Auction clearances fall as volumes rise

Economists have lowered their housing market expectations after those of the Reserve Bank of Australia larger than expected increase of 50 basis points in the spot rate earlier this month, bringing the benchmark rate to 1.35 percent. Many expect so reach 2.5 percent

Higher borrowing costs for home buyers coincide with falling consumer confidence as inflation – what RBA Governor Philip Lowe expects peak at 7 percent – rises, weakening purchasing power.

Bought by parents for their children: The two-bedroom apartment at 10/18 Ridge Street in North Sydney sold at auction on Saturday for $1,462,000 – $127,000 surplus.

Last week, ANZ senior economists Adelaide Timbrell and Felicity Emmett said house prices in Sydney can drop as much as 20% between April this year and the end of next year, less than a month after they said Sydney prices would fall 7 percent this year and 8 percent next year.

In this environment, the most confident buyers are those with more equity and less reliance on credit to buy real estate.

A two-bedroom apartment in North Sydney was sold at auction on Saturday for $1,462,000 – $127,000 above reserve – after a regional NSW couple battled it out with another party to keep the 10/18 Ridge Street home safe. for their Sydney-based daughters.

“The property had all the attributes – a great location in a busy hub, but quietly situated to the rear of the building, north facing and very well presented,” said Belle Property Neutral Bay’s agent Chris Davies.

Still strong on the upside: The house sold for land value at 23 St George’s Road in Melbourne’s Toorak cost more than $13,500 per square foot.

“Even with the uncertainty in the market, this sale shows that buyers are willing to pay for quality properties.”

Overall, however, Sydney posted its lowest preliminary clearance rate in more than two years, reaching 55.4 percent based on 624 reported results from 793 scheduled auctions.

The highest clearing rate from the NSW capital was in Sutherland Shire in the southern suburbs, at 71 percent. The lowest percentage CoreLogic reported was 33.3 percent in the southwestern suburbs.

In Melbourne’s Toorak, a four-bedroom house sold for land value was put on the market for $8.2 million and went to a developer for $9,050,000 – more than $13,500 per square foot.

“That’s as strong a result as you’d ever see,” says buying broker Emma Bloom.

‘There is no need yet. There is still a healthy appetite for high-quality properties.”

Abercromby’s sales agent Hugh Hardy, who sold 23 St George’s Road to the sellers 21 years ago for $1.4 million, said it would likely cost $6-$6.5 million to rebuild on the site and completed new ones. house would probably be in the “good north”. of $20 million.

In the lower price ranges, however, the market is weakening. In Melbourne, east of Kew, a four-bedroom house on 589 square feet built in 2018, which sold for $3,667,500 at auction last February, passed Sunday to the sole bidder to pay $3,625 million. offered.

The 53 Spruzen Street property, advertised at a price range of $3.6-$3.85 million, was sold in negotiations after the auction for an undisclosed price, Kay So said Burton agent Gowan Stubbings.

The number of auctions scheduled in Melbourne during the week has nearly tripled to 1,264, from 450 the week before, and the preliminary clearing rate rose to 57.9 percent from the preliminary week before.
57.4 percent.

Last week’s final rate of 52.4 percent was the lowest in the city since September last year.

Adelaide had the most scheduled auctions of the smaller towns, with 179, and posted a preliminary clearance rate of 70 percent, down from 78.7 percent a week earlier.

Canberra had 101 scheduled auctions and a provisional rate of 64 percent, up 59.2 percent from the previous week. Brisbane had 174 auctions and posted an initial rate of 52.2 percent, also up from last week’s preliminary 48 percent.

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