A Solid Result For Sydney Once Again

The Sydney market remains in fine form given the auction results after the Easter long weekend.

According to Domain, this past week saw an auction clearance rate of 73.7%. It is not as high as the week this time last year when Sydney was going through an extraordinary boom with a clearance rate of 86.8%. It is important to note that clearance rates of 86.8% are not sustainable. It is good for a certain period to be clearing stock in the mid to high 80’s, but it represents possible danger territory.

The disparity in the market place is between the affluent market and the outer suburban market. This time last year, the western suburbs clearance rate was 75.8% compared to just 49.4% this year. Domain also pointed out that “In Auburn, 25 properties were listed for auction, but just 34.8 per cent found a buyer.”

However, the inner city continues to find buyers and with solid competitive bidding. Anita Balalovski from Domain wrote “A crowd of 40 watched as the first bid of $1.6 million was rejected by Di Jones auctioneer Gavin Croft, who joked that optimism was alive and well. He soon swallowed his words and accepted that offer followed swiftly by Ms Bewg’s $1.8 million bid that kick-started a bidding war between two families.

After nearly snaffling the property at $2 million the underbidders offered a further $100,000 and repeated their tactic with a $2.4 million bid and another $20,000. Ms Bewg sealed the deal with a further $80,000.”

“Elodie Fabre​ of Di Jones Real Estate Woollahra said she was happy with the result, though declined to reveal the reserve price. She added that the sale price would have been higher if the certificate of occupancy and certificate of title were in place.”

http://www.domain.com.au/news/new-chapter-for-historic-newtown-convent-after-25-million-sale-20160402-gnws38/