Auction Wrap Up – 21 May 2016
Auction clearance rates have softened across the country as the number of listings edged higher. The preliminary national clearance rate closed at 73.9 per cent on Saturday, marginally below last week’s headline figure of 74.6 per cent.
The national number of weekend auctions rose to 1,527, despite Melbourne’s slight fall in listing numbers.
This weekend has almost 2,000 properties scheduled to go under the hammer across the major auction markets, in what is set to be May’s busiest Saturday. The Victorian capital will account for approximately half of the national stock.
Melbourne listings fell to 744 on the weekend, compared to 759 on the previous Saturday and 989 in the corresponding weekend last year. The preliminary auction clearance rate was similar to last week’s and remained above 70 per cent after revision. The city appears to hold the clearance rate momentum in the lead up to winter, albeit at a lower level than last year.
Numbers are set to surge on the coming Saturday with 1,020 listings across the city. The high volumes are likely to result in a lower clearance rate.
The weekend’s activity increased by 68 listings (13 per cent) from last week as more properties went to auction. Last Saturday’s 573 listings included 47 Newton Road, Strathfield; a seven-bedroom house which sold for $6.825 million. Numbers are expected to edge higher on the last weekend of May, before easing into the slower months of June and July.
Preliminary clearance rates closed at their second-highest level this year, clearing 77.3 per cent of stock. This figure is likely to fall to the mid 70s upon revision, and further soften next week as auction numbers increase.
Other indicators – Melbourne rents
Rent prices increased strongly in several of Melbourne’s regions in the year to April 2016. For houses, the Inner South region recorded the highest growth of 6.7 per cent, while the West and South East regions recorded growth of 5.9 per cent and 4.1 per cent respectively. The Inner South also reported the highest median rent of $560 per week, followed by the Inner region with $550 per week. The most affordable rent was $350 per week in the North West region, where rents increased by 2.9 per cent in the year to April. Interestingly, the most expensive median rent for a Melbourne region was almost half of that of Sydney’s most expensive region.
The highest median rent price for a unit was $425 per week in the Inner region, followed by $390 per week in the Inner East. The city’s Inner South recorded the highest annual growth of 4.1 per cent, followed by the Inner East at 4.0 per cent. The strong increase is likely the result of newly built stock entering the market. Our data shows, however, that most of the city’s regions including Inner and North West recorded little or no rent growth in the 12 months to April 2016.
Outside the metropolitan area, house rents in the Mornington Peninsula rose by 5.7 per cent to $370 per week, while the Shepparton region reported the highest unit rent growth equating 5.3 per cent.
* Saturday’s auction clearance rates are preliminary.
Based on 42 reported auction results out of 90 listed auctions.
Based on 391 reported auction results out of 573 listed auctions.
Based on 584 reported auction results out of 744 listed auctions.
Based on 34 reported auction results out of 64 listed auctions.
Week ending 21st May 2016
There were 90 Auctions in Brisbane this weekend.
There were 573 Auctions in Sydney this weekend.
There were 744 Auctions in Melbourne this weekend.
There were 64 Auctions in Adelaide this weekend.