Despite a recent fade, Sydney's auction market survived its September super Saturday, recording a solid clearance rate for sellers despite the usual flood of pre-holiday listings.
Sydney reported a clearance rate of 70.2 per cent on Saturday which was higher than the previous weekend's year-low 67.0 per cent but significantly lower than the booming 81.6 per cent reported over the same weekend last year.
The number of properties reported sold before auction continues to climb with motivated sellers keen to secure a sale from a dwindling pool of buyers. One hundred and sixty-nine homes were reported sold before auction at the weekend which was well ahead of the 148 reported the previous weekend and significantly higher than the 109 reported on August 19.
Auction numbers typically surged on Saturday with sellers keen to avoid the distractions of next weekend's Labour Day long weekend and the commencement of school holidays. Eight hundred and thirty-four auctions were listed on Saturday which was higher than the 760 auctioned the previous weekend and sharply higher than the 719 listed over the same weekend last year. Auction numbers will be well down next weekend with just over 400 homes set to go under the hammer.
Sydney recorded a median auction price of $1.35 million on Saturday which was higher than the $1,282,000 reported the previous weekend and 3.8 per cent higher than the $1.3 million recorded over the same weekend last year. A total of $439.1 million worth of property was reported sold at auction in Sydney at the weekend.
Residential investor activity has declined sharply in NSW as tighter lending conditions have clearly impacted most housing markets.
Latest data from the ABS reported that NSW approved residential investor loans to the value of $5.7 billion over July which was a dramatic decline of 22.3 per cent compared to the previous month's total. July's NSW total was also 0.8 per cent lower than that recorded by the local market over July last year.
Related: Click here for Saturday's auction results
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Although investor lending in the NSW fell steeply over July, loans to this group to the value of $42.6 billion were approved over the first seven months of this year which is a solid increase of 17.5 per cent compared to the same period last year.
Nearly all states recorded sharp declines in loans to residential investors over July clearly reflecting the impact of restrictive lending practices recently introduced by banks as a response to policy initiatives by APRA, the financial regulator.
A remarkably strong result from the northern beaches contributed to this weekend's higher Sydney clearance rate with upper north shore also sharply higher an additional factor in the improved overall result.
The northern beaches was the top regional performer at the weekend with a clearance rate of 85.2 per cent followed by the upper north shore with 79.4 per cent, the lower north 76.7 per cent, the inner-west 72.6 per cent, the south 72.2 per cent, the city and east and the west each with 71.1 per cent, the north-west 55.8 per cent, the central coast 53.8 per cent, Canterbury Bankstown 50 per cent and the south-west below 50 per cent again with a clearance rate of just 45.7 per cent.
Notable sales reported at the weekend included:
- A four-bedroom home at 1112 Pittwater Road, Collaroy sold by McGrath Seaforth for $3,925,000,
- A three-bedroom home at 2 Dick Street, Henley sold for $3.85 million by BresicWhitney,
- A four-bedroom home at 83 St Thomas Street, Clovelly sold for $3.81 million by PhillipsPantzer Donnelley,
- A three-bedroom home at 4B Bellevue Gardens, Bellevue Hill sold for $3.7 million also by PhillipsPantzer
- And a seven-bedroom home at 29 Abbotsford Road, Homebush sold for $3,625,000 by Elders Inner West- Enfield.
The most expensive house reported sold at auction was a four-bedroom home at 3 Tabalum Road, Balgowlah Heights sold for $4.1 million by Clarke and Humel Property. The most affordable property reported sold at the weekend was a two-bedroom unit at 10/48 Reynolds Avenue, Bankstown sold for $461,000 by WT Newey and Co.
