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High auction clearance rates, lower stock levels and strong prices defined the Sydney real estate market this spring.
The eastern suburbs led the way, with an average clearance rate for spring of 90 per cent, according to Raine & Horne’s director of auctions James Pratt.
“Other strong performers included southern Sydney, with a spring average clearance of 82 per cent and north shore markets with 80 per cent,” Mr Pratt said.
The north-west, inner west and south-east also did well.
North-west
As a result of the NSW government’s Priority Growth Centre initiative, developments at Schofields, Riverstone, Box Hill and Marsden Park have proven popular with first home buyers and investors, Raine & Horne Quakers Hill principal Arvind Pillay said.
“These land subdivisions vary from five to 20 acre land holdings, with block sizes varying from 300 to 600 square metres,” Mr Pillay said.
“Currently, these blocks are selling for $1,250 to $1,450 per square metre depending upon location, frontage and the gradient of the land.
“Buying activity this spring was driven by low interest rates, the shortage of housing in the area and the Priority Growth Initiative, while people want to live close to transport, schools and job opportunities.”
IT professionals and health and education sector employees have led the charge.
“These buyers have a preference for new-style houses as opposed to the older ‘suburbia’ homes. Some first home buyers are buying the small blocks of land and are securing the opportunity before it is too late,” Mr Pillay said.
Inner west
Buyers enthusiastically snapped up inner west properties throughout the entire 12 weeks of the traditional spring selling market, according to the principal of Raine & Horne Concord, Paul Pettenon.
“In the last weekend of November, for example, auction clearance rates reached almost 90 per cent in the inner west, which easily trounced the Sydney average of 79 per cent,” Mr Pettenon said.
However, compared to November 2015, the number of properties for sale was down by 10 per cent. Fuelling the demand and supply dilemma, some owners tried to secure their next home before selling an existing asset.
South-east
Maroubra, Coogee and Malabar enjoyed an excellent November, after a slow start to the spring market, Raine & Horne Maroubra principal Paul Spanoudakis said.
“The later start to the traditional season means we expect to be selling properties right up until Christmas,” Mr Spanoudakis said.
The late wave of sales came as first home owners who had recently upgraded to houses in Maroubra sold apartments priced between $700,000 and $1 million, he said. The median house price in Maroubra is $1.7 million.
“There was a trend for some upgraders to try to hold on to a first property, usually an apartment, as an investment.”
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