Major city enjoys highest auction clearance rate since GFC

by AB22 Jul 2013

Brokers in Sydney could soon be celebrating a wash of new clients as the city reports its highest weekend auction clearance rate since the GFC.

Volatile sharemarkets, low fixed income returns and low interest rates are a few of the factors believed to be behind this weekend’s clearance rate of more than 80%.

Properties within the $1-1.5m range did particularly well, but figures continued to be flat in the prestige market.

APM senior economist, Dr Andrew Wilson, says the city’s market is being ‘energised’ and estimates that half the sales are by investors, many of whom are seeking capital growth from property in the SMSFs.

On the other hand, Melbourne’s auction clearance rate remained at a ‘solid’, if not particularly exciting, 70%.

“There are some signs that it is increasing across most price brackets and regions,” says Wilson.

According to the Australian Financial Review, political uncertainty about the timing and outcome of a federal election, high-profile job losses in key manufacturing and mining companies and nervousness about the economic outlook are weakening demand.

The majority of other major market clearance rates have also risen due to lower interest rates, with variations generally reflecting the impact of local economic conditions.

According to RP Data, the median house price for Sydney is $600,000, versus $448,000 in Melbourne.

COMMENTS