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Sydney auction clearance rate spikes in lead-up to spring

Sydney auction clearance rate spikes in lead-up to spring

Recent interest rate cuts are likely to be a key catalyst for Sydney's big jump in successful property auction sales last week.

The auction market in Sydney isn’t waiting for the end of winter to heat up, recording a clearance rate of 86.4% last weekend according to preliminary figures from CoreLogic. This is the highest clearance rate Sydney has seen since June 2015, when it hit 88.7%.

Earlier this month Melbourne had also seen its strongest clearance rate since June last year when it fell just shy of 79% two weeks ago. In the week just gone, however, it dropped almost three per cent to 76.1%.

The strong performance of the two biggest capital city auction markets brought the combined capital clearance rate the highest seen this year – 76.6% based on CoreLogic's preliminary figures. Week on week, clearance rates and auction volumes were both up in Brisbane, while Adelaide saw a lower rate from a higher volume of sales.

Sydney highlights

More than 650 homes were up for auction in Sydney over the week, a significant step down from 930 held during the same week last year.

The North Sydney and Hornsby sub-region was both the city's busiest and most successful for auctions, recording a preliminary clearance rate of close to 95% from 111 auctions. Sydney's south west was the only sub-region not to see a rate above 70%. 

Among the south-western properties that did sell under the hammer was a 2br, 116sqm apartment in Glenfield with parking that fetched $480,000 – Sydney's most affordable disclosed auction sale for the week.

Closer to the city centre, a 4br home with an in-ground pool and tennis court in Strathfield went for $6.8m – making it the most expensive Sydney home sold over the week.

Domain reports the city's auction median price was $1.175m. A 3br townhouse in North Epping sold for this price, as did a 3br, 474sqm residence in Collaroy Plateau.

Melbourne highlights

Melbourne had more homes up for grabs at auction than Sydney, with CoreLogic reporting 785 properties going under the hammer. But like Sydney, this number is down from 964 at the same time last year.

The most expensive property reported sold by Domain was 3br residence in Camberwell the city’s east that went for $3m. The home came complete with approved plans and permits for construction of a boutique apartment complex on its 918sqm block.

This is more than can be said for an empty plot of land measuring 504sqm that fetched $2.605m in nearby Malvern.

Closer to Melbourne's median auction price reported by Domain of $835,000 was a 3br, 584sqm property in Mitcham that went for $840,000. And a 1br apartment in Albion that went for $185,000, the city's most affordable auction sale, seems to be further proof that despite the strong capital growth in both cities, the lower end of the Melbourne market continues to be much more accessible than Sydney's.

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.