Sydney has recorded its best auction clearance rate for the past weekend, with a result of 83.8 per cent according to Australian Property Monitors (APM).
This is the fifth consecutive weekend where clearance rates have peaked above 80 per cent, and it is being attributed to low interest rates.
RP Data recorded a slightly lower result of 79.5 per cent, which was a rise from last week’s result of 75.5 per cent.
“Clearance rates are being recorded despite a surge in listings, with the number of auctions in Sydney 32.2 per cent higher than the number listed over the first two weeks of August last year,” said senior economist for APM Dr Andrew Wilson.
“The best regional auction result in Sydney this weekend was recorded by the south, with an auction clearance rate of 90 per cent. This was followed closely by the inner west with 89 per cent, the central coast with 86 per cent, and the west with an 83 per cent clearance rate.”
In Melbourne, APM recorded an auction clearance rate of 71 per cent, a result consistent with previous weeks. Similarly, RP Data recorded a result of 71.3 per cent, a slight rise from 70.9 per cent last week.
“Auction clearance rates in Melbourne have been averaging close to 70 per cent over the past few months and it is no surprise that low interest rates and rising confidence are fuelling increased buyer activity,” Dr Wilson said.
“This weekend’s 71 per cent result was achieved despite a solid increase in listings, with Melbourne auction numbers 25 per cent higher over the first two weeks of August compared to the same period a year ago."
Dr Wilson said the decision by the Reserve Bank to cut interest rates to 2.5 per cent last week would continue to fuel a strong auction market in Sydney and Melbourne.
On a national scale, RP Data recorded a preliminary auction clearance rate across the capital cities at 72 per cent, which was the highest combined rate recorded since the first week in June this year.
According to APM, the most expensive property sold was in Sydney at $3.2 million, while the most affordable property was in Brisbane at $245,000.