Auction activity slowed down for the long weekend, with only 399 auction listings around the nation. This figure, equating approximately one fifth of the previous weekend, was the lowest since Easter.
With many buyers away for the weekend, demand was also weaker compared to previous weekends. Consequently, the auction clearance rate declined to 75 per cent on Saturday, representing a decline of almost four percentage points.
Activity will resume in the coming weekend with almost 1,900 listings around the nation; a similar number is also expected for the following two weekends.

Melbourne

Activity grounded to a halt on the weekend as crowds traded their real estate fix with their football passion. Interestingly, by Saturday morning, 52 listings remained on the board.
Despite the small number of bidders, the city recorded the very high clearance rate of 87.1 per cent. This figure, however, is likely to fall as more results are collected.
Activity will pick up in the coming weekend, with 926 listings currently on the board; a similar number to the pre long weekend Saturday. Numbers look even stronger for the following weekend. With that said, we continue to notice a 20 per cent drop compared to the corresponding weekends in 2015.

Sydney

Despite the long weekend, 263 properties were listed for auction in the Harbour City, equating to approximately one-third of previous Saturday’s listings.
The high auction clearance rates recorded in previous weekends dropped by five percentage points to 76.6 per cent as many potential bidders left the city for the weekend. The clearance rate will be tested on the coming weekend with the number of listings remaining below the 719 recorded on the pre long weekend Saturday.
The coming weekend has 641 properties scheduled to go under the hammer. Currently, October weekend numbers are not expected to exceed 700, representing a year-on-year decline of approximately 30 per cent.

The auction market showed overall resilience in the first half of 2016, despite a drop in listing numbers. The nation recorded 46,067 auction listings in the first half of the year, representing a five per cent decline from the corresponding period in 2015.

June’s 8,317 listings equated a two per cent drop from June 2015. NSW accounted for 37 per cent of national listings, while Victoria accounted for 40 per cent. Tasmania had the lowest number of auctions with 31 listings (less than one per cent of the national listings.)

June’s auction clearance rate of 61 per cent was similar to April and May’s. The result, however, was sharply below June 2015’s 69 per cent clearance, hinting that demand has weakened.

Observing the first six months of the year over the 2014-2016 period, June recorded the 3^rd lowest number of auction listings. In that period, it had a higher number of listings than January and February and a lower number than March, April and May.

Sydney

In June, the Harbour City recorded its lowest year on year monthly decline since the start of 2016. June’s listing numbers were only 11 per cent below Jun 2015, compared to a fall of 36 per cent in May and 28 per cent in March.  The year on year decline is expected to continue into July, historically one of the slowest auction months of the year.

Despite two strong Saturdays where Sydney’s clearance rate exceeded 70 per cent, the city’s monthly clearance rate closed at 68.7 per cent, the lowest June clearance rate in four years but comfortably in the midddle between February’s high (70.1 per cent) and April’s low (66.6 per cent).

Melbourne

Melbourne’s auction market showed the normal seasonal decline in June, with 3,021 listings across the city compared to May’s 3,486 listings. The year on year trend, however, shows a six per cent increase from June 2015 and a 13 per cent rise from June 2014. A low interest rate and relative affordability (compared to Sydney) may be the reasons behind the year on year rise.

Lower listings numbers did not stop auction clearance rate from declining. June’s 67.7 per cent clearance rate was the lowest since January, and five percentage points below February’s peak. It was the lowest June clearance rate since 2012.

Other Cities

Brisbane

• June’s monthly sales hit a new record in 2016, with 588 properties listed for auction. The number equated to a 13 per cent increase on last year’s figure. It was the only month (other than April) to show year on year growth.
• The increase in listing numbers contributed to a fall in clearance rates. June recorded the second lowest clearance rate this year at 44.7 per cent but remained, one of the highest June clearance rates in the past ten

Adelaide

• Adelaide recorded the highest June auction clearance rates since 2007, clearing 63.9 per cent of the stock. The figure was above the year to date rate of 63.1.
• Weekend clearance rates ranged from 71 per cent on the second Saturday of the month to 57.4 per cent on the last Saturday.
• Monthly volumes were at their highest level since the GFC, with 312 properties listed for auction in June. The figure represented a ten per jump from June 2015 despite being the quietest month this year. The highest number of listings (53) was recorded on the third Saturday of the month.

