THE auction clearance rate is expected to reach 61 per cent for 2012, two points higher than 2011’s dismal turnout, but five points lower than the long-term 30-year average of 66 per cent.
The weekend just passed recorded a 60 per cent clearance figure from 875 reported auctions. The results of a further 94 auctions are yet to be reported and could bring down the clearance rate. Last week’s 60 per cent rate fell to 59 per cent after the stragglers were counted.
The REIV expects about 920 auctions next weekend and about 120 in the week before Christmas.
While 409 sold under the hammer (or shortly after) over the weekend, 98 sold in the days leading up to auction day, as vendors and buyers alike tried to sort out their affairs before the holiday break.
In East Brunswick, a double-fronted weatherboard Victorian at 121 Barkly Street fetched $1.275 million weeks before Saturday’s scheduled auction.
The fully renovated three-bedroom house is on 326 square metres and agents Nelson Alexander expected it to sell between $950,000 and $1.05 million. It sets a benchmark for East Brunswick, particularly for Barkly Street, where some standout prices have been recorded during the year.
In February, six bidders pushed 417 Barkly Street to $1.01 million; and in October, 195 Barkly Street fetched $1.054 million. Further north, 20 Hutchinson Street, a double-fronted house on 425 square metres, sold privately in October for $1.05 million.
A staggering 60 per cent of the weekend’s 351 passed-in properties did so on a vendor bid. A large crowd gathered under the trees lining the Fitzroy oval on Saturday afternoon, sheltering from the hot sun for the auction of 68 Freeman Street. The double-fronted five-bedroom brick Victorian, owned by children’s author and artist Felicity Marshall, failed to attract a single bid despite it being on a coveted 510-square-metre block.
It passed in on a $2.3 million vendor bid, carrying a reserve of $2.45 million. Collins Simms agent Antony Woodley said discussions were under way with potential buyers.
Marshall White director James Tostevin, who sold the top house at 6 Logan Street, Canterbury, after auction, for more than $3 million, said the market was holding up well.
”There can be some results in November and December which show that buyers are getting weary – there’s an oversupply of stock and the clearance rate falls way,” Mr Tostevin said.
”But it’s been really strong this year right up until this weekend and that augurs well for next year,” he said.
However, he added the caveat that buyers would have to remain realistic about the prices they could reach.
The original release of this article first appeared on the website of Hangzhou Night Net.