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Sydney Displays Robust Clearance Rates

auction clearanceSydney has met the oncoming autumn season on an even keel, reciprocating its warmth and robustness beautifully. For the second week on a trot, its auction clearance rate has gone past the coveted 80% mark. Critics could say it was a skewed figure had the listings been too few (as is the case with Adelaide) but Sydney auctions saw 596 properties coming under the hammer. Every reason to be ebullient then!

Auction clearance figures

Sydney has touched even higher pinnacles in 2013 but to sustain the clearance figures anywhere close to 80% is a remarkable achievement. Sydney’s home value has shot up by 0.6%- a positive movement keeping in mind that we are already knocking on unsustainable growth levels and any further growth is expected to be only modest. Calculated against property prices same time last year, Sydney has exhibited a value growth in excess of 14%.

“At auction” figures a true representation

The auction clearance rates becomes even more pertinent because they denote “at auction” figures. In other words, the results are not obfuscated by boardroom sales and private treaties.  The latter has begun trifle slowly this time around. The private treaties (where the seller quotes an amount and seeks buyers at the stipulated price) market is languishing all across capital cities except for Sydney which has had a decent run of 1141 properties so far.  Its median is $610,000 which again is a good $100,000 above the median for capital cities.

‘Bedroom’ versus ‘pool’

In a recent article, I had commented upon the need for an extra bedroom in properties. While Australia showed an almost equal penchant for the cosmetically inclined swimming pool and the pragmatically bent extra bedroom, I dare to think that the survey report won’t translate as-it-is into auction results.

FHB’s dilemma

During auctions, people will look for those homes with extra bedrooms. After all, Sydney can always expect the property momentum to take it towards an unsustainable growth level, a point where chronic housing shortage may creep in. Already, the FHB segment is digging deep into its reserves to stay in the hunt. As it may pan out, those aspiring for their first home may want to live longer with their parents, accentuating the need for that ‘extra bedroom’.

What was your experience like while hunting for your first home?