Sydney records best auction clearance rate in two years, but no such hope for Melbourne

Sydney has recorded one of its strongest auctions results in more than two years, in a good sign that the upcoming spring selling season will finally bring a swing towards more favourable selling conditions for investors.

But experts say they don’t necessarily hold the same hope for Melbourne, which recorded a clearance rate more in tune with the past several weeks.

“I’m not as optimistic at this stage,” APM economist Andrew Wilson told SmartCompany this morning.

“We’ve recorded three consecutive apartment price falls, so that’s another sector of the market that appears to be weak…there is that imbalance between supply and demand.”

“There are certainly sectors that are doing okay, but whether that can be sustained is something else.”

Sydney recorded a clearance rate of 68.4% during the weekend – one of the strongest results since 2010. Wilson says there were a smaller number of properties available, but the result adds to the strengthening trend he’s noticed over the past four weeks.

“We do need to take this with a grain of salt being a strong number, but certainly, the mid-winter market is pretty active.”

On the other hand, Melbourne’s result is more disappointing. The city recorded a clearance rate of just 59%, compared to last week’s 60%, and 55% recorded in the same weekend in 2011.

There were just 384 properties on the market, although the Real Estate Industry of Victoria says there will be 520 next week.

Wilson says there are several different economic factors at play between Sydney and Melbourne, which may be responsible for the lacklustre sales.

“We’ve seen changes to incentive packages in Melbourne, certainly the Victorian economy is different, and there are a few different segments of the market attempting to keep up.”

“The numbers will start building up early in September, and overall it’s positive…but I’m not as optimistic for Melbourne.”

Adelaide recorded a 68% rate, with 25 listings, while Brisbane recorded 37% with 54.

 

 

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