Canberra

• Canberra recorded its highest ever June volume with 221 auction listings, representing a 12 per cent increase on June 15 figures.
• The first Saturday of the month set a new June record with 63 properties registered for auction. The number declined, however, in subsequent weekends.
• As weekly listings declined, weekly auction clearance rates increased from a low of 54.2 per cent on the first week of the month to 69.2 per cent on the last weekend.
• The monthly auction clearance rate remained similar to June 2015. June 2016’s 62.5 per cent clearance rate helped to reverse the May bottom of 60.6 per cent.

“A quiet weekend with similar clearance rates for Melbourne and Sydney.”

The nation recorded a 69.9 per cent clearance on the weekend with 495 properties listed to go under the hammer. Last weekend is likely to be the July’s slowest, with listing numbers expected to recover over the next two Saturdays. The month’s listing numbers, however, are currently 31 per cent below July 2015, even with a fifth Saturday against last year’s four.

Melbourne

The weekend election shrunk the Melbourne auction scene, with only 206 properties listed for auction. The city’s clearance rate closed at 73.5 per cent which, even after revision, is likely to settle higher than the past ten weekends.
Listing numbers are set to exceed 500 next weekend in what is expected to be July’s busiest weekend. This figure, however, looks less impressive compared to 2015, as this year’s busiest July weekend has the same number of listings as last year’s slowest.

Sydney

Sydney had 200 listed auctions on the weekend, compared to 633 on the previous weekend. The low supply helped buoy clearance rates, closing at 73.5 per cent. Both the clearance rate and listing numbers fell sharply from June 2015 when the city cleared 81.5 per cent of 557 listed properties.
July looks to be slower than the previous two years, but busier than 2012 and 2013. House and unit prices, however, have so far held firm. It remains to be confirmed whether a slowing auction market will signal softer property prices.

June started strongly, with 1,633 listings across the main auction markets. Despite falling short of last weekend’s result, the national figure remained above the 12-month rolling average for the third consecutive week.
Saturday had 1,181 reported sales and a preliminary clearance rate of 74.6 per cent.
The coming weekend is expected to be slow, as the largest markets of Melbourne and Sydney take a break for the Queen’s Birthday long weekend.

Sydney

Sydney crossed the 80 per cent clearance rate for the second time this year, with 80.1 per cent of stock selling before auction or under the hammer. The revised figure is likely to close in the mid-70s, an unseasonably high result for a June weekend.
Sydney’s auction listings fell by nine per cent from last week, resulting in 548 listings and 377 reported sales. This week’s 30 per cent drop in listings compared to the corresponding weekend in 2015 was in line with the 20 to 30 per cent year on year decline we have seen so far this year.

Melbourne

The city recorded a solid result for on the first weekend of the month with 841 properties listed. Despite falling short of last week’s 1,000 plus figure, numbers stacked well against the 12-month moving average of 775 listings per Saturday.
Melbourne’s auction clearance rate continued to hover in the mid-70s, closing at a preliminary 74.4 per cent on Saturday. Despite falling short of last week’s 75.2 per cent, the result is considered above trend.
Listing numbers will ease in the coming Saturday as Victorians enjoy the long weekend. The third weekend of the month, however, is set to be the busiest June weekend on record, with 942 properties listed for sale.

* Saturday’s auction clearance rates are preliminary.

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

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.

Sydney

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

Houses

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.

Units

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.

Regional Victoria

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.

The 2nd Saturday of the month saw listings numbers soften slightly to 1,480, falling below the corresponding weekend in 2015 but remaining above the 2014 results.
The weekend clearance rate jumped by more than four percentage points compared to last week, following a strong lead from Sydney. Saturday’s 74.6 per cent is likely to hold above 70 per cent upon revision, testing the seventy per cent resistance level in place since August 2015.
The coming Saturday shows little change, with 1,418 listings expected across the major auction markets.

Listing numbers are likely to stay unchanged on the coming Saturday and increase to 1,000 on the last weekend of the month.

Sydney

Sydney recorded a remarkable 80.3 per cent clearance rate on the weekend. The result, the highest since the start of the year, has not been seen since August 2015. Tight supply of properties and strong demand from owner occupiers are the likely reasons behind the result, while changes to negative gearing rules may have influenced investors at the lower end of the market.
Saturday recorded the lowest auction activity since the start of May, with 506 properties listed, approximately 100 listings below the 12-month average. Almost one-third of properties advertised were sold prior, reflecting buyers’ eagerness to avoid the public bidding process.
The next two weekends show a slight improvement with over 550 listings each.

