The east is red-hot for auction action

Bank talk of cooling the residential market has not dampened Sydney’s eastern suburbs auction scene.

Real estate activity has not been dampened in Sydney’s eastern suburbs housing scene.

Bank talk of cooling the residential market has not dampened Sydney’s eastern suburbs auction scene, with $38 million worth of houses and apartments selling under the hammer on Thursday.

Ray White Double Bay boss Craig Pontey says limiting borrowings had not dampened real estate activity in seven exclusive suburbs including Vaucluse, Woollahra, and Darling Point.

“Buyers were spilling out into the street during the auction,” said Mr Pontey, adding that the 11 properties he auctioned had ­attracted 150 bids.

Nine apartments and houses sold under the hammer, with each property attracting three or four serious buyers. A 10th property, a mansion in Bellevue Hill’s Rivers Street, changed hands after the auction on Thursday night for $5.2m.

The strong sales come as new figures show national housing market sentiment surged to a three-year high in the March quarter. NAB’s Residential Property Index rose 16 points to a three-year-high sentiment reading of 31 points, supported by more positive expectations for house price and rental growth.

Market sentiment improved to survey-high levels of 58 points in NSW and Victoria, and there were encouraging gains in other states.

NAB has sharply upgraded its 2017 property price forecasts after a survey showed confidence in the Australian housing market striking a three-year peak.

The developments follow news this week of capital-city dwelling prices rising at their fastest annual clip in seven years in the year to March 31.

“The latest results paint a picture of a very resilient market and came despite ongoing concerns about housing affordability, supply, the labour market, persistent warnings of a correction and speculation of more official measures to rein in lending to housing,” NAB chief economist, Alan Oster said.

The most elevated readings were found in NSW and Victoria, where the booming markets of Sydney and Melbourne have seen prices appreciate by more than 15 per cent across the past year.

But it’s not just Sydney’s eastern suburbs attracting buyers.

Adjoining run-down former public housing terraces in Lower Fort Street, Millers Point, sold at auction for $5.775m after bidding started at $4m yesterday.

Ray White agent Francis Fusco sold the terraces, which are in need of major renovation.

The local buyer plans to renovate them.

Meanwhile, McGrath Edgecliff tipped $12.765m into the NSW government coffers this week, selling a range of properties in Millers Point including a ­historic hotel.

Two adjoining terraces in Trinity Avenue, Millers Point, sold for a combined $3m this week.