Buyers keep auction clearance rates above 70 per cent for the eighth week in a row. Eddie Jim
The residential property market remains buoyant despite rising interest rates, with preliminary auction clearance rates clocking their eighth consecutive week above 70 per cent.
The national preliminary clearance rate held firm at 73.8 per cent, slightly up on last week’s 72.5 per cent, according to CoreLogic. However, national volumes were down 8 per cent, as expected during winter’s seasonal downturn.
Sydney was the strongest market, with a 78.7 per cent preliminary clearance rate based on 733 properties sent to auction.
Clock ticking for first home buyers
The latest auction weekend was the last when first home buyers could opt for an annual property tax over up front stamp duty fee on properties under $1.5 million, noted CoreLogic’s Tim Lawless.
“In a wild card for Sydney, this was the last week that first home buyers had access to First Home Buyers Choice which expires at end of this financial year,” Mr Lawless said.
The previous NSW government scheme – which allows first home buyers to pay an annual land tax instead of a one-off stamp duty on properties up to $1.5 million – expires on June 30. A property purchased at the top of this range before July 1 could avoid a $67,000 upfront stamp duty payment.
BresicWhitney chief executive Thomas McGlynn said the policy wind-up ramped up demand for properties underneath the threshold.
“At the half dozen inner-city auctions [where] we had sub $1.5 million, there were buyers actively looking to push their limits to take advantage of the exemptions that expire on July 1,” Mr McGlynn said.
Melbourne slow-down
Melbourne’s Saturday auction scenes were less frenzied, with a preliminary clearance rate of 70.1 per cent – the lowest in 11 weeks – with 730 properties auctioned compared to the previous week’s 864. The weaker clearance rate timed with the onset of winter school holidays and the usual seasonal downturn.
Brisbane was the busiest of the smaller capitals, with 135 properties going under the hammer resulting in a 67.5 per cent preliminary clearance rate. Adelaide recorded the highest clearance rate at 79.7 per cent, with 103 properties sent to auction.
This Fairfield home was one of 730 Melbourne properties to be auctioned this weekend. Eddie Jim.
While CoreLogic predicted volumes would reduce in line with the seasonal slowdown, Mr Lawless said the strong market conditions could entice vendors to list before the traditional spring rush.
“I have a sneaking suspicion winter could be a little more buoyant.” Mr Lawless said. “There is more uncertainty ahead with increased interest rates, and a lot of people who might usually hold until spring might list in winter.”
BresicWhitney’s Mr McGlynn said he had already seen evidence of a winter listings bump in the face of looming rate rises, with 150 listings on his books. This was more than three times the volume the same time last year.
“We have had a record for June in listing volume,” Mr McGlynn said. “A lot of sellers are looking at prices being achieved which in many markets are almost back to 2021 prices.”
South Yarra sale exceeds expectations
In Melbourne, the choice to go to a winter auction paid off for the owners of a designer home in prized South Yarra.
The four-bedroom property on Fawkner Street sold well over its $5.5 million to $6 million guide, with the gavel falling at the winning bid of $6.81 million.
This South Yarra home sold for $6.81 million, well above its $5.5 million guide.
Selling agent Nathan Waterson, of Jellis Craig, said the vendors – who were watching via WhatsApp from Ireland – were “ecstatic” with the result.
“We weren’t expecting the price to be as high, but we were expecting a competitive auction,” Mr Waterson said. “It was a turnkey home in a very good part of South Yarra.”
Buyers advocate Emma Bloom said the high price was facilitated by tight supply in blue-chip suburbs.
“The true value of the house was boosted by enough people bidding and nothing else being available,” Ms Bloom said.
Emotions run high in Maroubra
In Sydney’s eastern suburbs, a three-bedroom unrenovated Maroubra semi sold for $2.505 million, or $455,000 over reserve.
Selling agent Alexander George, of BradfieldBadgerfox, said the property had 100 groups go through and garnered interest from young families seeking space, and developers looking to flip.
The Maroubra home sold for $2,505,000 in a competitive auction. Peter Rae
In the end a young family won out, outbidding another young family in a fast auction which edged up in $20,000 to $50,000 increments among 10 registered bidders.
“The property’s location on Mons Avenue, a short walk from Maroubra Beach, meant bidders were particularly emotional,” Mr George said.
They weren’t alone, with vendors saying goodbye to a long-time family base.
“This house had been in family for 30 years,” Mr George said. “The elderly owner is heading to a nursing home, so it’s quite an emotional sale.”
Mr George said vendors willing to list as interest rates rose were being rewarded on auction day.
“The number of buyers far outweighs the current supply, giving power to those braving the market,” he said.
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