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Auction clearance rates remained above 60 per cent in Sydney, Melbourne, Adelaide and south east Queensland last week.
In south east Queensland, data from Jason Andrew Auctioneers showed the 60 per cent clearance rate last week came despite a fall in buyer and overall crowd numbers.
The company that based on the 47 auctions it handled, there was an average of 0.82 registered buyers per auction, significantly lower than the year-to-date (YTD) average of 1.2 and less than half the previous week’s result of two.
Additionally, the company reported that the percentage of those registered actually making a bid rose only slightly to 65 per cent from 55 per cent in the previous week.
From the supply perspective, the percentage of vendors in a forced sale position increased further to 84 per cent, up from 81 per cent the previous week.
Director Jason Andrew said that viewed in context of the significant drop in overall buyer activity, last week’s clearance rate is a healthy indicator and highlights a consistency in the activity of serious buyers.
"As well as the drop in registrations, the average crowd size last week was less than half the previous week’s, dropping from 21 to just 10 attendees per auction,” Mr Andrew said.
“To achieve a similar clearance rate with such a dramatic fall in buyer activity is encouraging.
“Looking year-on-year the results are also solid, with the YTD clearance rate for the same period last year just shy of 30 per cent, while the YTD in 2012 sitting on 45 per cent.”
The result came shortly after the Real Estate Institute of Queensland (REIQ) reported an improvement in property prices and sales volumes across much of the state during the March quarter.
“We are seeing some vendors and buyers holding out for the return of lower stamp duty on owner occupied properties from July 1, but would caution either party from believing the move will necessarily swing conditions to their favour.”
“Determining future conditions is at best a risky business,” Mr Andrew continued.
“The best property decisions are made in the context of current market conditions rather than speculating on the unknowable.”
In Sydney, the Real Estate Institute of NSW (REINSW) reported an auction clearance rate for last week of 63 per cent, based on 311 properties selling and 182 passing in.
“Over the year to date, a total $6.8 billion worth of property has been reported sold via auction,” said REINSW CEO Tim McKibbon. “This is on par with the same period last year.”
In Melbourne, the auction clearance rate for last weekend reached 62 per cent, up from 60 per cent the previous weekend, and 56 per cent this weekend last year, according to the REIV.
“The falls recorded in the stock market during the week serve as a reminder that when considering investment strategies it is sensible to include property as part of a portfolio as it does not display the volatility of shares,” said REIV CEO Enzo Raimondo.
The REIV reported that there were 529 auctions, with 327 selling and 202 being passed in, 128 of those on a vendor’s bid.
Next week the REIV estimates 670 auctions will be conducted followed by 660 in a fortnight.
In Adelaide, the clearance rate reached 63 per cent last week based on 35 auctions, according to data from propertyDATA.com.au.
An auction is a public event for the sale of assets and property to the highest bidder among a group of buyers.
Rates refer to a fixed price or an amount charged by sellers or providers for their goods and services.