Auction clearance rates rise rapidly in Melbourne and Sydney

Auction clearance rates are rising  rapidly across Melbourne and Sydney, with sales bursting out of the blocks in each market.

A whopping 79.2 per cent of auctions sold in the cities this weekend, compared with 70.5 per cent last weekend and just 50.8 per cent last year when both markets slumped due to pre-election jitters.

Saturday’s clearance rate in Sydney was 84.4 per cent, with 330 reported results from 506 scheduled auctions, while Melbourne recorded 76.6 per cent from 475 recorded results from 649 scheduled auctions.

The strong results, particularly in Sydney, have come early in the auction season, says Domain senior research analyst Nicola Powell.

“Both Sydney and Melbourne have had a stellar performance and, really, this is just the beginning of the auction season – it’s just week two,” she said.

Auction withdrawals, a sure sign of vendor confidence levels, dipped to just 30 in Sydney and 13 in Melbourne. At this time last year, vendors were less optimistic of achieving a sale – withdrawing from 73 auctions in Sydney and 27 in Melbourne.

“It says that vendors are really confident going into their auction, confident that they have enough buyers to create that competitive auction environment,” Dr Powell said.

More than 100 people packed into the backyard of 3 Chisholm Avenue, Clemton Park, to see the pretty three-bedder sell for $1.55 million – $155,000 over reserve.

Five bidders got the ball rolling at $1.2 million, but by $1.5 million it was a two-horse race.

The bidders were mainly upsizers coming from the inner-west and eastern suburbs, with a couple from North Strathfield placing the winning bid.

“It was a really nice home and very popular,” said McGrath St George agent Angelo Vagenas.

“We had more than 200 groups inspecting it before auction,” he said.  

In Gladesville, a 100-year-old home at 15 Isler Street was snapped up for $2.47 million. The property’s immaculate preservation combined with its winning location resulted in it selling for well above the $2.35 million reserve, said Belle Property Hunters Hill agent Michael Gallina.

“This pocket of Gladesville is one of the most popular because of the catchment into Hunters Hill and not many houses come up in this pocket, so when they do they are very popular,” he said.

And, in Bondi Beach, a bullet-proof investment property at 9/69 Curlewis Street sold for $1,071,000, well above the $950,000 reserve.

“It wasn’t huge, just 64 square metres, but the reason why it attracted that price is because the way the renovation was done they really utilised the space they had on offer,” said Phillips Pantzer Donnelly agent Charlie Beaumont.

Melbourne auctions had similar success, despite cool and rainy conditions.

A downsizing couple won the rights to 30 Stanhope Street, Eltham, over seven other bidders.

The reserve was $700,000 and, after a massive 62 bids, the property sold under the hammer for $838,000.

More than 150 groups inspected the three-bedroom home beforehand.

“It’s a character home that’s very Eltham and it’s close to Eltham station, just a four or five-minute walk,” said Jellis Craig Eltham director Tom Kurtschenko.

The rain may have kept some onlookers at bay, but the auction at 87 Fitzwilliam Street, Kew, still attracted more than 30 people. Two bidders went head to head, with the 1930s home eventually selling for $2.72 million.

“For an older, non-historic house it fetched a very good price,” said Shawn White, of Little Real Estate Victoria.

“The winning bidders are planning to renovate and keep it as an investment,” he said.

And, at 34/310 Warrigal Road, Cheltenham, a two-bedroom apartment sold for $610,500 in front of more than 60 people.

Ray White Cheltenham director Kevin Chokshi said the auction price smashed the $520,000 reserve. He said it also overtook the $540,000 auction result of an apartment in the same complex in November.

“I’m finding the market really strong, full of confident buyers who know what they want and are going for it,” he said.