Sydney’s Auction Market Heats Up

Sydney’s property auction market showed significant activity last week, recording its second-highest volume of auctions for the year. A total of 1,171 homes went under the hammer, marking a 28% increase from the previous week. This peak was surpassed only once this year, during the week before Easter, when 1,282 auctions were held.

While auction volumes surged in Sydney, the city’s preliminary clearance rate experienced a slight dip. So far, 73.5% of the auctions have reported a successful result. This is a decrease from the previous week’s preliminary rate of 77.9%, which was later revised down to a final figure of 71.7%. Despite the week-on-week decline, the clearance rate remains robust compared to the same period last year, which saw a rate of 60.9% from 1,199 auctions. The preliminary results are expected to be finalised later in the week.

National Context and Other Capital Cities

Sydney’s high auction volume was an outlier among the combined capital cities. Overall, the total number of auctions across the capitals decreased by 33.3% to 1,760. This national downturn was largely driven by a sharp 83% drop in Melbourne’s auction activity due to the AFL Grand Final long weekend, with only 230 homes going under the hammer. The combined capitals’ preliminary clearance rate also fell to 71.4%, its lowest point since mid-June.

Performance in other major cities varied:

• Melbourne: Saw its preliminary clearance rate fall to 64.6%, the lowest in 23 weeks.

• Brisbane: Auction volumes were down 12% to 151, but the preliminary clearance rate held firm at 66.1%.

• Adelaide: Experienced a 32% decrease in auctions to 84, with the clearance rate dropping to 76.6% from 85.5% the week prior.

• Canberra: Was one of the few cities to see a rise in activity, with auctions up 14% to 119, though the clearance rate fell to 67.5%.

Sydney’s Sub-Regional Performance

Within Sydney, auction performance varied across different sub-regions. The Inner West and Sutherland regions were standout performers, both recording exceptionally high preliminary clearance rates of 88.4% and 88.9% respectively. In contrast, areas like Baulkham Hills and Hawkesbury (63.3%) and Ryde (64.2%) had lower success rates. The North Sydney and Hornsby region hosted the highest number of auctions with 186 homes going under the hammer, achieving a clearance rate of 72.7%.

Looking ahead, auction numbers are expected to partially recover this week, with approximately 1,975 auctions scheduled across the capital cities. However, Sydney’s auction numbers may be affected by the upcoming NRL Grand Final. A more significant increase is anticipated for the following week, with around 2,600 auctions projected nationally.