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Strong auction results for Sydney, Melbourne despite election limbo

Strong auction results for Sydney, Melbourne despite election limbo

Auction clearance rates in Sydney and Melbourne held above 70% for the week, with bidders undeterred by school holidays and election uncertainty.

A week of political uncertainty failed to dampen the enthusiasm of property buyers in Sydney and Melbourne, with both cities recording preliminary clearance rates above 70%.

As votes from last weekend's federal elections were counted and recounted, more than 600 properties in Melbourne and close to 500 in Sydney were slated to go to auction for the week.

Melbourne saw a preliminary clearance rate of almost 72%, according to CoreLogic, while 79% of auctions successfully cleared in Sydney based on initial numbers.

But Sydney's healthy clearance rate was based on a much lower volume of stock compared to the same week last year, when close to 800 properties were up for auction.

In the same week, the Reserve Bank of Australia kept the official cash rate on hold at 1.75% – a move unlikely to take much heat out of the hot Sydney and Melbourne property markets.

Sydney highlights

In the CBD fringe suburb of Ultimo, a two-bedroom terrace on just a 36 square metre plot fetched $938,000 at auction – more than twice what the vendors paid for it less than eight years ago. The sale price equated to more than $26,000 per square metre.

Sydney's most expensive disclosed auction sale was in Strathfield, where a 4br, 1284sqm home sold for the first time in more than 30 years for $4.12m.

A few suburbs further west in Granville, a 2br, 129sqm apartment with parking went for $465,000, one of the city's most affordable auction sales. A sixth floor studio in Darling Point sold for $380,000, the most affordable sale.

Australian Property Monitors (APM) reports the median auction price for Sydney at $1.045m. No property sold for this price last week, but a 3br, 232sqm villa in Sans Souci fetched $1.041m.

Melbourne highlights

In the bayside suburb of Elwood, an updated 4br 1930s California bungalow sold under the hammer for $2.465m, Melbourne's most expensive disclosed auction sale.

North of the city in Brunswick, a 1br brick unit with parking fetched $271,000 at auction, the most affordable sale.

Melbourne's auction median for the week was $650,000, according to APM. Several properties sold at this price, including a 3br, 120sqm apartment in Port Melbourne, a 2br, 511sqm Reservoir property, and a dual purpose 3br house with a small grocery store attached sitting on 527 square metres in Bundoora. 

This article is intended to provide general information of an educational nature only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice.