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Auction activity slows in lead up to Christmas

Auction activity slows in lead up to Christmas

After a busy 2016, auction activity finally eased in our final week of reporting.

It’s been a busy spring season for both property sellers and buyers, but it appears that things may finally be slowing down as we move into the holiday period.

The number of properties up for auction across the capital cities dropped to 2,722 last week from 3,432 the week prior, according to Core Logic.

The preliminary auction clearance rate also dropped, despite fewer properties being on the market. Core Logic reports that the weighted average clearance rate across the capitals was 70.5% – down from 74.6% the week prior, but still well above the same week last year when the auction clearance rate was 59.4%.

Melbourne again had the highest preliminary auction clearance rate at 75.7%, while Sydney wasn’t far behind on 74.1%.

Melbourne highlights

This year it has been rare to find a property in Melbourne under $200,000. One buyer snapped up a Christmas bargain, buying a 1br unit in Fawkner for $175,000. The home is on the ground floor and comes with a car space. It was the most affordable property sold at auction last week in Melbourne.

Domain reports that the median auction price fell to $707,500 from $800,000 the previous week. This was enough to fetch a 2br unit with a balcony in Elwood.

The most expensive property reported sold last week went under the hammer for $4,012,000. The 5br house in Canterbury offers close access to some of Melbourne’s most renowned schools. All on one single level, the Edwardian style home combines elements from the early 1900s with modern amenities.

Sydney highlights

For a property under $300,000 buyers are still having to look in the greater Sydney area. The most affordable property reported sold last week was a 1br home in Gwandalan that sold for $290,000. Sitting on 506sqm, the home was advertised as having potential to earn a rental return between $200-$225 a week.

Like Melbourne, Sydney’s median auction price fell last week – it dropped from $1.25m the week prior to $1,055,000, according to Domain. A 3br house in Yagoona sold for this amount, described by the real estate agent as a 'great potential development opportunity'.

A 5br house in Warrawee was the most expensive property reported sold last week at $4,600,000. Sitting on 1,571sqm, the double brick home features landscaped garden areas as well as a formal lounge and dining area.

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.