Industry NewsNationalReal Estate Industry News

Weekend Auction Wrap: Supply shortages keep driving demand

The top-end buyers were once again out in force in Sydney with a lack of supply continuing to force buyers to pay higher prices.

In Sydney, the preliminary auction clearance rate was again well above 80 per cent, finishing up at 84.3 per cent according to the latest data from CoreLogic.

The result was up sharply on last week where the final figure ended up coming in at 76.9 per cent. This was almost double what auctioneers were seeing this time last year when the clearance rate was struggling at 44.6 per cent.

The highlight of the weekend was the $140 million penthouse sale, that encompassed the top three levels of Lendlease’s One Sydney Harbour project at Barangaroo.

In Melbourne, it was another solid week of auctions with the preliminary rate coming in at 75.1 per cent, while the national rate ticked lower to end up at 75.6 per cent from nearly 2000 auctions, according to CoreLogic.

Canberra was the best performing of the smaller auction markets, with a preliminary auction clearance rate this week of 64.2 per cent. Adelaide followed closely with 63.3 per cent of homes selling at auction.

Stu Benson (NSW)

Stu Benson of Benson Auctions saw another strong result in Sydney on a personal level and feels that the auction process is the best option for vendors in the current climate.

“I finished the weekend selling seven out of nine via a combination of strong on-site sales and some ’too good to refuse’ pre-auction offers.

“Sydney’s auction clearance rate ended up around the 83 per cent mark after some late reporting adjustments, which is almost double what it was this time last year.

“Unless the sellers’ circumstance called for it, I would be loathe to sell ‘off market’ right now – you just never know who you’re missing, and how much.

“Like always, the listings that are selling well in excess of their reserves are the listings whose vendors are smartly and strategically setting their reserves smack-bang at the most likely point of competition, instead of at the ‘dream price’. Competition gets you the dream price, every time.”

Matt Condon (Victoria)

Ray White Victoria and Tasmania Chief Auctioneer Matt Condon said auction volume continued to rise with the group reporting one of its biggest weeks of auction volume for 2019.

“Based on preliminary data, this week has seen a great number of active bidders per auction, and healthy crowd sizes across Victoria,” Mr Condon said.

“On the ground, buyers are continuing to display a high level of confidence in the real estate market, by actively competing at each auction.

“There are a number of reasons why the market is performing well in this region at the moment. Buyers are certainly coming back with finance flexibility, interest rate cuts and people just recognising this is the time to buy before the market goes up again next year.”

Gavin Croft (Sydney)

Gavin Croft has been regularly outperforming the broader market in Sydney recently and this week was no exception.

“This week BresicWhitney (BW) had 26 auctions booked, 23 sold on or before auction day, two were withdrawn from auction and one was passed in giving a weekly auction clearance rate of 88 per cent with an average this week of 4.5 registered bidders per auction.

“It’s certainly evident there is some frustration starting to unfold amongst disgruntled buyers who have missed now on a number of opportunities.

“This year, BW have conducted 471 auctions, 383 have sold on or before auction day giving a YTD auction clearance rate of 80 per cent.”

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