The Urban Developer
AdvertiseEventsWebinarsUrbanity
Industry Excellence
Urban Leader
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
A one-day deep dive on office, retail, healthcare, childcare and alternative sectors
UPCOMING | COMMERCIAL REAL ESTATE SUMMIT
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
5
print
Print
ResidentialRenee McKeownMon 15 Jun 20

Sydney, Canberra Out Bid in Auctions

e5fe4665-8fc9-44cd-a16c-24be9c5895fe

Sydney and Canberra had a bumper number of auctions on the weekend, returning to 2019 levels with the best clearance rates in the country.

It was the busiest week for auctions since 19 April with 1,164 properties scheduled in Australia, up 39 per cent from the week before at 711, according to Corelogic.

Sydney had 532 auctions with a clearance rate of 67.3 per cent compared to 534 auctions and 66.4 per cent in 2019.

Canberra had 40 auctions at 75.8 per cent up from 39 auctions at 48.7 per cent in the year before.

However, the number of homes on the market was down on average 23.4 per cent across the country. Home values dropped 0.7 per cent over the past month.

Related: House Price Outlook More Optimistic—UBS


Auction results 14 June 2020

CityClearance RateAuctionsClearance rate 2019Auctions 2019
Canberra75.8%4048.7%39
Sydney67.3%53266.4%534
Melbourne61.0%47464.9%724
Adelaide57.6%4747.4%80
Brisbane51.3%5739.7%93
Perth20.0%1434.6%35
Weighted Average63.3%1,16461.8%1,505

^Source: CoreLogic

This was bad news for banks and households according to Moody’s Investors Service analysts.

“The combination of reduced housing activity and lower house values highlight the potential for a weaker residential property market, which will add pressure to the banks' asset quality, a credit negative,” Moody's analyst Tanya Tang said.

New housing finance approvals also fell 4.8 per cent in April, the sharpest month-on month decline since 2015 according to the Australian Bureau of Statistics.

The analysts said banks and households were still vulnerable from further Covid-19 fallout as the RBA predicted unemployment to rise to 10 per cent.

“The performance of housing loans is a key driver of Australian bank asset quality, given that mortgages account for about two-thirds of banking system loans,” Tang said.

“And while losses on residential mortgages have historically been exceptionally low, such loans present a key risk given high levels of indebtedness among households.

“As at December 2019, household debt made up 186.8 per cent of annualised disposable income, which creates a vulnerability for households to a rise in unemployment.”

ResidentialAustraliaBrisbaneMelbournePerthAdelaideCanberrado not useFinanceReal EstatePlanningPlanningSector
AUTHOR
Renee McKeown
More articles by this author
ADVERTISEMENT
TOP STORIES
Gelephu Mindfulness City: Bhutan how a city of the future is planned
Exclusive

Bhutan’s Mindfulness Masterplan Resetting How Cities Work

Renee McKeown
8 Min
Long Bay Correctional hero
Exclusive

Time to Rethink: Fresh Bid to Unlock Prison’s Prime Site for Homes

Clare Burnett
7 Min
Inside NSW Housing Divide-Mosman
Exclusive

‘The Machinery Underneath is Broken’: Inside NSW’s Housing Divide

Vanessa Croll
9 Min
Exclusive

Queensland Decade of Gigaprojects a Developer’s Goldmine

Phil Bartsch
5 Min
Multiplex Moderna facility
Exclusive

Industrial Subsectors Win Investor Attention as Demand Blossoms

Clare Burnett
7 Min
View All >
Sponsored

How Rising Costs are Rewriting Portfolio Strategies

Partner Content
Gelephu Mindfulness City: Bhutan how a city of the future is planned
Exclusive

Bhutan’s Mindfulness Masterplan Resetting How Cities Work

Renee McKeown
Sponsored

The Risk Developers Keep Ignoring Until Too Late

Partner Content
This ‘blind-spot’ puts three months of progress payments at risk. And it’s happening right under the developers’ and len…
LATEST
Real Estate

How Rising Costs are Rewriting Portfolio Strategies

Partner Content
6 Min
Gelephu Mindfulness City: Bhutan how a city of the future is planned
Exclusive

Bhutan’s Mindfulness Masterplan Resetting How Cities Work

Renee McKeown
8 Min
Finance

The Risk Developers Keep Ignoring Until Too Late

Partner Content
4 Min
Share-worthy features that celebrate the building's use in the film industry are designed by SJB Architects.
Hotel

‘Cinematic’ Hotel Makeover Under Way in Sydney CBD

Patrick Lau
3 Min
View All >
ADVERTISEMENT
Article originally posted at: https://www.theurbandeveloper.com/articles/sydney-canberra-out-bidding-in-auctions-again