Spring in Full Fling
Results for week ending 11 Oct 2015.
The capital cities bounced back from a lack-lustre grand final weekend to post some solid auction numbers.
As expected, volumes were up significantly in Sydney and Melbourne. Yet even with greater supply, demand kept pace, as the national average clearance rate held steady at 72 percent.
The Stat
Melbourne posted the strongest results, with 74.1 percent of 1,358 scheduled auctions clearing. Adelaide also looked good at 74.0 percent, and Sydney came in at third place with a clearance rate of 72.8 percent.
On the same weekend in 2014, Melbourne posted a much weaker result at 67.2 percent and Sydney was several points higher at 75.8 percent.
The Graph
The Numbers
Sydney | Melbourne | Brisbane | Adelaide | Perth | Tasmania | Canberra | |
Clearance Rate | 72.8% | 74.1% | 59.4% | 74.0% | 41.2% | 50.0% | 63.6% |
Auctions | 1,141 | 1,358 | 178 | 124 | 31 | 2 | 64 |
The Analysis
With the Melbourne and Sydney markets continuing to post clearance rates above 70 percent, sellers still have cause for encouragement. But vendors should be careful that their optimism doesn’t turn to hubris. With high auction volumes expected in the coming weeks, buyers may yet gain the upper hand.
Nonetheless, the seller of this five-bedroom Chatswood home has plenty of reason to gloat. When the hammer finally dropped, $6,055,000 was committed, securing for this vendor the record price for the weekend.
What It Means For Investors
With reports coming in from auctioneers that fewer bidders are showing up, sellers would do well to keep reserve prices realistic.
…unless of course, you’re in Chatswood.
Comments
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is it just me or is that a pretty average house for $6m??
I must be out of the loop on Australian property living overseas but I just don’t understand where all of this money is coming from?
Hi Dean,
>>>> is it just me or is that a pretty average house for $6m??
Good comment – the house itself likely wouldn’t be worth that – but the Location (note the big L) must have added half the price, surely? For me though, I would rather a sea view than a street-scape in Chatswood for $6m.
Nice house though – a credit to the previous owner.
Benny
Pretty average indeed @deancollins.
It appears this fella bought the home in June 2000 for $1.25m. If he’s happy to live virtually anywhere else in the world, he’ll never have to work again.
Based on my calculations, the buyer would need a $1.2m deposit and an annual income of about the same. Alternatively, he/she could have recently liquidated inflated Chinese assets. Either way, hats off to the vendor for his market timing and willingness to realise this gain.