Melbourne

Melbourne activity eased in line with the rest of the market, with 759 listings on the weekend, compared to 909 in the previous week and 835 for the same weekend in 2015.
The revised clearance rate continued to hover in the low 70s, with a preliminary clearance rate of 73.6 per cent.
Listing numbers are likely to stay unchanged on the coming Saturday and increase to 1,000 on the last weekend of the month.

Other indicators – Median rents

House

Sydney’s median weekly asking rent increased by up to five per cent in the year to April 2016. For houses, the City and East region recorded the highest growth, while the Upper North Shore (3.9 per cent) and South (3.3 per cent) were also notable. The City and East also reported the highest median rent of $1,050 per week, followed by the Lower North Shore’s $1,025 per week. The most affordable rent was $430 per week in the Blue Mountains, where rents have increased by 2.3 per cent in the past year.

Unit

The highest median rent price for a unit was $625 in the City and East, followed by $600 per week in the Northern Beaches. Sydney’s South recorded the highest annual growth of 2.13 per cent, followed by the Inner West at 1.89 per cent. A significant increase in the supply of stock over the past 12 months, along with record-low interest rates provided ample choice for renters, reducing the trade-off between renting and buying.

Regional NSW

Outside the metropolitan area, the Southern Highlands and Shoalhaven region reported the highest growth in unit rents at 4.46 per cent, while house rents in the Richmond-Tweed region rose by 4.9 per cent to $430 per week.
Next week – Melbourne rent prices by region

* Saturday’s auction clearance rates are preliminary.

• The first weekend in May registered 1,654 listings across the major auction markets, representing a fall of 26 per cent from the previous weekend.
• The clearance rate softened to 70.1 per cent, in line with the fall in the number of auctions.
• Despite a recent decline in listing numbers, May’s average listing numbers look promising, with an average of 1,648 listings per Saturday against March and April’s average of approximately 1,500 listings per Saturday.
• Expect a below-average listing number for the next two weekends, and a rise to above 1,800 listings on the last Saturday of the month.

Melbourne

• Melbourne recorded a 28 per cent fall in listing numbers as it eases into May after a strong end to April.
• On the weekend, 912 properties were listed for auction compared to 1,270 listings last weekend, and 905 for the corresponding weekend in 2015.
• The clearance rate of 73.1 per cent continued a five-week run of above 70 per cent clearance. The city cleared over 70 per cent of stock in all but three weekends since February, signalling good momentum in the lead up to winter, despite falling short of last year’s high-seventies result.
• Expect listing numbers to remain above 700 per Saturday for the rest of May. The clearance rate is likely to hold firm for the next few weeks.

Sydney

• The auction clearance rate in the Harbour City softened on the weekend, in line with the broader market. The preliminary 71.6 per cent rate was 2.2 percentage points below last week’s, despite the lower stock for sale. The clearance rate is likely to close below 70 per cent once revised.
• Saturday’s figure indicates a return to the long-term norm compared to the corresponding weekend last year when the clearance rate was 86. 5 per cent, the highest in 2015 and the second-highest on record.
• Auction listing numbers fell after a strong performance on the last weekend of April. However, the 523 listings recorded on Saturday were higher than the three-month average of 510 listings per Saturday.
• On the coming Saturday, listing numbers are expected to be slightly below the three-month average, with 483 properties currently listed for auction.

* Saturday’s auction clearance rates are preliminary.

April’s busiest weekend recorded 2,230 listings across the capital cities, equating to the second highest listing number this year behind the pre-Easter super Saturday.
The nation cleared 73.2 per cent of stock, compared to last week’s 70.5 per cent, but substantially lower than the 79.8 per cent recorded for the corresponding weekend in 2015.
Volumes are expected to decline this coming Saturday, with 1,601 listings currently advertised across the nation. As weekend volumes drop in May, the clearance rate is likely to hover around 70 per cent.

Melbourne

Melbourne experienced a strong weekend with 1,261 properties listed for auctions, compared to only 974 for the corresponding 2015 weekend.
The city’s 75 per cent Saturday clearance rate is considered a strong figure given the high number of listings; the highest since mid-March.
Auction numbers in the nation’s busiest auction market will decline in the coming Saturday, with a current estimate of 875 listings.
Melbourne set a new monthly record in April, with 3,697 listings. The number more than doubled that of April 2015 and was almost 1,000 listings higher than the previous record set in 2014.

