Rate cut adds to Sydney buying frenzy

Sydney has recorded its second auction clearance record in as many weeks and its fourth record since March.

Last weekend’s clearance rate reached 89.2 per cent, which was up on the 89.1 per cent recorded the weekend before, according to APM PriceFinder.

The clearance record has been steadily climbing, after hitting 87.5 per cent on March 28-29, then 88.2 per cent on April 18-19.

Last weekend’s result was a big jump on the corresponding time in 2014, when a clearance rate of 70.0 per cent was recorded.

Sales numbers rose 68.5 per cent year-on-year to 514, with the median price for house sales up 15.7 per cent to $1.3 million and the median unit price up 11.0 per cent to $785,000.

Domain Group senior economist Andrew Wilson said the Reserve Bank’s decision last week to reduce the cash rate to 2 per cent has boosted the confidence and enthusiasm of the Sydney market.

Meanwhile, Melbourne’s clearance rate of 79.7 per cent was well up on the 69.4 per cent result from the year before.

There was a 56.5 per cent jump in property sales, to 615, while the median house price rose 17.6 per cent to $870,000 and the median unit price rose 6.3 per cent to $525,000.

Adelaide’s clearance rate also climbed, from 54.8 per cent to 56.1 per cent, with house sales up 35.3 per cent to 23 and house prices up 11.8 per cent to $582,000.

Brisbane’s clearance rate increased from 46.0 per cent to 47.3 per cent, however sales fell 10.3 per cent 26 and house prices fell 5.8 per cent to $583,000.

[Related: Rule changes would ‘pull the rug’ from Sydney market]

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