Investors continue to flock to Sydney in order to capitalise on low interest rates and growing home prices. Sydney recorded a preliminary auction clearance rate of 83.3% last week, according to Core Logic. This was up from 81.5% the prior week and 63.7% in the same week last year.
The latest statistics from the Australian Bureau of Statistics show that lending to investors in NSW increased by 1.6% in August making it 9.2% higher than in August last year.
The Melbourne market isn’t slouching either with relatively few property listings and low interest rates creating similar levels of competition. Core Logic reports that Melbourne had a preliminary auction clearance rate of 78.5% last week.
Across the capitals the preliminary auction clearance rate was recorded as 77.9% by Core Logic. The other high performing market was Canberra with a clearance rate of 83.9%, well above the 68% it recorded in the same week last year.
The median auction price in Sydney is now $1,222,500 according to Domain. Last week, this would have fetched you a 2br unit in Redfern, close to the train station and also Prince Alfred Park. Compared to 12 months ago, Sydney's median price for the week is up 6.3% from $1.15m.
Investors are likely to be in the hunt for slightly cheaper properties. The most affordable property reported sold was a 2br unit in Cabramatta that fetched $427,000. The agent estimates it could fetch $340 a week in rental income.
On the other end of the scale, a 5br house in Strathfield sold for $4.69m. Sitting on 1,208sqm, the newly renovated home features an in-ground swimming pool and spa and a garage big enough for nine cars.
While almost all of Sydney is seemingly hot property, the Eastern Suburbs saw a particularly positive week for sellers. Core Logic reports that the Eastern Suburbs recorded a preliminary auction clearance rate of 97.1%. Other areas to exceed the 90% mark were the city and inner south, inner west, Ryde and Sutherland.
The number of auctions in Melbourne remains the largest across the capitals, with 1,179 properties going under the hammer last week according to Core Logic. This is down from 1,398 this time last year but up from 1,110 the prior week.
A 3br home in Melton was the most affordable property reported sold, going for $240,000. The cheaper starting point in Melbourne and the greater supply of properties may help explain why the median in Melbourne sits below Sydney’s. Domain reports that the median for Melbourne last week was $860,000 – enough to get you a 2br townhouse in Richmond.
A 3br home in Toorak sold for $6.25m, making it the most expensive property reported sold. Close to the coveted Toorak Village, the home sits on 564sqm and is two-storey.