The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Untitled design (8)
FIRST RELEASE TICKETS ON SALE FOR URBANITY-25 CONNECTING PROPERTY LEADERS ACROSS THE ASIA PACIFIC
FIRST TICKETS ON SALE FOR URBANITY-25 WHERE THE PROPERTY INDUSTRY CONNECTS
SEE DETAILSDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Partner Lab
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
4
print
Print
ResidentialTue 14 Apr 20

Auction Slump Signals Residential Roller Coaster Ride

f31c945f-df9a-40d7-b5cf-0ebb3c5ebac2

The residential property market in Australia continues to be challenged by social distancing measures and weaker economic activity, with preliminary clearance rates falling to 29.3 per cent during the Easter long weekend.

Corelogic figures recorded a very subdued 636 homes scheduled for auction across the nation’s combined capital cities—a figure which, even in the midst of the coronavirus downturn, isn't in itself unusual given that the Easter weekend is traditionally one of the quietest weeks of the year.

But the preliminary auction clearance rate of 29.3 per cent is the lowest preliminary result recorded since Corelogic commenced auction reporting in 2008, dragged down by a withdrawal rate of 57 per cent as the market continues to feel the impact of coronavirus containment measures banning on-site auctions and viewings.

And the preliminary clearance rate—collected from 472 results so far—is likely to plunge even lower, and withdrawal rates higher, as more results are collated, according to Corelogic’s analysts.

“Looking forward, we are expecting the withdrawal rate to ease as fewer auctions are scheduled, with vendors preferring private treaty methods of sales, or preferring to defer their listing until some certainty returns to the market and economy.”

CoreLogic head of research Eliza Owen said that despite the short-term outlook, there was still cause for optimism.

“Looking ahead, the next few months will present an unprecedented challenge to the auction market and the housing market more broadly.

“However, once the virus is contained, property is looking increasingly better-placed for a recovery because of the high levels of monetary and fiscal stimulus available.”

Weekly clearance rates, combined capital cities

▲ Combined weekly auction clearance rates for all capital cities in April showing a preliminary rate of 29.3 per cent.Source: CoreLogic


For now, the monetary, fiscal and social policies rolled out by the federal and state governments may already be helping to soften the blow for the rental market, at least temporarily.

SQM data shows Australia’s residential rental vacancy rate remained stable at 2.0 per cent in March, with the total number of vacancies Australia-wide now at 67,371 vacant residential properties.

Most states recorded minor 0.1 per cent declines in vacancy rates, with the exception of Sydney, Melbourne and Darwin, which were stable.

SQM managing director Louis Christopher said the minor decline in most capital cities’ vacancy rates for March was somewhat surprising given the uncertainty around the economy.

“With job losses, a freeze in migration and an expected sharp rise in short-term accommodation vacancies,we are likely to record significant increases in rental vacancy rates as 2020 progresses.

“Let’s keep in mind our methodology requires a property to be advertised for three weeks or longer before we regard it as unoccupied,” Christopher said.

Capital city asking rents decreased by 3.2 per cent for houses and 2.9 per cent for units for the week ending April 12, with asking rents of $544 per week for houses and $428 per week for units.

“I also note the 3.2 per cent drop in asking rents for houses over the month, which may well be as a result of many short-term accommodation dwellings entering into the longer-term leasing market, and overall, a sign of things to come,” Christopher said.

Sydney, Melbourne, Brisbane and Hobart all recorded decreases in asking rents for both houses and units over the month.

Perth and Adelaide were the only capital cities to record rent increases for both houses and units, with asking prices in Perth increasing by 1.9 per cent for houses and 0.8 per cent for units.

Adelaide recorded a 0.3 per cent increase for houses and 1.4 per cent for units.

Canberra and Darwin recorded increases in house asking rents with Canberra increasing by 2.6 per cent and Darwin 0.1 per cent, however, both cities had declines in unit prices over the month—Canberra by 0.1 per cent and Darwin by 0.6 per cent.

While the impact of the Covid-19 pandemic on the residential property market remains unclear, the Reserve Bank's April Financial Stability Review has pointed to Australia's "strong starting position" for dealing with what's in store.

ResidentialAustraliaSector
ADVERTISEMENT
TOP STORIES
Potts Point Coliving EDM
Exclusive

Co-Living Shrugs Off Stigma as Overseas Money Moves In

Clare Burnett
6 Min
Bankstown cbd in Sydney NSW EDM
Exclusive

Breaking Delivery Crisis Chokehold on NSW’s Biggest Housing Market

Vanessa Croll
7 Min
Healthscope Hospital EDM
Exclusive

‘Once-in-a-Decade’ Opportunities Rise in Wake of Healthscope Collapse

Clare Burnett
7 Min
Exclusive

Parking Upsize Threatens Fatal Blow to Project Feasibility

Phil Bartsch
6 Min
One New Zealand Stadium BESIX Watpac
Exclusive

Rising to a Challenge: How BESIX Watpac Topped Australia’s Builders

Clare Burnett
7 Min
View All >
Infrastructure

Tasmanian Logistics Tangle Freed as $786m Bridge Opens

Lindsay Saunders
The Victorian Building Authority has won an injunction against a Mornington Peninsula builder Peninsula Building Projects and its director Clancy John Fulton.
Construction

Unregistered Mornington Builder Banned for Life

Marisa Wikramanayake
Sponsored

RWC Retail Moves $30m in Regional IGA Sales

Partner Content
The three deals drew more than 1000 enquiries as investor interest in Queensland’s supermarkets runs hot…
LATEST
Infrastructure

Tasmanian Logistics Tangle Freed as $786m Bridge Opens

Lindsay Saunders
2 Min
The Victorian Building Authority has won an injunction against a Mornington Peninsula builder Peninsula Building Projects and its director Clancy John Fulton.
Construction

Unregistered Mornington Builder Banned for Life

Marisa Wikramanayake
2 Min
Retail

RWC Retail Moves $30m in Regional IGA Sales

Partner Content
2 Min
A rendering of Ilacorp's 32-apartment scheme at 117 Forest Rd Hurstville HERO
Residential

Plans Revealed for Midrise Scheme at Hurstville

Leon Della Bosca
2 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/coronavirus-house-sales-auctions