One apartment sold every minute at a project launch in Sydney’s west on Saturday.
Buoyancy in Sydney’s housing market continued to drive new apartment sales and auction clearance rates, which is likely to continue the upward push on prices.
More than 170 groups had paid $5000 to register ahead of the Royal Shores launch at Ermington, a joint venture by Payce and Sekisui House. Most of the 178 apartments put to market had sold by midday. They will form part of a bigger 612-unit project to be finished by the end of 2016.
Prices ranged from $599,000 for a one-bedroom apartment up to more than $1.4 million for a four-bedroom apartment, 19 kilometres from the CBD.
Mirvac also released 190 waterfront apartments to market in Bondi on Saturday. The listed development group chose to put all the apartments and terraces to market in one lot because of demand.
There were 837 homes auctioned in Sydney, where the run of clearance rates above 80 per cent continued.
CoreLogic RP Data’s preliminary records showed an 83.3 per cent clearance rate from 677 results.
Among the stand-out sales was an unrenovated 1960s Turramurra property that sold for $90,000 above the reserve for $1.84 million. Selling agent Lesley Bassam of Belle Property said more than 200 groups had inspected the home and 15 bidders registered.
Bidding opened at $1.5 million and went up in $10,000 and $25,000 increments. The successful bidders, a young family from Rhodes, won ahead of other couples, investors and developers.
The heat in Sydney’s market has also led to a crackdown on agent underquoting. NSW Premier Mike Baird and fair trading minister Matthew Mason-Cox made a pre-election promise on Saturday to introduce new laws if re-elected. Mr Mason-Cox said the changes would clear up confusion around constitutes underquoting. The mooted laws would make it illegal for agents to advertise a property for less than the selling price they have outlined in the agreement with the vendor. Agents would lose all fees and commissions from the sale.
“The new laws will also focus on advertising and will require all property advertisements to specify a dollar price or price range as opposed to “offers over” to give potential buyers a better idea of the real market value of the property,” he said.
“We’ll also protect vendors from agents who misrepresent a property’s potential selling price in return for the listing.”
Melbourne volumes were down due to a long weekend. There were 373 auctions held and the clearance rate was 73.7 per cent.
Around the smaller auction markets, Canberra notched up a 68 per cent clearance rate from 80 auctions, Adelaide had 59 auctions and more than half sold, while in Brisbane, the clearance rate was 35.5 per cent from 153 auctions.
Sydney properties are also selling the fastest, with an average time on market of 27 days for houses and 26 days for apartments. Melbourne homes are not taking much longer to sell, 33 days on average. Homes in Perth and Darwin are taking more than 80 days to sell, and Darwin apartments are sitting on the market for about 117 days.