Sydney’s red-hot property market recorded its third week straight of a preliminary auction clearance rate above 80 per cent this weekend.
Preliminary figures from RP Data showed an auction clearance rate of 87.8 per cent across 633 auction results. Domain Group senior economist Dr Andrew Wilson said Sydney’s auction numbers are “truly extraordinary”.
“This is the third year of boom time conditions in Sydney,” Dr Wilson said. “It is now approaching what we saw in the early 2000s in terms of the longevity of this cycle. There has been strengthening in numbers in both Sydney and Melbourne following the interest rate cut in February.”
A preliminary weighted average clearance rate of 77.7 per cent was recorded this week across capital cities, compared to 76.2 per cent this time last year.
A first home buyer paid $1.305 million for a two-bedroom Russell Lea semi in Sydney on Saturday. Selling agent Santos Sulfaro of R&W Leichhardt said the 27 Mons St home had generated a huge interest throughout the campaign, with more than 25 contracts issued. Ten parties registered to bid on Saturday and Mr Sulfaro said the sale – $155,000 over reserve –was a record price for a two-bedroom semi in the area.
In Waitara, in Sydney’s north, a three bedroom home sold to a local family under the hammer for $1.36 million –$110,000 over reserve. Selling agent Belle Property Pymble principal Ian Clarke said there were 19 registered bidders and five participants for the 2 Balmoral Street property, which had redevelopment appeal.
In Melbourne, a preliminary clearance rate was 74.9 per cent, compared to 70.9 per cent last week and 73.5 per cent this time last year. After running out of steam, the Melbourne market has stepped up again, according to buyers’ advocate David Morrell of Morrell & Koren. This is largely because the number of listings is well down on last year.
“The lack of choice for buyers is not necessarily making people panic, but we are seeing some silly things,” Mr Morrell said.
A former two-storey Scout Hall in the suburb of Middle Park that had residential zoning sold for $2.46 million –nearly $1 million over reserve. The starting bid was $1.5 million. A neighbour bought the 165 Ashworth Street property.
“It just shows how silly the market is if you have something unique,” Mr Morrell said.
Melbourne’s real test will come next weekend, which Mr Morrell said would probably be a record February weekend that would really demonstrate whether there is strength in the market.
Elsewhere in Brisbane, a preliminary clearance rate of 68.9 per cent was recorded, compared to 49.4per cent last week. In Adelaide, a preliminary clearance rate of 55.2 per cent, compared to 69 per cent last week. In Canberra, a clearance rate of 72.9 per cent was recorded, compared to 72.3 per cent last week. In Perth, a clearance rate of 53.8 per cent was recorded.