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15-09-2014, 07:46 AM
Spring fever propels Sydney auction clearances
PUBLISHED: 14 SEP 2014 12:31:00 | UPDATED: 15 SEP 2014 05:23:51
Spring fever propels Sydney auction clearances
A 1-bedroom unit in this building on Pelican Street, Surry Hills, sold after spirited a contest by five bidders, for $720,500, well above the reserve price of $650,000. The buyers were renters in the same building.
MICHAEL BLEBY
Sydney‘s auction clearance rate topped 80 per cent for a sixth straight week as the spring market kicked into gear at a record-breaking pace.
A five-bedroom family home in Pyrl Road, Artarmon, sold for $2.95 million at auction on Saturday, well above the vendor’s reserve price of $2.6 million.
The sale of the house on a 700 square metre site eclipsed the record for the lower north shore suburb set just two months earlier in July, when a four-bedroom house on a double block – 1385 square metres – went for $2.82 million.
“We were never expecting above that,” said LJ Hooker agent Sam Green. “It was half the land size, a similar home, and the other had a tennis court. Competition forces good prices.”
Low interest rates and growing competition is pushing the Sydney market at a faster pace than the rest of the country. Sydney is particularly strong due to the higher proportion of investors competing with owner-occupiers.
Investors account for 44 per cent of housing loan approvals in NSW, compared with 33 per cent in Victoria and an other-capital average of 29 per cent.
The difference can be seen in prices’ growth. Notwithstanding a 0.3 per cent decline in median home values last week, Sydney is up 0.7 per cent on the month and 14.9 per cent on a year ago, RP Data figures show. The closest rate of gain is Melbourne, with 8.5 per cent.
EXCITED VENDORS: NERVOUS BUYERS
“There are a lot of excited home sellers out there, but home buyers remain nervous,” said Andrew Wilson, the senior economist of Fairfax-owned Domain Group. “There was no sign of a flattening or moderating.”
Sydney’s highest clearance rate for the week came in the upper north shore, where it was just below 91 per cent. The city’s overall clearance rate was 83.3 per cent, up from 80.4 per cent a week earlier, Domain figures show.
The strength isn’t just at the top end of the market. In Surry Hills a one -bedroom unit on Pelican Street sold after spirited a contest by five bidders, for $720,500, well above the reserve price of $650,000. The buyers were renters in the same building. The picture is different in Melbourne, where the 77.1 per cent clearance rate was little changed from last weekend’s 77 per cent.
A five-bedroom, three-bathroom house in French Street, Artarmon sold at auction on Saturday for $2.4 million.
While there had been a lot of prior interest in the property, only two bidders ended up competing for the house, which McGrath Real Estate agent Greta Simpson represented “good value”.
There are signs, however, that the mid-range market is gaining speed as top-end buyers become more selective. The city’s highest clearance rate of 86 per cent came in the north-eastern suburbs – around Alphington, Northcote and Ivanhoe. The inner south, around Brighton, posted a clearance rate about 81 per cent, Domain figures show.
This marked a change from the recent pattern of activity centred in the more expensive inner-eastern and outer-eastern suburbs.
BOXES MUST BE TICKED
“They’re not flying out unless they’re ticking all the boxes,” said high-end buyers’ advocate David Morrell.
“Some vendors have got their head in the clouds.”
Melbourne values fell 0.9 per cent for the week and are down 1.6 per cent on the month, RP Data figures show. The city is due for a ‘Super Saturday’ – with more than 1000 auctions – next weekend, the last before the AFL grand final.
“This is not a boom market,” buyers’ agent Richard Wakelin said. “This is a market that is one of healthy demand, but we are not in a boom and bust type bubble.”
While both Sydney and Melbourne listings were up on last week, they were down on the equivalent weekend a year ago, as that was the first after the September 7 federal election, and there was pent-up demand after a quieter weekend.
With median dwelling values in Brisbane and Perth flat for the week, Adelaide was the only mainland capital city to show a rise, with an uptick of 0.4 per cent. Over the past 12 months, Adelaide values are up 5.5 per cent, Brisbane 5.1 per cent and Perth 3.6 per cent, RP Data figures show.
The Australian Financial Review
BY MICHAEL BLEBY
Michael Bleby
Michael covers business from our Melbourne bureau.
