Property demand far exceeds supply, auction clearance rates continue to rise— Sydney Auction Clearance Rate Reaches 79% This Week.

Week’s Key Focus

With buyer demand far surpassing the existing number of properties available, pushing property prices above the guide price, over three-quarters of listed properties were sold at auction in the past week. Following this strong round of auctions, the recovery of the real estate market is intensifying.

Louis Christopher from SQM stated that the latest data represents a rebound in detached house prices, which is one of the evidences of the real estate market’s recovery. The sustained low supply is also an important factor driving the recovery. The capital city currently has 1,673 properties up for auction, with the overall number decreasing by 3%.

Buyer advocate Emma Bloom mentioned that the reason for the premium prices is the combination of low supply and prime locations. Buyers are desperate to secure properties, and when properties in good condition appear on the market, buyers engage in fierce competition, disregarding all else due to the supply issue.

Christopher mentioned that the high vacancy rates are due to two important factors: tenants transitioning to first-time homeownership and broader population pressures. Strong rental increases are prompting tenants to switch to purchasing homes. The robustness of immigration and population growth is also keeping the vacancy rate consistently above 70%.

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Auction Results This Week

Sydney: 631 properties were listed for auction, with 415 reported results, 329 properties sold, achieving a clearance rate of 79%. The total value of properties sold at auction amounted to AUD 382,059,018, with a median house price of AUD 1,480,000.
Melbourne: 649 properties were listed for auction, with 516 reported results, 377 properties sold, resulting in a clearance rate of 73%. The total value of properties sold at auction reached AUD 307,480,117, with a median house price of AUD 1,005,000.