This article is from the Australian Property Journal archive
DESPITE ANZ joining the other big banks in cutting interest rates, auction volumes remain at pre boom levels, with Sydney reporting less than $100 million in sales last weekend.
Sales volumes totalled only $248.6 million nationally. According to Domain, there were 962 listings, 592 auctions and 367 homes sold, resulting in a preliminary clearance rate of 56.3%. The median house and unit sale prices were $881,000 and $645,000.
Last weekend’s clearance rate was higher than the previous weekend and the same time last year.
In the previous weekend, the clearance rate was 52.9% from 1,155 listings, 951 auctions and 562 sales totalling $355.7 million. The median house and unit sale prices were $860,000 and $623,750.
In the same weekend last year, activity was much higher with 1,821 properties listed, of which 1,541 were auctioned and 935 sold, resulting in a 54.6% clearance rate. Sales were much higher, totalled $1.018 billion and the median house and unit sale prices were $1,040,000 and $702,000.
Meanwhile after holding out for weeks, ANZ has joined its other big three competitors, by reducing its fixed rate home loans.
ANZ has cut rates by 0.20% and 0.60% on owner occupier and investor fixed loans respectively.
At the same time, Macquarie Bank, Australia’s eighth largest home lender slashed its variable rates by up to 0.51%. Its lowest ongoing variable rate, available to new owner occupiers paying principal and interest with a 30% deposit, is now 3.69%, down 0.12%.
Ratecity research director Sally Tindall said Macquarie is now offering a lower variable rate than the big four banks and sits alongside international bank HSBC, who is offering the same rate, for new customers.
“With more competitive pricing, Macquarie Bank has seen an 18.4 per cent growth in their home lending year on year, according to the most recent data from APRA.
“The move by ANZ comes as no shock. Some of their fixed rates were sticking out like a sore thumb. Now ANZ has some of the most competitive 3 and 5-year fixed rates available from the big four banks,” she said.
Big four banks owner-occupier fixed rates
| Big four banks | Fixed 2 year | Fixed 3 year | Fixed 5 year |
| ANZ | 3.75% | 3.69% | 3.99% |
| CBA | 3.79% | 3.79% | 4.09% |
| NAB | 3.69%* | 3.79% | 4.09% |
| Westpac | 3.79% | 3.69%* | 4.09% |
*First home buyer special. Note Interest rates are for owner-occupiers paying principal and interest (P&I) including Breakfree discount.
ANZ fixed rate changes
| 2-year | 3-year | 5-year | ||||
| Cut | New rate | Cut | New rate | Cut | New rate | |
| – | 3.75% | -0.30% | 3.69% | -0.20% | 3.99% | |
| -0.20% | 4.29% | -0.60% | 3.99% | -0.59% | 4.50% | |
| -0.06% | 3.89% | -0.20% | 3.99% | -0.26% | 4.19% | |
| – | 4.18% | -0.30% | 4.19% | -0.04% | 4.95% | |
Sydney
According to Domain, Sydney’s reported preliminary clearance rate of 58.7% and sales totalled just $95.8 million. Of the 348 homes scheduled for auction, 186 went under the hammer and 135 sold. The median house and unit sale prices were $1,080,000 and $1,005,000.
In contrast, the private sales market was more active with 1,094 homes selling, according to Corelogic,
AMP Capital chief economist Shane Oliver expects the final rate will be around 53%, which is on par with the previous weekend’s 54.3%, where there were 449 listings, 339 auctions and 220 sales totalling $141.3 million. The median house and unit sale prices were $1,055,000 and $780,000.
The clearance rate last year was 52.1% from 577 listings, 428 auctions and 277 sales, which totalled $379.5 million. The median house and unit sale prices were $1,436,000 and $920,000.
Melbourne
Melbourne also reported low sales volumes, with only $131.4 million worth of properties selling at auction.
According to Domain, from the 473 properties listed, 326 were auctioned and 190 sold, representing a preliminary 56.7% clearance rate. The median house and unit sale prices were $812,500.
