(Source: Domain news)
A significant jump in auction numbers this weekend failed to dampen clearance rates with the Sydney auction market producing yet another boom-time result.
Sydney recorded a clearance rate of 81.4 per cent at the weekend, which although below last weekend’s stunning 84.4 per cent, was another strong result for sellers. The market continues to track well ahead of last spring’s rates when a clearance rate of 66.3 per cent was reported over the same weekend.
Sydney buyers welcomed a surge in auctions on Saturday with 792 homes listed. While it was an improvement on the previous weekend’s 629 auctions, it was well below the 1088 recorded over the same weekend last year.
Higher auction numbers will be sustained next weekend with well over 800 homes scheduled to go under the hammer.
The spread of regional results was again reasonably consistent over the weekend, although the outer-west areas were clear underperformers.
The upper north shore produced a remarkable performance on Saturday with a clearance rate of 92.8 per cent. Next was the northern beaches with 91.5 per cent, followed by the city and east with 87.3 per cent, the lower north’s 84.5 per cent, the south’s 83.5 per cent and the Central Coast’s 81.3 per cent.
The north-west had a clearance rate of 78.8 per cent, as did the inner-west, while Canterbury Bankstown hit 74.1 per cent, the south-west hit 65.9 per cent and the west just 58.5 per cent.
Notable sales reported at the weekend included:
- a five bedroom home at 27 Carlisle Street, Tamarama, sold by PhillipsPantzer Donnelley for $5,600,000;
- a three bedroom home at 15a Point Road, Northwood, sold for $4,590,000 by Raine and Horne Mosman;
- a four bedroom home at 5 Llanfoyst Street, Randwick, sold for $4,375,000 by McGrath Coogee;
- another four bedroom unit at 8/8 Lauderdale Avenue, Fairlight, sold for $4,075,000 by Belle Property Manly;
- a five bedroom home at 20 Craik Avenue, Austral, sold by LJ Hooker Leppington for $3,900,000.
The most expensive property reported sold at auction at the weekend was a six bedroom home at 115 Homebush Road, Strathfield, which was sold for $5,650,000 by Georges Ellis and Co. The most affordable property reported sold at the weekend was a one bedroom unit at 4/63-69 President Avenue, Caringbah, which sold for $424,000 by Belle Property South Hurstville.
Sydney recorded a median auction price of $1,300,000 on Saturday which was higher than the $1,210,000 recorded the previous weekend. Saturday’s median was 12.6 per cent higher than the $1,154,000 recorded over the same weekend last year. A total of $536.4 million worth of property was reported sold at auction in Sydney at the weekend.
High and rising auction clearance rates are predictably translating into strong prices growth in the Sydney market.
The latest Domain data reports that the Sydney median house price increased by 2.9 per cent over the September quarter to a record high of $1,068,303. This was the fastest rate of growth recorded by the local market city since the September quarter last year with Sydney house prices now up by 5.3 per cent over this year so far.
Sydney unit prices also increased over the quarter, up by 1.8 per cent to $685,865 for an increase of 2.9 per cent for the year so far.
Lower interest rates and investors have been a key catalyst for rising house prices in the Sydney housing market during winter and into spring. This week the Reserve Bank will meet for its traditional Melbourne Cup Day interest rate decision. Although rates are more likely to remain on hold for the third consecutive month since the August cut, a reduction certainly cannot be ruled out.
The economy continues to send mixed messages – lower jobless rate but sharply falling full-time employment levels, a high dollar and underlying inflation at record low levels.
But then, there are booming house prices in the Sydney and Melbourne housing markets.