Signs of caution were evident across Sydney’s auction market this weekend, following recent clearance rates plummeting to the lowest level since the start of Covid-19.
Recent data from SQM Research revealed Sydney’s clearance rate in April fell to just 37.9 per cent, a 10 per cent decrease since the same time last year.
Sydney home prices have felt a recent blow with rate hikes, global economic uncertainty and potential property tax changes weighing on buyer confidence.
It comes ahead of another widely predicted interest rate hike from the RBA, to be announced on Tuesday, May 05.
Figures from PropTrack’s latest Home Price Index released Thursday revealed Sydney home prices dropped an average of 0.5 per cent over April and are now 0.7 per cent below their late February peak.
While momentum has cooled as the market remains in a period of uncertainty, some properties proved resilient on Saturday.
In the tightly held Park Lane Mansions, just metres from the harbourfront at Ruschcutters Bay Park, three registered and active bidders competed for a two-bedroom apartment on Saturday morning.
Paul Menck of Menck White Auctioneers calling the auction on site of 9/20-22 Waratah Street, Rushcutters Bay. Picture: Glenn Campbell
The spacious 105 sqm residence at 9/20-22 Waratah Street, Rushcutters Bay afforded soaring three-metre high ceilings, period features and two balconies to optimise private leafy outlooks.
The property had an opening bid of $1.47m from a phone bidder, a young professional first homebuyer who was the eventual buyer.
Bids of $10,000 dominated the competition, with a final winning bid of $1.745m, clearing its $1.65m reserve.
Vendors Gabrielle Coates and Andrew Nicholas were happy with the result, now upsizing with two teenage daughters after living in the property for approximately 17 years.
“We love this area, it’s sad to leave, there’s a beautiful community,” Ms Coates said.
“We still have family here, we will be back,” Mr Nicholas said.
Vendors Gabriella Coates and Andrew Nicholas have lived at the apartment for approximately 17 years. Picture: Glenn Campbell
Happy Vendors Gabriella Coates (L) and Andrew Nicholas with Ray White agent Renee Cross after the auction. Picture: Glenn Campbell
Lead agent Renee Cross of Ray White Touma Taylor said it was obvious the property was going to be sold, but noted the current “tough” market was proving hard to read.
“Everyone that came in just loved it,” she said.
“This campaign had a lot of energy and lots of people through the opens, but the interesting thing was there were no offers throughout the campaign.
“Buyers were sort of sitting on their hands. So we really weren’t sure how the auction would go.
“The market is definitely tough, but the buyers are coming and as an agent you just have to be there ready for them.”
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9/20-22 Waratah Street, Rushcutters Bay
Auctioneer Paul Menck of Menck White Auctioneers described the current auction market as “patchy”.
“Buyers are holding back, but when it becomes a market that buyers have an opportunity to get something good, they have to act,” he said.
“Renee did an awesome job to gather up the bidders, because a lot of auctions don’t have many bidders at the moment.
“There’s a good chance the next five auctions I have will have less than that.
“It will be interesting to see when buyers start feverishly buying again.”
3/42-44 Myrtle Street, North Sydney
Auctioneer Clarence White of Menck White Auctioneers at the North Sydney home Saturday morning. Picture: Supplied
In North Sydney, a three-bedroom townhouse cleared its $2.2m guide and $2.3m reserve selling for $2.505m
With 12 registered bidders, five active, it saw an opening bid of $2.35m. Auctioneer Clarence White of Menck White Auctioneers said it was a “noteworthy” auction comparing the market’s current low registration numbers.
The property at 3/42-44 Myrtle Street sold via Christian Percuoco and Luke Daly of Belle Property Crows Nest.
MORE: RBA rate hikes hit Sydney home prices hard
14 Rainford Street, Surry Hills.
A two-bedroom terrace in Surry Hills sold under the hammer for $2.65m, clearing its $2.4m guiding price. No. 14 Rainford Street, Surry Hills sold via Bresic Whitney’s David Smith-Cameron and Thomas Nati.
Mr Smith-Cameron said two registered and two active bidders were both young owner occupier couples. He added there were not as many buyers as usual.
“We would usually have four or five,” he said. “But there are buyers out there.”
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