While the data is still only preliminary, and some of the robust activity can be attributed to the low number of properties for sale, there can be little doubt that the recent rate cut has added fuel to sectors of the property market that were already overheated.

Sydney achieved an auction clearance rate on the weekend of a very strong 86%. The result is 10 percentage points higher than the clearance rate recorded for the same weekend last year, and only slightly lower than the peak recorded in May last year of 89.7%.

Melbourne's clearance rate was slightly softer than the previous week, at 76%, though still a strong result, and indicating robust demand for property. Melbourne's clearance rate was also higher than at the same time last year.

The strong clearance rates are being reflected in exuberant price gains, meaning lower interest rates are worsening housing affordability, particularly for those not already in the market.

A four-bedroom house in Pymble on Sydney's upper north shore sold at auction on Saturday for $2.4 million, which agent Donna Ferris of Savills Cordeau Marshall told the Australian Financial Review was "substantially" over the $2 million reserve price. 

Mark Foy, principal of Belle Property, told The Australian the inner-city markets, especially in Sydney, are in good shape.

“The last two years have been extremely strong in terms of property and I expect that trend will continue,” said Foy.

See also:

What $1 million buys you around the country

Sydney property streaking ahead

Auctions heading back to boom territory in Sydney, Melbourne

Sydney auctions approach boom peak