumes increased across the city.

There were 647 homes taken to auction, up on the 585 homes auctioned the week prior when 76 per cent sold. Last year, a higher 851 Sydney homes were auctioned returning a 51.1 per cent success rate.

Ryde was the strongest performing region at 85.2 per cent from 36 auctions, followed by the inner south west at 83.3 per cent and the eastern suburbs at 81.8 per cent.

In Melbourne, 1,022 homes were taken to auction, with 77.8 per cent sold, up on the 74.5 per cent final auction clearance last week when volumes were lower at 826.

At the same time last year, 53.8 per cent of the 1,161 Melbourne homes taken to auction were sold.

Melbourne's outer east was the strongest performing region at 92.8 per cent from 77 auctions, followed by the inner east at 84.8 per cent.

Auction volumes are anticipated to drop next weekend across Melbourne to avoid the clash with the AFL grand final.

Across the individual property types, the last five weeks has seen houses consistently outperformed units in terms of clearance rate with 74.9 per cent of houses selling at auction this week, while across the unit market a lower 71.2 per cent preliminary clearance rate was recorded.

▲ Property values increased 1.6 per cent in Sydney and 1.4 per cent in Melbourne in August, following much milder growth in June and July.


Concerns remain that the strong market will not continue and that wider concerns about the weak economy are holding listings back.

Many analysts have questioned the ability of the housing market to stimulate an otherwise anaemic economy.

According to analysis by global investment bank Morgan Stanley, residential property is dragging along market bottom rather than set for a rebound that will reinvigorate the economy.

The bank has warned that only through fiscal expansion driving employment and salary growth will sustained economic recovery will be generated, rather than re-leveraging household debt.

Structural headwinds in the property sector, such as low investor activity and sellers’ crystallising losses from the downturn, are also slowing recovery.

Clearance rates as also expected to retract toward the end of the spring selling season as they do most years, which could dampen the current upswing in optimism.

ResidentialAustraliaReal EstateSector
AUTHOR
Ted Tabet
The Urban Developer - Journalist
More articles by this author
website iconlinkedin icon
ADVERTISEMENT
TOP STORIES
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
4 Min
Woolloongabba Precinct Vulture St
Exclusive

Brisbane Developer in Cross River Rail Compensation Tussle

Clare Burnett
4 Min
The Mondrian Gold Coast hotel's food and beverage is driving profits
Exclusive

Touch, Taste, Theatre: What’s Driving Mondrian’s Success

Renee McKeown
6 Min
Fortis’ display suites are designed as brand environments first, with tactile details and curated design to build buyer confidence before project specifics.
Exclusive

Relevant or Redundant: Will Tech Kill Display Suites?

Vanessa Croll
7 Min
Exclusive

Missing Heart: Why The Gold Coast Needs a CBD

Phil Bartsch
7 Min
View All >
Aerial view of Caboolture and Bruce highway to Brisbane with Bribie Island Road crossing, Queensland, Australia
Policy

Queensland’s $2bn Push Opens New Housing Front

Vanessa Croll
JQZ Parramatta EDM
Residential

JQZ Plots 10-Storey Addition to Parramatta ‘Auto Alley’ Plans

Clare Burnett
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
The property giant’s strategic shift to higher density is in full flight as details of two landmark projects are made pu…
LATEST
Aerial view of Caboolture and Bruce highway to Brisbane with Bribie Island Road crossing, Queensland, Australia
Policy

Queensland’s $2bn Push Opens New Housing Front

Vanessa Croll
2 Min
JQZ Parramatta EDM
Residential

JQZ Plots 10-Storey Addition to Parramatta ‘Auto Alley’ Plans

Clare Burnett
3 Min
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
4 Min
The Adelaide purpose built student accommodation market is about to increase by 1058 beds with the State Commission Assessment Panel supporting two towers in the making.
Student Housing

Highrise Approvals Add 1000-Plus PBSA Beds in Adelaide

Renee McKeown
3 Min
View All >
ADVERTISEMENT
Article originally posted at: https://www.theurbandeveloper.com/articles/auction-volumes-and-clearances-bloom-for-spring-selling-season