The Sydney and Melbourne auction markets are set to finish on a high with a surge in properties to go under the hammer.
According to Australian Property Monitors (APM), Sydney will host 309 properties at auction this weekend. This is four times the 73 auctions that were conducted on the same weekend last year.
Sydney broke its all-time record for auction last weekend when 995 homes were listed for auction and despite unprecedented numbers, the city produced a clearance rate of 76.1 per cent.
Senior economist for APM Dr Andrew Wilson said, although this was the lowest weekend clearance rate recorded since June, this was of no real surprise given the tidal wave of properties offered for auction over recent weeks providing more choice for buyers.
“The solid result also reflects the increased motivation of sellers to secure a sale before the year’s end – particularly those who have purchased homes earlier in the season,” he said.
APM reports that 395 properties are scheduled for auction in Melbourne this weekend, which is three times the 127 auctions conducted on the same weekend last year.
“Sellers have been rushing into the market to take advantage of what, until recently at least, have been the strongest conditions since 2010,” said Dr Wilson.
“Melbourne’s weekend auction rate bounced back last weekend, despite another mountain of listings presented to the market.
“Sellers, particularly those who have purchased earlier in the spring, were clearly motivated to find a buyer before the end-of-year market shutdown. The clearance rate of 72 per cent was higher than the 67 per cent of the weekend before, but still below the spring average of 73.4 per cent.”
Dr Wilson said this year’s record-breaking performances in Sydney and Melbourne were unlikely to be repeated next year due to signs of a deteriorating national and local economy.