Sydney’s property reaches new highs for March

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Sydney’s property auction market reached the highest clearance rate seen since 2015 in March, with a staggering 82.5% of properties selling under the hammer.

In fact, monthly auction selling rates have held above 80% now for two consecutive months as Australia’s property market booms. Auction

According to the latest Domain report, the monthly clearance rate in Sydney rose 2% from records set in February and remains 28.3% higher than in March last year.

Meanwhile, homes listed to go under the hammer in March surged 61% from February and up 16.3% from the same time last year.

The data shows clearance rates on houses have outperformance those on units for the tenth month in a row.

Clearance rates for houses are at the highest monthly rate recorded since Domain records began in 1995.

Sydney regions with the highest clearance rates

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Source: Domain

Pre-auction sales reach record highs

And it’s not just the volume of properties to sell at auction which are surging to make new records, the number of pre-auction sales has also jumped.

The Domain report reveals that the number of sellers accepting an offer before the auction takes place is up to 37.3%, over 12% higher than the decade-long average.

This is happening because, the larger and more rampant the competition between buyers, the more likely a potential buyer is to put in an offer before auction day comes around.

And this is something we see time and time again when we go through periods of property price inflation and the rate of property selling before auction rises.

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Auction prices boom to make new records

For Sydney’s housing market, new records keep being made.

Aside from the volume of auctions and the volume of pre-auction sales, auction prices themselves are also reaching new heady heights.

Domain’s report reveals that Sydney’s house auction price for March rocketed 16.9% over the year to an impressive $1.755 million.

Meanwhile, the median auction price for units rose 9% to $1.03 million, breaking the million-dollar mark for the first time in history.

For houses, the median auction price has been rising steadily since September 2019 and for units since December 2020.

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Up, up, up, and away

Clearance rates have been steadily gaining momentum since May 2020 and the demand looks set to continue for a while longer.

Record high auction volumes, pre-auction sales, and prices are a strong indicator of positive market sentiment.

In fact, the latest Westpac consumer sentiment survey highlights how house price expectations in NSW are now a huge 6.4% above their pre-pandemic levels.

And with auction clearance rates firmly sitting so high, Domain expects the Sydney property market will continue to be competitive throughout late autumn and even into winter gave buyer appetite continues to be so strong.

Why?

Property PriceBecause the combination of low mortgage rates, high household savings rates, and a relaxed serviceability assessment has put buyers in the position where they’re able to take advantage of higher price expectations.

Low-interest rates in particular are pushing buyers to make the move as home-buyers have quickly realised that their hard-earned money is much more worthwhile being used to invest in property rather than sit idly in a bank collecting near-zero returns.

Plus there is a range of incentives and grants currently available from both federal and state governments, such as an NSW first homeowner grant or the halt on stamp duty requirements on homes valued under $800,000.

If historically low cash rates and restricted supply weren’t enough, there also seems to be a buyer ‘FOMO’ or fear of missing out which is making wannabe homeowners spend their money.

The lift in market sentiment has also encouraged sellers to the market, with auction listings continually rising, Domain says.

Now is the time to take advantage of the opportunities the current property markets are offering.

Metropole Team

Sure the markets are moving on, but not all properties are going to increase in value. Now, more than ever, correct property selection will be critical.

You can trust the team at Metropole to provide you with direction, guidance, and results.

Whether you’re a beginner or an experienced investor, at times like we are currently experiencing you need an advisor who takes a holistic approach to your wealth creation and that’s exactly what you get from the multi-award-winning team at Metropole.

We help our clients grow, protect and pass on their wealth through a range of services including:

  1. Strategic property advice. – Allow us to build a Strategic Property Plan for you and your family.  Planning is bringing the future into the present so you can do something about it now! Click here to learn more
  2. Buyer’s agency – As Australia’s most trusted buyers’ agents we’ve been involved in over $4Billion worth of transactions creating wealth for our clients and we can do the same for you. Our on the ground teams in Melbourne, Sydney, and Brisbane bring you years of experience and perspective – that’s something money just can’t buy. We’ll help you find your next home or an investment-grade property.  Click here to learn how we can help you.
  3. Wealth Advisory – We can provide you with strategic tailored financial planning and wealth advice. Click here to learn more about we can help you.
  4. Property Management – Our stress-free property management services help you maximise your property returns. Click here to find out why our clients enjoy a vacancy rate considerably below the market average, our tenants stay an average of 3 years, and our properties lease 10 days faster than the market average.
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About

Brett Warren is Director of Metropole Properties Brisbane and uses his 13 plus years property investment experience to advise clients how to grow, protect and pass on their build their wealth through property. Visit: Metropole Brisbane


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