Auction market shows high level of competition

Auction market shows high level of competition

26 August 2014 by Staff Reporter 0 comments

Sydney’s late winter auction market recorded its third consecutive clearance rate above 80 per cent, while Melbourne’s recorded yet another robust result.

Domain Group senior economist Dr Andrew Wilson said Sydney’s auction market continues to strengthen in the lead up to spring.

“The strong 83.4 per cent rate was the highest recorded for six months and reflects a market with high levels of competition for property,” he said.

“The Sydney auction market is on the rise with the four-weekend average clearance rising to 81.3 per cent compared to 76.2 per cent over the previous four-weekend period.”

Mr Wilson said, not surprisingly a number of the suburban regions produced “stunning” auction clearance rates at the weekend.

“The best performer was the city and east with an extraordinary 95.1 per cent clearance rate, with only two of the 41 properties reported failing to sell,” he said.

“An encouraging result also for Sydney’s prestige market at the weekend with 14 sales reported above $2 million.”

Dr Wilson said Melbourne’s auction market consolidated last weekend’s strong result with another robust clearance rate at the weekend.

“The 75.3 per cent recorded was just below the 75.5 per cent recorded the previous weekend and just below the 77.7 per cent recorded over the same weekend last year,” he said.

“The Melbourne winter auction market is now rising towards spring with the current four-weekend average at 74.8 per cent compared to the previous four-weekend result of 72.9 per cent.

“Auction numbers in Melbourne have risen steadily over recent weekends, with this weekend seeing 647 auctions scheduled compared to the previous weekend’s 623 and the 592 listed over the same weekend last year,” he added.

Melbourne’s south east again recorded the best result of all the suburban regions at the weekend with a strong clearance rate of 82.6 per cent.

Dr Wilson said next weekend is the last Saturday auction day before spring begins, with listings set to rise significantly through to the end of the year.

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