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Weekly property auction wrap

Sydney and Melbourne auction clearance rates slow in first week of autumn

The first weekend of autumn saw auction clearance rates fall, although sale prices in Sydney and Melbourne continued to beat reserves.

In Melbourne, 70.6% of auctions successfully cleared last week from 1,218 listed properties, according to preliminary figures from CoreLogic RP Data – a noticeable drop from the almost 75% clearance rate seen the week before.

Sydney’s auction clearance rate also fell, dropping below 70% to 68.6%. Volume numbers in that city were also down compared to the previous week and the same week last year.

Despite these drops, however, some properties in Sydney and Melbourne sold for hundreds of thousands – and in some cases, even millions – above their reserve in sub-regions that continue to enjoy high clearance rates.

Sydney highlights

In the south-eastern suburb of Kingsford, an unrenovated three bedroom, 500 square metre double brick house on a corner block sold under the hammer for $3.065m - more than $1m above reserve. The house attracted 27 bidders who helped push the sale price so high.

The inner south region showed the strongest clearance rate for the week of all Sydney's sub-regions, CoreLogic reports.

A 4br, 518sqm Chatswood bungalow sold on Saturday for $2.315m, $315,000 above reserve.

In Roseville, north of Chatswood, a 5br, 1,380sqm residence fetched $4.125m, Sydney's most expensive disclosed auction sale for the weekend.

At the most affordable end of the auction scale, a 2br Auburn unit with parking sold on Saturday for $440,000.

Sydney's auction median for the week was $1.18m, according to Australian Property Monitors (APM). A 3br townhouse in Sans Souci sold under the hammer for this price.

Melbourne highlights

In Armadale in Melbourne's inner south-east, a contemporary 5br, 847sqm house sold for $6.74m – soaring about $1.6m above reserve. It was the city's most expensive disclosed auction sale for Saturday.

In neighbouring Prahran, another reserve was smashed when a buyer paid $2.105m – almost $300,000 over reserve – for a 4br, 332sqm brick Victorian house.

Melbourne's most affordable auction sale was in Lalor in the city's outer north, where a 2br brick unit fetched $213,000.

APM reports Melbourne's auction median for the week was $750,000. Several properties sold at this price, including a freestanding 3br house in Reservoir and a 3br, 658sqm Greensborough property.

Melbourne's north-east (in which Greensborough lies) showed the strongest auction clearance rate of all the city's sub-regions, according to CoreLogic.

This article is intended to provide general information of an educational nature only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice.