Sydney auction clearance rate hits two-year high

Sydney's weekend auction clearance was its highest weekend result since 2010, with 68% of listings selling under the hammer.

There were 134 sales from the 196 reported results amid the 248 overall listings, suggesting the final tally may differ when the late reported results are added.

While fewer houses and apartments went under the hammer than the previous three weekends, Australian Property Monitors senior economist Dr Andrew Wilson says the result augur well for the upcoming spring selling season.

The result was up 14 percentage points on the same weekend last year, when 54% was secured from the overall 261 listings,  and eight percentage points up on the 60% last weekend, when there were 321 scheduled auctions, the APM figures show.

The average Sydney clearance rate since the start of July was 62%, compared with the mid-50% range in the same period of last year, Wilson says.

“It’s a very strong result. It’s been following an upward trend in the past four to six weeks,” he says.

The highest sale was $3.25 million in Paddington.

But Tanderra, one of Sydney’s few remaining houseboats, didn't get to weekend auction after legal complications triggered its withdrawal.

Dating back to the 1920s, its one of just four houseboats moored in Middle Harbour near The Spit at Pearl Bay.

It last traded for about $150,000 in 1983 and was then rebuilt, its listing agent Sandie Dunne says.

Dunne, of Dunne Mosman, says the value of the houseboat is  not in its structure but in the length of its lease and existing use rights status.

But she emailed clients on Thursday that the Saturday auction "has been cancelled due to legal issues to be resolved".

The weekly Real Estate Institute of NSW figure of 65% is the highest weekly clearance rate mid-May, the institute's Tim McKibbon says. The REIV report on a slightly different time line, from July 30 through to August 4, hence, in part, the difference between the results. The REINSW had 111 properties reported as passing in and 210 reported as sold.

"We have seen a steady improvement in New South Wale’s auction clearance rate over the past few weeks," he says.

Melbourne agents secured a clearance rate of 59% compared to 60% last weekend and 55% on the same weekend last year, according to the Real Estate Institute of Victoria.

In the month of July there were 1,590 auctions with an overall clearance rate of 58%, according to the REIV.

This compared with 56% in June from 2,390 auctions.

The national auction results are available at propertydata.com.au.

There were 384 auctions reported to the REIV this weekend, with 227 selling and 157 being passed in, 92 of those on a vendor bid.

The highest-priced home sold was a four-bedroom, two-bathroom property on a 1,133-square-metre block on Hawthorn’s Wellesley Road, which sold for $2.51 million.

Wilson describes the Melbourne clearance rate as “so-so” to the Australian Financial Review, noting that while the Melbourne market was not weakening, it was posting similar results to the same period last year.

With the number of auction properties falling to a seasonal low, the south-east Queensland auction clearance rate has peaked, according to the Jason Andrew Group.

Additionally the JA group reported an overall average of 2.07 registered buyers per auction, up from the previous week’s result of 1.38.

 The year-to-date clearance rate for 2012 now sits at 49%, compared to the 2011 result of 34%.

Andrew says he is  witnessing a level of confidence across all price segments and locations that had not been evident for some time.

“Crowd sizes continue to rise, with the average at 19 last week.

"We are seeing strong buyer interest teamed with a shortage of quality stock in an increasing number of areas, which has resulted in an outstanding clearance rate last week.” Andrew says.

 He says it will be interesting to see what happens to the equation once supply increases.