The regions reign for property

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The auction clearance rate across capital cities was markedly higher at 71.1% over the weekend, compared to 69.3% the previous week. It was also higher than the 70.3% recorded last year, as the spring season shapes up to be another boom for the property market.

Weekly clearance rate, combined capital cities

Sydney maintains its star position, with a clearance rate of 78.5%. This is significantly higher than last week’s 74.8%, and also up on last year’s 75%.

Melbourne Cup fever has well and truly hit ahead of the Victorian public holiday, driving down total auction volumes in Melbourne to 217 – just a fraction of Sydney’s levels, which have now ticked over the 1,000 mark for the eighth week this year. Melbourne’s auction clearance rate was 68.2%.

Capital city auction statistics (preliminary)

The median price of homes sold by private treaty neared $800,000 for houses in Sydney, and was just below $540,000 in Melbourne. The combined capitals median was $603,212 for houses and $506,108 for units.

Capital city private treaty median prices

Sydney’s lower north was the leading region at the weekend with a clearance rate of 89.0%, and the northern beaches followed closely, with a result of 86.5%, according to Domain Group’s senior economist, Andrew Wilson.

In Melbourne, the inner east had a “perfect” auction score but there were only 12 homes sold as buyers and sellers looked towards the holiday break.

Regional ramps up

The heat of Sydney’s property market is starting to spill over into the state’s regional areas, according to property expert, John McGrath.

High competition between investors, yield-hunters, and those who have delayed their retirement post-GFC, and can afford to invest in their future retirement homes now, means more people are looking outside the city. Areas that are experiencing increased market activity because of these factors include Byron Bay, Banora Point, Kiama, Berry and Bowral.

“Another trend not seen in many years is Sydney buyers purchasing weekenders, and not just beach shacks either, we’re talking $1.5 million to $2 million plus properties on the Central Coast and in Bowral; as well as early $1 million homes in Berry,” says McGrath.

McGrath’s top regional area picks include Moss Vale in the Southern Highlands, Mount Ousley/Balgownie in Illawarra, Blackheath in the Blue Mountains and Kincumber in the Central Coast.

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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