Property investors are surging into Sydney, prompting huge competition for properties and the strongest auction clearance rate in three years.
According to Australian Property Monitors (APM), Sydney recorded a 78.7 per cent auction rate over the weekend.
Senior economist for APM, Dr Andrew Wilson, told Residential Property Manager's sister publication, Smart Property Investment, that the market was continuing to rise in Sydney with average auction rates at 75 per cent in the past month.
“The market has actually picked up again since Easter … and certainly there’s momentum in the market at the moment,” he said.
The best performing areas in Sydney were Canterbury-Bankstown, the upper north shore and the inner west, which all reported clearance rates of over 80 per cent.
Dr Wilson said the stronger clearance rates were due to a higher competition for properties and activity by investors.
Low interest rates, Sydney’s low unemployment rate and healthy economy compared to the other capitals were also key drivers in the rising confidence in the housing market.
In the prestige market, eight homes were sold at a price above $2 million.
Dr Wilson said while it was one of the better results of the year, it was still flat and was the missing link in the Sydney housing market.
In addition, listing numbers remained flat with very little change from the previous year.