Following a significantly subdued auction market in Melbourne last week, it is Sydney’s turn for a quiet weekend due to the distraction of the Labour Day holiday.
According to senior economist at Australian Property Monitors (APM) Dr Andrew Wilson, only 265 properties are scheduled to go under the hammer in Sydney, compared to the 593 listed last weekend.
He said Sydneysiders’ enthusiasm for the weekend auction market had been on the rise over recent months, with both buyer and seller activity strengthening.
“Latest data reports that Sydney recorded a sensational auction clearance rate of 78.6 per cent over September, which is the highest monthly rate ever recorded by the local housing market - just ahead of the 78.3 per cent recorded over April 2002 during the great housing boom of 2001/2002,” he said.
The strong results have been achieved despite a surge in listings.
“Over the past four weekends, 2,003 properties were listed for auction in Sydney with over 400 more, or 26.5 per cent, higher than the 1,584 that were listed over the same four-week period a year ago,” Mr Wilson continued.
In Melbourne, the auction market is back to business following last week’s AFL Grand Final, with nearly 750 properties scheduled to be auctioned.
The city has achieved an auction clearance rate of 71.4 per cent over September, which is higher than the 64.5 per cent recorded over March six months ago, and significantly higher than last September’s result of 58.8 per cent.
“Although the Melbourne market is clearly on the rise, activity levels remain well below those recorded four years ago during the strong market conditions of September 2009, which recorded an auction clearance rate of 80.2 per cent,” Dr Wilson said.
“It’s not surprising given solid and rising auction clearance rates that auction listing numbers are also on the rise, with sellers keen to cash in on the current solid competition for properties.
“Over the past three months 6,998 properties were listed for auction in Melbourne, which is over 1,000 more - or 18 per cent higher - than the 5,932 properties listed for auction over the same three months a year ago.”
Dr Wilson said the hurdle for both the Sydney and Melbourne market in the coming months was the rising unemployment rate.