Sydney's weekend auction clearance rate soars to 82%, but Port Hedland highlights how the mighty can fall
Sydney's 82% weekend auction success rate was right up there.
The weekend was the second with reasonable 2015 auction offerings, with the results from Domain Group's Australian Property Monitors up from the initial revised 69% of last weekend, January 30.
There were 297 offerings in Sydney, with results in for 272.
Melbourne's weekend auction success rate was a bit more pedestrian at 67%, which was not too dissimilar to the 65% of last weekend.
The REIV reported a catchup clearance rate of 61% had been recorded between 22 December 2014 and 7 February 2014.
The APM dearest February 7 weekend auction sales results
| Sydney | 27 Riverside Dr, Sans Souci NSW 2219, 3 br House, R&H Sans Souci $2.7m |
| Melbourne | 6 Bishop Ct, Mount Waverley VIC 3149, 2 br House, Jellis Craig $1.48m |
| Adelaide | 22 Preston Av, Brighton SA 5048, 3 br House, Gary J Smith RE Glenelg $908,000 |
| Brisbane | 7 Rule St, Hendra QLD 4011, 6 br House, RW Ascot $1.52m |
The APM most affordable sales
| Sydney | 6/20 Equity Pl, Canley Vale NSW 2166, 2 br Unit, C21 Southwest Fairfield $307,000 |
| Melbourne | 4/32 Birdwood St, Frankston VIC 3199, 2 br Unit, C21 Home Port $215,000 |
| Adelaide | 5/56 Northcote Tce, Gilberton SA 5081, 2 br Unit, LJH Modbury $365,000 |
| Brisbane | 12 Hope St, Kingston QLD 4114, 4 br House, Professionals Logan Lifestyles $248,000 |
On the same weekend last year Sydney had a strong 78% clearance rate from 301 listings. Melbourne had 261 offerings and a 67% success rate this time last year.
APM's senior economist Dr Andrew Wilson noted the "super strong" clearance rate in Sydney at 82.4% was achieved from significantly higher listings than last weekend's 97.
"The market remains white hot as interest rates fall," he tweeted to his 933 followers.
AMP Capital economist Shane Oliver had a different interpretation suggesting yes the auction clearances were solid: But he tweeted "Syd 82% (likely 78% after revisions), yr ago 79%; Melb 67%, yr ago 68%." "Can't see big impact from rate cut though," he tweeted.
The ABC reported on a Port Hedland auction where the fibro cottage was passed in at auction for $360,000 unsold - its highest offer reflecting 2006 price levels.
It last traded four years ago for $1.3 million, and before that at $870,000 in 2009 and at $350,000 nine years ago in 2006.
The three bedroom, one bathroom 1960s house sits in the heart of the Western Australian mining town. It is within the business and commercial district, opposite developments and not far from the boat ramp, Marapikarrinya Park, and fishing wharf.
Real estate agent Barry Walsh at Jan Ford Real Estate told the ABC the top bid was a sign the mining boom's construction phase had tapered off.
Negotiations continue for the sale of the cottage with 145 square space on its 600 square metre block.
It was initially listed for private treaty sale in June 2013 at $1.42 million.
Property Observer understands its most recent rental asking price was $800 a week in mid-2014, having been in excess of $2000 a week in 2008 and 2011, when it was last sold.
Last month the controversial research body, Demographia noted the affordability of WA mining towns had improved.
Last July Property Observer Terry Ryder wrote Port Hedland and Karratha "the best places to buy"? Don't get roped into that one, he advised a year after an earlier warning.
In 2012 Property Observer reported Westpac viewed Port Hedland as an "unsustainable" single industry mining boom hotspot.
Back in Sydney Cooley Auctions weekend clearance rate was 88% selling 21 of 24. It included two at Caringbah South which collectively sold at $120,000 over reserve.
Rocky Bartolotto at Auction Services secured seven from seven on the day reporting registered buyer numbers were strong across Sydney with an average of eight per property.
"This is up from 6 buyers compared to February 2014," he advised.
CoreLogic Rp Data advised a preliminary weighted average clearance rate of 66.9% was recorded this week across all the capital cities compared to 61.6% last week and 68.2% this time last year.
"This week's result compares well to the 2014 market when an overall clearance rate of 67.8% was recorded," spokesperson Robert Larocca said.
"It also reflects the moderate growth recorded in home values this year.
"The positive impact of the rate cut will take a few weeks to be apparent on a national wide scale as volumes are still low.
"If the rate cut is to encourage a few more active buyers and sellers it will also take a few weeks to be obvious."
In Sydney a preliminary clearance rate of 80.5% recorded compared to 77.9% last week and 79.5% last year.
In Melbourne a preliminary clearance rate of 61.4% was recorded compared to 66.3% last week and 67.5% this time last year.
In Brisbane a preliminary clearance rate of 45.6% was recorded compared to 43.3% last week.
In Adelaide a preliminary clearance rate of 61.1% compared to 52.7% last week.
In Canberra a clearance rate of 62.8% was recorded compared to 72.7% last week.
In Perth a clearance rate of 35.7% was recorded.
