Properties in harbourside Waverton had the most auction day success last year,Domain figures show,recording a clearance rate of 92 per cent.
Sellers in inner suburbs like Redfern,St Peters,Rozelle,Lilyfield and Enmore also had strong odds of an auction sale,recording clearance rates upwards of 80 per cent for homes sold between January and November.
More than eight in 10 properties also sold in suburbs like Queens Park and Clovelly in the east,Artarmon and Cammeray on the north shore,and Carlton and Bexley in the south. Only suburbs with a minimum of 30 auctions were included in the data.
Clearance rates measure how many homes scheduled for auction actually sell. A result of 60 per cent signals a balanced market,anything higher points to price rises,and anything below points to declines.
Westpac senior economist Matthew Hassan said buyer demand outweighed what was on offer in these suburbs as the majority had a very low number of properties in the market in 2023.
“What was on the market was clearing pretty well,and there was no overhang of stock and there was not a lot of choice for buyers. It was clearly a sellers’ market,” Hassan said.
These suburbs bucked the trend as to 63.7 per cent by November,the lowest monthly rate in 2023,as the number of properties scheduled for auction hit a 19-month-high.
Hassan said the clearance rate was a leading indicator of the property market,and its decline was followed by a slowdown in price growth.
“Clearance rates have been right,time and time again on what is happening in the market. It is useful heads up on where momentum is turning,” he said.
Hassan expects moderate price growth this year,but said the return of the auction market on Saturday – when 516 auctions are scheduled – would be a good litmus test for how the year will go.
“It will be a huge test of whether the buyers will come back? Or have they disappeared?” he said.
“We won’t be achieving the strong price results[of last year] but prices will hold really well,especially after the[latest] inflation results we’ve had,” he said,noting the chronic housing shortage would continue to push prices higher.
BresicWhitney chief executive and chief auctioneer Thomas McGlynn said many of the best-selling suburbs had benefited from buyers looking to comparatively more affordable properties in a fast-rising market.
“We saw a flight to value and affordability … a lot of those suburbs provide a vast array of value to people,” McGlynn said.
“If we look at Queens Park,it’s very good value for people who are looking to be in the east but don’t want to pay the price of more expensive neighbourhoods.”
The lowest clearance rates were recorded in a combination of suburbs,from weaker and non-auction-centric markets where buyers were less familiar with the auction process,to higher priced suburbs where there might be a greater disconnect between where buyers and sellers see value,McGlynn said.
BresicWhitney has had strong listings volumes to start the year,but McGlynn said there was enough buyer demand to match the increased supply.
“There is a little bit more available for buyers to look at,which means we’re not going to see the ... extremely high clearance rates[of early last year],” he said.“But in saying that inspection numbers are quite high. We’ll be kicking off with a stable auction environment.”
Tim Windsor at his St Peters home,which is up for sale.Dominic Lorrimer
Seller Tim Windsor is confident he will find a buyer for his St Peters home,which was initially an investment property.
“At the time,it was good on paper,and it was really close to the city and public transport. But now living in it,what I’ve come to learn through my experience is community is built on people and places. This centres around that,” the 41-year-old local government worker said.
“There’s a pub up the road,Newtown’s a 15-minute walk away,I get on the train,and I’m in the middle of the city in 15 minutes. It’s a great position,” he said.
His selling agent Adam Freitas of Raine&Horne Newtown said many of the best-selling pockets were bridesmaid suburbs where buyer demand outstripped the number of homes on offer.
“When you look at Stanmore,Enmore and St Peters and Redfern,let’s look at their neighbours. Surry Hills is such an in-demand area,such a fantastic part of the world. Redfern was the ugly cousin to Surry Hills. It’s that next rung on the ladder for someone who can’t just get into Surry Hills yet,” Freitas said.
“Enmore is the same with Newtown next door. It makes sense ... because people can’t quite stretch themselves to get into Newtown. St Peters is the next evolution of it all.”