Oliver said the clearance rate will be around 50%, once the final results are reported. In the previous weekend, the clearance rate was 56.1% from 583 listings, 515 auctions and 307 sales. The median house and unit sale prices were $829,000 and $572,000.
This time last year, the clearance rate was 55.9% from 985 listings, 887 auctions and 525 sales, totalling $540.2 million. The median house and unit sale prices were $946,500 and $640,000.
The REIV recorded a higher clearance rate of 60%. There were 383 auctions held and 229 properties sold for $184 million. Meanwhile 154 were passed in, 68 on a vendor bid.
There were also 165 private sales totalling $97 million.
In the previous weekend, the clearance rate was 62% from 550 auctions and last year, it was 63% from 952 auctions.
Canberra
Canberra’s clearance rate slipped below the 50% mark to 42% last weekend. According to Domain, there were 29 listings, 23 auctions and 10 sales totalling $8.51 million. There was no data on the median sale price due to insufficient transactions.
Corelogic reported 83 private sales.
Brisbane
Brisbane’s auction market recorded only $4.34 million worth of deals on the weekend. According to Domain, there were 52 listings, 31 auctions and 12 sales resulting in a 32% clearance rate.
Across Queensland there were 170 listings, 77 auctions and 25 sales, representing a 32% clearance rate – 47 properties were passed in, according to Corelogic. At the same time, 668 homes sold privately.
Adelaide
Adelaide recorded 66% clearance rate – the highest on the mainland, according to Domain. From the 60 listings, 26 homes were auctioned and 20 sold under the hammer for a total of $8.53 million and a median sale price of $620,000.
Corelogic reported an even higher state wide clearance rate, of 70%. There were 91 listings, 33 auctions and 23 sales whilst 10 properties were passed in. Meanwhile 239 homes sold privately.
Perth
Although there were 21 listings, Western Australia reported only eight auctions on the weekend and three properties sold whilst five were passed in, according to Corelogic. The private sales market recorded 315 transactions.
Hobart
Tasmania had four auctions and three homes sold, representing a clearance rate of 75%. Corelogic also reported 170 private sales.
Darwin
The Northern Territory had two auctions scheduled and one property went under the hammer but it was passed in. Although there were 20 private sales, according to Corelogic.
| Auction highlights this week Saturday, 11 May 2019 (Source: APM) | ||
| City | Location | Value Sold |
| Most expensive | ||
| Sydney | 89 Johnston St, Annandale NSW 2038, 5 br House, BresicWhitney Glebe | $4,025,000 |
| Melbourne | 343 Montague St, Albert Park VIC 3206, 3 br House, Cayzer Real Estate | $3,290,000 |
| Adelaide | 25 Heathpool Rd, Heathpool SA 5068, 4 br House, Carter Partners – BURNSIDE | $1,112,000 |
| Brisbane | 3 Kirstin St, Eight Mile Plains QLD 4113, 4 br House, RW Eight Mile Plains | $881,000 |
| Canberra | 19 Macartney Cr, Deakin ACT 2600, 4 br House, Belle Property Kingston | $1,735,000 |
| Most affordable | ||
| Sydney | 36 Mawson Rd, Tregear NSW 2770, 7 br House, Laing+Simmons Mount Druitt | $395,000 |
| Melbourne | 7/254-256 Dandenong Rd, St Kilda East VIC 3183, 1 br Unit, Hocking Stuart St Kilda | $216,500 |
| Adelaide | 2/6 Carlton Rd, Camden Park SA 5038, 2 br House, HAR Sheppard Property RLA 211280 | $365,000 |
| Brisbane | 35 Doorey St, Keperra QLD 4054, 3 br House, HAR Solutions – MITCHELTON | $605,000 |
| Canberra | 142 Lawrence Wackett Cr, Theodore ACT 2905, 3 br House, IPG – Belconnen | $450,000 |
Australian Property Journal
