The number of properties sold under the hammer has fallen sharply in the week ending 10 July according to Australian Property Monitors.
In Sydney, auction clearance rates fell to 49.8% compared to 56.7% a week ago. It’s also a stark contrast to the robust performance last year when auction rate was more than 70%.
The most expensive property sold in auction this week was a five bedroom house located in Kensington which sold for $ 1,875,000 while the cheapest was a two-bedroom unit in Gymea which was sold for $399,000.
It’s the same story in Melbourne where auction clearance rates declined sharply from the previous week. APM reported the proportion of properties sold in auctions fell to 55.6% compared to 61.4% a week ago and a far cry from the 78% clearance rate it recorded at the same time last year.
The total value of properties sold has plunged by 70% to just $88.4 million compared to $167.3million a week ago.
Brisbane defied the down trend by recording an increase in auction clearance from a week ago, however, the current clearance rate of 47.1% is still lower than the 51.9% recorded over the same period last year.
Sal Carrero, Chief Executive, Chan & Naylor said with interest rates closer to the historical average, the property market has moderated significantly.
“We’re not seeing the rapid price increases we saw earlier in the year, which is good for those wanting to enter the market. Canny investors traditionally like winter as there is less competition among buyers. Property investors will be attracted to the fact many prospective buyers have opted out of entering the market,” he said.
“As rental yields continue to grow, property investment is increasingly attractive as an asset class given the ongoing volatility of the share market. Many of our clients are looking to park their superannuation assets somewhere safe, and for many that means property and not shares.”