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Sydney property market not stopping for Melbourne Cup

Sydney property market not stopping for Melbourne Cup

While sellers in Melbourne may be looking to take a break this weekend in preparation for Melbourne Cup, the same can’t be said for Sydneysiders who will keep their buoyant property market floating along.

Property buyers in Sydney will be encouraged to learn there’ll be another increase in auctions held this week, up to 968 from 897 last week, according to Core Logic. Though this number is still down from the same week last year, it will be good news for prospective buyers whose continuing determination saw the auction clearance rate rise to 82.6% last week.

In Melbourne it’s a different story. Sellers appear to be taking a break in the lead-up to Melbourne Cup, with the number of properties up for auction this week dropping to 563 from 1,377 last week. This is likely to mean even more competition amongst buyers, with the auction clearance rate for last week at 80.6%.

Southeast of Melbourne CBD, Mount Waverley will be the busiest suburb across the capitals for auction activity, playing host to 16 auctions this week. Last week, Domain listed the sales for Mount Waverley as between $860,000 (3br house) and $1,778,000 (4br house).

The most popular suburb in Sydney for auction will be Mosman on the lower north shore, where 13 auctions are slated to be held. Mosman held just four auctions last week, with clearance prices ranging from $650,000 (1br unit) to $1,102,000 (2br unit).

Melbourne and Sydney auction markets combined typically account for around 85% of all auctions held across the capitals.

What’s happening in the other capitals?

Canberra and Adelaide property markets continue to hold their strong auction clearance rates, coming in last week at 73% and 71.3% respectively on Core Logic numbers. Though their auction volumes are always much lower than Sydney's and Melbourne’s, Canberra expects to hold 88 auctions this week while Adelaide readies for 153, which is a healthy spike in volume for the City of Churches.

Brisbane is the busiest city outside the big two for auction activity, with 179 homes slated to go under the hammer. The auction clearance rate in the Queensland capital isn’t quite as strong as those above - last week Core Logic reported it at just over 50%.

Sellers in Perth may continue to feel like they’re struggling. Last week they only saw an auction clearance rate of 44.8%. The 51 sellers this week will be hoping for a better outcome after what has been a relatively slow 2016.

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.