PUBLISHED: 14 SEP 2014 12:31:00 | UPDATED: 15 SEP 2014 05:23:51
Spring fever propels Sydney auction clearances
A 1-bedroom unit in this building on Pelican Street, Surry Hills, sold after spirited a contest by five bidders, for $720,500, well above the reserve price of $650,000. The buyers were renters in the same building.
MICHAEL BLEBY
Sydney‘s auction clearance rate topped 80 per cent for a sixth straight week as the spring market kicked into gear at a record-breaking pace.
A five-bedroom family home in Pyrl Road, Artarmon, sold for $2.95 million at auction on Saturday, well above the vendor’s reserve price of $2.6 million.
The sale of the house on a 700 square metre site eclipsed the record for the lower north shore suburb set just two months earlier in July, when a four-bedroom house on a double block – 1385 square metres – went for $2.82 million.
“We were never expecting above that,” said LJ Hooker agent Sam Green. “It was half the land size, a similar home, and the other had a tennis court. Competition forces good prices.”
Low interest rates and growing competition is pushing the Sydney market at a faster pace than the rest of the country. Sydney is particularly strong due to the higher proportion of investors competing with owner-occupiers.
Investors account for 44 per cent of housing loan approvals in NSW, compared with 33 per cent in Victoria and an other-capital average of 29 per cent.
The difference can be seen in prices’ growth. Notwithstanding a 0.3 per cent decline in median home values last week, Sydney is up 0.7 per cent on the month and 14.9 per cent on a year ago, RP Data figures show. The closest rate of gain is Melbourne, with 8.5 per cent.
EXCITED VENDORS: NERVOUS BUYERS
“There are a lot of excited home sellers out there, but home buyers remain nervous,” said Andrew Wilson, the senior economist of Fairfax-owned Domain Group. “There was no sign of a flattening or moderating.”
Sydney’s highest clearance rate for the week came in the upper north shore, where it was just below 91 per cent. The city’s overall clearance rate was 83.3 per cent, up from 80.4 per cent a week earlier, Domain figures show.
The strength isn’t just at the top end of the market. In Surry Hills a one -bedroom unit on Pelican Street sold after spirited a contest by five bidders, for $720,500, well above the reserve price of $650,000. The buyers were renters in the same building. The picture is different in Melbourne, where the 77.1 per cent clearance rate was little changed from last weekend’s 77 per cent.
A five-bedroom, three-bathroom house in French Street, Artarmon sold at auction on Saturday for $2.4 million.
While there had been a lot of prior interest in the property, only two bidders ended up competing for the house, which McGrath Real Estate agent Greta Simpson represented “good value”.
There are signs, however, that the mid-range market is gaining speed as top-end buyers become more selective. The city’s highest clearance rate of 86 per cent came in the north-eastern suburbs – around Alphington, Northcote and Ivanhoe. The inner south, around Brighton, posted a clearance rate about 81 per cent, Domain figures show.
This marked a change from the recent pattern of activity centred in the more expensive inner-eastern and outer-eastern suburbs.
BOXES MUST BE TICKED
“They’re not flying out unless they’re ticking all the boxes,” said high-end buyers’ advocate David Morrell.
“Some vendors have got their head in the clouds.”
Melbourne values fell 0.9 per cent for the week and are down 1.6 per cent on the month, RP Data figures show. The city is due for a ‘Super Saturday’ – with more than 1000 auctions – next weekend, the last before the AFL grand final.
“This is not a boom market,” buyers’ agent Richard Wakelin said. “This is a market that is one of healthy demand, but we are not in a boom and bust type bubble.”
While both Sydney and Melbourne listings were up on last week, they were down on the equivalent weekend a year ago, as that was the first after the September 7 federal election, and there was pent-up demand after a quieter weekend.
With median dwelling values in Brisbane and Perth flat for the week, Adelaide was the only mainland capital city to show a rise, with an uptick of 0.4 per cent. Over the past 12 months, Adelaide values are up 5.5 per cent, Brisbane 5.1 per cent and Perth 3.6 per cent, RP Data figures show.
The Australian Financial Review
BY MICHAEL BLEBY
Michael Bleby
Michael covers business from our Melbourne bureau.