Auction clearance rates continue to impress
28 October 2013
Auction clearance rates in Sydney have climbed to staggering highs of around 80 per cent in recent months as eager buyers return to the market.
The flurry of activity has had a knock-on effect for prices, with many properties selling well above their reserve. During September, Sydney house prices grew by 1.5 per cent taking annual growth to 8.6 per cent1.
CEO of Legacy Property, Matthew Hyder, said the dark clouds that have shadowed Sydney’s property market since 2010 have disappeared.
“Investors are coming back to the market encouraged by low interest rates, strong yields and a lack of attractive investment alternatives. Developers are doing their best to respond with new projects but supply remains constrained,” he said.
As illustrated in the chart below2, most states have seen a surge in auction clearance rates during the past year with an average of 75.3 per cent for Australian capitol cities in the first week of September.
Overtaking Melbourne in early 2013, Sydney recorded an 81.2 per cent clearance rate for September, boosted by the first release of apartments in Barangaroo, low interest rates and high rental yields.
Economic forecasts suggest the market will remain strong for many months to come.
1. Source: RP Data
2. ANZ (09/2013) Australian Economics Chartbook
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