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Capital City Auction Clearance Rates Slip, Sydney Unaffected

auction clearanceWhile the auction volumes across the capital cities have given no reason to complain so far, auction clearance rates are turning out less strong than expected.  In a piece written for the website Property Update, Cameron Kusher talks about the dwindling performance.

Sydney bucks the trend

This said, Sydney has beautifully consolidated on its powerful performance and there is every reason why it should continue to do well in times ahead.

‘Volume’ higher, ‘clearance rate’ down

Kusher uses data to suggest how over 3,000 properties have come under the hammer last week, increasing the tally by over 20% from the week previous to that. This could have been great news had the rates been more robust. Contrarily, they slipped from 69.4% to 68.8%.

High auction volumes are not a point worth being ebullient about, given that consecutive holiday weekends are on the cards (Easter and Anzac Day). The situation more than explains the ‘volume’ rush.

Sydney not bothered

Sydney, though, has stood up to its billing of “top performer”, recording 79.5% clearance. In doing so, it has outperformed its previous week’s 76.1% by a long margin. Already, 1,151 auctions held during the weekend is the third time Sydney has gone over the figure 1,000 this year.

You can read the original article here.

Buyers across the price spectrum happy in Sydney

Those who thought that the property market may mellow down and seek sustainable growth in 2014 can be close to correct for capital cities. I, however, believe that Sydney will buck all trends and keep sparkling. If nothing, its auction clearance rates more than validate the assertion.

The Prestige Market is also rallying reasonably well and this gives buyers across the price spectrum a chance to dig in. Those who want to cash in will be more than eager to replace the existing landholders, even if at a higher-than-sticker price.

This will keep the auction frenzy going. I remember having written an article “Sydney crosses 80% auction clearance rates 14 times in 16 weeks”. The buzz I felt while writing the piece seems to have been vindicated.

Do you foresee the Sydney auction clearance rates mellowing down?