Preliminary auction results for the week ending July 21st saw 27 auctions held across the country. Of these auctions, 13 sold, resulting in a preliminary clearance rate of 48.15%. The combined sales value of these properties was $9.76 million. 8 of these sales were in New South Wales, 4 were in Victoria, and 1 was in South Australia.
6 of the 13 sales were retail shops. Retail turnover in Australia was up over 3% in the year to June, driven largely by café, food and take away services. While drag in retail turnover growth is coming from department stores, aggregate growth in retail sales has continued to increase since the start of 2017. The relative success of boutique shops in tourist areas, and the sale of restaurants, potentially reflects investors chasing these market opportunities. It also reflected the cleared auctions this week, which saw four retail stores sold, one restaurant, and one small strip mall in South Australia.
Overall, the preliminary results this week suggest that the commercial property market is much tighter than it was this time last year, when 64 properties went to auction as opposed to 27. However, this week’s clearance rate is lower than the same time last year, and below the previous week’s clearance rate of 58%. This suggests weak demand over the end of July in the preliminary results.
The table below indicates National Auction Clearance Rate figures.
Commercial Research Analyst, CoreLogic