Sydney auctions approach boom peak
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May 16, 2016
Sydney auctions approach boom peak
Sydney's auction clearance rate hit 80% on the weekend, as buyers spurred on by lower interest rates competed for a smaller number of properties.
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Image: McGrath Hunters Hill.This property at 36 Viret St, Hunters Hill, sold for just over $7 million, making it the most expensive sold in Sydney over the weekend. -
Image: McGrath Hunters Hill. -
Image: McGrath Hunters Hill. -
Image: McGrath Hunters Hill.
Sydney recorded a clearance rate of 80.3% over the weekend, according to Domain.
The result was the highest since 83.1% was recorded in July last year, at the peak of the Sydney housing boom.
The result is well above the 71.6% recorded last weekend, and also above the 73.2% average recorded so far this year.
It appears that investors have shrugged off tighter lending rules, and are entering the market ahead of possible changes to negative gearing.
ABS data shows bank lending to housing investors rose 1.5% in March to $12 billion, a six-month high.
The clearance rate was also boosted by the recent drop in interest rates, and the fact there was a lower number of properties listed for auction. Only 506 properties went under the hammer over the weekend in Sydney, compared with almost 600 the previous week.
In other capital cities, clearance rates were also generally higher. The results were as follows:
- Melbourne 74.3% (73.1% last weekend)
- Brisbane 63%
- Adelaide 65%
- Canberra 58% (45%).
Read more:
Auction clearances suggest low rates have reignited property boom
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