Compact Chelsea townhouse priced as Australia's most affordable auction offering

With the backdrop of housing affordability set to be a key issue for Tuesday's federal budget, a compact Chelsea townhouse in Melbourne's seaside suburb was in the spotlight as the nation's most affordable weekend sale.

The vacant one bedder fetched $273,000, having last sold at $147,000 in 2005, so falling short of doubling in price over the intervening dozen years.

The property was offered through Thomson Real Estate agent Mark Pearman and Jeff Cowan.

Its 2005 price had surged from its prior $55,000 sale eight years earlier in 1997, highlighting recent CoreLogic research suggesting despite the recent boom in capital city dwelling values growth was actually subdued compared to past decades.

Sydney ranks as the only capital city that has recorded a greater increase in values so far this decade compared to the previous decade, the research advised. The latest commentary on Sydney's affordability came via a weekend Facebook posting by Senator Sam Daystari with some 345,000 plus views by Sunday evening. 

Sydney's cheapest weekend sale was $502,500 for a three bedroom house at Windsor, in the Hawkesbury district.

Almost doubling in price over its nine year ownership, it had last traded at $255,000 in 2008, and previously at $257,000 in 2005, showing that prices can fall too.

It had doubled in price from $110,000 to $220,000 between 2000 and boom time 2003.

The nation's top reported result was Sydney's dearest sale when an restored 1890s Newtown terrace house sold pre-auction for $3.8 million.

The 66 Watkin Street terrace (above), that now overlooks the glamorous backyard swimming pool, traded unrenovated at $1,883,000 in 2009.

The property was offered through Ray White agents Ercan Ersan and Shaun Stoker who had initial $3 million price guidance.

"No expense has been spared on the meticulous craftsmanship behind its prestigious 12 metre facade," the marketing advised.

Adelaide, often ranked as the cheapest mainland capital city, saw prices range from $290,000 to $991,000.

The $991,000 sale was a four bedroom home on a hillside 2413 sqm block at Eden Hills (above). 

The home marketed as "elegant and huge" had been tipped by Harris Real Estate to fetch $850,000 plus.

The $290,000 Aldinga Beach sale was a 1970s townhouse that had been a $250 a week rental when last offered vacant three years ago.

The national clearance rate held firm around 74 percent on lower auction activity in the first week of May, according to CoreLogic’s latest report.

Rapidly falling volumes appear to have underpinned the national auction clearance rate as buyer hesitancy begins to emerge given rising interest rates and overheated markets.

The property data firm says that this week, 1,662 capital city auctions were held and preliminary results show that 1,365 auctions have been reported so far, with a preliminary clearance rate of 74.6 percent, rising from a final clearance rate of 74 percent last week across 2,350 auctions.

Clearance rates remain above the long term average across the largest capital cities, but the rolling four week average reveals a softening trend in Sydney’s final clearance rate.

Both Sydney and Melbourne maintain their place as the strongest auction markets.

This week’s combined capital city preliminary clearance rate is stronger than one year ago, when 67.7 per cent of capital city properties cleared, however auction volumes are lower than this time last year when 2,230 homes were taken to auction across the combined capitals.

Across Melbourne, 782 homes were taken to auction and preliminary results show a clearance rate of 78.4 percent, up slightly from last week’s final clearance rate of 78.1 percent across 1,226 auctions.

At the same time last year, Melbourne’s clearance rate was 73.2 percent, with 1,150 auctions held across the city.

The North East region was the best performer in terms of clearance rates, with a 89.4 per ent success rate. 

Melbourne's top sale was $3.7 million in Balwyn for a home with 500 sqm of living space through MICM Real Estate.

It was a five bedroom home with study and six bathrooms, built in the French provincial style on its 740 sqm Metung Street block (above).

The vendors had unsuccessfully sought $3.9 million at its June 2016 auction.

It first sold as a new-build in 2011 at $2.82 million.

Sydney was host to 585 auctions this week, down from 811 last week and 676 at the same time last year.

A preliminary clearance rate of 77.8 percent was recorded this week, representing an increase from last week’s 74.3 percent and higher than one year ago (71.8 percent).

"The performance across Sydney’s individual sub regions was varied," Kevin Brogan, the CoreLogic auction analyst said.

Across Blacktown, where 11 results have been reported so far, the preliminary clearance rate was 36.4 per cent, while across the Central Coast secured 89.5 percent and City and Inner South secured 88.5 percent.

There were 105 auctions held across Brisbane this week, down from 124 last week, and significantly lower than one year ago (195).

Preliminary results for the city show that 60.8 percent of auctions were successful this week, up from 52.9 percent last week, while one year ago 41.2 percent of auctions were sold.

Brisbane's cheapest weekend result was $355,000 in Zillmere, for a home on a 610 sqm block of land not too far from Nudgee College. 

The 1970-build three bedroom home (above) with 95 sqm of living space had been last traded in 1977 at $27,450, so reflected 6.6 percent annual growth over the four decades.

A total of 95 auctions were held in Adelaide this week, up from 83 last week, and similar to last year (94).

Preliminary results for the weekend show 66.7 percent sold across Adelaide, up from 63.5 percent last week.

There were 56 auctions held in Canberra this week and the preliminary clearance rate was 65.3 percent, down from 68.3 percent last week and higher than one year ago (54.3 per cent).

Like several other capitals, Canberra's cheapest offering was a townhouse.

It was a three bedroom Amaroo duplex townhouse (above) that fetched $430,000, having come with $399,000 plus price guidance from LJ Hooker. It had last sold at $382,000 in 2010.