Auction clearance up despite RBA interest rate rises
Autumn auction levels remain subdued, but despite last Tuesday’s unexpected RBA cash rate rise, the weekend capital city preliminary clearance rate has hit 75 per cent.
Autumn auction levels remain subdued, but despite last Tuesday’s unexpected RBA cash rate rise, the weekend capital city preliminary clearance rate has hit 75 per cent.
This is the highest since February last year.
The result was up on the prior week’s 69 per cent preliminary clearance rate, according to CoreLogic, well up on the 61 per cent this time last year.
“So much for the rate rise – the auction markets strengthen,” housing economist Dr Andrew Wilson at My Housing Market noted, after the strong weekend success rate.
But the former Westpac, Bankwest and CommBank banker Todd Sarris, now founder of mortgage advisory firm, Spartan Partners, suggested auctions don’t typically react immediately to a rate rise.
“Pre-approvals last 60 to 90 days,” Sarris said.
Island paradise
PropTrack economist Anne Flaherty calculates the next two weeks will see auction offerings remain steady at just shy of 2000 properties each week.
She said there had been a decline over recent weeks, “which is to be expected as the market approaches the typically quieter winter period”.
“The Reserve Bank’s decision to lift interest rates could lead some to delay their buying or selling decisions until they are confident rates have reached their peak,” she said.
But Ram Island, a 26ha retreat off the east coast of Tasmania near Little Swanport, was listed for sale by the Mansfield family last Friday, and is likely to rank among realestate.com.au’s most viewed listings in coming days.
The contemporary timber home is completely off-grid with 45kW solar, and 250,000L capacity water tanks.
It was last sold at $150,000 in 2003 when it was being used to run sheep. It will now cost $7m plus.
The property is being sold through Nick and John Morgan at Peterswald Battery Point.
The island, which has a small sandy beach, is being marketed as one of 11 privately owned islands in the state. It is a five-minute barge trip from Pontypool. The colonial origins date back to when it was farmed by Joseph Pyke who had been transported from Portsmouth, England in 1827 on the convict ship Marmion. He then married Elizabeth who’d arrived on the convict ship Nautilus. They had 11 children.
Terrific terrace
Melbourne was the busiest weekend auction market with 732 offerings. The 587 results collected so far by CoreLogic put the preliminary clearance rate at 76 per cent, holding above 70 per cent for the fourth consecutive week. This time last year, Melbourne hosted 905 auctions and reported a 60 per cent clearance rate.
Melbourne’s top sale was in Albert Park, when $5.5m was paid for the historic terrace at 45 St Vincent Place South.
It sold shortly after its auction with the price at the top end of its $5m to $5.5m price guidance.
Set within the 1868 Rochester Terrace row of terraces, it was marketed as in a “comfortable updated condition” by Cayzer Real Estate agents Simon Carruthers and Michael Szulc.
The terrace, which had four bedrooms, one bathroom and a study, attracted a $5,225,000 top bid in front of a crowd of about 100. There was just one bidder.
The home has 3.5m ceilings with decorative plaster work, plus original master joinery.
There is rear double garaging with the potential for a self-contained unit.
It was sold following the death of retired lecturer Brigid McCoppin, the author of works on nursing, politics and the importance of companion animals in primary healthcare.
The terrace last traded in 1965 for £7200.
Melbourne’s next priciest was a modern home at 2 Hanwell Court, Glen Waverley which fetched $3.78m.
It sold through Harcourts’ Julie Wells and Alice He, whose price guidance was $3m to $3.3m.
The 2022-built five-bedroom, three-bathroom home has been entered in the 2023 Master Builders Victoria best custom home competition.
The bespoke home comes with 10kW solar panel systems, double-glazed semi-commercial windows and big slimline 5000 litre tank for the auto sprinklers to the rear garden.
The 1022sq m building block cost $1.55m in 2021.
Coogee shines
The $5.75m sale of a run-down four-bedroom home in Coogee was Sydney’s top advised sale.
It last sold in 1980 for $160,000.
There were four bidders who sought the home at 8 Arcadia St. Its initial price guidance was $4.6m, which was revised up to $5m with the auction date brought forward by a week. The reserve was $5m.
It was knocked down to a young local couple by McGrath agent Mark McPherson.
Sydney’s next priciest sale was at East Killara, when the five-bedroom house at 15 Eastgate Ave sold for $4.41m, well above its $3.85m reserve.
There were nine registered bidders on the property that came with a $3.5m to $3.85m price guidance.
Five put in bids for the home that last sold for $565,000 in 1999 to the Warren family.
The bidding opened at $3.5m.
The home was sold by Jessica Cao of Ray White to a family upsizing from Epping.
It was one of the 650 auctions held across Sydney last week, up on the 570 held in the prior week and steady with the same week last year. Of the 498 results collected so far, 78 per cent were successful.
It was Sydney’s highest preliminary clearance rate since February 2022, and up from the prior week’s 70 per cent. The same time last year just 55 per cent of auctions sold under the hammer.
Busy Brisbane
Across the smaller capital cities, Brisbane was the busiest auction market with 129 listings, followed by Adelaide on 128 and Canberra at 97. Adelaide secured a 72 per cent success rate, followed by Brisbane (68 per cent) and Canberra (66 per cent).
Brisbane’s top sale was in Ascot where $4.3m was paid for a five-bedroom, three-bathroom home at 96 Towers St through Damon Warat at Ray White. Three of the eight registered bidders participated in the auction after the bidding began at $3.3m.
It was sold to an interstate buyer by the developer.
The new two-level residence, set on 405sq m, features French oak timber flooring, Carrara marble, travertine tiles, double-hung windows and handpainted Wyer and Craw cabinetry.
Its entry foyer has a 6m ceiling void.
Ray White auctioneer Gavin Croft said the latest rate increase from the Reserve Bank “hadn’t dampened energy around auctions”.
Auction volumes are now on the rise,” Croft said, with Ray White Queensland scheduling 600 in May, up from the 470 auctions in April.
Court battle
The ASX-listed real estate group The Agency is trying to prevent property sales marketing by a boutique agency in Sydney’s Northern Beaches which was established recently by estate agents Chris Aldren and Tulo Sila.
The Agency has lodged an intellectual property claim in the Federal Court, arguing that The North Agency business is causing “marketplace confusion”.
The two-day hearing will take place this week before Justice Ian Jackman.
With a stylised N° as their icon, The North Agency opened recently at Dee Why in partnership with Dan Argent’s UrbanX.
“In a David v Goliath battle, Chris and Tulo are doing their best to defend themselves against a large publicly listed company, when what they’d prefer to be doing is just listing, selling, and creating a better life for their families,” Argent said.
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