Sydney and Melbourne auction markets soft as coronavirus continues
“Hot spot” took on a whole new meaning in real estate at the weekend as Melbourne’s auction market navigated the COVID-19 clusters across the city.
While some auctions in the affected areas of Moreland, Hume, Brimbank, Darebin, Casey and Cardinia were moved online — as governments and experts warned people to stay away from these local government areas — others went ahead on site.
In Keilor Downs, the worst-affected suburbs in Brimbank, a four-bedroom house at 13 Lady Nelson Way, sold online, with 28 registered bidders competing for the keys.
A young couple snapped up the property for $696,000, $46,000 above the reserve of $650,000.
Ray White Taylors Lakes’ Peter Travlos said he had been expecting a large on-street auction, but decided to change it to an online auction on Thursday.
“People were definitely not put off by coronavirus,” Mr Travlos said.
While the sale was unaffected, the ongoing COVID-19 restrictions — limiting public auctions to 20 people — has had an impact on the wider market.
By Sunday, Melbourne had posted a preliminary auction clearance rate of 59.4 per cent after 355 results were reported. There had been 527 auctions scheduled and 42 properties withdrawn from auction.
Sydney recorded a preliminary clearance rate of 64.4 per cent from 310 reported results. There were 529 auctions scheduled to go under the hammer, with 75 properties withdrawn.
AMP Capital chief economist Shane Oliver said the ongoing impact of coronavirus — including job losses and stalling immigration — would see the market continue to weaken in the coming months.
“Sydney’s results are still pretty soft and the coronavirus outbreaks in Melbourne would be adding to the cautiousness in the market there,” Dr Oliver said. “Normally, Melbourne would have more listings than Sydney but that hasn’t been happening in recent weeks.”
One of the biggest reported sales for the weekend was on Sydney’s lower north shore in the suburb of Waverton, where a property divided into three large apartments sold for $4 million.
The 642-square-metre property at 29 Balls Head Road sold for $200,000 above the reserve.
Belle Property Neutral Bay’s Tom Scarpignato said there were eight registered bidders, three of whom actively bid throughout the auction.
The auction for the property, converted into apartments in the 1950s, kicked off with a strong opening bid of $3.7 million.
The buyers were a family from the upper north shore, who planned to knock it down and build their dream home on the block.
The vendors, who had owned the property for 32 years, were ecstatic with the result, Mr Scarpignato said.
“This property is a big house on a good-size block. They don’t come up very often and this one has multiple options given its current configuration as three apartments,” he said.
Another big sale was in Sydney’s east with 4/15 Wonderland Avenue, Tamarama, selling at auction for the $2 million reserve price.
McGrath Double Bay’s Mackenzie Dale said a neighbour living below the two-bedroom apartment snapped up the property. He was one of three bidders who fought it out for the keys.
The neighbour plans to connect the two apartments to create a bigger home.
Mr Dale said he was encouraging people to list now given the lack of stock and number of buyers in the market.
“We got caught out at the start of March when everything went south,” Mr Dale said. “We couldn’t get pen to paper for a sale for about eight to 10 weeks and now everything’s changed.”
In Sydney’s west, a three-bedroom house at 8 Macarthur Crescent, Westmead, sold for $1.01 million — $160,000 above the $850,000 reserve.
Ray White Westmead’s Joseph Chidiac said a crowd of 50 people were at the auction for the tightly-held home, owned by the same family for more than 40 years.
A local family were the buyers, beating out 12 registered bidders for the 531-square-metre property.
“Stock is still a bit light on, but I have just had the busiest two weeks in ages,” Mr Chidiac said.
Auctions were also busy in Melbourne, with strong sales recorded in the city’s real estate hot spots.
In Brighton, a four-bedroom Victorian home at 137 Male Street sold under the hammer for $2.47 million.
A Sydney family relocating to Melbourne outbid two other parties to secure the keys, said O’Brien Real Estate Brighton’s Justin Hocking.
“They just edged out another family, literally, because bids were going up by $1000 in the end,” Mr Hocking said.
People were unperturbed by the coronavirus when needing to buy and sell, he said.
“It doesn’t stop anyone buying a home,” Mr Hocking said. “People still need to buy [and sell].”
In Kew, an Edwardian home at 16 Miller Grove sold in the middle of the property’s asking price range for $2.54 million.
The four-bedroom house drew about a dozen registered bidders, with an older family snapping it up.
“They are very happy to be returning to Kew,” RT Edgar Boroondara’s Marilyn Reed said.
A family also snapped up a four-bedroom house at 210 Poath Road, Hughesdale, near Oakleigh, which sold for $1.7 million.
It was third time lucky for the home, said Gary Peer Real Estate’s Leor Samuel. The property had previously been under contract but the private sale fell through, and it failed to sell at a previous auction a few weeks ago.
The sale on the weekend was great news for the vendors, Mr Samuel said.
“It sold for well above what was offered in that private sale,” he said.
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