Auction clearance rates were below 70% around the country last week except in Melbourne, where solid volumes were recorded and the clearance rate was in the mid 70s.
Despite auction clearance rates dropping below 70 per cent in most capitals last week, strong sales were recorded in Brisbane, and Sydney's market is returning to a more sustainable pace.
Melbourne achieved a clearance rate of 74 per cent last week, according to the latest data from the REIV.
There were 807 auctions held over the weekend, with volumes down slightly on the same period last year when 999 homes went under the hammer.
“The spring selling season really kicked off this weekend with high auction volumes across more than 320 suburbs and a further 1,000 auctions scheduled for every weekend in October," Gil King, CEO of the REIV, told SCHWARTZWILLIAMS.
“High auction volumes throughout October present plenty of opportunities for buyers to enter the market prior to the Melbourne Cup long weekend.”
The outer western and northern suburbs did best, with all homes auctioned in Sunbury (10), Werribee (10), and Epping (9) selling under the hammer.
Image: One of Victoria's top sales was this three-bedroom home at 6/3 The Ridge, Canterbury, which sold for $2,825,000 through Jellis Craig.
Top sale: classic Queenslander with contemporary makeover was one of the week's best sales
One of the key sales last week was the five-bedroom renovated classic Queenslander at 34 Millers Street, Hamilton, which sold for $5.975 million through Sarah Hackett and Grant Hackett of Place Bulimba.
The property sold at auction on Thursday in the Place rooms.
Agent Sarah Hackett of Place, said, "Cremorne sold to a lovely family with two boys and it will be their family home.
“There was strong competition for this well-known residence with four registered parties, but it was clear this particular family wanted the home and they wound up being the ones who purchased it."
Buyers from interstate and overseas showed keen interest in the property.
“We’ve had a lot of interest throughout the campaign. Just two days before the auction we had someone fly in from Melbourne to view the home, along with someone from the original auction months back and vast interest from overseas.
Hackett said the strong interest shows there is plenty of life in the Brisbane market.
“To have four cash bidders register around the six-million-dollar mark today shows there’s strong interest in Brisbane and in the high-end market. There are buyers out there looking. In this instance, all four bidders were in different stages of their life.”
Image: This five-bedroom renovated classic Queenslander at 34 Mullens Street, Hamilton, sold for $5.975 million through Sarah Hackett and Grant Hackett of Place.
Six degrees of separation
A property at 24 Newington St, Tarragindi, sold for $750,000 on the weekend, $50,000 higher than the reserve. There were nine registered bidders on the day, and a crowd of around 50 onlookers.
Lynn McGavin, agent with Place, said, “It was a very popular home. Throughout the campaign, we saw huge numbers and on the day of the auction, nine registered bidders.”
The deceased estate was on the market for the first time in over 65 years.
The strong sale was made even more pertinent by both the seller and buyer finding they shared a sad connection. Both had a mother named Dolcey who had died recently, only a month apart. Both mother’s left the family home to them.
The buyer, Patrice Bowen, said, “We will rent it out initially and then a year or so down the track, once we have a design, we’ll do a modern extension. We love the character and façade!”
Buyer Chris Bowen, said, “We can’t believe the coincidence with our mothers. It was six degrees of separation.”
Image: Patrice and Chris Bowen, who bought 24 Newington St, Tarragindi, for $750,000 last week, or $50,000 higher than the reserve.
Sydney market moderating
"Clearance rates remain below 70 per cent across every capital city apart from Melbourne," according to CoreLogic.
Sydney's clearance rate remained below 70 per cent for the eleventh consecutive week. Compared to one year ago, clearance rates continue to track lower. The final result from the corresponding week last year was 76.4 per cent on similar volumes.
"Another solid set of results this past weekend has seen a steady two out of three properties submitted to auction selling either on the day or beforehand," REINSW president John Cunningham told SCHWARTZWILLIAMS.
"This pattern has been consistent over the past three months and indicates a market that has settled into a holding position and we expect this pattern to continue through the rest of the year.
"With stock increasing as we move through spring this new normal should see a more equitable market emerge that will satisfy both sellers' and buyers' desires for confidence and security moving forward."
Read more about auction markets:
Melbourne property market continues to streak ahead of Sydney's
Hobart property market has "changed forever": Jim Playsted, Knight Frank
Sydney's eastern suburbs "back to a normal market": Alexander Phillips, PPDRE