Add Category
Sydney’s property market has seen a slowdown in listing numbers but has largely managed to avoid the typical mid-winter slump.
For the second consecutive Saturday Sydney reported a robust winter clearance rate of 71.5 per cent, which was, however, lower than the 75.5 per cent reported over the same weekend last year.
Saturday’s result remains the highest recorded for six weeks with the local market recording the first consecutive weekends with rates above 70 per cent since June 3.
4 Govett Street Randwick sold for $2,570,000 on Saturday.
Recent predictions of a winter freeze in the Sydney market remain well off the mark with speculation rising that significant changes to the stamp duty payable to first home buyers, effective from July 1, may be supporting current activity.
On Saturday 499 auctions were listed in Sydney, which was lower than the 531 auctioned over the previous weekend but continuing this year’s trend remained significantly higher than the 371 listed over the same weekend last year. Next weekend Sydney will host a similar number of auctions with seller activity then set to rise into August.
Sydney recorded a median auction price of $1,226,500 on Saturday which was higher than the $1,160,000 reported the previous weekend and 3.5 per cent higher than the $1,185,500 recorded over the same weekend last year. A total of $294.3m was reported sold at auction in Sydney at the weekend.
The most expensive house sold at auction was 15 Fisher Street Balgowlah Heights which went for $3,550,000.
The latest NSW residential investor lending data from the ABS reported strong growth over the month of May with the values of loans approved increasing by 30.8 per cent to $7.1bn. The NSW May total was the highest ever recorded for that month and the third highest monthly total on record. There has been $22.6bn in residential lending approved over the first five months of this year in NSW which is 24.3 per cent higher than that recorded over the same period last year.
The NSW full year-to-date growth comparisons continue to rise, up by 15.8 per cent to the year ending May compared to the previous year. Investor lending in NSW now accounts for 50.5 per cent of all lending to investors nationally
Reflecting concerns over perceived housing risks from a notional spectre of sharply rising interest rates, financial regulator APRA has instigated policies designed to tighten bank mortgage lending to residential investors. The latest ABS data indicates that despite lending restrictions, investor activity remains unquestionably strong in NSW which will be a relief for tenants particularly in Sydney where vacancies are scarce and already high rents are rising.
Similar to last weekend, Sydney’s regions reported consistent results with clearance rates for most areas above 70 per cent. Sydney’s west again recorded one of its best results this year indicating perhaps rising first home buyer activity in the budget market. Inner suburban areas continue to produce strong winter results for sellers although the inner west was unusually lower at the weekend.
The north west reported the highest clearance rate of the Sydney regions at the weekend with a very strong 90 per cent result. Next highest was the northern beaches with 78.6 per cent closely followed by the city and east at 76.7 per cent, the lower north at 76.5 per cent, the west 75 per cent, the upper north shore 74 per cent, the south 70 per cent, Canterbury Bankstown 68.8 per cent, the south west 68.7 per cent, the inner west 63.3 per cent and the central coast with a clearance rate on Saturday of 52.2 per cent.
Notable sales reported at the weekend included:
- A four bedroom home at 30 Johnson Street Chatswood sold by Shead Property for $3,100,000,
- A six bedroom home at 1 Robert Street Freshwater sold for $2,630,000 by Ray White Freshwater,
- A three bedroom unit at 4/42 Victoria Parade Manly sold for $2,600,000 by McGrath Manly,
- A four bedroom home at 4 Govett Street Randwick sold for $2,570,000 by Ray White Double Bay
- A four bedroom home at 14 Brereton Street Gladesville sold by First National Hunters Hill, Gladesville for $2,540,000.
The most expensive house reported sold at auction was a five bedroom home at 15 Fisher Street Balgowlah Heights sold for $3,550,000 by Clarke and Humel Property. The most affordable property reported sold at the weekend was a three bedroom home at 17 Abelia Place Umina Beach sold for $355,000 by Raine and Horne Umina Beach and Woy Woy.