August Property Wrap
Auction markets nationally positioned well leading into Spring
Throughout August all capital cities recorded a higher number of auctions compared to August 2013 with two cities leading the way – Sydney and Adelaide, according to figures from RP Data.
There has been a staggering increase in the number of auctions in Sydney, up more than 60% to 22,329 for 2014.
Adelaide’s auction numbers have also increased by almost 50% to 2,467.
Last weekend, almost 2,300 auctions were scheduled across the nation with approximately 1,850 in the capital cities. Although down almost 10% compared to the last weekend of August 2013, it was the highest volume we have seen in eight weeks. This increase will no doubt continue in the coming weeks as we head into that ‘Spring peak period pattern’.
Looking ahead, the last weekend in September looks set to be the first of many Super Saturday weekends in Sydney and I imagine across many of the other capitals too.
Speaking with agents across Sydney and gauging overall trends over the past 12 months, the increased number of auctions is due to a continued shortage of properties in a climate of extremely high buyer demand. This has resulted in a mindset change among vendors and agents in areas where private treaty has traditionally been the sale method of choice. Many more are choosing auction and with good reason given the strength of clearance rates throughout August nationwide.
Property Auction Services’ August clearance rate was among the strongest in our history at 85% - up 10% on July and 13% on August 2013. We achieved 95% on the first weekend in August and 91% on the fourth weekend. Nationally, clearance rates hovered around 70% , as they did in July; while Sydney remains a driving force with clearance rates returning to 80%+ throughout August.
Directors of Time Realty Five Dock, Adam Scappatura and Frank Settineri say pockets of Sydney continue to be in high demand, with record low interest rates and limited stock placing increased pressure on both home buyers and investors.
A classic example of the type of properties investors are buying is 4/29 Walton Cres, Abbotsford, a two bedroom apartment which sold for $740,000 and will return approximately $34,000 per annum in rent for a 4.6% gross yield.
An example of high demand among owner-occupiers is the auction of 56 Noble St, Five Dock conducted by Rob Trovato. The three bedroom character home sold for $1,820,000 in front of a crowd of 150 people. This was a stunning $380,000 above reserve!
Adam and Frank said their office clearance rate for August was 100%, with the Inner West at 85% according to APM.
Some big results were achieved by our team in August, the stand-out being in the Northern Beaches at 152 Narrabeen Park Pde, Mona Vale conducted by Auctioneer Robert Klaric, which sold for almost half a million dollars over reserve. This was repeated by Auctioneer Rob Trovato in Canterbury/Bankstown and by Rocky Bartolotto in the Inner West.
Property Auction Services – August highlights were:
• 152 Narrabeen Park Pde, Mona Vale for $1,910,000 – $460,000 over reserve by Sotheby’s & Castlerock Property
• 24 Elliott St, Balmain for $1,158,000 – $88,000 over reserve by Belle Property Balmain
• 24 Seventh St, Granville for $640,000 – $140,000 over reserve by LJ Hooker Granville
• 18 Mernagh St, Ashcroft for $532,000 – $72,000 over reserve by Raine & Horne Cabramatta
• 17 Napier St, Canterbury for $965,000 – $220,000 over reserve by LJ Hooker Campsie/Strathfield
• 28 Mary St, St Peters for $1,290,000 – by Day & Hodgson Real Estate
A new report by RP Data released on Monday shows the Australian property market recorded its strongest Winter since the Global Financial Crisis, with home values surging 4.2%. Underpinning this very strong result were Sydney and Melbourne, where prices jumped 5% and 6.4% respectively.
Rocky Bartolotto is a Director and Chief Auctioneer at Property Auction Services.
Property Auction Services guarantee to provide and implement a professional process for our valued clients choosing to sell through auction. With over a decade of experience calling auctions across all Sydney regions, we are confident our auctioneers will provide you with a service that is unrivalled and unique to each individual requests. For more details visit www.auctionservices.net.au.