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Weekly auction wrap: Melbourne and Sydney highlights

Weekly auction wrap: Melbourne and Sydney highlights

Clearance rates were lower once again in Sydney and Melbourne, but both markets saw some reserve-smashing individual sales.

Auction clearance rates across the combined capital cities have fallen below 70% for the third consecutive week as the two major markets of Sydney and Melbourne continue to moderate.

Volume numbers remain high, with more than 2,400 properties taken to auction last week according to CoreLogic. But Melbourne posted a preliminary clearance rate of just 72.2% from 1,121 auctions, a relatively low result for Australia's auction capital.

Numbers were similar in Sydney, where 72.4% of 906 slated auctions successfully cleared on CoreLogic preliminary figures. Weak results in Brisbane and Canberra also helped bring down the national combined figure.

Despite this, Sydney and Melbourne once again both posted several strong multi-million dollar individual auction sales, with reserve prices being cleared by hundreds of thousands of dollars. 

Melbourne highlights

In Hawthorn, one lucky vendor pocketed a $700,000 capital gain over just two years when they sold a knock-down 4br, 350sqm cottage for $2.053m. The property, which they'd purchased in 2015 for $1.35m, comes with council permit approval to build a new three-level home.

Hawthorn was also the suburb that saw Melbourne's most expensive disclosed auction sale for the week. A 4br, 1717sqm Victorian circa 1890 sold for $7.65m, almost $1m above reserve. The property includes a pool, tennis court and parking for six vehicles. 

At the other end of the market, a 1br West Footscray flat went under the hammer for $195,000, the city's most affordable disclosed auction sale for the week.

Domain reports Melbourne's weekly auction median price was $879,000. A renovated 2br unit with parking in Black Rock close to Sandringham Beach sold for this price. 

Sydney highlights

In a sign of the premium price that inner-Sydney land commands, a rare 175.6sqm vacant block in Balmain East fetched $1.915m at auction, $415,000 above reserve. The block comes with DA approval to build a new two-story home. 

In the beachside suburb of Coogee, a 4br, three-level property commanding 180-degree views of Coogee Bay sold for $6m, the highest disclosed auction price for the week. 

Where entry-level real estate remains affordable in Melbourne, the same really cannot be said for Sydney, where not a single property sold at auction last week for less than $500,000 in the greater metropolitan area. The most affordable disclosed sale was a 3br, 1088sqm freestanding brick residence in Kurrajong Heights,  about 75kms north-west of the CBD, that fetched $501,000.

Sydney posted an auction median price of $1.265m for the week, according to Domain. An unrenovated 3br, 95sqm terrace in Glebe sold under the hammer for this price. 

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. You should consider seeking financial advice before making any decision based on this information.