Sydney auction clearance rates slump to lowest point since 2015

Clearance rates across Sydney’s auctions were sharply lower on Saturday, with the market recording its lowest result since December 2015.

Sydney reported a clearance rate of 67 per cent on Saturday, which was well below the bounce in activity at 73.2 per cent recorded the previous weekend and significantly lower than the booming 85.1 per cent reported over the same weekend last year.

Sydney’s weekend clearance rates have faded over the past month, with four out of the past five Saturdays below 70 per cent.

The number of auctions continue to rise in the fading market, with 763 listed on Saturday which was well ahead of the 682 auctioned last weekend and sharply higher than the 569 listed over the same weekend last year.

Surging auction numbers will continue to test the market next weekend with nearly 850 homes set to go under the hammer.

The sharply lower clearance rate at the weekend was clearly influenced by a significant decline in buyer activity from Sydney’s outer western regions that each recorded rates well below 50 per cent. By contrast Sydney’s inner suburbs continue to produce robust results for most spring sellers with the inner west bouncing back on Saturday after some recently lower results.

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• Related: Click here for Saturday’s auction results
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Sydney recorded a median auction price of $1,282,000 on Saturday, which was higher than the $1,250,000 reported the previous weekend and 5 per cent higher than the $1,221,000 recorded over the same weekend last year.

A total of $386.8 million worth of property was reported sold at auction in Sydney at the weekend.

First home buyers have stormed back into NSW housing markets after the changes to the state government stamp duty payable on home purchases by this group that came into effect from July 1.

Under the new arrangements, eligible first home buyers will be exempt from paying stamp duty for the purchase of both established and new homes with a value up to $650,000.

Latest ABS data for July reports that the number of home loans approved for first home buyers in NSW soared by 27.8 per cent over the month to 1950 which was an increase of 45.7 per cent compared to July last year. This was the highest monthly total recorded by the state since October 2012.

Despite the sharp increase reported over July, NSW first home buyers accounted for just 6.7 per cent of all residential lending approved over the month. This remained clearly the lowest of all the states and well below the next lowest, South Australia, at 11 per cent and also well below the NSW long-term average first home buyer market share of 11.7 per cent.

The Blue Mountains recorded a 100 per cent clearance rate at the weekend from one reported auction. The next highest result was the inner west with a strong 79.5 per cent followed by the lower north 76.9 per cent, the northern beaches and the city and east each with 74.4 per cent, the south 70.6 per cent, Canterbury Bankstown just below with 70.5 per cent, the upper north shore 66.3 per cent, then a significant gap to the north-west with 46.2 per cent, the central coast 42.9 per cent, the south-west 40 per cent and the west with a clearance rate of just 39.1 per cent from 46 reported auctions.

Notable sales reported at the weekend included:

• A three-bedroom home at 19 Bay Street, Greenwich, sold for $5,020,000 by McGrath Neutral Bay 
• A four-bedroom home at 36 Marine Parade, Maroubra, sold for $4.9 million by McGrath Coogee,
• Another four-bedroom home at 95 Stuart Street, Manly, sold by Clarke and Humel Property for $4,815,000,
• A four-bedroom home at 31 Keith Street, Clovelly, sold by Ray White Double Bay for $3,785,000
• And a five-bedroom home at 53A Wheeler Parade, Dee Why, sold by Clarke and Humel Property for $3,725,000.

The most expensive house reported sold at auction was a two-bedroom home at 6 West Crescent Street, McMahons Point, sold for $8.3 million by Belle Prop Neutral Bay. The most affordable property reported sold at the weekend was a three-bedroom home at 3/5A Burgin Close, Berkeley Vale, sold for $445,000 by Raine and Horne Toowoon Bay.