Pete Wargent blogspot

CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

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Sunday, 21 August 2016

Sydney auctions go ape

Boom is back

If you've ever read my pieces on the historical relationship between interest rate cuts and Sydney's property market, particularly investor activity, you may not need to read this post as you probably already know what's coming. 

For the record, Sydney recorded a preliminary auction clearance rate of a sensational 86.1 per cent according to CoreLogic. 

Even allowing for potential revisions, Sydney hasn't seen a clearance rate like that in well over a year

In fact, not since the first week of June 2015, when the boom market was still in full swing, has a higher clearance rate been seen.

Meanwhile Domain reported that its Sydney result was the strongest ever for an August weekend, suggesting that the harbour city would see its "strongest ever" start to a spring season.

Preliminary auction clearance rates were also higher from the same weekend last year in Melbourne and Brisbane, albeit on somewhat lower volumes. 

Although clearances were a little lower than last year in Adelaide, the weighted average preliminary result across the capital cities came in at a seriously strong 76.3 per cent (up from 72.9 per cent on the same weekend last year).

Generally speaking auction volumes are lower than they were in 2015, but crept higher from last weekend.

With stock levels remaining quite contained, Sydney's top sale was a 4 bedroom house in Strathfield which commanded $6.8 million.

Sydney's boom is back. Over to APRA.