Both Sydney and Melbourne weekend auction markets continue to record solid clearance rates well ahead of those recorded at the same time last year.

Increased buyer activity generally evident for most of the year in these housing markets has continued to consolidate over spring. The Sydney weekend auction market has been particularly robust having now recorded five consecutive weekend auction clearance rates above 60 percent. This is the first time in over two years that this has been achieved in the Sydney market.

Although Sydney’s solid auction clearance rates clearly reflect increased buyer activity, the number of listings being offered each weekend remains slightly subdued. This may indicate some continued wariness by sellers with no clear signs yet that auction numbers are set to rise soon.

Sydney’s prestige markets however continue to show some encouraging signs of increasing buyer activity with another healthy auction clearance rate recorded by the Eastern Suburbs this weekend of 70 percent from 49 reported listings.

The most expensive property reported sold in Sydney on the weekend was a 5 bedroom house in Cronulla that went for $2,200,000. The most affordable property reported sold was a 3 bedroom house in Tregear that went for $230,000.

Similar to Sydney, Melbourne has consistently recorded solid auction clearance rates over spring well ahead of last year’s results at the same time. Melbourne’s prestige markets have been the mainstay of these solid sales outcomes with buyers perceiving value opportunities to secure quality properties in prestige locations.

Reports are also emerging of recent increased sales activity in Melbourne’s ultra-prestige market indicating that buyer momentum is filtering through into the upper-price regions.

Next weekend is the big test for the Melbourne market with a Super Saturday of auctions featuring well over 1000 properties listed for sale. This will be the highest weekend offering of properties for nearly 2 years and clearly indicates rising seller confidence in the Melbourne market.

Information source:

Dr Andrew Wilson is Senior Economist for Australian Property Monitors

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