Sydney’s auction market has undergone a record ‘clearance rate’ under a month since setting the previous benchmark. Property marketing company Domain Group says the recent rate of 88.2%, beats the 87.5% set just a few weeks ago.
Domain senior economist, Dr Andrew Wilson, said the buying trend could see the local market go as high as 90%. “That would have been a completely outrageous suggestion, but it’s now becoming more likely,” he says.
Among the highlights of the recent auction sales were a six-bedroom house in Strathfield, which sold for AU$4.4 million, a house in Haberfield which sold for AU$3.965million and a three-bedroom ‘Federation’ residence in Fairlight for $2.805million.
Industry experts are split on what this new record indicates for the Sydney property market in the medium term. Following a 12.4% surge in 2014, prices could be heading up another 20% over the next two years, claimed economic researchers BIS Shrapnel, while HSBC Australia chief economist Paul Bloxham current prices are growing at an “unsustainable pace” and warned purchasers to expect a “correction” at some point, with the market flattening in 2016.