Sydney

Sydney finished the month strongly, as 672 properties were listed for auction on Saturday, compared to an average of 493 auctions per Saturday for the month. The result was the highest in April and second highest for the year.
On the weekend the Harbour city cleared 73.8 per cent of stock which, upon revision, is likely to remain above 70 per cent, overtaking last Saturday’s 68.6 per cent.
April was the first time this year where monthly listing numbers overtook last year’s figures. This was the result of a fifth Saturday in the month, and ANZAC day falling on a Monday (not on a Saturday like last year). A total of 2,906 listings were recorded.
The forecast is for a drop in listings for the first weekend in May. Figures are expected to remain steady for the following three weeks, with an average of 492 listings per weekend.

Brisbane

Brisbane finished the month strongly, with 114 properties listed for auction on the weekend. The month’s average of 102 listings per Saturday almost doubled that of April 2015. The difference stemmed from the slow ANZAC day and Easter weekends in April 2015.
The winter blues seems to come late in Brisbane, with listing numbers continuing to rise on the first weekend of May, giving more choice to buyers. Clearance rates are expected to remain volatile in May, but are not likely to fall below 35 per cent.
As a result of the extra Saturday, for the first time in 2016 monthly listing figures were higher than the previous year (by 81 per cent!), with a 33 per cent increase in the number of sold properties. Once Saturdays are removed, however, this figure changed to only six per cent increase in listings and a 34 per cent fall in the number of sold properties.

Canberra

Canberra auction listings more than doubled from the previous weekend, with 84 listings on Saturday. The clearance rate peaked at 73 per cent in the previous weekend but fell to the lower 60s on Saturday.
Monthly volumes were higher in April 2016 compared to April 2015, but the total numbers for the first half of 2016 are expected to equate the 2015 figures, with lower volumes in May offsetting April’s bumper figures. The capital city recorded 881 auction listings in the year to date, representing a 16 per cent increase from the same time last year.

Saturday recorded a preliminary clearance rate of 70.5%, only slightly lower than the preliminary clearance rate for last week of 70.6%.

The number of properties listed however is much lower with 1,094 properties listed compared to 1,407 listings on the prevoius weekend. This reduction in listings is due to the ANZAC day long weekend as seen in previous years where ANZAC day Saturday has been the 23^rd of April.

Melbourne

Melbourne continued to record the highest clearance rate of all capital cities with 74.7 per cent of properties cleared, despite a 1.5 percentage point fall in the clearance rate.

The fall in the number of properties listed was in line with what occured at national level. A total of 494 properties were listed on Saturday, down 254 properties compared to last week.

Sydney

Sydney broke its three week decline with a preliminary clearance rate of 71.2% per cent. This placed the clearance rate 3.5 percentage points above what was the preliminary recording for sydney last week, making this clearance rate the highest the city has seen since February.

Sydney has also gone against the natiopnal trend and listed more properties for auction this week, with 426 listings compared to the previous Saturday’s 345 listings.

* Saturday’s auction clearance rates are preliminary.

Saturday recorded a slightly lower clearance rate compared to the previous weekend with a national clearance rate of 70.6 per cent compared to 71.6 per cent. In addition when compared to the previous year the clearance rate is also lower with 77.6 per cent recorded in April 2015.

The number of properties listed is slightly lower with 1,407 listings on Saturday compared to 1,430 listings the previous weekend.

Melbourne

Melbourne continues its trend of recording the highest clearance rate of all capital cities with a clearance rate of 76.2 per cent reorded on Saturday, only 0.01 percentage point lower than last week.

The number of properties listed however, increased by 46 properties compared to last week to a total of 748 properties.

Sydney

Sydney continues to have declining clearance rates with only 67.7 per cent of properties cleared on Saturday, 2.6 percentage points lower than the previous week making it the third consecutive week of clearance rate decline.

Further decline can be noticed with only 345 properties listed on Satuday compared with 523 properties listed on the previous Saturday and 538 properties listed on the first Saturday of April.

Note
It is worth noting that a direct weekly comparison to April 2015 is difficult to make as April 2015 had 4 Saturdays compared to 5 in April 2016. ANZAC day also fell on the last Saturday of April 2015 making comparison to April 2015 even more troublesome.

* Saturday’s auction clearance rates are preliminary.

Odi Reuveni / Research Manager / PriceFinder