Sydney's property market sets a new clearance rate record, the 2nd time in less than a month

Sydney’s auction market on Saturday hit a new clearance rate record of 88.2%, beating the previous benchmark of 87.5% set less than a month ago.

Of the 737 auctions scheduled in Sydney, the Domain Group reports it had collected 599 results.

Domain senior economist, Dr Andrew Wilson, said the buying trend could see the local market even hit 90%.

“That would have been a completely outrageous suggestion but it’s now becoming more likely,” he said.

The highest price was for a six-bedroom house in Strathfield, which sold for $4.42 million.

Other top sales included a five-bedroom home in Newington, for $1,666,000, a three-bedroom Federation residence in Fairlight for $2,805,000 and a house in Haberfield for $3,965,000.

The record-breaking results however have economists torn on what is next for prices in the Sydney market, after experiencing a 12.4% surge in 2014.

Economic researchers BIS Shrapnel last month told The AFR that Sydney house prices will rise, expecting to see as much as a 20% increase over the next two years.

This would push the median house price well above $1 million by June 2017.

BIS Shrapnel suggested pent up demand, a push by investors into the market and an undersupply of new housing stock would be a driving the price surge.

Meanwhile just this week HSBC Australia chief economist Paul Bloxham said the opposite.

He told News Limited that he expects the Reserve Bank to hike interest rates in 2016, a move which would cool the booming market.

He said current prices are growing at an “unsustainable pace” and warned purchasers should expect a correction down the line.

HSBC is forecasting Sydney house prices to be broadly flat in 2016 rather than suffer a big fall.

Also this week, Business Insider discussed the boom in residential construction currently littering Australian cities’ skylines. 

Referencing research notes from ANZ, David Scutt suggested that the change has almost entirely been driven by foreign investment in residential property. 

Antony Fung

Ashfield Real Estate

www.ashfield-realestate.com.au

1300 938 931

17/7-9 Loftus Street, ASHFIELD - SOLD BY ASHFIELD REAL ESTATE

SOLD BY ASHFIELD REAL ESTATE 

17/7-9 Loftus Street, ASHFIELD

SOLD FOR $655,000 THINKING OF SELLING CALL RALF 0410 868 488

This top floor security apartment has been superbly renovated to offer the very best in modern living. The home boasts impeccably presented interiors, with a spacious open plan living area extending to a sun-soaked balcony. Tucked away in a quiet street, the property also offers an excellent location, just a brief stroll from Ashfield Park, public transport, local schools, Ashfield's shops and Haberfield's popular Italian eateries.

Two double bedrooms, main with mirrored built-in wardrobes

Sleek renovated kitchen with timber counters and stainless steel appliances

New designer bathroom with separate bath and shower

Large open plan living and dining room, sunny balcony with decking

Reverse-cycle air-conditioning, floating timber floors, down-lights

Quiet well-maintained block, secure oversized garage/storage area

Outgoings:

Strata: $696 pq approx.

Water:$170 pq approx.

Council: $255 pq approx

www.ashfield-realestate.com.au

www.onsideproperty.com.au