Auction clearance rates for the Sydney and Melbourne property markets are once again both up to 80% or higher as interest rates continue to head south, based on CoreLogic preliminary figures for last week.
Melbourne’s clearance rate surged by more than five per cent from the previous week to 79.9%, while Sydney's jumped four per cent to reach 81.6%. The percentages were based on comparable volume numbers of 604 auctions in Melbourne and 610 in Sydney.
Across the combined capital cities, preliminary figures show a clearance rate of 77.8% - the highest since June last year. Only around half of all Brisbane property auctions successfully cleared last week.
With the Olympics in full swing, Sydney again took out the gold medal among the capitals for percentage of properties sold – clearing above 70% for the 16th consecutive week.
Earlier this month, the Reserve Bank of Australia cut the official cash rate to a new record low of 1.5%.
Despite the apparently unsatiated appetite for auctions in Sydney, Domain reported the city's median auction price at $1.02m for last week, the closest it's come to falling below $1m for several months. And while clearance rates were high in some sub-regions such as the northern beaches, only around 64% of auctions cleared in the city's south-west.
The most expensive Sydney property reported sold at auction was a 4br, 1114sqm absolute riverfront house in Hunters Hill that fetched $5.15m. The home was designed by award-winning architect Alex Popov, complete with a gourmet kitchen, sauna and double garage.
For those looking for a property with fewer zeros in the price tag, the most affordable auction sale was a 1br apartment in Kogarah that went for $400,000.
Strong competition between Melbourne buyers means things are heating up towards the end of winter. That said, Melbourne also saw a decrease in median auction property price, dropping from $777,500 the previous week to $754,000 last week according to Domain.
For those in the market for a bargain, the most affordable property sold was a 1br apartment 20 minutes from the CBD in Essendon, which sold for $253,000.
On the other end of the spectrum, a 6br, 1330sqm Victorian home in Kew did its bit to lift the average price of properties sold in Melbourne, going for $6.5m.
It’s expected that as we move into spring the number of houses for sale will increase. Domain predicts the weekend of August 27 will likely see more than 900 properties up for auction across Melbourne.