House sales mixed amid rate rise fears

THE threat of rising interest rates cast a pall over home sales at the weekend in Sydney, while the Melbourne market was more robust.

House sales mixed amid rate rise fears

THE threat of rising interest rates cast a pall over home sales at the weekend in Sydney, while the Melbourne market was more robust in the second major week of property auctions.

Auction results compiled by Australian Property Monitors show only 52.1 per cent of homes in Sydney were sold at auction, well down on the rate of 65.3 per cent for this time last year. The 93 houses that failed to sell doubled last week's figure.

Sydney's best sale was $4.23million for a mansion on a double block in the main street of Annandale in the inner west, while the cheapest was a one-bedroom unit in the western suburb of Harris Park, which fetched $149,000.

APM analyst Michael McNamara said if the sales results continued, vendors would be in for a bumpy ride this year.

"Buyers are clearly anticipating another interest rate rise, given the Reserve Bank's statement on monetary policy was so aggressive. We would not want to see these numbers, which have clearly deteriorated from last year, continue.''

In contrast, Melbourne's property market appeared much healthier, with high volumes, well over double last week's figures, and a much higher clearance rate of 72 per cent.

The 213 homes sold fetched a total of $91.9 million - $10 million more than this time last year.

The most expensive sale was a four-bedroom house at Viewbank in Melbourne's northeast, which fetched $1.3 million. The cheapest was a block of land at Melton West in Melbourne's west, which sold for $80,000. But 62 houses were passed in, compared with 56 last year.

Adelaide's property market also recorded stronger sales, with $17.2 million worth of property sold, well up on $2.9 million for the same time last year.

A total of 52 Adelaide homes went to auction at the weekend and only 10 were passed in.

The most expensive sale was a four-bedroom house at West Beach on Adelaide's foreshore, which went for $1.63 million, while the cheapest was a two-bedroom house sold for $231,000 at Noarlunga Downs, south of Adelaide.

The property market in Brisbane continues to strengthen on the back of young families migrating to the Sunshine State.

About 21 houses sold for $8.7million, up more than $2.3million on the same time last year. But clearance rates were down on, at 55 per cent compared with last year's 70 per cent.

Macquarie Bank's property research head Rod Cornish said sales would be moderate around the country this year and the interest rate rises had already led to a slow start.