Rising clearance rates reflect post-election confidence bounce
Last weekend’s sales across the nation pointed to a return of confidence in the market after weeks of jitters leading to the federal election.
Brisbane’s top sale, which fetched $1.155 million, was Bill’s-hill Cottage, which dates back to the 1880s.
With just three owners since it was built, the nine-room home came with original fixtures meticulously restored by the current owners.
“Behind the charming, traditional facade you will find a generously proportioned home with carefully considered modernised areas such as the family-sized kitchen and tiled bathrooms, all designed with a nod to the house’s rich heritage,” the marketing said.
The original hoop pine floorboards had been sanded and finished with tung oil at the 9 Macartney Street, Paddington, offering.
The house was knocked down for $1.155 million after an opening bid of $880,000 and 40 bids. Photo: RE/MAX
A bound history book on the property was presented to the new custodians of Bill’s-hill Cottage. There was scope to build underneath and add a swimming pool to the rear garden on the 461-square-metre block “all without fear of over-capitalising”, its RE/MAX Riverside selling agent Chris White said.
Mr White had 82 pre-auction inspections over the five-week marketing campaign. There were six registered bidders – including three buyers’ agents, one of whom secured the property on behalf of clients and some 40 bids were taken after the 20-minute auction started at $880,000.
Melbourne’s top sale was $4.515 million in Clifton Hill when Grace Darling, a grand 1892 terrace was sold through Collins Simms Inner North agents Antony Woodley and Antony Harbor.
The terrace house had been given a modern extension by its architect owner. Photo: Collins Simms
The five-bedroom, three-bathroom home at 6 South Terrace had been renovated and extended by its architect/owner Damien Bonnice. The three-level home with parkland and city views sits on 435 square metres with an arcaded, Italianate facade. The pre-auction price guidance was $3.9 million to $4.25 million and it last sold for $450,000 in 1993.
In Melbourne, a preliminary auction clearance rate of 62.9 per cent was recorded across 971 auctions, while the prior weekend saw 432 auctions returning a final clearance rate of 60.7 per cent. This time last year, 1132 auctions were held across the city, returning a clearance rate of 59 per cent.
The nation’s top weekend sale was in pricey Bellevue Hill. The $5.625 million sale was a six-bedroom home on 658 square metres at 12 Arthur Street through McGrath.
The home last sold almost four years ago for $5.15 million. Photo: McGrath Real Estate
It last sold for $5.15 million in September 2015.
There were 697 auctions held in Sydney, returning a preliminary clearance rate of 69.9 per cent. In comparison, there were just 276 auctions held over the previous week returning a final clearance rate of 56.5 per cent.
“There is a chance that this week’s final clearance rate may just be able to hold above 60 per cent after Sydney has seen the final clearance rate sit above 55 per cent for the last three weeks,” CoreLogic auction analyst Kevin Brogan said.
There was a big number of sold-before results in Sydney, totalling 140 properties. One year ago, 814 auctions were held across Sydney, and the clearance rate came in at 56.1 per cent.
There were 2041 homes taken to auction across the combined capital cities after the previous week saw volumes drop to 930, likely due to the federal election. This time last year, volumes were higher with 2297 auctions held, according to CoreLogic. Preliminary results show a national clearance rate of 62.6 per cent across the combined capital cities.
Last week’s final clearance rate came in at 55.2 per cent, the highest clearance rate we have seen since September.
“It’s possible that this week’s final clearance rate may top that as remaining results roll in,” Mr Brogan said.
Over the same week last year the final clearance rate was recorded at 56.2 per cent.
“Clearance rates have bounced back and overall the results are consistent with the narrative that confidence is returning to the market after the federal election result,” Mr Brogan noted.
“Stimulatory factors include the continuity in negative gearing and capital gains tax concessions for investors, potential changes to the APRA home loan serviceability buffer and the prospect of imminent reductions in interest rates,” he said.
Looking at the smaller auction markets, auction volumes increased week on week across all capital cities. Preliminary results show that clearance rates were down slightly over the week in Brisbane, while all other cities saw an increase week on week.
The cheapest sale was $135,000 in Adelaide in a mortgagee sale through Ray White. The three-bedroom house at 4 Benham St, Elizabeth East had sold at $150,000 in 2009 when offloaded by the SA Housing Trust. It was marketed as a maisonette on 653 square metres and it came with solar panels and there were security roller shutters on all main windows.
Jonathan Chancellor is editor at large at Property Observer
This article originally appeared in The New Daily.