Business research and forecasting firm BIS Shrapnel says Sydney’s housing market is set to regain momentum next year after a slump in 2010-11 following interest rate rises and slow economic growth.
Australia's housing market is improving based on the results of Super Saturday the country's biggest auction day of the year. Held between the football grand finals and the Melbourne Cup, the auction on Oct 27 resulted in sale of more than 2,400 properties in a single day.
The Real Estate Institute of Australia (REIA) said it was the highest volume of auctions on a single day since 2010, although the spring season usually generates higher sales volume.
"This weekend is one of the best indicators that confidence is gaining momentum," The Australian quoted REIA National President Pamela Bennett, who explained the strong sales to better affordability and the mortgage lending rate cuts which were results of the Reserve Bank of Australia's reduction of the overnight cash rate by another 25 basis points this month to 3.25 per cent.
The highest clearance rate was registered by Sydney at 67.4 per cent, followed by Melbourne 63.7 per cent and Adelaide at 57.1 per cent. However, Brisbane dipped to 23.3 per cent.
It was the fifth straight week of clearance over 60 per cent for Melbourne.
"Since June, there has been an improving trend in the market and today shows that it is a very strong trend and wasn't simply a result of a lower volume of auctions compared to last year. It shows that both vendors and buyers are clearly both more confident, and the market has been able to absorb this significant increase in homes," Real Estate Institute of Victoria spokesman Robert Larocca was quoted by The Australian.
Houses auctioned in Melbourne over the weekend reached 1,180 units. Among the homes with high price tags that were sold were a Port Melbourne sold by Hocking Sturt for $4.1 million, a Kew unit for $3.92 million and a St. Kilda West residence for $3 million.
However, a Northcote Avenue house in Killara in Sydney was sold for a higher $4.22 million by agent Philip Waller of McGrath, although the selling price was slightly lower than Mr Waller's 2006 appraisal of the house at $5 million.
However, Melbourne buyers agent Mal James pointed out that the heaviest demand was for units in the $2 million plus market.
"A long drought on good stock meant there were some thirsty buyers out there, ready to snap up the good properties that were on offer on Saturday," The Australian Financial Review quoted Mr James.
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