PROPERTY markets around Australia continued to struggle over the weekend, with auction clearance rates now below 50 per cent in the key markets of Sydney and Brisbane.

The only city bucking the trend is Melbourne, where the market is being driven by a population boom.

In Sydney auction rates this weekend were at a dismal 46.5 per cent, well below last year’s 66.9 per cent for the same weekend, according to Australian Property Monitors. Volume was also sharply down, with more than $100million less in sales than at the same time last year.

The weekend’s total of $93.9 million in property sold at auction was well under half of last year’s figure of $201million.

The Brisbane market was even worse, with a 20 per cent clearance rate in contrast to 55.6 per cent last year.

Only nine houses were sold, in contrast to 30 for the same weekend last year. Total sales were valued at $5.6million, well below last year’s $12.6million for thesame weekend.

Adelaide auctions were also sharply down on last year, with only 19 houses sold against more than twice that number last year. Total sales dropped from a value of $18.5million to $10.5 million. The property market in Melbourne remained firmer than in Sydney, with a large number of houses up for sale. There were 654 separate auctions at the weekend, 30 per cent more than last year. The clearance rate remained relatively stable at 65 per cent, better than other capital cities but nonetheless significantly down on last year’s clearance rate of 86 per cent.

The total value of residential property sold was $232million, $66 million less than for the same weekend last year.

Head of the Real Estate Institute of Victoria Enzo Raimondo said with 1200 people arriving in Melbourne every week, the market was population driven. “Melbourne offers a good lifestyle and cheaper housing,” he said. “Melbourne is offering good value for money and people are being drawn by that.”

He said the federal budget needed to have incentives for housing affordability right around the country and not just for first home buyers. “A lot of focus is given to first home buyers, but they make up less than 20 per cent of the market,” he said. “Much of the rest of the market needs assistance as well. The budget has to address affordability across the board.”

Chief economist with the Housing Industry Association Harley Dale said the low auction clearance rates were consistent with other indicators showing slowing growth. “Budget or no budget, it is not rocket science; the interest rate rises have had a significant impact on house buying sentiment,” he said.

He said core election promises committing considerable money to the housing sector and dealing with housing affordability could provide a boost to thetroubled market. “Our major concern is we clearly have an affordability problem and a lack of rental accommodation,” he said. “It is hard to see any relief in theshort term. It is going to be a challenging time for buyers around Australia.”

POOR SALES

Weekend auction results of capital cities

…………………….. Saturday May 10 … This Saturday last year (May 12)

Sydney

Total listed …….. 336 ………………….. 371

Clearance rate … 46.5% ………………. 66.9%

Brisbane

Total listed …….. 65 ……………………. 56

Clearance rate … 20% ………………… 55.6%

Adelaide

Total listed …….. 44 ……………………. 66

Clearance rate … 59.4% ………………. 62.5%

Melbourne

Total listed …….. 593 ………………….. 628

Clearance rate … 65% ………………… 86%

Source: homepriceguide.com.au; REIV