Rate cuts restore market confidence, lift housing sentiment — Sydney property auction clearance rate at 70%

Week’s Key Focus

Australia’s property market is gaining momentum, driven by two consecutive rate cuts and growing expectations of further monetary easing. According to the Australian Financial Review, the national preliminary auction clearance rate rose to 74.5% this week — the highest in 12 months — up from 73.9% last week. Auction volumes also increased, with 2,103 properties going under the hammer nationwide, compared to 2,004 the previous week.

In Sydney’s Centennial Park, a mid-century modern residence named Camelot sold at auction for $11 million. Designed by architect Nicholas J. Munster in 1967, the property was part of the estate of tech entrepreneur Andrew Findlay, who tragically passed away in a boating accident in 2023. Ben Collier of The Agency said the sale price was within the expected range of $10–11 million, and reflected improving buyer sentiment. He noted a shift in buyer behaviour, with many now purchasing before selling, signalling renewed market confidence.

In Rosebery, a heritage-listed two-bedroom home at 9 Sutherland Street sold for around $2.5 million — significantly above its $2.1 million reserve. The property, offered publicly for the first time in 90 years and requiring renovation, drew 12 registered bidders. The winning buyer was a local architect who had been searching for two years. Chris Skarlatos of The Agency described the result as “well beyond expectations” and noted increased pre-auction offer activity, indicating strengthening buyer demand.

SQM Research’s Louis Christopher added that while Melbourne is currently slightly outperforming Sydney, both cities are positioned for further price growth in 2025. He attributed Melbourne’s momentum partly to better affordability and said the anticipated RBA rate cut on July 8 would provide “gradual” support to housing values. Christopher expects continued market strengthening to be policy-driven and measured, rather than abrupt or speculative.

Auction Results Last Week

Sydney: 949 properties were scheduled for auction, with 600 results reported and 420 properties sold, resulting in a clearance rate of 70%. The total value of properties sold was AUD 537,609,026, with a median sale price of AUD 1,600,000.
Melbourne: 889 properties were scheduled for auction, with 658 results reported and 491 properties sold, resulting in a clearance rate of 75%. The total value of properties sold was AUD 396,814,888, with a median sale price of AUD 876,000.