Winter freeze brings weaker clearance rate for Sydney auction market
The Sydney home auction market tracked backwards at the weekend and although there is still clearly a positive seller environment overall, signs are emerging of a usual mid-winter freeze in activity.
Sydney recorded a clearance rate of 74.1 per cent, which was well down on the 78.3 per cent recorded over the previous weekend and also below the 82 per cent reported over the same weekend last year.
High auction numbers again challenged the local market, with 631 homes listed to go under the hammer on Saturday. This was just below the 649 auctioned the previous weekend and similar to the 670 auctioned over the same weekend last year.
Regional results generally continued the recent pattern of higher results from inner-city higher-priced regions, although clearance rates in these areas were down compared to recent weeks, reflecting perhaps the start of the private school holiday period. Canterbury Bankstown, however, produced yet another boom-time result at the weekend, in what continues an exceptionally strong local market for sellers.
The highest regional clearance rate at the weekend was Canterbury Bankstown with 85.2 per cent, followed by the south with 82.5 per cent, the north west with 81.8 per cent, the northern beaches with 81.6 per cent, the lower north with 80.4 per cent and the inner west with 78.1 per cent. The inner west also had the highest number of sales at 57. Trailing the pack was the city and east with 75.7 per cent, the south west with 63.0 per cent, the upper north shore with 62.9 per cent, the central coast with 53.3 per cent and the west with a clearance rate of just 42.1 per cent.
Notable sales reported at the weekend included:
- a three-bedroom unit at 1/3 Oyama Avenue, Manly sold by Belle Property Manly for $4,400,000;
- a four-bedroom home at 109 The Boulevarde, Strathfield sold for $3,200,000 by McGrath;
- a five-bedroom home at 45 Highgate Street, Strathfield sold by McGrath Concord for $3,070,000;
The most expensive property reported sold at auction at the weekend was a four-bedroom home at 15 Chapel Road, Vaucluse, which sold for $5,550,000 by Phillips Pantzer Donnelley. The most affordable property reported sold at the weekend was a two-bedroom home at 8/2-4 Lake Street Budgewoi, which sold for $404,000 by Sorensen Real Estate.
For a list of weekend auction results in Sydney click here.
Sydney recorded a median auction price of $1,133,500 on Saturday, which was higher than the $1,117,500 recorded last weekend. Saturday’s median was 7.2 per cent higher than the $1,057,500 recorded over the same weekend last year. A total of $352.1 million was reported sold at auction in Sydney at the weekend.
Although the Sydney market reported a lower result at the weekend compared to the recent run of boom-time clearance rates, the market remains in good shape heading into the usual mid-winter hiatus.
High auction numbers and the beginning of school holidays likely contributed to the lower result. It is highly unlikely the market turmoil created by the Brexit vote had – or will have – any influence on market outcomes.
All eyes will be focused on this weekend’s federal election, although about 200 homes will still go under the hammer in Sydney.
Underlying demand for housing remains strong in Sydney, with latest Australian Bureau of Statistics data reporting total net migration into New South Wales of 59,619 over 2015. Although 4.6 per cent lower than the 2014 result, it was nonetheless the second highest annual total for the state since 2008.
Dr Andrew Wilson is Domain Group Chief Economist Twitter@DocAndrewWilson – My Property, Radio 2UE Fridays 2-3pm, Saturdays 1230-1pm