Sydney's auctions unhurt by mortgage rate rises, with $628.2m of property sold

Sydney auction buyers are evidently unfazed by recent mortgage rate increases by the big banks with the local market reporting another weekend of boom-time clearance rates.

This year has been marked by high auction clearance rates despite a flood of listings, with sellers keen to take advantage of the red-hot Sydney housing market.

The city recorded a median auction price of $1,300,500 on Saturday, which was lower than the $1,355,000 reported the previous weekend. A total of $628.2 million was reported sold at auction in Sydney at the weekend.

Sydney recorded a strong clearance rate of 80.2 per cent on Saturday, which although below the previous weekend’s 82.2 per cent remained well ahead of the 70.0 per cent recorded over the same weekend last year.  

Sydney has produced an unequivocally positive start to the autumn selling season for sellers, with weekend clearance rates averaging 80.9 per cent over March.

So far this year Sydney has listed 5323 weekend home auctions, which is 35.5 per cent more than were recorded over the same period last year and the pre-Easter Super Saturday of auctions is still to come in a fortnight’s time.

On Saturday 880 auctions were listed, which was well ahead of the 770 scheduled the previous weekend and predictably higher than last year’s Easter impacted 54 auctions hosted over the same weekend.

Although the Sydney housing market is in top shape for sellers, the rental market remains tough for tenants with February asking rents for houses surging by 5.8 per cent over the past year. Unit rents were also higher increasing by 1.9 per cent since February last year.

Sydney February vacancy rates were predictably lower over the month following the end of the quieter holiday period for new tenancies. Vacancy rates remain tight for both houses and units with each at 2.0 per cent.

Rents are now growing faster than incomes despite recent significant increases in investor activity and particularly in Sydney and Melbourne where surging migration is accelerating demand.

The spread of Sydney’s regional auction results has narrowed recently with most areas now recording strong clearance rates. The highest clearance rate at the weekend was recorded by the city and east at 88.3 per cent and the highest sales at 83, followed by the northern beaches at 88.1 per cent, the lower north at 85.2 per cent, the inner west at 82.8 per cent, the south at 79.8 per cent. Not far behind was the north-west region with a clearance rate of 76.5 per cent, the south-west at 76.2 per cent, Canterbury Bankstown at 72.7 per cent, the west 67.5 per cent and the central coast at 58.8 per cent.

Notable sales reported at the weekend included:

• A five-bedroom home at 12 Lucretia Avenue, Longueville, sold for $5,535,000 by McGrath Lane Cove,
• Another five-bedroom home at 11 Albert Street, Edgecliff, sold by The Agency for $5,200,000,
• A six-bedroom home at 31 Coventry Road, Strathfield, sold for  $4,600,000 by Richardson and Wrench Strathfield,
• A three-bedroom home at 28 Thorne Street, Edgecliff, sold by Ballard Property for $4,580,000 and
• A five-bedroom home at 88 George Street, Redfern, sold for $4,400,000 by BresicWhitney Darlinghurst.

The most expensive house reported sold at auction was a six-bedroom home at 41A New South Head Road, Vaucluse, sold for $6,700,000 by McGrath Edgecliff Projects. The most affordable property reported sold at the weekend was a two-bedroom home at 24/98-102 Victoria Street, Werrington, sold for $392,000 by Property Central Penrith.

For a list of Sydney auction results click here.