More buyers, fewer properties see sale prices rise in Sydney auctions

Sydney’s auction clearance rates are bouncing back in the winter market, sitting above 60 per cent for the second week in a row.

Agents and auctioneers believe the lack of new stock on the market is boosting the clearance rate and the overall prices, as more buyers look for their dream home or investment.

Domain economist Trent Wiltshire said Sydney’s preliminary clearance rate of 63 per cent was a definite sign of a more buoyant auction market.

“I would also note that the number of auctions is about 20 per cent lower than this time last year, so the market isn’t being tested that much yet with lots of new supply,” Mr Wiltshire said.

“I think we will see clearances rates in the 60 to 65 per cent range continue because there is more buyer interest and activity, with lower interest rates being a key driver.”

If clearance rates continued above 60 per cent, Mr Wiltshire predicted Sydney’s prices would not bottom-out until later this year.

Head auctioneer with Ray White in Sydney Alex Pattaro said low stock meant more buyers were turning up to the same auctions to bid.

“It’s a good time for vendors to come back to the market because auction attendance is growing week by week,” he said.

A mix of buyers were out at the weekend in Sydney, with investors, families and downsizers competing for properties.

An investor won the keys to a three-bedroom apartment at 40B/356 George Street, Waterloo, at the weekend. The property sold under the hammer for $1,385,000.

There were two registered bidders at the auction held by Ray White Residential Sydney, with an investor the only one who put up their hand to bid.

A Queensland buyer looking for a base in Sydney was the successful bidder of a property at 15/1-7 Hampden Avenue, Cremorne.

The two-bedroom, one-bathroom property was sold through Belle Property Neutral Bay.  Principal agent Matthew Smythe said the property sold under the hammer for $1,256,000, $81,000 above the reserve.

“This is a two-bedroom record in the Mirvac-built Peppertrees development,” Smythe said.

“It was keenly contested with six registered bidders and in particular three buyers going toe-to-toe at the end of the auction,” he said.

A young family from Ryde was one of the eight registered bidders at 40 Barcoo Street, Roseville, at the weekend in a hotly contested auction – they bought for $2,001,000.

The three-bedroom, one-bathroom house on Sydney’s north shore.

Selling agent Jill Henry, of Stone Real Estate Lindfield, said there were about 50 people at the auction. She said the buyers were planning to renovate the property and live there.

A local family looking to upsize bought 2 Jackson Place, Kellyville, at auction by Cooley Auctions auctioneer Michael Garofolo.

The four-bedroom, two-bathroom property sold for a reported $1,185,000, with eight registered bidders fighting it out.

Principal agent with The Avenue Real Estate Corie Sciberras said the sale was an excellent one given a similar home sold recently for $990,000.

He said there was a definite lack of stock in the suburbs around Castle Hill, even more so since about half of the properties up for sale were now under contract.

Another upsizing family, this time from Summer Hill, was the successful bidder on a home at 113 Brighton Street, Petersham.

The four-bedroom, three-bathroom home sold well as it was one of the only homes of its size up for auction.

Eleven registered bidders fought it out for the keys. Principal agent Jim Nikolopoulos, of Cobden & Hayson Marrickville, said there was a definite lack of stock in the area.

“In our Balmain office and Cremorne, there’s just nothing on the market.”

He was hoping vendors would return because of improving results.

While there were many successful sales at auction, one that grabbed the attention of buyers was a property at 23 Carrington Parade, Freshwater.

That’s because the property was won by the vendor in an RSL Art Union raffle in 2016. The property passed in with a bid of $3.8 million. It had an auction guide price of $3.9 million.

Although it didn’t sell under the hammer, Stone Real Estate Dee Why agent James Hawley said negotiations were still under way with a couple of interested parties.

He expected the property to sell sooner rather than later.