Sydney auctions shoot up after budget announcements

Sydney’s auction market has been a rollercoaster ride for the last month, but Saturday was a high point for buyers and sellers were encouraged by several housing measures announced in the federal budget. 

On Saturday, the city recorded an auction clearance rate of 79.6 per cent, a sharp increase from the previous weekend’s year-low 73.6 per cent. This was however lower than the 80.3 per cent recorded over the same weekend last year, when interest rate cuts activated the local market.

Auction volumes followed the clearance rate upwards at the weekend with 778 homes listed – a big jump from the 459 listed the previous weekend and also significantly higher than the 505 auctions conducted over the same weekend last year.

Sydney auction numbers will continue to surge over late autumn with well over 850 homes listed next weekend.  

Sydney recorded a median auction price of $1,275,000 on Saturday, higher than the $1,170,000 reported the previous weekend and also 13.8 per cent higher than the $1,120,000 recorded over the same weekend last year. A total of $491.8m was reported sold at auction in Sydney at the weekend.

This strong performance was likely influenced by the announcement of last week’s federal budget policy initiatives designed to alleviate perceived housing market imbalances. These included allowing first home buyers to save home loan deposits through superannuation accounts, incentives for older down-sizers to sell larger homes and financial penalties for foreign investors that leave investment properties vacant.

The government also announced a number of specific initiatives designed to directly increase the supply of new housing.

Although these measures are welcomed, they are unlikely to have a significant impact on housing market outcomes. The continued underperformance of the national economy as also revealed in the budget will however have a more direct influence over housing market activity, particularly in regard to the likely future direction of official interest rates.

The northern suburbs returned to the Saturday boom-time results typically recorded over the past year to clearly lead the regional results at the weekend.

The top performer was the Blue Mountains with a 100 per cent clearance rate from the single reported auction. Next highest was the northern beaches with 96.2 per cent followed by the lower north 90.6 per cent, south 83.8 per cent, inner west 81.3 per cent (and the highest number of sales at 65), north west 80.0 per cent, upper north shore 78.7 per cent, city and east 76.1 per cent, Canterbury Bankstown 68.8 per cent, central coast 66.7 per cent, west 65.8 per cent and south west with a clearance rate of 65.2 per cent.

Notable sales reported at the weekend included:

• A four-bedroom home at 25 Montpelier Place Manly sold by Clarke and Humel Property for $6,300,000
• An 18-bedroom home at 31 Russell Street Strathfield sold for $5,900,000 by Raine and Horne Strathfield
• A three-bedroom home at 172 Barrenjoey Road Newport sold for $5,450,000 by McGrath Mona Vale
• A four-bedroom home at 17 Beaconsfield Parade Lindfield sold for $4,320,000 by McConnell Bourn Lindfield
• Another four-bedroom home at 727 Bringelly Road Rossmore sold by Ray White Carnes Hill for $3,810,000.

The most expensive house reported sold at auction was a six-bedroom home at 17 Chalmers Road Strathfield sold for $8,800,000 by Georges Ellis and Co. The most affordable property reported sold at the weekend was a two-bedroom unit at 9/5-6 Ferguson Road Springwood for $344,600 by One Agency Reeves.