Reserve prices smashed in big weekend of auctions
THERE were huge turnouts for auctions on the weekend with good clearance rates and reserve prices smashed
Realestate
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AUCTION clearance rate records tumbled across the country on the weekend as nationwide real estate confidence hit new highs. Capital city markets saw 82 per cent of 2847 auctions cleared, according to RP Data figures, the highest combined rate ever recorded. This was up from 70.2 per cent from 1667 auctions last week and 63.5 per cent from 2,004 auctions on the corresponding weekend in 2013.
Sydney led the way once again, clearing an unprecedented 87.5 per cent of auctions, bringing its biggest ever February to a close. Before 2014, Sydney had never had an 80 per cent plus clearance rate in February, but this year, the harbour city beat the milestone for all four February weekends.
Melbourne had a huge week also, recording its highest clearance rate since June 2013. The 79 per cent result came from 1,396 auctions listed for the week; which nearly doubled from the week prior.
Australia’s third biggest auction market Brisbane managed a 76.1 per cent clearance rate from 157 auctions, its best result for some time; while Adelaide recorded 83.8 per cent from 116 listed auctions.
The auction buying frenzy failed to translate into capital growth however, with combined home values in the major capitals falling by 0.4 per cent. Brisbane values fell by 1.3 per cent, while Sydney slipped by 0.4 per cent.
Adelaide was the only capital to experience positive movement, albeit a minor lift at 0.2 per cent.
The drop in home values was largely due to the high base set in previous weeks with the combined capitals still up by 0.9 per cent in the year so far and 9.7 per cent from this time last year.
This month, Sydney leads the way with growth of 0.7 per cent, making it the only capital in the black. Melbourne is on top for 2014 growth, up 2.3 per cent compared to Sydney’s 1.4 per cent.
All five major capitals have recorded year on year growth, with Sydney’s 13.9 per cent placing it clear of Melbourne on 10.4 per cent. Perth is in third with 7.4 per cent, while Brisbane and Adelaide have been slow and steady with 2.9 per cent.
The private treaty market remained steady this week with 5,333 house sales across the capital cities, for a median price of $523,802. Sydney has the highest median at $650,000 from 1,640 sales, while Darwin ($587,500), Perth ($535,000) and Canberra ($520,000) were the only other capitals above $500,000. Melbourne and Brisbane both recorded $460,000 medians, from 1,398 and 986 sales respectively.
A four-bedroom home in Hurlstone Park sold under the hammer for $1.32 million, a healthy $70,000 above reserve, after 11 registered bidders went head to head in a fast-paced auction.
The federation home at 86 Melford St attracted more than 100 groups over the campaign, according to selling agent Aris Dendrinos of Richardson & Wrench Marrickville/Hurlstone Park. A young Petersham family won the day after missing out repeatedly at the end of 2013.
In Brisbane despite hundreds turning up for open for inspections, a former substation converted into a home at 114 Stuartholme Rd, Bardon, didn’t sell under the hammer on the weekend.
The street was jammed with cars when 150 people, including six registered bidders, gathered for the auction.
Bidding on the property marketed by Daniel Argent or Urban Property sales started at $2.1 million and jumped in $100,000 increments to $2.35 million before being passed in at $2.5 million.
Across the river at Highgate Hill, there was auction success with a three-bedroom home at 55 Gloucester St, Highgate Hill selling under the hammer for $726,000 — $45,000 above reserve.
The auction event saw a bidding war between 11 registered bidders. The home was marketed by Drakos Real Estate West End sales agent Chris Kazonis.
The home is in need of repair but its inner-city location was the main attraction for bidders.
One of the biggest sales in Adelaide on the weekend was for a home at 61 Wellington Square in North Adelaide.
The four-bedroom home sold about half an hour after the auction $1.23 million according to marketing agent Richard Hayward of Bernard H Booth.
The original 1930s Tudor Residence is on a corner block of 765sq m.
In Victoria a home at 88 Park St, Moonee Ponds sold under the hammer for $3.362 million.
The property had been listed with a price guide of between $2.5 million and $2.8 million.
It has five bedrooms plus an office and sits on a 1267sq m block of land.
The home was marketed by Nelson Alexander Real Estate. There were open fireplaces, leadlight windows and a swimming pool.
Milo Rasinac of Nelson Alexander said properties in the area were usually tightly held, so competition was strong to try and snare the property.
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