Sydney auctions rise after holiday pause as rents surge
The Sydney auction market is back in full swing this weekend following the lengthy holiday distractions of the past few weeks.
Nearly 650 homes are set to go under the hammer this Saturday which will be well ahead of the 506 auctions conducted last weekend but similar to the 673 listed over the same weekend last year.
Sydney’s inner west will be the most popular region for auctions on Saturday with 100 followed by the south 88, the upper north shore 80, the city and east 68, the west 61, the lower north 55, the south west 50, Canterbury Bankstown 47, the northern beaches 35, the north west 30 and the central coast with 18 auctions listed.
Manly will host the most suburban auctions this weekend with 11 followed by Newtown and Mosman each with 10, Ashfield 8, St Ives, Eastwood and Darlinghurst each with 7 and a number of suburbs with 6 auctions listed including Revesby, Paddington Bexley and Earlwood.
The Sydney home auction market slipped sharply backwards last Saturday following the previous weekends Easter holiday break in activity.
Sydney recorded a clearance rate of 75.6 percent last weekend which was the lowest full weekend result since the season commenced in February. Last Saturday’s lower rate followed 5 consecutive Saturday results above 80 per cent prior to the Easter break but remained well ahead of the 71.2 per cent recorded over the same weekend last year.
Surging demand driven by strong migration continues to impact Sydney’s rental market with rents increasing sharply. The median weekly asking rent for a house increased by 1.9 per cent over the March quarter to a record high $550. Unit rents also increased over the quarter – also up by 1.9 per cent to $530 per week and a new record high.
Despite significant levels of recent new apartment development, Sydney residential rental vacancy rates have tightened over March to just 1.9 per cent for houses and also 1.9 per cent for units indicating a clear shortage of vacant rental properties.
Recent actions by banks and policy makers to reduce investor activity will not be welcomed by tenants in Sydney’s tight rental market if it results in yet higher rents.