There were more auctions in Sydney and a higher proportion of properties sold over the Queen’s Birthday than during the same holiday last year.
While down on preceding weeks, the weekend’s 73.7 percent clearance rate – based on 393 auctions monitored – was above the 69.7 percent figure on 245 auctions on the same weekend a year ago, said Andrew Wilson of Australian Property Monitors, which is owned by Fairfax Media.
Melbourne’s clearance rate of 69.9 per cent, based on 253 auctions, was higher than the 61.4 percent clearance rate on 143 auctions a year ago. The city’s market was likely to remain solid, but not as strong as Sydney, which also clocked up its third-highest month ever for auction numbers and sales, after March and November, Mr Wilson said.
“I think we’ll get a record winter in Sydney,” he said. “Both in the number of residential sales and auction clearance rates. There’s a lot of energy, a lot of confidence and enthusiasm in the Sydney market,” he said.
In Mortdale, in Sydney’s south, a block of eight two-bedroom apartments sold at auction for $2.55 million, well above the $2 million reserve price.
“It was quite a remarkable result, about $350,000 over what we’d valued it at,” said buyer’s agent Rich Harvey.
Mr Harvey was bidding for a client who wanted to renovate the building and turn it into eight strata units.
“But another developer came in and was prepared to pay a lot more than we were,” he said.
In Redfern, a largely uninhabitable four-bedroom house with parking at 9 Young Street sold for $50,000 above the reserve price, going for $1.4 million.
“It was an exceptional result,” said Belle Property principal Scott Aggett. “It is quite a run-down house. It was a deceased estate. It was bought by a local couple who’d been looking for about six months.”
Weekly house values fell 0.3 per cent in Sydney and 0.8 per cent in Melbourne, say preliminary figures from RP Data, which recorded a 65.7 per cent clearance rate for the NSW capital and 61 per cent rate in Melbourne. Values in both cities fell over the past month but remain well up on a year earlier – up 16.6 per cent for Sydney and 9.8 per cent for Melbourne.
BRISBANE ON THE RISE
Brisbane home values are up 7 percent from a year ago, Adelaide is up 4.6 per cent and Perth 4.3 per cent.
Separately, a spokeswoman for Victorian Consumer Affairs Minister Heidi Victoria said it was against the law to make a false auction bid, but said collusive bidding was not a problem.
“Consumer Affairs Victoria is not aware that this practice is currently prevalent ,” she said.
The AFR Weekend reported on the practice, under which two or more bidders represent one buyer at an auction, creating the impression there are multiple buyers. It is more of an issue in Victoria than NSW, where bidders are required to register before auction.
NSW Fair Trading Minister Matthew Mason-Cox said collusive bidding was already outlawed, but if new forms of the practice required a law update, “we will consider this.”
The NSW Office of Fair Trading will later this year release a discussion paper covering a range of real estate-related issues, Mr Mason-Cox said.