Auction clearance rates hit winter high

The Sydney weekend auction market continues to strengthen towards record levels with Saturday clocking another year-high auction clearance rate.

After last weekend’s 81 per cent rate, the Sydney market reached new heights on Saturday with an 81.4 per cent of properties sold at auction.

The Sydney property market is tracking at levels not experienced at this time of the year since the house price boom of 2002.

Listing numbers this weekend were similar to last weekend’s with 306 properties auctioned compared to just 268 the same weekend last year.

The best regional result in Sydney this weekend was recorded on the lower north shore with a clearance rate of 92 per cent. The city and east and the south each recorded exceptionally strong 88 per cent clearance rates at the weekend with the northern beaches clearing 83 per cent of properties listed at auction.

The most expensive property reported sold at the weekend was a three-bedroom townhouse at 6/16a Frances Street, Randwick, sold by N G Farah Randwick for $1.84 million. The most affordable property reported sold at the weekend was a three-bedroom house at 5 Winchester Drive Lake, Munmorah. It sold through Ray White Budgewoi for $227,000.

Notable auction sales reported at the weekend in Sydney’s lower north shore included a three-bedroom home at 51 Rangers Avenue, Mosman, sold by Richardson and Wrench Mosman for $1,605,000, another three-bedroom home at 26 Bent Street, Neutral Bay, sold by Raine and Horne Neutral Bay for $1.45 million and a two-bedroom house at 4 Laycock Street, Neutral Bay, sold by McGrath Neutral Bay for $1.1 million.

In Sydney’s city and east region a four-bedroom home at 35 Underwood Street, Paddington, was sold by BresicWhitney for $1.8 million, a three-bedroom home at 18 Collins Street, Surry Hills, was also sold by BresicWhitney for $1,575,000 with another three-bedroom home at 3 Horner Avenue, Mascot, sold by My Place Estate Agents for $870,000.

In the south a four-bedroom home at 56 Llewellyn Street, Oatley, sold for $1.3 million by McGrath, a three-bedroom home at 84 Bassett Street, Hurstville, was sold for $1,145,000 by PRD Nationwide Harvey Oatley and a four-bedroom home at 27 Bardwell Road, Bardwell Park, was sold by Ray White Kingsgrove for $1.15 million.

Standout unit auction sales reported on the weekend included a three-bedroom unit at 5/247P Burwood Road, Concord, sold by Strathfield Partners for $1,077,000. Another three-bedder at 11/28 Ridge Street, North Sydney, sold for $960,000 through McGrath Neutral Bay.

Investors are an important ingredient of rising buyer activity in Sydney’s housing market. Last week the ABS reported an all-time monthly record of $3.9 billion in residential investor loans approved over May for NSW. Investor activity in the state currently accounts for nearly 52 per cent of all loans for house purchases.

Good news on the local economic front also last week with the ABS unemployment rate for Sydney remaining stable at a solid 5.1 per cent over June.

Sydney’s housing market continues to move from strength to strength with strong house price growth set to follow the best clearance rates for years.

Dr Andrew Wilson is senior economist for Australian Property Monitors

Twitter @DocAndrewWilson