PROPERTY

Auction Clearence Rate (ACL): Don’t get caught out

Bishwas Bhattarai, Senior Lending Manager
M. Comm. (Banking & Finance) UNSW, Dip. Fin. Plan.

12th Feburary 2018

Auction clearance are long been used as a barometer to highlight buyer confidence but don’t caught on it. There is a lot to equation than just numbers

 

Market Wrap: 12 Feburary 2018

Auction result seems to be crawling back, to “normal” in most capital cities as per REA (Real Estate.com.au) and Domain. Domain recorded the Sydney clearance uplift of 69.7 percent from 290 reported properties compared to previous week’s 50.6 percent from 142 properties that got sold. However, total registered bidder in each property is lower single digit implying lower confidence in market. Auction clearance are long been used as a barometer to highlight buyer confidence but don’t caught on it. There is a lot to equation than just numbers.

As per domain auction clearance rate for Sydney is 69.7% from 460 total properties that were planned to go under hammer last Saturday. Melbourne with 72% from 541, Brisbane with 60% of 93, Adelaide with 67% of 49, and Canberra with 65% for 60 scheduled auctions. Anything over 60% is still a very good market, hovering on this mark shows the demand is still high. However, the number of properties going under the hammer is way too low to make any judgement call.

There is no surprise after the school holidays, most are returning back to normal working life brick and mortar investment are no different. Stocks on the market are increasing so are the number of buyers and open houses.

Sydney market has been slow last quarter. During this time Sydney has recorded 2.7% fall in median house price. Agents are reporting market is slowly turning and lot so buyers are coming in to gauge the market. First home buyers are in force and most sought out suburbs are in look out. Last Saturday Dee Why hosted 9 auctions, followed by Newton Castle Hill, Chester Hill and Alexandria all recording 5 each. Due to the entry level price tag, close proximity most of the unit are very appealing to first home buyers in Dee Why. Likewise, any suburbs that are primarily into first home buyer’s wish list are getting and likely to get more traction. Fringe first home buyer’s suburbs like Auburn, Granville, and Liverpool that has seen so much growth in the last 24 months on the back on neighbouring suburbs are feeling the pain.

Steller performer: the house at 57 John Street, Petersham performed against the odds with just 7 bidders settling for $2 567 000 above $367 000 the price guide.

Sydney is still demand driven, since regulators have placed speed hump on investor market first home buyers are making way back in market. Sydney has been resilient despite the fact most pundits are expecting property price to fall be