Preliminary auction clearance rates rose to a six-week high of 74 per cent across capital cities despite more homes being offered for sale, amid signs confidence is returning to the market after the Reserve Bank left interest rates untouched for a second straight month.
Data from CoreLogic showed the preliminary clearance rate in Sydney climbed by 2.5 percentage points to 77.5 per cent from the previous week, the highest rate since late June.
A two-bedroom, two bathroom unit in Sydney’s Glebe was sold under the hammer for $2 million.
Melbourne also posted a markedly higher success rate of 72.7 per cent, which is 3.2 percentage points stronger than a week ago.
CoreLogic research director Tim Lawless said the increase in auction numbers corresponded with rising buyer activity.
“It looks like buyers are coming out in line with the larger number of auctions being held,” he said.
“We’re seeing Sydney hitting high 70s again, which is well above the average clearance rate historically, while Melbourne is likely to finish above 70 per cent, which is an early indication that the buyer demand is looking quite healthy as well.
“So potentially there’s a bit of a confidence injection coming through on the back of stabilised interest rates and the fact that housing prices are still rising.”
Auction volumes rose by 6.6 per cent to 2056 across the capital cities, which is the busiest auction week since before Easter.
Among the notable auctions on the weekend was a two-bedroom, two-bathroom unit at G01/2a Hereford Street, Glebe, which was sold by BresicWhitney for $2 million – $356,000 above reserve.
BresicWhitney chief executive Thomas McGlynn said the sale was one of the strongest apartment results in the suburb over the past six months.
“It was a historic manor that had been converted into apartments and had high ceilings and tasteful renovation,” he said.
“We had four active bidders and about 12 registered bidders, which shows that buyers are still willing to compete and pay a premium for good property.”
In Sydney, 839 homes were taken to auction, up 9.7 per cent from last week and 31.3 per cent compared to a year ago. Meanwhile, Melbourne recorded a 4.4 per cent drop in auction volume to 838.
Mr Lawless said sentiment could improve further over spring if interest rates remain on hold.
“If the RBA pauses again or holds interest rates at 4.1 per cent, then we probably will start to see some renewed lift in sentiment which could help boost or support supply and demand,” he said.
Mr McGlynn, said a rise in listings this spring could potentially lure more buyers into the market.
“At the moment, potential vendors are not putting their properties on the market because there’s nothing for them to buy, so if stock rises, and they have more to choose from, this may bring out a new wave of buyers,” he said.
In the smaller capital cities, Brisbane cleared 69 per cent of the reported results, Adelaide 76.2 per cent and Canberra 62.3 per cent.
A five-bedroom, three-bathroom in Orrong Road, Toorak, sold for just over $9.5 million, which is $1 million above vendor’s expectations.
A three-bedroom, two-bathroom townhouse at 2/92 Shorter Avenue, Narwee, located 18 kilometres south of Sydney’s CBD also attracted strong buyer interest, selling agent George Boghos, of Ray White Kingsgrove, said.
The home was sold under the hammer for $1.138 million – $238,000 above reserve over the weekend.
In Melbourne, a five-bedroom, three-bathroom house at 782 Orrong Road in Toorak was sold more than $1 million above the vendor’s expectations at just over $9.5 million after five buyers competed at a private auction in the past week, according to selling agent Nicole Gleeson of Kay and Burton.
The property was previously listed with an expression of interest campaign, but strong interest prompted a change to a private auction, said Ms Gleeson.
“Interest was primarily from the international market, with a local Chinese purchaser securing the keys,” she said.
“The scarcity of stock is the biggest factor driving unprecedented results such as this one. There’s currently an extraordinary demand for prestige property in Melbourne but not a lot of stock.“
Follow the topics, people and companies that matter to you.
Fetching latest articles
The Daily Habit of Successful People
Recent Comments