The Sydney areas where the most properties are selling under the hammer: Domain data
Sydney’s insatiable demand for property has returned, with more homes selling under the hammer as pockets of the city hit massive clearance rates not seen since 2016.
Auction results in some suburbs of Sydney have reached new peaks as the city’s property prices head towards an all-time high, according to new Domain figures.
Topping the list was Sydney’s lower north shore, which recorded the highest clearance rate of 83.2 per cent in February, the data showed.
It was followed by the northern beaches, which saw 81.9 per cent of properties sell under the hammer, and 80.9 per cent of inner-west homes clearing under auction conditions in the same month.
Domain senior research analyst Nicola Powell said these regions were performing exceptionally well.
“When you look at the inner west and the lower north shore, the last time you saw clearance rates higher than that was February 2018,” Dr Powell said. “The last time it was higher in the northern beaches was October 2016.
“The fact that clearance rates are above 80 per cent [means] we’re at peak times. We’re seeing the recovery occur in the upper end of the market.”
It comes after the city recorded its strongest monthly clearance rate in almost three years with 74 per cent of homes sold under the hammer.
Ray White Lower North Shore selling agent Geoff Smith said there were strong numbers of buyers in his local market due to cheap credit.
“What it boils down to is that there is a shortage of stock out there,” he said. “People’s attitude is that because money is so cheap at the moment it’s a good, safe place to put money in … compared to what’s available.”
Mr Smith said while there was strong buyer interest across the board in the lower north shore, investors were drawn to buy units to lock in returns.
“You’re also getting people upsizing. People are getting good prices for semis and then they’re buying bigger houses,” he said. “The other end of it are people downsizing and they’re looking at selling their houses and looking into moving into low-maintenance apartments.”
It was a similar story in the city’s inner west, where there was a healthy dose of competition thanks to the different buyer groups pouring back into the market. They ranged from investors to upsizers and downsizers, according to selling agent Simon Pilcer of Pilcher Residential.
“We’ll get locals upsizing, we’ll get people coming from Elizabeth Bay, Potts Point, Darlinghurst, and one of the great things is as far as competition goes, is a fair smattering of downsizers from the northern district and the north shore,” Mr Pilcher said.
“Part of what’s driving that is we had very low stock levels for the best part of 18 months. Those stock levels have increased now and what’s come along with that is a lot more enthusiasm from buyers.”
The city and eastern suburbs also enjoyed a high level of properties selling under the hammer with 77.3 per cent of homes clearing in February as well.
The Agency Eastern Suburbs selling agent Bethwyn Richards said buyers were snapping up properties without the delay seen in last year’s downturn.
“They’re moving quickly, they’re certainly talking with urgency. There’s a determination,” Ms Richards said.
“They know prices have increased and they know there isn’t an abundance in stock.”
She believed the local market will continue recording high clearance until April.
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