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Sydney and Melbourne weekly auction wrap: What you need to know

Sydney and Melbourne weekly auction wrap: What you need to know

It was business as usual in the auction markets with sellers in Sydney and Melbourne continuing to achieve great results under the hammer.

Last week was the second busiest week for auctions so far this year and buyers showed that there is still plenty of appetite to purchase, despite such a strong start to the year.

A total of 3,147 auctions were held across the capital cities, with a combined preliminary auction clearance rate of 77.1%, according to Core Logic.

In what has been a common trend for the last six months, Melbourne was the busiest capital while Sydney sellers were the most successful. Melbourne hosted 1,601 auctions with a preliminary auction clearance rate of 79.9%, up from 77% last week.

Sydney held 1,082 auctions with a preliminary auction clearance rate of 81.1% - the city’s strongest clearance rate so far this year. The Northern Beaches of Sydney was the place to sell, recording a preliminary auction clearance rate of 91.3% while Parramatta sellers scored the lowest at 63.8%.

Sydney highlights

Domain reports that so far this year auction numbers in Sydney are up 35.5% from last year, but this clearly hasn’t had any impact on the auction clearance rate as buyers compete across all price categories.

It’s telling that the cheapest property reported sold at action last week was in Werrington, approximately 50 kilometres from the central business district, and it still went for $392,000. The 2br townhouse was advertised as an ‘ideal first home or investment opportunity’.

While spending close to $400,000 might seem like a big leap for a first home buyer it’s substantially lower than last week’s median auction price which Domain reports was $1,300,500. This was enough for a buyer to get their hands on a 2br unit in Kensington.

Three homes sold at auction for more than $5m last week. The most expensive was a 6br house in Vaucluse with views of Sydney Harbour that went under the hammer for $6.7m – it last sold for $781,000 in 1992.

Melbourne highlights

A report from the Australian Bureau of Statistics last week showed that Victoria is leading the way amongst the states and territories in terms of population growth. Part of the reason for this could be to do with affordability.

Properties in Melbourne continue to be more affordable than Sydney. The most affordable property reported sold at auction last week was a 1br unit in Brunswick West that went for $249,000.

Melbourne's median auction price is also substantially lower than Sydney’s, coming at $883,000 according to Domain. For this price a buyer locked down a 3br house in Seaholme. Sitting on 536sqm the home has a double garage and plenty of garden space.

The most expensive property reported sold was a 5br house in Brighton that fetched $5.53m, it was the only home in Melbourne to sell for over $4m at auction last week.

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.