The Sydney market proved last weekend’s remarkable auction result was no fluke, recording another strong clearance rate on Saturday.
The city recorded a clearance rate of 77.6 per cent, the year’s second highest result, and second only to the previous Saturday’s astonishing boom-time result of 80.3 per cent.
The strong result was despite a lift in auction numbers with 573 homes up for grabs, compared to last weekend’s 505.
Despite the lift in numbers, auction activity continues to lag well below last year’s levels with 750 listed on the same weekend in 2015.
The lower north shore was the top performer, recording another boom rate of 88.3 per cent, followed by the northern beaches with 87.2 per cent.
The inner west 80.5 per cent, the city and east 80 per cent, the north west with 75 per cent, the upper north shore 74.5 per cent, Canterbury Bankstown 73.7 per cent, the Central Coast 69.2 per cent, the south 67.4 per cent, the west 63.2 per cent and the south west on the rise with 61.5 per cent.
The most expensive property sold was a seven-bedroom home at 47 Newton Road, Strathfield, which sold before auction for $6,825,000 through Devine Real Estate.
The most affordable property reported sold was a three-bedroom home at 13 Amaroo Close, Blue Haven. It sold for $348,000 through Sorensen Real Estate.
Sydney recorded a median auction price of $1.11 million on Saturday, down on the $1.12 million recorded last weekend.
A total of $296.4 million was reported sold at auction at the weekend.
The Sydney market has continued to track at its strongest since last winter’s boom-time conditions when the market peaked.
The market slowed when the Australian Prudential Regulation Authority made moves to curb investor lending.
Investor activity is clearly on the rise and likely feeding into higher clearance rates in Sydney – particularly from rising demand in lower-priced, higher-yielding suburbs to the west.
The prospect is emerging for a regeneration of investor-fuelled prices growth – particularly given the recent cut in mortgage rates.
The Sydney rental market remains tight with the latest April vacancy rates below 2 per cent putting upward pressure on rents.
Recent weak price growth has consolidated yields and with the prospect of a post-election change to negative gearing investors may be rushing back into the market.
A new wave of investors is likely to cause another disruption to the recently volcanic Sydney market just when prices growth was moderating.
For a full list of the Sydney auction results Click here