October Property Wrap
Strong October ahead of soaring November auction volumes
The record volume of auctions across the nation continued throughout October, with capital cities experiencing another strong month of auction sales. National auction clearance rates remained consistent throughout October at an average of 72%.
The Sydney market is producing the highest auction clearance rates with the average hovering around 80% for the past 10 weeks. Melbourne continues to perform well whilst Adelaide auction clearance numbers have declined in the past three weeks. Brisbane clearance rates are at 45-50%.
Auction Services recorded a clearance rate of 80% for the month of October. Co-Directors Rob Trovato & Rocky Bartolotto mentioned that whilst the average number of registered bidders dropped slightly due to increased new stock coming on the market, many properties recorded strong results at auction. A clear trend over the last few months has been “vendor” confidence and awareness, as well as agent education [on] the benefits of selling through auction. This has contributed with the continued record volumes we are seeing particularly in regions which were traditionally favoured to sell via private treaty.
The surge of new property on the market will produce record auction volume as we head into November which looks set to a record breaking month for auctions with current stock up slightly on November 2013. Buyers can expect a high number of new listings hitting the market this week which will be welcome news for many buyers who up until a month ago felt that ‘choice’ was rather limited. This will be the fourth consecutive month of record auction volumes which is unprecedented.
Over the September quarter, the Sydney market continued to perform strongly according to figures released by Australian Property Monitors. The best house price increases occurred on the upper north shore at 9.3%, inner west 8.8%, city and east 5.8%, lower north shore 5.7% and the northern beaches 5.2%.
A recent article published on Property Observer titled Four reasons property prices are rising higher and higher discussed a number of factors that contribute to price growth. Driving this is record low interest rates. With the Reserve Bank conducting their monthly meeting later today before the Melbourne Cup. A rate rise would take many by surprise, however the Reserve Bank continues to talk of a ‘housing bubble’ and this will no doubt feature in their discussions.
A region that is performing strongly is the Northern districts. NNW Property in Epping Senior Sales Consultant Russell Sheffield has noticed the increase in listings with vendors looking to sell and settle prior to the holiday season and buyers likewise share a similar motivation. According to APM the Epping suburb has had a 28.4% increase since 2013. However surrounding suburbs are also performing strongly said Russell, an example of this was seen at the successful auction campaign for 9/23 Fontenoy Rd Macquarie Park which sold well for $952,000 in late October. Close to 120 groups inspected the 3 bedroom townhouse with keen interest as the new Macquarie Shopping Centre opened its doors in the week leading up to the auction.
Auction Services – October highlights
• 1 Wells Avenue, Tempe sold for $1,210,000 - $110,000 over reserve by Day and Hodgson Real Estate
• 12 Pearson Street, Balmain East sold for $1,950,000 - $50,000 over reserve by Belle Property Balmain
• 6/7 Bruce Street, Ashfield sold for $618,000 - $38,000 over reserve by Belle Property Annandale
• 125 Kiora Street, Canley Heights sold for $1,010,000 - $60,000 over reserve by Raine & Horne Cabramatta/Canley Heights
• 60 North Liverpool Road, Heckenberg sold for $536,000 - $96,000 over reserve by Ray White Green Valley
• 214-220 Castle Road, Orchard Hills sold for $2,005,000 - $205,000 over reserve by Dukes Estate Agents Penrith
• 27 Beverly Crescent, Marsfield sold $1,305,000 - $65,000 over reserve by NNW Property
Rocky Bartolotto is a Director and Chief Auctioneer at Property Auction Services.
Auction Services guarantees 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 individual client requests. For more details, visit www.auctionservices.net.au.