A week of low clearance rates sees all markets, even those which have mostly weathered these recent slumps, dropping close to 50% rates – is this the precursor to a surge, or further downturn?
Victoria saw a greatly reduced market, with 322 scheduled auctions and 220 results available, down from 1,829 and 1,420 respectively last week – this decrease likely attributable to this weekend being immediately prior to the Melbourne Cup.
Despite the immense change in volume, the rate remained constant, with a 51% clearance rate. For the moment, it seems Victoria cannot escape the low 50s – with the other large markets following suit, this slump in Australia’s market continues.
New South Wales
In a rare reversal, New South Wales sees a greater volume than Victoria, holding to last week’s figures and exceeding much of October’s, though unable to reach 1,000 auctions as September did, with 954 scheduled auctions and 637 results available.
The resultant 47% clearance rate, however, is among NSW’s lowest in recent times, though not as low as the 44% seen in early October. Though not the state’s lowest point, this flickering beneath the 50-mark puts NSW’s market in a worse state than Victoria’s.
Some of the state’s most robust regions have floundered this year – however, recent predictions by John McGrath have suggested that Sydney is set for significant upturn in 2019, making this a prime spot for investment and hopefully influential in what could be a recovery for Australia’s market next year.
As well as being the most robust state this week, New Sales Wales was host to the most lucrative sale. 2 Coolawin Road was delivered to its colossal $4,810,000 selling price by John Conroy and Spencer Liang Sun of Sotheby’s International Realty.
Situated on the edge of Middle Harbour, this full-brick family home boasts northerly aspect, deep water jetty and pontoon, sparkling pool and elegant open-plan living. The property makes for an excellent home for families, those with a boating or sailing disposition, or those looking to redevelop in a prime location. Earning almost $5 million, the home is the most expensive recorded sale for Australia in this real estate period.
Continuing the trend seen last week throughout a variety of states, Queensland sees both an increased amount of auctions and a diminutive clearance rate. The 336 scheduled auctions, where Queensland often sees below 300, and 184 available results, has yielded a 31% clearance rate.
This is up from 26% last week but does not touch the 40% seen the week prior to that. This rate is just shy of the roughly 33% figures which are typical for Queensland – it would be excellent to see the state rise above this benchmark in the potential 2019 upswing.
South Australia, which has largely been immune to the uncertainty seen elsewhere, fell victim this week, an increased 149 scheduled auctions, up from 140 last week and low- to sub-100s throughout early October and September, yielding 90 available results and a disappointing 57% clearance rate.
SA saw an impressive 68% clearance rate last week, and has often held the highest clearance rate among substantial markets in recent weeks and months. Though it manages the latter this week, it is with a rate creeping down to the 50% figures plaguing the nation’s largest markets – hopefully this is a brief dip that the state can swiftly recover from.
Australian Capital Territory
The ACT has continued its own disappointing trend of late, a substantive 119 scheduled auctions giving rise to 90 results available and a 43% clearance rate.
The previous two weeks have seen 53% and 49% rates respectively, this week representing the lowest point in an extended slump from 60-plus rates the ACT enjoyed in early October and throughout September. Though not as influential a market as NSW or Victoria, the ACT nonetheless sees substantial volume and, in conjunction with downturn in SA and Queensland, this makes for an influential downwards tug in Australia’s market.
Western Australia has seen a similar trend to that in Queensland and SA, with a slight increase in volume, 54 scheduled auctions up from 41 last week, of which only 22 results are available.
The subsequent 45% clearance rate is down from 54% last week. However, this is an increase from the rates seen throughout October and September, which were closer to a fifth. This drop could mean the beginning of a slump back to old rates, however, and in the context of Australia as a whole, represents a uniformly disappointing rate.
The Northern Territory is host to 9 scheduled auctions and 8 available results, down from 16 and 15 last week. It has seen the same low clearance rate as last week, with 13% of properties selling.
Tasmania was host to four scheduled auctions, of which one result is available. This result is a sale, 7 Fraser Street selling after auction for an undisclosed price.
This week, Australia saw none of its substantial markets exceed a 60% clearance rate, many hovering around the 50% range. This represents one of the worst weeks of real estate that Australia has seen this year, amid what is already considered a slump. With experts predicting surges in key regions in 2019, with luck, this is the low point preceding a surge in the markets.