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Auction markets – what you need to know from last week

Sydney, Melbourne auction wrap

The autumn auction season officially kicked off last week, with Sydney and Melbourne continuing their strong runs – including a massive $9m+ sale.

Property sellers across Sydney and Melbourne have seen yet another successful week of auctions in 2017, with both cities recording preliminary clearance rates over 80%, according to Core Logic.

Sydney was up to 80.5% from 80% the week prior, while Melbourne saw a slight drop from 81% to 80.4%. While clearance rates over 80% may be the normal for both markets these days, the reduction in the number of properties up for auction last week may have helped to keep the sellers success rates high.

Sydney was host to 886 auctions (down from 1,210 the week prior) and Melbourne had 1,399 (down from 1,635). Across the capitals the total number was down to 2,714 from 3,301 the previous week. The combined preliminary national auction clearance rate also took a slight hit – coming down to 77.8% from 78.4% on Core Logic figures.

Despite the small week-on-week falls, however, volume numbers and clearance rates were both up on the same week last year, when 68.6% of 2,304 auctions successfully cleared. This points to a lot of heat in the 2017 auction market so far.

Sydney highlights

Even by Sydney standards a sale at auction over $9m is exceptional, and on the weekend a 5br tri-level harbourfront house in McMahons Point went under the hammer for a staggering $9.38m. Sitting on 246sqm, the home has uninterrupted views of the Sydney Harbour Bridge and Opera House.

The city recorded another big harbourside sale in Balmain, where a 4br, 600sqm house facing directly onto Mort Bay fetched $6.1m. The 1870s freestanding home features a separate apartment. 

Despite these two big sales, however, Domain reports that Sydney’s median auction price dropped to $1.15m, the lowest it's been in months. This was enough for one buyer to snap up a 4br house in Punchbowl with an outdoor entertaining area and separate garage. In neighbouring Riverwood, a 3br, 450sqm house sold for $1.151m.

At the other end of the property market there were a handful of sales under $500,000. A 2br, 240sqm Ingleburn townhouse "in need of major repairs" according to the selling agent sold for $400,000, the most affordable disclosed auction sale for the Sydney area.

Melbourne highlights

Unsurprisingly, Melbourne’s most expensive home sold at auction last week came out of Toorak. A 4br, 877sqm brick house circa 1923 fetched $5.5m. It came complete with a 12m solar powered lap pool, wine cellar and secure underground parking for five cars. 

The median auction price in Melbourne last week came in at $843,750, according to Domain. For just under this amount, a buyer purchased a 5br house in Croydon marketed for the development potential of its 950sqm block.

The most affordable property reported sold at auction was a 1br unit with parking in Footscray that went for $227,000. 

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.