Auction prices still high in Sydney and Melbourne

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This week, the auction clearance rate across the combined capital cities was 69.2%, compared to 72.3% last week and 73.1% this time last year.

Weekly clearance rate, combined capital cities

Despite the softer numbers this week, RP Data says the auction market has picked up across the capital cities since winter, with Sydney being the main growth driver.

Sydney’s auction clearance rate was 76.9% this week, compared to 78.4% last week.

Melbourne’s clearance rate was 69.3% at the weekend, compared to 73.4% last week.

Capital city auction statistics (preliminary)

RP Data’s Housing Market Specialist, Robert Larocca, says it has been a strong start to spring for Melbourne property but noted that after the 2013 grand final, there were significant rises in stock levels, and the market shifted towards buyers.

Based on RP Data’s CoreLogic Daily Home Value Index, the year to date value change across the combined capital cities of Sydney, Melbourne, Brisbane, Adelaide and Perth was 5.4%. The annual home value change was 8.9%.

Capital city home value changes

According to RP Data’s private treaty sales, which represent approximately 85% of all dwelling sales across the country, the median price for houses across the combined capitals was $531,695.

Capital city private treaty median prices

Values in Sydney and Melbourne are going gangbusters, compared to the other capitals. In Sydney, a three-bedroom home in Mosman went under the hammer for an impressive $4.94 million. In Melbourne, the most expensive property reported sold at the weekend was a five-bedroom home in Camberwell, which sold for $3.17 million.

On Switzer TV last week, McGrath Estate Agents’ chief executive, John McGrath, said he expects growth of around 5% to 10% across the hottest property locations in Sydney.

According to his annual McGrath Report, the market is going to continue to drive higher but at a slower rate. The report also predicts that South-East Queensland will be the stellar performer in the next two to three years, Chinese buyer demand in Australia will continue, and investors and first home buyers are back in significant numbers and competing with one another, particularly at the lower end of the market.

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