- Melbourne’s property market came back from last week’s long weekend holiday, with around 1,000 properties went under the hammer.
- This week’s auction clearance was a mixed result, 72%, 68%, and 75% from all three sources, indicating the property market started to taking the effect from fears and pressures from COVID-19 national pandemic situation.
- Australian and global stock markets are on fast down tracks. Australian dollar dropped to its lowest in last 11 years. Economy slows down significantly due to the pandemic outbreak.
- The recent uptrend of property market may see a slowing down or even halted in next few weeks. In next 3-6 months, the vendors will gain the similar feelings that they had in 2017-2018.
- However, a quick look at China’s situation, we will believe once COVID-19 is under control, with government further stimulus on economy, it is highly likely to see the property market will start to pickup its pace and back to the uptrend.
Melbourne Weekly Auction Clearance – 14 March 2020
- 72% Clearance rate of 869 Auctions
- 72% Clearance rate of 372 auctions held last week
- 57% Clearance rate of 761 auctions held this time last year
- 485 Sold at Auction
- 140 Sold before Auction
- 0 Sold after Auction
- 135 Private Sales
- 244 Passed In
- 112 Passed in Vendor Bid
- 23 Withdrawn
- 20 Postponed
- 317 No Results
- 70% Clearance for Houses
- 77% Clearance for Units
- $596M Total Auction Volume
- $96M Total Private Sales Volume
- 68% Clearance
- 48% this time last year
- 1091 Listed Auctions
- 761 Reported Auctions
- 542 Sold
- 31 Withdrawn
- 219 Passed In
- $900,000 Median
- $420.3M Total Volume
- 75% Clearance rate for 824 Auction Results
- 1145 Auction scheduled
- 612 Sold at Auction
- 7 Withdrawn
- 4 Sold prior to Auction
- 199 Passed In
- 2 Sold after Auction
- 951 Private Sales
Australia Weekly Auction Clearance – 14 March 2020
- This week, Sydney gained a 70% clearance whilst Melbourne stood at 68%.
- Comparing the confirmed auctions with scheduled numbers, we will see in final figures that Sydney will be slightly off 70% mark, whilst Melbourne auction clearance may further drop to low 60%.
- The number of properties for auctions were similar to previous week’s one in Sydney. However the clearance were about 8% lower, mainly due to the pandemic effect of COVID-19.
- The auction numbers for Melbourne came back to normal level after last week’s long weekend holiday, with about 1,000 properties under the hammer. However compared with previous major weeks above 75% figures, the effect of COVID-19 was obvious.
Australian Market Overview – COVID-19 Influence
- There have been a lot of information and messages regarding COVID-19 virus last week. Obviously, the outbreak and pandemic situation is no longer avoidable in Australia
- National border lockdown is expected to be implemented soon.
- Shortage of medical resources have been observed across the nation.
- More and more businesses decided to let their staff working form home, or put more staff on leaves. All of which may lead to further shrink of household spending.
- If economy goes further down, there may be another round of interest cut from RBA soon plus Quantitive Easing (QE) is now under discussion, given USA cut its interest rate near zero now.
- Stock markets around the globe are in ‘bear’ territory, with US stock markets experienced one of the worst weeks in decades, losing 20% or more from recent highs.
- Australian dollar continues its fast sliding, putting more pressure on commodity prices and economy.
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