Sydney sets the pace on listings and price

Sydney’s housing market is leading the way out of the doldrums with price growth and volumes on the up, ­according to REA.

Sydney’s housing market is leading the way out of the doldrums, with price growth and volumes in harbourside suburbs on the up, ­according to REA Group.

The company’s unique search engine and on-the-ground experience in a series of key markets shows Sydney is beating Melbourne, which had been expected to be the first comeback market.

The rebound comes as several key market indicators, including greater listing numbers and auction clearance rates, continue to improve in Sydney at a rate faster than any other city.

Nerida Conisbee, chief economist at property classifieds site realestate.com.au, said the strength in the Sydney market was clear, with the city showing the highest quarterly price growth and views per listing, led by homes on the northern beaches.

“We are yet to see a big jump in pricing at a capital city level, but there is no denying that the level of interest in property at the moment is extremely high,” Ms Conisbee said.

“We are now regularly tracking the difference between search and listings and, as a ratio, NSW is clearly leading the way in terms of recovery. This is interesting, but perhaps not surprising.”

Supply versus demand is also being demonstrated through high auction clearance rates.

For much of the latter half of the year, Sydney has achieved a higher rate off a lower base when compared with Melbourne. While the number of homes available at auction in Melbourne sat at 994 last weekend and at 646 in Sydney, clearance rates hit 73 per cent and 78 per cent respectively.

At the same time last year, both cities were reporting clearance figures hovering between 50 and 60 per cent, with 1132 auctions in Melbourne and 1035 in Sydney.

Confidence is also good news for house-and-land developers, with marginal price increases and smaller lot sizes appealing to ­buyers.

The Sydney Land Market ­Recovery report from independent valuer and adviser m3prop­erty found the take-up of land had more than doubled in some growth areas in the months following the May federal election.

Land sales averaged zero to two lots a month over the 12 months to May. This has risen to an average of three to four lots a month in the months since.

Areas close to train stations such as Schofields and Leppington are achieving greater prices and sales, with as many as eight lot sales a month.

On the opposite side of the country, Perth is showing strong potential as sentiment rapidly changes. A rise in search is unlikely to meet demand as the number of homes available falls.

“After NSW, this area is seeing the biggest imbalance between people looking to buy and the amount of property currently available,” Ms Conisbee said.

“Not surprisingly, it is Perth inner that is seeing the highest views per listing at a small area level.

“The difference between this part of Perth and the remainder of the city is stark. Views per listing are more than triple in Perth inner compared to most middle and outer suburban areas.”

The Northern Territory looks likely to limp into the new year as the downturn continues.

Darwin is showing some of the lowest levels of demand in the country, with an average of about 300 views a listing, down on last year’s figure.