- The national clearance rate was 68.7%, up from 66.9%.
- Sydney and Melbourne are still the strongest markets.
- Infrastructure developments should see further growth in Sydney this year.
This week the auction market improved, with an average clearance rate of 68.7% — 1.8 percentage points higher than the previous week.
Weekly clearance rate, combined capital cities
Research house RP Data says auction volumes are rising and are projected to reach a high in the last week of October.
Sydney’s clearance rate was 75.8% this week, compared to 76.4% last week. Australia’s other leading property market, Melbourne, recorded a clearance rate of 67.2%, compared to 69.1% last week.
Capital city auction statistics (preliminary)
Senior economist for the Domain Group, Andrew Wilson, says the inner west continues to report Sydney’s highest suburban clearance rate, closely followed by the north shore. Wilson says the recent RBA decision to keep interest rate settings on hold for the fourteenth consecutive month, will continue to bolster sales during spring. In Melbourne, the outer east and the inner east were the leading suburban regions.
Capital city private treaty median prices
What’s driving the market?
In addition to China’s growth, and the competition between investors and first home buyers, the 2014 McGrath Report explains how prestige property and emerging urban hubs will drive demand and prices for the next 12 months and beyond – particularly in Sydney.
“Political and economic stability, rising business confidence and increasing overseas demand is driving new momentum in prestige property after several years of post-GFC stagnation,’’ says McGrath.
McGrath is predicting material prices in excess of $2 million for luxury properties this year.
Infrastructure developments that are unlocking parts of the Sydney region, creating job opportunities, and reducing travel time, are also likely to contribute to price value increases.
McGrath named Old Toongabbie, Parklea, Lalor Park and Werrington Downs as four of the nation’s top 10 “fastest selling” suburbs for houses, with an average selling time of 12-15 days.
He identifies three “major growth areas” in Sydney as hot spots for their proximity to new employment opportunities, and affordability over the long term. These include the Western Sydney Employment Area, the South-West Growth Centre, and the North-West Growth Centre.
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