Core Logic released its preliminary auction market report yesterday, which posted a small fall in the preliminary national auction clearance rate, but a big jump in Melbourne where the market was impacted heavily by the confluence of the AFL Grand Final (reducing auction volumes) and Chinese buyers who flocked the city as part of Golden Week.
The preliminary national auction clearance rate was 77.5% this week, down slightly from the 78.3% recorded last weekend, but up significantly from 68.2% in the same weekend of last year:
Sydney’s preliminary clearance rate fell by 0.6% to 83.8%, whereas Melbourne’s jumped by 13.7% to 92.8%. Clearances in Brisbane fell by 3.6% to 47.9%, whereas Adelaide’s preliminary auction clearance rate fell by 9.7% to 74.2%. Overall auction volumes slumped to 853 versus 2,445 last week on account of the footy finals. However, volumes were down just (1%) from the 865 recorded at the same weekend last year, which was also affected by the footy finals:
As shown in the next chart, Melbourne auction clearances were up by 19.7% versus the same weekend last year, with auction volumes also up slightly:
Sydney’s clearance rate was up by 13.9% against the same weekend last year, although auction volumes were down:
As reported in Domain over the weekend, Chinese buyers have flocked to Melbourne as part of the Golden Week celebrations:
As Melburnians turn their eyes from real estate and towards the MCG, Chinese buyers will be flocking to the city and shown some of its best homes.
China’s Golden Week is a lucrative sales season for many agents, who hope to ink several million-dollar contracts over the week-long national holiday from Saturday.
Prospective buyers will be chauffeured around choice suburbs including Balwyn, Glen Waverley and Toorak, while agents wine and dine them to build rapport.
…Jellis Craig Balwyn’s William Chen said he expected several groups would fly in with their family to inspect properties…
Biggin and Scott Glen Waverley’s Ming Xu said a Chinese investor-visa holder paid nearly $1 million in cash for a Glen Waverley property a fortnight ago.
Most buyers could comfortably purchase a home between $1 million and $1.5 million and would only need a small percentage loan, he said…
Steep price rises in first-tier Chinese cities have continued to fuel concerns of a rapidly inflating real estate price bubble. “I usually take them to Melbourne or Sydney,” he said. “Sightseeing is secondary, their main purpose is to view properties.”
Lucky Australia has a strict regime to enforce foreign property purchases and rules in place to prevent the laundering of money through real estate [/sarc].
