Renewed buyer confidence sees clearance rates soar at Sydney and Melbourne auctions

What a difference a year makes, with weekend clearance rates in Melbourne and Sydney soaring 20 per cent higher than at this time last year.

Domain auction results show 74.5 per cent of all Melbourne properties to go under the hammer this weekend were sold, compared with just 50.7 per cent last year.

In Sydney, it was even higher at 79.9 per cent this weekend and 54.3 per cent in 2019.

Renewed buyer confidence should drive positive results in the months ahead, said Domain senior research analyst Nicola Powell.

“The market is starting to kick back into gear and we’ll begin to see lots of new listings come on between now and Easter,” Dr  Powell said.

“This weekend’s clearance rates really illustrate the confidence that has come back into the market.”

A recovery from stock overflow and tight lending conditions, which influenced the market last year, had helped ease the way for buyers to return to auctions, she said.

“Last year, there were fewer buyers in the market, it was harder to get a loan and we were seeing an elevation of stock.

“I think there really was a lack of new listings coming on to the market last year, particularly in Sydney. So, what we’re really seeing is a pent-up demand that built up in the Sydney market late last year, and that’s really helping to kick-start the market this year,” she said.

In Sydney, there were 402 auctions, including one at 9 Harrow Road, Stanmore, where three bidders locked horns for the title.

The winning bid was $2.64 million, which the vendors hadn’t quite expected, said Ray White Surry Hills agent Ercan Ersan.

“They’re over the moon and they would have sold for less on the day if they had to,” he said.

The reserve for the four-bedroom home was $2.4 million. Two separate living areas in each level of the home drove strong bidding.

“One under-bidder was a family who wanted their elderly mum downstairs and the other under-bidders were a young couple who wanted their mum living upstairs,” Mr Ersan said.

“Everyone saw it as an opportunity where an older and younger family could live together.”

A young family hoping to secure a beachside home in North Bondi got their wish when they bought 32 Mitchell Street on Saturday. With the beach a 10-minute walk from the front door, competition for the two-bedroom home was strong.

Bidding was fast to begin with and after stalling at $1.9 million when it was passed in, the property eventually sold for $2.25 million after the auction, said Phillips Pantzer Donnelly agent Jane Lomax.

“It went to a young family who had been looking for a while, so we were really happy for them,” she said.

Across town a simple two-bedroom apartment at 3/511 Burwood Road, Belmore, exceeded expectations, selling under the hammer for $507,000.

“We had early offers, but we decided to take it to auction and ended up getting a great result,” said LJ Hooker agent Diab Abou Haidar.

Melbourne had 381 auctions at the weekend, including 80 Darebin Road, Northcote, which was secured by a super-slim bid of just $250.

Jellis Craig agent Nigel Harry said things got off to a slow start before suddenly picking up speed and selling for $1,106,250 to a couple of first-home buyers.

“As I gave it three calls to pass it in and take it inside, four hands went up at once,” he said.

It was a similar story in nearby Brunswick at 107 Whitby Street, where a dated weatherboard zoomed past the $950,000 reserve to sell for $1.064 million in front of a crowd of 50 people.

“Bidding was actually quite fierce, there were three of them who just raced through,” said Nelson Alexander agent Luke Sacco.

“It would have been over in 15 minutes. It’s a great start to the market with a lot of young couples and families in the market.”