Weekend: Nov 2, 2024
As the spring selling season continues to unfold, Australia’s auction market is demonstrating varied results, with strong competition for high-demand properties and fluctuating clearance rates across cities.
According to Domain, the national auction clearance rate for the week stood at 57.3%, with 2,549 auctions reported and 933 successful sales. The total value of properties sold nationally was approximately $900.1 million.
Sydney maintained a clearance rate of 59% from 1,407 listed auctions, resulting in 525 properties sold and a total value of $594.7 million. The median price for houses sold at auction in Sydney was $1,725,000, while units recorded a median of $1,100,000. Meanwhile, Melbourne showed a slightly stronger performance, achieving a 63.3% clearance rate from 603 auctions, with 248 properties sold for a total of $166.9 million. The median auction price for houses in Melbourne was $810,000, and $645,000 for units.
CoreLogic data further highlights the mixed auction outcomes across the country. Their numbers were slightly different, reporting a total of 1,983 capital city homes went under the hammer this past week. This was a sharp reduction from 3,135 the previous week, primarily due to fewer auctions in Melbourne as attention turned to the Spring Racing Carnival.
The preliminary combined capitals clearance rate fell to 63.4%, marking the lowest early clearance rate recorded this year, a notable decrease from 66.8% the prior week, which revised down to a final rate of 59.5%. Clearance rates below 60% have persisted for three of the past four weeks, and this trend is likely to continue as results are finalised.
In Sydney, notable auction results included the sale of a Queen Anne-style Federation home at 13 Robinson Street, Chatswood, which sold for $7.1 million under the hammer, surpassing its $6.9 million reserve. The property, led by agent John McManus of Ray White Lower North Shore (Mosman), drew eight registered bidders, three of whom were actively involved in the bidding. Mr McManus highlighted that the competition was strong, with bidding increments starting at $6 million and progressing in $50,000 steps until the final price was reached.
In Adelaide, the auction at 14 Golflands Terrace, Glenelg North, attracted significant attention with 22 registered bidders. It sold for $1.505 million, exceeding its $1.045 million reserve by $460,000. Ray White Glenelg agent and auctioneer Rod Smitheram noted that the property’s development potential and appealing location drew interest from first-time buyers and developers alike. This success underscores Adelaide’s strong performance, which has maintained one of the highest preliminary clearance rates among smaller capitals at 67.1%.
Brisbane’s auction market also displayed resilience, with 182 homes auctioned during the week. Although the city reported a 52.3% preliminary clearance rate—its second-lowest of the year—there were notable successes. For instance, the highest sale in the region was at 21 Lodge Road, Kalinga, which sold for $2.125 million after competitive bidding involving five registered participants.
Melbourne’s auction activity saw a dip due to the Spring Racing Carnival.
Market analysts, including CoreLogic research director Tim Lawless, said that auction volumes are expected to rise in the coming weeks, with approximately 2,900 homes scheduled for auction across the capital cities.
As the Reserve Bank of Australia (RBA) prepares for its upcoming monetary policy meeting, potential interest rate changes remain a pivotal factor for market participants. Despite inflation now falling within the RBA’s target range of 2.8%, there is speculation that the central bank may choose to keep rates steady, potentially impacting buyer sentiment as the year draws to a close.
