Holiday break slows weaker Sydney market

Sydney auction numbers are down again this weekend as the distractions of the school holidays affect a weakening local market.

Results for lower-priced, outer suburban homes remain mixed with clearance rates still struggling to rise above 50 per cent.  

Sydney’s inner suburban regions however continue to record strong clearance rates with higher-priced homes attracting significant buyer attention. 

Record levels of new home building are being offset by continuing strong demand for rental accommodation from high numbers of first home buyers waiting in the queue and high migration.

Reduced activity from local investors since last June is also acting to keep demand well ahead of supply and consequent upward pressure on rents.   

Just 343 auctions are scheduled in Sydney this Saturday which will be below the 523 listed last weekend and less than half of the 732 homes auctioned over the same weekend last year.

Auction numbers in Sydney this year so far remain well below the record levels of last year over the same period.

Sydney’s south will host the most auctions this weekend with 49 followed by the city and east with 44, the inner west 43 and 39 in the upper north shore. Canterbury Bankstown has 29 scheduled, followed by the lower north with 28, the northern beaches with 26, the south west with 25, the west with 20, eight in the north west and the Blue Mountains.

The most popular suburb in Sydney for auctions this weekend is Strathfield with six, followed by a number of suburbs with four auctions scheduled including Lane Cove North, Surry Hills, Eastwood, Terrigal, North Sydney, Hornsby and Warriewood.

Number 109 The Boulevarde, Strathfield, is up for auction this Saturday at 11.30am.

Sydney reported a clearance rate of 70.7 per cent last weekend which was the lowest rate recorded this year so far.

Last Saturday’s result was also well below this year’s average 74.1 per cent and the second consecutive weekend with below average rates.

Although last weekend’s result was down, it nonetheless still indicates a generally positive selling environment for vendors and may reflect the distractions of school holidays that commenced this week.

While auction clearance rates have dwindled since Easter, the Sydney market continues to track at its strongest since winter last year. 

Chronic property shortages still characterise the local market with latest Domain Group data reporting rising rents for both houses and units over the past year.

Dr Andrew Wilson is Domain Group Chief Economist
Twitter@DocAndrewWilson
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