Sydney auction market has worst fortnight in 16 months as clearance rates plummeted

Sydney’s auction market ended winter with a thud on Saturday with clearance rates falling over consecutive weekends for the lowest non-holiday result since April 16 last year.   

Sydney reported a clearance rate of 67.9 per cent on Saturday, which was down again on the 69.4 per cent recorded the previous weekend and significantly lower than the booming 80.7 per cent reported over the same weekend last year.

Higher auction numbers may have contributed to the weekend’s lower result providing more choice for buyers and more competition for sellers.

On Saturday 675 homes were listed for auction, which was well ahead of the 576 listed last weekend and also well above the 574 auctioned over the same weekend last year. The official start to the Sydney spring selling season next Saturday will again host about 650 auctions.

Sydney recorded a median auction price of $1.2 million on Saturday, which was higher than the $1.16 million reported the previous weekend and the same as that recorded over the same weekend last year. A total of $316.8 million worth of property was reported sold at auction in Sydney at the weekend.

• Related: Rundown Clovelly home sells for $3.4m 
• Related: Click here for Saturday’s auction results
• Related: Click here for the Market Snapshot

The Sydney auction market has ended with the clearance rate weakening although auction numbers remain significantly higher than recorded over the same period last year.

Sydney auction clearance rates averaged 70.6 per cent over winter, compared to 79 per cent over autumn and 77.5 per cent over winter last year.

A total of 7795 weekend auctions were conducted over winter, lower than the 9040 auctioned over autumn, but well ahead of the 5785, or 34.7 per cent higher,  held last  winter.

Although Sydney auction numbers will continue to rise through spring and likely remain ahead of last year’s totals, clearance rates are set to track lower as the lower interest rate energy driven by last year’s rate cuts dissipates.

Sydney sellers overall, however, will maintain the upper hand, particularly in the inner suburban markets.

Sydney remains a city divided with a clear disparity in regional results, with inner suburban areas continuing to produce significantly higher results compared to the middle and outer suburbs. Inner suburban results, however, were lower this weekend compared to last, with outer suburban clearance rates slightly higher overall than the previous Saturdays.

The lower north was the top performing region at the weekend with a strong clearance rate of 81 per cent followed by the upper north shore 75.5 per cent, the city and east 72.2 per cent, the inner west 71.9 per cent, the northern beaches 70.8 per cent, the central coast 66.7 per cent, the west 65.9 per cent, Canterbury Bankstown significantly higher this weekend at  60.5 per cent, the north-west 58.8 per cent, the south 55.2 per cent and the south-west   50 per cent.

Notable sales reported at the weekend included:

• A five-bedroom home at 32 Shadforth Street, Mosman, sold for $5,675,000 by Simeon Manners,
• A six-bedroom home at 32 Colbran Avenue, Kenthurst, sold by Lumby Hampson for $4 million,
• A four-bedroom home at 8A Bruce Avenue, Killara, sold by LJ Hooker Gordon for $3,880,000,
• A five-bedroom home at 58 Village High Road, Vaucluse, sold for  $3,650,000 by McGrath Eastern Suburbs
• A four-bedroom home at 30 Hilltop Crescent, Fairlight, sold by Stone Real Estate for $3,230,000.

The most expensive property reported sold at auction was a three-bedroom unit at 1503/61-69 Macquarie Street, Sydney, sold for  $7,110,000 by Morton Circular Quay. The most affordable property reported sold at the weekend was a one-bedroom unit at 104E/138 Carillon Avenue, Newtown, sold for $420,000 by Raine and Horne Newtown.