Melbourne weekend auction clearance eases in winter school holidays, but Sydney holding its own
Melbourne’s weekend auction clearance rate eased to 55%, as winter school holidays accentuated the buyer disinterest.
It was down on the 58% of the previous weekend and 53% the same weekend last year.
The total number of auctions was down considerably compared with the same week last year, from 465 to 331.
The Real Estate Institute of Vicotria notes with the exception of January, the month of July historically has the lowest volume of residential auctions.
“This year the winter trend is exacerbated, with around 10% fewer auctions than this time last year,” REIV chief executive Enzo Raimondo says.
Dr Andrew Wilson of Australian Property Monitors says Melbourne’s auction culture, which is the strongest in Australia’s capital cities, is softening, with clearance rates “drifting downwards”.
“The steam is out of the Melbourne market,” Wilson told the Australian Financial Review.
He forecasts buyer wariness to continue and the auction clearance rate to remain low.
Melbourne’s top seller was a five-bedroom Mt Waverley house at $1,532,000.
“It was a relatively quiet weekend for auctions in Melbourne – the end of the financial year expected to have played a part,” WPB buyers’ agent Greville Pabst notes.
“However, consumer sentiment is considered the primary reason for the continued lull in activity among buyers and sellers.
“A softening in market activity means there are fewer properties available for purchase, but the lower competition is good news for astute buyers who are willing to go that extra mile in their search,” he says.
Wilson says the Sydney market was a “different story”.
Sydney secured a 56.2% auction clearance rate. It was 54.7% in the previous weekend, and 52.9% in the same weekend last July.
Wilson suggests Sydney is “holding its own and not suffering in health.
“It’s an encouraging result.”
Sydney’s highest recorded office was $3.02 million for a five-bedroom Burwood house.
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