Property market begins to show signs of life

October 28, 2019
The property market is showing signs of life.

There were 2017 homes taken to auction across the combined capital cities over the past week, up from 1324 the previous week, suggesting the 2019 spring auction selling season was finally gaining some listing momentum.

The CoreLogic preliminary results showed a 77 per cent success rate, up after last week’s interrupted long weekend recorded a final clearance rate of 67 per cent.

“Although the clearance rate will revise lower as final results are collected, it will likely hold around the low-mid 70 per cent range,” CoreLogic auction analyst Kevin Brogan said.

The number of listings is finally up on the same time last year when 1851 auctions were held across the combined capitals, then recording a 47 per cent clearance rate in October 2018.

Property economist Dr Andrew Wilson said the Sydney weekend home auction market bounced back strongly following the previous weekend’s holiday break “with a booming clearance rate despite a surge in listings”.

“Lower interest rates and higher prices are motivating sellers to take advantage of strong competition generally for Sydney homes,” Dr Wilson suggested.

SQM property commentator Louis Christopher observed “ongoing strong auction results”.

The biggest sale was, however, in Melbourne where 7 Ruby Street, Hawthorn, fetched $5.175 million.

weekend auction wrap October 12

The property last sold in 2010 at $4.4 million. Photo: Little Real Estate

There had been price guidance of $4.75 million to $5.225 million.

The 596-square-metre house was designed by Steve Domoney Architecture.

The marketing by Little Real Estate agent Jeffrey Wilson described the three-level home as “unrivalled luxury”.

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The home’s design was described as “magnificently modern and dramatically daring”. Photo: Little Real Estate

Sydney’s top house sale was in Mosman.

The $5.025 million sale through Di Jones Real Estate was a five-bedroom 1930s home at 89 Bay Street.

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The home has uninterrupted 180-degree views of Sydney’s Middle Harbour. Photo: Di Jones

With Middle Harbour views, the home last traded at $3.2 million in 2012.

There was a $4.7 million sale in Brisbane when the riverfront home at 23 King Arthur Terrace, Tennyson was sold pre-auction through estate agent Jason Adcock.

The home has 20 metres of Brisbane River frontage. Photo: Adcock Prestige

It last sold at $3.81 million in 2015.

The north-facing, five-bedroom, four-bathroom family home has views capturing the river, golf course and city skyline from its 1154-square-metre holding with 20 metres of river frontage.

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An open-plan kitchen and living room overlooks the pool and connects directly to an outdoor entertaining area. Photo: Adcock Prestige

Melbourne saw 977 homes taken to weekend, returning a preliminary clearance rate of 76.7 per cent.

In comparison, last week saw 775 homes taken to auction returning a final clearance rate of 70.5 per cent.

Over the same week last year, a clearance rate of 50.4 per cent was recorded across 912 auctions.

Melbourne had the weekend’s cheapest offering when $225,000 was paid for the one-bedroom unit at 8/90 Roberts Street, West Footscray.

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The unit last sold in 2006 for $115,000. Photo: Jas Stephens Real Estate

There had been $200,000 to $220,000 price guidance by Jas Stephens Real Estate.

It was offered as a $190-a-week rental in 2016.

There were 729 homes taken to auction across Sydney over the week with preliminary results showing a clearance rate of 82.3 per cent.

Over the previous week, a final clearance rate of 74.7 per cent was recorded across just 317 auctions given the long weekend.

One year ago, 647 auctions were held across Sydney returning a final clearance rate of 45.1 per cent.

Across the smaller auction markets, Perth saw lower auction volumes week on week, while Adelaide and Canberra – both with a 78 per cent success rate – saw an increase in the number of homes taken to auction over the week.

There was a 59 per cent clearance rate in Brisbane, where sales included a $2.085 million Bulimba result through LJ Hooker AVNU in conjunction with Ray White agent Nicholas Given.

The 2012-built, contemporary five-bedroom home at 32 Princess Street sold for $2.085 million.

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There was hot competition for this five-bedroom Bulimba home. Photo: LJ Hooker AVNU

It potentially could have gone higher.

“There were lots of people desperate to buy this home but didn’t have their finances in place,” Mr Given said.

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The home featured a built-in pool. Photo: LJ Hooker AVNU

It last sold at $1.8 million in 2013

“Displaying a cutting-edge architectural aesthetic, the home was designed with an emphasis on gourmet open-plan, indoor/outdoor poolside entertaining,” Tanya Douglas at LJ Hooker AVNU said.