Hot auctions continue as Sydney’s clearance rate hits 80%

Sydney’s auction clearance has burst through the 80% mark, according to the latest preliminary weekly results from RP Data.

RP Data figures showed 80.3?per cent of 623?auctions were sold in ­Sydney over the past week.

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There was a  78% success rate on Saturday according to Australian Property Monitors.

The highest priced property was a waterfront reserve five-bedroom home at 4 Cheyne Walk, Castlecrag, which sold under the hammer for $3,270,000 through LJ Hooker agent Heidi King who revealed the reserve was $3.05 million for the unrenovated 1960s home with direct access to a Middle Harbour sandy beach.

A Bay Street Mosman home was passed in on a $5.5 million vendor bid and a Lang Road, Centennial Park property at a $6.5?million vendor bid.

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In Melbourne, the Real Estate Institute of Victoria recorded a 74% success rate from 720 results within the 822?offerings. It was an improvement on the clearance rate in May which was 70% from 2,848 auctions, the REIV said.

The most expensive sale in Melbourne was a four-bedroom federation home on Nimmo Street, Middle Park at $3.93?million through ­Marshall White.

With the number of properties sold before scheduled auction over the weekend at around 15%, the Melbourne buyers’ advocate Mal James advised it suggested a strong market in the $1 million-plus bracket.

“This trend seems to be being driven by buyers’ fear of missing out on a good property in a rising market.

“Rather than attend a hot auction and miss out because someone else has more money on the day, buyers are preferring to secure the property with a strong offer beforehand.
“It can be a good buying strategy if buyers understand the issues.

“But there’s no guarantee they will pay less this way.

“They will be negotiating directly with the vendor – and their agent – rather than against direct competition of other buyers in the auction.

“And we still think that the auction system is the most open and transparent market you can get,” Mal James advised.
“However the high number of bought-befores does confirm that this is still a strong market, and that anything of good quality is being hard fought for by buyers frustrated at an otherwise fairly ordinary choice of stock.”

Both major capitals auction activity declines for the Queen’s Birthday long weekend.

There are 840?auctions scheduled for Melbourne the weekend after the Queen’s Birthday holiday, which REIV said was a virtual record high, second only to the same weekend in 2010 when the ­Melbourne residential market was at its peak.

The most expensive sale at the weekend was a four-bedroom federation home on Nimmo Street, Middle Park at $3.93?million. It was listed with ­Marshall White.

This article first appeared on Property Observer.

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