House doubles in 2 years to 3.55m after cosmetic renovation
Auction clearance rates slipped noticeably last week as buyers buckle up for a federal election campaign and await more substantial relief on borrowing costs.
Also weighing on the success rate was the large volume of auctions listed as the autumn selling season hit full stride. There were 2905 auctions listed nationally last week, making it the busiest week for auctions since the last week of October 2024.
Preliminary auction clearance rates eased to 66.1 per cent nationally, dropping from 68.7 per cent and continuing a slowdown over recent weeks, Cotality, formerly known as CoreLogic, data showed. The previous week’s success rate was revised to 63.2 per cent in the final tally.
“Buyer demand doesn’t seem to be keeping up with the rise in auction activity,” said Cotality research director Tim Lawless on Sunday.
Also weighing on buyer enthusiasm was uncertainty over outcome of the federal election, set for May 3.
“In previous election cycles we’ve seen, we generally see two things happen to the housing market in the lead-up to an election day. Volumes start to fall away, and clearance rates tend to soften,” said Louis Christopher, founder of SQM Research.
“I think the clearance rates have softened this week. And in part, that’s a response to the election call.”
While housing markets typically stabilise after the outcome of a federal poll becomes clear, this year’s tight election race and the potential for a hung parliament could prolong the period of uncertainty and its impact on the market, Christopher argued.
Another hurdle for buyers was the modest initial cut to official interest rates so far. While the February cut boosted confidence it was not big enough to sway some buyers, Christopher said.
A decision to cut further at this week’s Reserve Bank Board meeting could help offset the impact of the election, he said.
Clearance rates in the major markets of Sydney and Melbourne dropped a gear over the past week, with Sydney recording 65.5 per cent, down from 69.1 per cent a week earlier. Melbourne’s success rate was 67.2 per cent, down from 70.6 per cent.
Despite the slowdown, some stand-out results were achieved, including the sale of a five-bedroom home in Brisbane’s northern suburbs, which close to doubled its value in two years.
The renovated Queenslander at 46 Angliss Street in Wilston sold under the hammer for $3.55 million, through Ray White Wilston.
The auction started at $3 million and went up in $100,000 rises quickly, according to selling agent Alistair Macmillan.
“We paused the auction at $3.5 million, and then the owners put it on the market at $3.55 million.
“This same property transacted for $1.8 million two years ago, and these owners did a cosmetic renovation. The sellers were absolutely thrilled with the outcome.”
Among the smaller capitals, Adelaide had its busiest week of auctions in four weeks. Despite that, its preliminary clearance rate bounced higher to 75.6 per cent.
Brisbane was also humming with its third-busiest week of auctions so far this year, recording a 59.5 per cent preliminary success rate, down slightly on the previous week.
Canberra recorded its lowest preliminary clearance rate in the year so far, at 50.9 per cent.
