Clearance rates on the rise in big city auctions

Improved clearance rates across the major auction markets of Melbourne and Sydney have been the highlight of the early spring sales season.

The $14.7m sale of the Victorian Italianate manor Wycombe at Bronte was the nation’s top result.

Improved clearance rates across the major auction markets of Melbourne and Sydney have been the highlight of the early spring sales season.

Of the 1740 weekend results collected so far by CoreLogic, 62.5 per cent found buyers across the capitals, up from the prior week’s 61.7 per cent preliminary clearance rate, which was revised on final results to 59.7 per cent, the highest final rate seen since May.

Just 10 weeks ago most forecasters were suggesting the auction success rate was heading from its then low 50s into the 40s, where it was tipped to stay for months.

There are many reasons for the uptick, not the least being the fact that demand still exceeds supply as evidenced in the bidder numbers being reported at auctions. Ray White Group chief economist Nerida Conisbee advised that there were four registered bidders – and 2.7 active bidders – on average across its 601 weekend auctions, which saw results average 3 per cent above their reserve prices. There were 3.4 average registered bidders just a week prior.

Obviously more sellers are now conditioned to meet the modified market pricing, since home borrowers simply don’t have as much bank-approved spending capacity due to higher interest rates. Other factors at work include the impact of the more buoyant rental market, which is attracting investors, along with anxious renters who are turning into buyers.

The opening up of migration will soon be another buffer for the still falling prices.

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Hawthorn on high

Melbourne’s top sale was a poorly kept secret after an invitation-only “boardroom auction” bonanza.

Competing Bids gleans $5.86m was paid in Hawthorn East after its auction was pulled forward to midweek from its initial weekend scheduling.

The five-bedroom, four-bathroom 10 Clive Rd home, built 11 years ago with a $1.42m cost estimate, had $4.2m to $4.5m pre-auction guidance. It attracted a $4.9m pre-auction offer. There were four competing buyers at the private auction.

5 The Esplanade, Geelong sold for $5,225,000.

Geelong had Victoria’s highest revealed sale price when $5,225,000 was paid for 5 The Esplanade – Geelong’s historic mansion Cetacea, with its foreshore views across Corio Bay. It sold through David Cortous at McGrath Estate Agents who’d given a $4m to $4.4m price guide for the deceased estate, four-bedroom, two-bathroom home. It last sold in 2004 at $1,415,000.

Cortous noted that with just 70 houses on The Esplanade, properties hit the market just once every two years or so.

There was a $5.05m sale at Middle Park with bidding from five buyers. The home, listed with $4m to $4.4m hopes, was a double fronted Victorian-style home at 281 Richardson St, a few blocks in from the beach. It had last sold at $3.305m in 2014.

There were 996 homes taken to auction in Melbourne last week, up from the previous week’s 847. Of the results collected so far, 64 per cent were successful, up from the previous week’s 63 per cent, which revised to 61.9 per cent at final figures.

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$14.7m for Wycombe

Travelogic founder and former owner Craig Smith and his wife Kate scored the nation’s top result. Their $14.7m sale of the Victorian Italianate manor Wycombe at Bronte came within a fortnight of its marketing launch, so three weeks ahead of its scheduled PPD weekend auction.

PPD’s Alexander Phillips had listed it with an $11.5m guide.

424 Bronte Road, Bronte.

The six-bedroom Bronte Rd house last traded for $5.6m in 2012, and in 2009 for $5.3m when sold by architect Michael Dupree, who had bought it for $424,000 in 1987.

Wycombe, one of Bronte’s most imposing period houses, was built in the 1880s. Around 1910 the residence opened as The Sydney Home for Babies from underprivileged families, but chronic gastritic deaths prompted the State Children’s Relief Board to prosecute and it was closed in 1911.

The Smiths are downsizing to a $17m penthouse in Danny Avidan’s Kalypso apartment project overlooking Tamarama Beach which is scheduled for completion pending strata registration. They paid a record $96,500/sq m to buy into Dare Property’s sellout 11-unit Fletcher St complex, which has replaced a backpacker hostel that accommodated 100 patrons.

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Sydney stunner

The top sale under the hammer in Sydney was a South Cronulla house, one block back from the beach, at $5.5m. The four-bedroom Ewos Pde house had a $4.8m reserve. Attracting nine registered bidders, of whom five competed, the 1065sq m holding was up for sale for the first time in 45 years. Sydney’s next priciest went for $5.42m after four of the five registered bidders sought 3 Biara Plac, Turramurra. The five-bedroom property sold through Ray White Upper North Shore agent Coco Cui Roskam.

There were 771 auctions in Sydney last week, up from the previous week’s 698. Of the results collected so far, 60 per cent were successful, reflecting similarly to the prior week’s preliminary and final success rates. Last week’s final clearance rate was the highest since mid-April.

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Clayfield classic

Brisbane’s top sale was at Clayfield when 39 Sefton Ave, a five-bedroom home, fetched $3.015m. It has an outlook towards Moreton Bay from its upper level. There was an oversized covered rear patio and alfresco dining area featuring Himalayan sandstone paving, with an in-built BeefEater BBQ, and Rhino drinks fridge. There was a resort-style pool plus spa and an astro-turfed putting green on its 577sq m.

39 Sefton Avenue, Clayfield fetched $3.015m.

The refurbished Queenslander style home sold through Place agents Drew Davies and Carter Lagana. It last sold in 2018 at $1,657,500.

Across the smaller capital cities, Brisbane ranked as the busiest, but weakest of auction markets last week with 168 homes, and a 52 per cent success rate.

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Active Adelaide

Adelaide had 132 weekend offerings and again was the nation’s strongest with 75 per cent sold. Ray White South Australia chief auctioneer John Morris noted his listings saw 8.5 registered bidders per auction.

There were 17 registered bidders at the $796,000 sale of the three-bedroom, 1960s home at 9 Woodmere Ave, Paradise. It had previously fetched $475,000 in 2015.

Harris Real Estate agent Angus Massie recentlytold the Adelaide Advertiser’s real estate editor Tom Bowden that he hadn’t had any passed-in auctions in the past four years at Dernancourt, the leafy northeastern suburb.

Adelaide’s top advised weekend sale was $1.77m for the three-bedroom, 1910 limestone villa at 28 Opey Ave, Hyde Park through Ben Clarke and Lew Toop at Toop+Toop. Listed for the first time in five decades, it had a modern extension on its 927sq m holding.