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Australia braces for biggest auction weekend of the year

Australia braces for biggest auction weekend of the year

Sellers across the capitals are looking to make the most of the last weekend of spring, with the number of auctions predicted to be the highest so far in 2016.

Known as Super Saturday, it looks like this weekend won’t disappoint for property buyers and sellers alike. CoreLogic predicts 3,127 auctions will go ahead across the capitals - up from 2,987 auctions last week - making it the biggest week and weekend for auction activity so far this year.

Fittingly, Australia's auction capital Melbourne will lead the way with 1,508 auctions scheduled, which is over 200 more than last week. Reservoir and St Kilda are expected to be the busiest suburbs for auctions across all the capital cities, with 24 properties slated to sell under the hammer in each.

Last week, St Kilda saw the most expensive disclosed sale by auction in Melbourne, with a 5br house fetching $4.4m. Median house prices in the popular bayside suburb have skyrocketed over 2016, up by almost 20% since 1 January to hit more than $1m as of November by CoreLogic figures.

On the north side of town Reservoir has also performed well over the year, with median house price growth of more than 11% from more than 500 sales.

Sydney makes up another large chunk of the overall number of auctions, preparing to host 1,143. Last week the beachside suburbs fared well, with the eastern suburbs (89.7%) and northern beaches (87.9%) sub-regions holding the highest auction clearance rates in the city, according to Core Logic.

On the flipside, only around 54% and 63.5% of auctions held in the south-west and Parramatta sub-regions successfully cleared last week, pointing to a two-speed auction market in Sydney.

What’s happening beyond Sydney and Melbourne?

With Sydney and Melbourne combined accounting for around 85% of all auctions slated to be held in the capitals this week, Core Logic reports auction activity is expected to fall in all other markets except Adelaide, which should remain steady with 135 auctions.

Brisbane (182) will see 80 fewer auctions than last week. The Queensland capital's auction clearance rate has hovered around the halfway mark for the past couple of weeks and last week came in at 45.2%, while Adelaide’s was 66%.

Canberra's 96 scheduled auctions are down on the 119 hosted there last week, with the nation's capital once again recording the highest clearance rate outside of Sydney and Melbourne (around 70%).

What’s ahead?

Overall, spring has seen much higher auction clearance rates compared with last year. This is due in part to fewer property sales as well as historically low interest rates. As spring draws to a close, all eyes will turn to 2017 to see what trends continue.

Sellers will likely still feel confident given the demand amongst buyers that has been mostly unwavering this year, particularly following the RBA's two cash rate cuts.

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.