Melbourne and Sydney both saw significant increases in the number of properties up for auction last week, following a restful grand final long weekend for sellers.
Melbourne had 1,110 properties go under the hammer, which was 10 times the number held the prior week, while Sydney saw a jump from 519 to 774, according to preliminary results from CoreLogic.
The number of options available didn’t have a great impact on the number of buyers locking down sales. Core Logic reports the auction clearance rate last week was above 81% in both cities, up from 69.6% in Sydney and 73.4% in Melbourne the same week last year.
The big two weren’t the only property markets running hot, with Adelaide and Canberra both also seeing auction clearance rates rise above 80% (albeit from fewer than 100 auctions held in both cities). Nationally, 79.2% of auctions successfully cleared across the capitals on preliminary CoreLogic numbers.
It was a busy week in Melbourne, and the busiest region was the inner city with 211 auctions and a preliminary clearance rate above 80%. No sub-region recorded a clearance rate below 74%, pointing to a seller's-friendly market in the Victorian capital.
The increase in median auction price from $626,000 the prior week to $800,000 last week (according to Domain) will not be hurting sellers’ confidence either. Domain reports this is a rise in median from $765,000 in the same week last year. A 3br freestanding house Reservoir brick house in need of updating sold under the hammer for $800,000, as did a 3br, 557sqm house in Altona North and a 3br townhouse in Highett.
A 4br single-level house in Canterbury did its best to prop up the median, selling for $4.35m. The home sits on 781sqm in the heart of Canterbury’s ‘Golden Mile’, and is within walking distance of the leading local schools.
Bargain hunters could have snapped up a 3br, 582sqm Melton house for $259,000, the most affordable disclosed auction sale for the greater Melbourne region.
Sydney didn’t see as great an increase in auction numbers as Melbourne but the auction clearance rate remained steadily above 80% for yet another week.
The most expensive property reported sold was a 4br house in Vaucluse that fetched $4.12m. The home has views across the city and Harbour Bridge, but despite the price tag was advertised as having great potential for a redesign or rebuild.
Domain reports that the median price in Sydney was $1,196,500, 4% higher than the median for the same week last year. Those willing to drop that amount of cash could have netted a 2br villa in Lane Cove, while a dated 3br, 923sqm Baulkham Hills house fetched $1.198m.
Buyers after a bargain might have been more inclined to look at a 2br unit in Liverpool with balcony and secure lock-up garage that fetched $482,500 – making it the most affordable reported sale in Sydney. The sale confirmed once again that while Melbourne and Sydney share similar ground at the higher end of their property markets, Melbourne's lower end remains much more accessible.
The Reserve Bank of Australia’s decision to hold the official cash rate at 1.5% means competition amongst buyers in both Sydney and Melbourne is unlikely to ease up any time soon as investors and home owners alike look to take advantage of historically low interest rates.