Autumn Selling Season Officially Begins
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Autumn Selling Season Officially Begins

Solid auction returns mark the start of the new season.

By Terry Christodoulou
Mon, Mar 7, 2022 10:27amGrey Clock 2 min

Home auction markets have commenced the autumn selling season with solid results despite reporting generally lower than February.

Severe weather events also distracted activity in some markets — particularly Brisbane — with listings and clearance rates well down on the week before in the Queensland capital from 78.7% the weekend prior to 65.3%.

The national auction market reported a year low clearance rate of 73.5% at the weekend, well down on the previous weekend’s 77.9% and significantly below the 88.5% recorded over the same weekend last year.

National auction volume was also down with 2377 reported listed compared to the previous weekend’s 2627 but well ahead of the 1232 listed the same Saturday last year.

The Sydney auction market reported yet another strong clearance rate despite weather distractions.

Clearance rates have continued to track above the results recorded at the end of 2021 despite record level early-season listings.

The NSW capital recorded a clearance rate of 76.6% at the weekend — lower than the 78.8% reported over the previous weekend and below the 86.6% record over the same weekend last year.

Sydney reported 841 auction listings which, although below the previous weekend’s February record of 965, was well ahead of the 665 reported for the same weekend last year.

Sydney recorded a median price of $1,915,000 for houses sold at auction at the weekend which was higher than the $1,755,000 reported over the previous weekend and 12.4% higher than the $1,704,000 recorded over the same weekend last year.

In Melbourne, the capital reported a clearance rate of 73.8% on Saturday — higher than last weekend’s 71.4% but well below the 80.6% recorded over the same weekend last year.

Melbourne reported 1210 homes listed for auction at the weekend, lower than last weekend’s 1288 but predictably significantly higher than the 405 auctioned over the same weekend last year, which was a Labour Day holiday weekend.

The Victorian capital recorded a median price of $1,170,000 for houses sold at auction at the weekend which was lower than last weekend’s $1,187,000 but 6.4% higher than the $1,100,000 recorded over the same weekend last year.

Data powered by Dr Andrew Wilson, My Housing Market.



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Thousands of Australian companies on the brink of going into administration as EOFY nears

Along with high inflation and weak consumer spending, there’s another key factor pushing a record number of businesses to the edge

By Bronwyn Allen
Fri, Jun 21, 2024 3 min

More than 10,000 companies are expected to have entered external administration by the end of the 2024 financial year, a level not seen for more than a decade. Data just released by the Australian Securities & Investments Commission (ASIC) shows 1,245 companies became insolvent in May, the highest monthly number this financial year. At present, a total of 9,988 businesses have gone bust in FY24 with data from June yet to be finalised.

Deloitte Access Economics Partner David Rumbens said the surge in business insolvencies this year was a “clear sign of economic distress”.

He commented: “[ASIC] predicts that by the end of the financial year, the number of companies entering external administration will likely exceed 10,000 – a level not seen since 2012-13, in the aftermath of the Global Financial Crisis (GFC).”

Mr Rumbens said the elements contributing to this year’s surge in insolvencies include high inflation and interest rates, weak consumer spending, and the commencement of more proactive tax debt collection activities by the Australian Taxation Office (ATO).

“One of the key factors contributing to this surge in insolvencies is the [ATO] pursuing debts that were previously put on hold during the COVID-19 pandemic,” he said.

Mr Rumbens cited ATO figures showing collectable debt rose 89 percent in the four years to June 2023. This has particularly impacted small businesses, which account for approximately 65 percent of the total debt owed at about $33 billion. “But more strictly enforced debt collection is coming at a time of tough economic conditions. High interest rates and cost-of-living pressures have weakened consumer spending, particularly in more discretionary components of spending.”

The construction sector has seen the highest number of insolvencies by far in FY24, mirroring the trend of FY23. Of the 9,988 insolvencies to date, 2,711 of them are in the building sector, which faces several challenges. These include a substantial lift in the cost of construction materials that is well above inflation and has made many fixed-price contracts signed within the past few years unprofitable. There is also a significant labour shortage that is delaying new home completions and new project starts, and also adding higher costs to projects.

“The construction sector has been hit particularly hard, with construction firms leading industry insolvencies in every quarter since mid-2021,” Mr Rumbens said. “They have accounted for approximately 25 percent of all insolvencies during this period. The residential construction sector is already facing a backlog of projects to complete as a result of skills and material shortages in recent years, and increased insolvencies in the sector may only exacerbate the problem of housing shortages.”

The ASIC data shows the next biggest industry affected is ‘other services’, which includes a broad range of personal care services such as hair, beauty, dietary, and death care services. The sector has seen 939 insolvencies in FY24. Retail trade is next with 687 insolvencies, followed by professional, scientific and technical services with 585 insolvencies.

“The food & accommodation sector has also experienced a wave of insolvencies. High input costs, worker shortages, and weak consumer sentiment have put pressure on businesses. Specifically, in March, cafés, restaurants, and takeaway businesses accounted for 5.5 percent of total business insolvencies, the highest proportion in the last three years.”

Mr Rumbens pointed out that while the number of insolvencies was high, it represents a lower share of the business sector at 0.33 percent than it did in FY13 when it was 0.53 percent. “This reflects the increase of registered companies in Australia, which has risen from just over two million to 3.3 million since 2012-13. Even so, the continued lift in insolvencies since 2021 highlights the difficult conditions many businesses face at present.”

 

 

MOST POPULAR
11 ACRES ROAD, KELLYVILLE, NSW

This stylish family home combines a classic palette and finishes with a flexible floorplan

35 North Street Windsor

Just 55 minutes from Sydney, make this your creative getaway located in the majestic Hawkesbury region.

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