Lucky week for property

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Chinese New Year – believed to bring good luck and prosperity – brought many foreign and domestic buyers to the auctions market last week. The average clearance rate lifted to 77.7% across the capital cities, compared to 74% last week.

Weekly clearance rate, combined capital cities

Sydney’s clearance rate was particularly impressive, at 87.8% compared to 83.3% last week. That compared to 84.2% this time last year dispels the rumours of a potential slow down in the Sydney property market.

Research house CoreLogic RP Data says last week’s momentum has carried into this week, with noticeable demand in Sydney, Melbourne and Canberra.

The recent interest rate cut from 2.50% to 2.25% is continuing to contribute to higher demand.

Melbourne’s clearance rate was also higher than the previous week at 74.9%, compared to 70.9%.

Capital city auction statistics (preliminary)

For those houses sold at private treaty, the median price across the combined capitals stands at $560,351. At the upper end of the property spectrum is Sydney, with a median house price of $725,000. Sydney also has the most expensive median unit price, at $590,500.

How sellers can achieve a fair price

With buyer interest ramping up, there is a lot of competition between sellers to make their property stand out from the rest.

Greville Pabst of WBP Property Group says sellers can add value to their property by considering a few handy, targeted renovations. Some suggestions include large, modern kitchens that have a walk-in pantry, restoration of a home’s period features, and outdoor entertainment areas with timber decking and lawns.

“Increasing a property’s physical floor space can also add considerably to its value, but often at significant cost. As such, buyers should ensure they research and plan well to avoid overcapitalising. Naturally, the cost of a renovation should not exceed the value added to the property,” Pabst says.

If you’re looking to achieve a fair price for your property this year, a well-researched renovation could go a long way to heighten buyer interest and generate the best return.

Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances.

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