November is set to be the strongest property month on record for Sydney, with auction clearance rates continuing to grow.
Results from Australian Property Monitors (APM) for the weekend show clearance rates at 83.7% in Sydney (up from 77.4% last week).
In Melbourne, clearance rates are 73.1% (the same rate as last week). However, this week’s number of reported auctions was up in Melbourne by over 500 properties, which can be attributed to last week’s Melbourne Cup long weekend.
APM senior economist Andrew Wilson told SmartCompany people are rushing to take advantage of strong market conditions.
“We’re having the strongest November we’ve ever had in Sydney,” Wilson says.
“Clearance rates are at their highest level. We’re also getting strong records from listing numbers.”
Wilson says there is more activity in Sydney’s premium market as well, due to an increase in consumer confidence and low interest rates.
“But a lot of it is pushing up from the bottom, rather than activity from the top end. The premium market is still relatively flat in Sydney in comparison to the middle market.”
Melbourne’s market is also performing strongly, particularly in the inner and outer-east. Wilson says the inner-east prestige market is showing price ranges from $1-3 million, while properties in the outer-east are ranging from $600,000 to $1 million.
“It’s certainly as not as intense as the Sydney market, but it is a solid, strong market and similarly we’re getting high listing numbers as well where sellers are taking advantage of these conditions.”
Wilson says he expects Melbourne and Sydney’s property markets to peak over the spring period and moderate over the new year.
“It will certainly be strong moving into the March quarter. But where the market goes depends on where the economy goes. I think it will moderate going into the year if that is what the economy is doing.”