Poll result tipped to boost property market

Analysts predict the return of a Coalition government may increase market confidence in coming weeks.

The return of the Coalition government may increase market confidence with changes to negative gearing less likely.

Fewer properties were taken to auction across the country on election weekend, but analysts predict the return of a Coalition government may increase market confidence in coming weeks with changes to negative gearing less likely.

There were 917 properties up for auction across the country, ­returning an average preliminary clearance rate of 57 per cent. Over the previous week, 1218 homes were auctioned and the final auction clearance rate was 54 per cent, the highest final result since last September.

CoreLogic’s national auction commentator Kevin Brogan said the week of a federal election was typically characterised by reduced auction activity, and that it would be interesting to watch the market following the declaration of the election result.

“There has been a wait-and-see approach employed among residential property investors in terms of the result of the election,” Mr Brogan said.

“It will be interesting to see, now the changes to negative gearing may be off the table, whether that has any impact in market activity. In the lead-up to the election, in a market that has seen some softening, investors were expecting uncertainty. But now that the outlook is a bit more certain, perhaps that will bring a little confidence back.”

In Melbourne, a preliminary clearance rate of 62.9 per cent was recorded across 427 auctions, making it the best-performing auction market based on preliminary results. This time last year, 1033 auctions were held across the city, returning a final clearance rate of 62 per cent.

There were 270 auctions held in Sydney last week, returning a preliminary clearance rate of 60.7 per cent. A higher 445 homes were taken to auction the previous week, returning a 59 per cent final auction clearance rate.

Sydney’s final clearance rate has come in at the high 50 per cent range for the past two weeks. The last time Sydney’s clearance rate was steadily in the high 50s was 12 months ago.

Sydney’s eastern suburbs returned the highest preliminary result of the sub-regions, with 92.9 per cent of 24 auctions ­successful.

Across the smaller auction markets, Canberra recorded the strongest preliminary result with 56 per cent of 32 homes selling at auction last week, while only 25 per cent of 29 homes sold in Perth. In Adelaide, 44 per cent of 81 properties were sold successfully at auction and a preliminary clearance rate of 38.6 per cent was recorded at 75 auctions in Brisbane.