Sydney auction clearance rates at near-record levels

Sydney auction clearance rates at near-record levels

Posted on Thursday, June 27 2013 at 8:49 AM

If you’ve got the cash to get on board the next Sydney housing boom, now appears to be the time to jump.

Australian Property Monitors
(APM) reports the auction clearance rates for Sydney units was 74.9 per cent in
May – second only to the 76.3 per cent recorded in May 2002, making the result
a near-record level.

Auction rates for houses were
also encouraging at 65.3 per cent – the fourth highest figure recorded in May
over the past 23 years, only behind 2001, 2002 and 2003, according to the APM Capital City
Market Report.

“Sydney is now clearly the
best performing local economy, with an unemployment rate of 4.9 per cent in
April, the lowest of all major cities,” APM senior economist Andrew Wilson
says.

“Other leading indicators of
the economic activity such as retail sales also position Sydney as a leading
economic performer.”

He adds investors and
mid-range upgraders are currently highly active in Sydney, with both the first
homebuyer market and the prestige market remaining relatively subdued.

Sydney’s inner west region
and upper north shore remain particularly popular with buyers.

It’s not the only city doing
well.

The Perth housing market
should achieve median prices at record levels “sooner rather than later”,
according to Wilson.

“First homebuyers remain
active in the market, motivated by the tight rental market and steeply rising
rents,” he says.

Melbourne’s housing market
has also risen since the Easter holiday period, with auction clearance rates on
the rise over April and May.

“The local Melbourne economy
does, however, remain under a cloud, with the announcement of job cuts,
particularly in the manufacturing industry contributing to the highest
unemployment rate of the mainland capitals, which was at 6.2 per cent in
April,” Wilson says.

On the other hand, the
Brisbane economy appears to be back on track, with a sharp fall in the local
unemployment rate from 6.3 per cent to 5.1 per cent.

“First homebuyers remain
subdued, however investors are increasingly recognising the potential of
Brisbane, with its high yields and plenty of upside for capital growth.”

Adelaide is also faring
better after some tough years, with the number of owner-occupied loan approvals
up by 3.5 per cent for the first three months of this year.

However, Canberra continues
to tread water, weighed down by concerns about the local job sector.

“Price growth is expected to
remain subdued as a consequence, with the April unemployment rate at 4.7 per
cent, the highest April rate recorded in the ABS (Australian Bureau of
Statistics) series for the city and well ahead of the 2.9 per cent recorded
over April the year before.”

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