Sydney auction market starts to weaken

The Sydney weekend home auction market is showing early signs of weakening following consistently robust results recorded over the past two months prior to the Easter break. 

Sydney reported a clearance rate of 70.7 per cent at the weekend, which was the lowest rate recorded this year so far. Saturday’s result was also well below this year’s average 74.1 per cent and the second consecutive weekend with below average rates.

Although the weekend result was down, it still indicates a generally positive selling environment for vendors and may reflect the distractions of school holidays that commence this week.

There were 523 homes listed for auction on Saturday, which was slightly below the previous weekend’s 538 and the 535 reported over the same weekend last year.

Sydney’s inner suburban regions continue to record strong clearance rates, with higher-priced homes attracting significant buyer attention. Results for lower-priced, outer suburban homes, however, remain mixed with clearance rates still struggling to rise above 50 per cent.

The inner west and city and east recorded strong results at the weekend with clearance rates of 87.7 and 87.2 per cent, respectively. Next highest was the northern beaches with 84.6 per cent followed by the lower north and the upper north shore each with 71.4 per cent, Canterbury-Bankstown 70 per cent, the central coast 69.2 per cent, the north west 52.9 per cent, the west 52 per cent, the south 50.8 per cent and the south west 50 per cent.

Notable sales reported at the weekend included:

• A four-bedroom home at 24 Eastbourne Avenue, Clovelly, sold for $5.1 million by PhillipsPantzer Donnelley; 
• A four-bedroom home at 23 Waimea Road, Lindfield, sold by Curran Property for $4.25 million;
• A seven-bedroom home at 55 Oxford Road, Strathfield, sold by McGrath Concord for $3,615,000;
• A three-bedroom home at 12 Botanic Road, Mosman, sold for $2.9 million by Vernon Partners, and;
• A 10-bedroom home at 82 Woolgen Park Road, Leppington, sold for $2.86 million by LJ Hooker Leppington. 

The most expensive property reported sold at auction at the weekend was a four-bedroom home at 19 Elamang Avenue, Kirribilli, sold for $10,220,000 by Belle Prop Neutral Bay. The most affordable property reported sold at the weekend was a three-bedroom home at 4 Henry Street, Chittaway Point, sold for $398,500 by Raine and Horne Wyong.

Full weekend auction results

Sydney recorded a median auction price of $1,210,000 on Saturday, which was just below the $1,220,000 recorded last weekend. Saturday’s median remained 21.2 per cent higher than the $998,000 recorded over the same post-Easter weekend last year. A total of $287.1m was reported sold at auction in Sydney at the weekend.

Although auction clearance rates have weakened since Easter, the Sydney market continues to track at its strongest since winter last year. Chronic property shortages still characterise the local market, with latest Domain Group data reporting rising rents for houses and units over the past year. 

Record levels of new home building are being offset by continuing strong demand for rental accommodation from high numbers of first home buyers waiting in the queue and high migration. 

Reduced activity from local investors since last June is also acting to keep demand well ahead of supply and consequent upward pressure on rents.      

Dr Andrew Wilson is Domain Group Chief Economist. Twitter: DocAndrewWilson, or listen to My Property on Radio 2UE, Fridays 2pm-3pm, Saturdays 12.30pm-1pm