The Sydney home auction market weakened on Saturday, reporting its lowest result for six weeks on the second-highest day of auction listings for the year so far.
Sydney recorded a clearance rate of 77 per cent at the weekend, which, although still an unequivocally good result for sellers, was well down on the 81.4 per cent recorded over the previous weekend. Although lower, Saturday’s result remained significantly higher than the 59.2 per cent reported over the same weekend a year ago.
Higher listing numbers may have contributed to an easing in the clearance rate, with the local market hosting 831 auctions. This was higher than the 792 listed the previous weekend and the highest Saturday offering since the pre-Easter Super Saturday earlier this year.
The weekend’s auction numbers remained well below the 1015 conducted over the same Saturday last year, but higher auction numbers will continue to test the Sydney market, with well over 700 again expected next weekend.
Although the overall clearance rate was down at the weekend, Sydney’s inner suburban higher-priced regions generally continued to produce booming results. The lower north was the leading performer with a stunning 93.3 per cent, followed by the inner west with 90.1 per cent and the highest sales at 91, the northern beaches with 89.3 per cent, the north-west with 80 per cent, the city and east with 78 per cent, Canterbury Bankstown with 75 per cent, the south with 70.5 per cent, the upper north shore well down this weekend with 69.6 per cent, the west with 61.4 per cent, the central coast with 61.1 per cent and the south-west with a clearance rate of just 48.8 per cent. The Blue Mountains recorded a sale from its single reported auction.
Notable sales reported at the weekend included:
Buyers had more that 800 auctions to choose from on Saturday, which may have contributed to the lower clearance rate. Photo: Fiona Morris
- a four-bedroom home at 23 Toxteth Road, Glebe, sold for $4.42 million by Belle Property Glebe;
- a five-bedroom home at 11 Hampson Avenue, Maroubra, sold by PhillipsPantzer Donnelley for $4.35 million;
- a six-bedroom home at 29 Highland Ridge, Middle Cove, sold for $4,315,000 by Richardson and Wrench Castlecrag;
- a five-bedroom home at 1 Effingham Street, Mosman, sold for $4.25 million by Leahys;
- a five-bedroom home at 75 Wigram Road, Glebe, sold by BresicWhitney for $3.75 million.
The most expensive property reported sold at auction at the weekend was a five-bedroom home at 22 Grosvenor Crescent, Cronulla, which sold for $5.25 million by Greg Gilbert Real Estate. The most affordable property reported sold at the weekend was a two-bedroom unit at 9/4-6 Allen Street, Harris Park, sold for $490,000 by AB Property Consultants.
Sydney recorded a median auction price of $1,337,000 on Saturday, which was higher than the $1.3 million recorded the previous weekend. Saturday’s median was 9.1 per cent higher than the $1,225,000 recorded over the same weekend last year. A total of $558.6 million was reported sold at auction in Sydney at the weekend.
A buyer forked out $4.35 million for 11 Hampson Avenue, Maroubra. Photo: supplied
The Sydney auction market continued to perform strongly over the month of October with overall clearance rates rising from September’s 75.4 per cent to 77.4 per cent. This was also well ahead of the 61 per cent reported over October last year.
The median auction price, however, decreased over the month from $1.28 million to $1.26 million, but is now 9.1 per cent higher than the $1,155,000 recorded over the same month last year.
Average weekend auction numbers increased from 589 over September to 594 over October, but are well below the 810 average of October last year. So far this year 23,619 auctions have been conducted in Sydney, which is 25.8 per cent fewer than the number listed over the same period last year.
The most expensive sale of the week: 22 Grosvenor Crescent, Cronulla, sold for $5.25 million. Photo: Greg Gilbert
Lower interest rates have been a key catalyst for rising auction markets with the Reserve Bank, however, deciding to leave rates on hold over November for the third consecutive month.
The economy continues to send mixed messages: a lower jobless rate but sharply falling full-time employment, a high dollar and underlying inflation at record low levels.
Although the bank would be mindful of current strong housing market activity in Sydney and Melbourne, the likelihood remains that rates will be cut next year unless the economy improves.