Sydney property market runs hot despite lockdown fears

Auction clearance rates remain high across the nation’s capital cities including in Sydney where the market shrugged off lockdown fears.

Auction clearance rates remain high across the nation’s capital cities, including in Sydney, where the market shrugged off lockdown fears with 80 per cent of properties listed for sale clearing, bolstered by surging demand.

Analysts at property research firm CoreLogic reported that 685 homes went under the hammer in Sydney with a preliminary auction clearance rate of 80.8 per cent, up from the final clearance rate of 72.8 per cent across 585 auctions recorded last week.

High clearance rates were recorded across the country, with the strongest results in Canberra at 92.1 per cent, with Melbourne recording 77.1 per cent, Brisbane 74.8 per cent and 82.5 per cent in Adelaide.

CoreLogic head of research Tim Lawless said the fact that just 14 per cent of properties had been withdrawn from the market in Sydney while 64 per cent had sold prior to auction – the highest rate since the first lockdown last year – suggested vendors were confident but happy to avoid the “uncertainty” of auctions.

“We haven‘t seen the clearance rate across Sydney dip below 70 per cent at all this year,” he said. “It got as low as 70.5 per cent the first week of July, so it’s quite a stunning result considering the lockdown as there’s been a bit of a blow to confidence but auction markets seem to be holding very strong.”

The Agency realtor Catherine Murphy, who specialises in Sydney’s northern suburbs, said the low numbers of homes for sale had buoyed competition among buyers, who were bidding online.

“There is just really nothing on the market right now in terms of homes for sale,” she said.

“Demand is very strong … inquiries have soared during the last few weeks, but what they’re seeing is instead of finding five houses that suit them, they’re only seeing one or perhaps two, so at the moment we’re seeing demand really outstrip supply.”

Stone Real Estate Mosman agent Mark Jones said though the market had “lost some steam”, prices remained high, with many vendors driven to sell while the market was hot.

“With houses, the trend is people trying to be opportunistic in terms of taking advantage of the price growth,” he said.

NG Farah partner Cameron Airlie said limits on property inspections under lockdown weeded out non-serious buyers.

“Once the lockdown finishes, there will be a big glut of property on the market when everyone is looking to sell, but with less property on the market, competition has been very hot,” he said.

SQM Research managing director Louis Christopher cautioned that preliminary clearance rates tended to be revised down, adding that the market remained strong with “upgrades and downgraders” leading as the main buyers during this period.

Ray White realtor Dan White said the market had shfited in recent weeks with sales in inner-city units in Sydney and Melbourne softening, with investors were returning to the market as first-home buyers were squeezed out by high prices.