Sydney Property Market

From: Owen .


I copied this from the Australian Financial Review site. Sellers market means home prices boom. What a great time to own Sydney real estate.

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Home sales clearance rates soar

Jul 10
Susannah Petty

Sydney home sales have stormed into winter with an unusually robust 76 per cent June auction clearance rate, figures from CPM Research show.

The result marks the fourth month in a row that clearance rates have surpassed 70 per cent - a phenomenon which has been recorded only three other times in the past 20 years.

Combined with a slim property supply and a lift in prices, the conditions gear the market for a surge in spring listings as vendors rush to capitalise on the prime conditions.

"Month to month the market continues to improve," said CPM Research managing director Mr John Wakefield.

"We've seen four consecutive volume increases since February, and still the market shows distinct signs of a shortage of supply. It's a real seller's market."

At 76 per cent, the June auction clearance rate is a 43.4 per cent rise on last year's June tally of 53 per cent. It is also 8.6 per cent stronger than June 1999, when the residential market was in the throes of its last boom.

For houses alone, clearances jumped from 49 per cent in June last year to 73 per cent last month. Notably, there was very little difference in sales volume, with agents putting 731 properties to auction last June compared with 732 listings in June this year.

In overall terms, the gap was greater. A stock shortage saw 1,173 homes put to auction last month, 84 properties shy of the tally for last June.

Semi-detached dwellings returned the strongest June auction result with a staggering 91 per cent clearance rate - a 20-year record.

Units and townhouses were also buoyant with a 78 per cent June auction clearance rate.

On a dollar basis, June house auctions grossed more than $379 million, followed by units and townhouses at $122 million and semis and terraces at $69 million. Overall, 896 properties were sold in June compared with 701 in May and 664 in April.
 
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Reply: 1
From: Paul Zagoridis


Hi Owen

I tried sending this as private e-mail instead of posting publically but you've only got your one.net address listed 8-(

I don't think it's a good idea to copy articles from other outlets into the forum. Especially not from an outlet like Fairfax, who take their copyrights very seriously. I'd hate to see us shut down because we breach others copyright.

A safer way to do it is to capture the link and post just the link. Then you can discuss the article freely.

You may want to edit your post if you agree. Leave it alone if you don't.

Regards

Paul Zag
Dreamspinner
 
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Reply: 1.1
From: Owen .


I agree Paul, but this article required a password to read. I have posted links to the AFR before and people have not had access to read the article so I thought a cut and paste would help.

I thought if I gave credit to the where the article came from it would be OK. Anyone could read the same thing in the paper. Point take though.

As for my email address. Yes, it's dead and I can't get the same one on my new provider yet. Thanks for the reminder to remove it for the time being.
 
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Reply: 1.1.1
From: Paul Zagoridis


That's cool Owen. My tone was a bit more fierce than I intended. The AFR does the password thing way too often (but all the more reason to watch out before copying it without any significant commentary). Commentary could keep you in the fair use provisions of the Copyright Act.

Auction clearance rates are such a dodgy indicator IMHO, as they are inflated to make auctioning look good to potential vendors. Ask an agent the % of properties knocked down at or above the vendor's reserve price. That is what they want you to think "clearance rate" means

Then there is the "lies, damn lies, and statistics" approach to # of properties offered. Befuddle me with numbers. The whole piece reads like a press release from REINSW.

Generally I think Sydney is hot right now. Why? I don't know, maybe a combination of cheap money from banks and FHOG. Rent incentives are now standard for cheaper apartments in the Eastern Suburbs.

Paul Zag
Dreamspinner
 
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