Melbourne gears for cup, Sydney stays strong

Last weekend, the clearance rate dipped below 80 percent for the first time in two months as the highest number of auctions since May weighed down buyer activity. High auction numbers were, however, no impediment to the market on Saturday as the record-breaking spring selling season regathered its energy.

Despite the revival in the clearance rate at the weekend, the underlying trend has weakened over the past month although remaining strong nonetheless and definitely still a sellers’ market. Sydney’s four-weekend average clearance rate now stands at 81.3 per cent, compared with 83.0 per cent over the previous four-weekend period.

Sydney’s south took over from the usual leader, the inner west, as the best suburban region performer at the weekend with an exceptional clearance rate of 90.6 per cent, reflecting 87 sales from 90 listings. Next best was the city and east, with 85.1 per cent, closely followed by the north west with 85 percent, the upper north shore 83.3 per cent, the central coast 81.8 per cent, the northern beaches 81.5 per cent and Canterbury Bankstown 80.6. The inner west, however, recorded its lowest clearance rate for the spring with a 76.5 per cent result.

Standout auction sales results in the south at the weekend included a 5-bedroom home at 28 Matthew Flinders Place, Burraneer sold by McGrath Sutherland Shire for $2,450,000; a 4-bedroom home at 5 Holts Point Place, Sylvania, sold for $2,015,000 by RW Sylvania Waters; a 5-bedroom home at 88 Brushwood Drive, Alfords Point, sold by Century 21 Realty One Menai for $1,575,000; and a 3-bedroom home at 46 Laycock Road, Penshurst sold for $1,570,000 by McGrath St George.

The most expensive property reported sold at auction at the weekend was a 5-bedroom home at 78 The Promenade, Sans Souci sold for $3,125,000 by McGrath St George. The most affordable property reported sold at the weekend was a 1-bedroom unit at 216/88 King Street, Newtown sold for $265,000 by Agency by Glenn Regan.

Although the Sydney spring weekend home auction market clearly remains strong, recent trends have indicated a weakening in activity.

The Melbourne weekend home auction market lifted at the weekend, following two weekends of falling clearance rates. Melbourne reported a 76.4 per cent clearance rate compared with the previous weekend's 73.8 per cent - the lowest result so far this spring.

Although Melbourne reported an improved result this weekend, the underlying trend has fallen recently. The four-weekend average clearance rate now stands at 75.9 per cent, compared with 77.4 percent over the previous four-weekend period. Current clearance rates, however, continue to reflect solid local market conditions, with competition among buyers for property encouraging for sellers.

This weekend’s improved result in Melbourne was recorded despite a continuing surge in auction numbers. A notable 1,005 homes were listed for auction at the weekend, well ahead of the previous weekend's 903 and also up on the 938 auctioned over the same weekend last year.

An unprecedented test, however, awaits the Melbourne home auction market this coming weekend, with the all-time record of Saturday auction numbers set to be broken. Over 1,500 auctions are scheduled in the metro area in the usual pre-Melbourne Cup long weekend holiday Super Saturday of auctions.

Melbourne’s eastern suburbs continue to dominate auction results again, reporting the highest regional clearance rates at the weekend. The outer east led the pack with a clearance rate of 88.3 per cent and with 83 sales from 94 auctions. Next best were the inner south with 81.7 percent; the inner east with 80.6 per cent; the north with 78.0 per cent; the north east with 74.7 percent; the inner city with 70.6 per cent; the west 67.5 with per cent; and the south east with 66.7 per cent.

Notable sales in the outer east reported at the weekend included a 5-bedroom home at 55 Marykirk  Drive, Wheelers Hill sold by Barry Plant for $1,718,000; a  3-bedroom home at 6 Glen Road, Glen Waverley sold for $1,655,000 by Harcourts Glen Waverley; another 3-bedroom home at 7 Huon Grove, Ashburton sold for  $1,560,000 by Hocking Stuart; and a 3-bedroom home at 50 Panoramic Grove, Glen Waverley sold by Thomson for $1,560,000.

The most expensive property reported sold at auction at the weekend was a 3-bedroom home at 14 Glen Road, Toorak sold for $3,525,000 by RT Edgar. The most affordable property reported sold at the weekend was a 3-bedroom home at 4 Carbon Court, Werribee sold for $256,000 by Hocking Stuart.

Although the Melbourne spring weekend home auction market remains solid, recent trends have indicated a weakening in activity.