Sydney auction clearance rate tracks upwards to 71.5 per cent after a five-week slide

Sydney’s housing market finally had an increase of buyer activity after five weeks on a downward slide. 

Sydney reported a robust winter clearance rate of 71.5 per cent on Saturday, which was higher than the 69.7 per cent recorded over the previous weekend but lower than the 75.4 per cent reported over the same weekend last year.

Saturday’s result was the highest recorded since the 74.3 per cent reported five weekends ago on June 3 and although the local market has typically eased into winter, it nonetheless continues to defy predictions of a significant decline in activity.

Auction listings were predictably lower again on the weekend, with sellers sidelined by the start of school holidays – 531 homes were listed to go under the hammer, which was well below last weekend’s 628 auctions, but ahead of the 422 auctioned over the same weekend last year. Auction numbers will be lower again next weekend, with just under 500 homes set to go under the hammer.

Sydney recorded a median auction price of $1,160,000 on Saturday, which was higher than the $1,130,000 reported the previous weekend and 10.9 per cent higher than the $1,045,500 recorded over the same weekend last year. A total of $304.3 million was reported sold at auction in Sydney at the weekend.

New home building in Sydney continues to fall and with current housing demand clearly ahead of supply, prices and rents can be expected to keep rising.

Latest ABS data reports that both houses and units have recorded significant declines in planned building activity this year so far, with unit approvals down by 2257, or 14.8 per cent less compared to the first five months of last year and house approvals down by 342 or 4.8 per cent fewer on the same this year to date comparisons.

Total capital city home building approvals have also fallen significantly this year so far compared to last year, down by 4154 or 7.7 per cent fewer. The capitals have recorded a decline of 2599 unit approvals, down 11.6 per cent, with house approvals falling by 1555 or 5 per cent fewer than recorded over the same period last year.

• Related: Click here for Saturday’s auction results
• Related: Click here for the Market Snapshot
• Related: Newtown home passes in at auction for $2.65m

Last week the Reserve Bank convened for its regular monthly meeting to determine the direction of official interest rates over June. Following better economic news this month, the bank predictably decided to leave rates on hold at the record 1.5 per cent, where they have been since the last cut in August last year.

Optimism is growing in regards to the national economy prospects, which primarily reflect a sharp fall in recent monthly jobless data and better retail sales numbers. Unemployment measures however are a lagging indicator of economic activity and trend retail sales remain relatively insipid. The recent sustained fall in planned home building provides some sobering news for the economy, with more work still be done to lift out of the current doldrums.

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Sydney regions reported consistent results at the weekend, with all but one recording clearance rates above 65 per cent. Inner suburban, higher-priced areas, however, continue to generally produce strong winter results for sellers.

The lower north reported the highest clearance rate at the weekend, with a booming 81.3 per cent result. Next highest was the central coast with 78.9 per cent, closely followed by Canterbury Bankstown 78.6 per cent, the city and east 77.1 per cent, the inner west 75.4 per cent, the south 74.0 per cent, the west 69.2 per cent, the north west 67.9 per cent, the northern beaches 65.5 per cent, the upper north shore 65.3 per cent and the south west well down at 46.7 per cent.

Notable sales reported at the weekend included:

• A four-bedroom home at 8 Ethel Street, Burwood sold for $3,580,000 by LJ Hooker Burwood,
• A seven-bedroom home at 91 St Marks Road, Randwick sold for $3,055,000 by 1st City – Double Bay,
• A five-bedroom home at 37 Dorset Street, Epping sold by McGrath Epping for $3,000,000,
• Another five-bedroom home at 19 Lawrence Road, Kenthurst sold for $2,775,000 by Guardian Realty
• A four-bedroom home at 1 Panorama Road, Lane Cove sold by Stone Real Estate Lane for $2,775,000.

The most expensive house reported sold at auction was a three-bedroom home at 2/12 Commodore Street, McMahons Point sold for  $4,050,000 by Stone Real Estate. The most affordable property reported sold at the weekend was a two-bedroom unit at 45/127 Chapel Road, Bankstown sold for $410,000 by Laing and Simmons Bankstown.