Auction market hot as ever - but Sydney rents surging

Yet another weekend of boom-time clearance rates for the red-hot Sydney home auction market but more bad news for tenants with house rents surging

Auction listings also continue to rise with Sydney set to host nearly 900 this weekend which is well ahead of the 722 auctioned last weekend. Buyers have been spoiled for choice this year so far with auction numbers well ahead of the same period last year.

On a big weekend of auctions Sydney’s south suburban region is a surprise leader in listing numbers with 116 scheduled.  The south is closely followed by the inner west with 115, the city and east 112 and the upper north shore with 108 auctions.  The northern beaches has 83 auctions listed with the lower north 69, the west 68, the south west 64, Canterbury Bankstown 60, the north west 42 and the central coast with 23 auctions scheduled for Saturday.

The most popular suburb for auctions in Sydney this weekend will be Maroubra with 14 followed by Mosman 13, Manly 11 and a number of suburbs with 10 auctions scheduled including St Ives, Epping, Gladesville and Wahroonga.

Sydney recorded a clearance rate of 82.2 per cent last Saturday which was just below the previous weekends 82.9 per cent and well ahead of the 75.8 per cent recorded over the same weekend last year.  Sydney has now reported 5 weekend clearance rates above 80 per cent over the past 7 weeks since the beginning of February.

The Sydney rental market remains tough for tenants with February asking rents for houses surging by 5.8 per cent over the past year. Unit rents were also higher increasing by 1.9 per cent since February last year.

Sydney February vacancy rates were predictably lower over the month following the end of the quieter holiday period for new tenancies. Vacancy rates remain tight for both houses and units with each at 2.0 percent.

Rents are now growing faster than incomes despite recent significant increases in investor activity and particularly in Sydney and Melbourne where surging migration is accelerating demand.

Dr Andrew Wilson is Domain Group Chief Economist Twitter@DocAndrewWilson join on LinkedIn and Facebook at MyHousingMarket.