Buyers Snap Up Top-Of-Market Homes

Dominique Grubisa

Dominique Grubisa

Buyers Snap Up Top-Of-Market Homes

New list of suburbs with 100-percent auction clearance rates

Houses in Sydney’s desirable Northern Beaches region are being snapped up nearly as fast as they come on the market with the suburb’s auction clearance rate tipping 92 per cent in the March 2021 quarter – one of the highest clearance rates for city regions in Australia.

According to the latest quarterly auction market report from CoreLogic – the world’s largest property data and analytics company – the top end of Sydney’s property market shows no signs of slowing down, with auction clearing rates consistently above 80 per cent.

There were five suburbs in Sydney that had 100 per cent clearance rates including Coogee, Frenchs Forest, Cherrybrook, Glebe and Wentworthville.

NSW’s Central Coast and the Sydney’s inner-west regions were also popular among buyers, with clearance rates around 86.5 per cent. South of Sydney, the Illawarra region was on 85 per cent clearance rate.

During the corresponding period last year, average clearance rates for Sydney’s regions were sitting below 63 per cent, but in March 2021, the average weekly rates were above 80 per cent – the first time this has happened since 2008.

Clearance rates are calculated across properties that have been taken to auction over the past week and the data then rolled into a quarterly reporting period.

“The strength in auction clearance rates through the March quarter corroborates the rise in demand seen across the market more broadly, as dwelling values in the combined capital cities shot up 5.6 per cent in the quarter,” says Eliza Owen, CoreLogic’s Head of Research Australia. “This was illustrated through the month of March, when the combined capital cities saw a record high clearance rate of 83.1 per cent, against 3840 scheduled auctions; the highest volume since March 2018.”

Although not as strong as Sydney’s clearance rates, Melbourne was still up nearly 10 per cent from the December 2020 clearance rates, and nearly 15 per cent from the same period last year, recording a clearance rate of 77.5 per cent.

The suburbs of Ringwood East and Heidelberg recorded a 100.0 per cent clearance rate.

And it seems more sellers are looking to auctions to secure a sale, with 9065 homes taken to auction the March 2021 quarter, up from 7415 in December 2020 and 8882 in March 2020.

Melbourne’s Outer East region had the best clearance rate at 86.6 per cent followed by the Mornington Peninsula (86.1 per cent) and the Inner South (80.6 per cent).

“Interestingly, smaller, less traditional auction markets such as Brisbane, Perth and Adelaide have also sustained very high clearance rates through the start of 2021,” says Owen.

In Brisbane, the suburbs of Camp Hill had a 100 per cent clearance rate, while in the ACT, Ngunnawal recorded 95.8 per cent.

Owen says one of the reasons for such high clearance rates across the country was the lack of listings which is 26 per cent below the five-year average. Combined with record-low mortgage rates, and improving economic conditions, buyers are not wasting time in getting into the property market.

“In the coming quarters, we might expect auction volumes and clearance rates to ease. As with private treaty listings, auction volumes usually see a seasonal dip through cooler months. Auction clearance rates may also be tested as rising values create affordability constraints,” Owen said.

QUARTERLY SUMMARY: CAPITAL CITIES

Capital City Clearance rates

(March Qtr ’21)

Total auctions

March Qtr ’21)

Clearance rates

(Dec Qtr ’20)

Total auctions

(Dec Qtr ’20)

Clearance rates

(March Qtr ’20)

Total auctions

(March Qtr ’20)

Sydney 84.5% 7043 71.5% 9461 66.2% 7135
Melbourne 77.5% 9065 68.5% 7415 63.8% 8882
Brisbane 69.1% 1004 53.1% 1194 41.7% 1066
Adelaide 79.8% 894 67.1% 1014 52.3% 827
Perth 67.2% 187 50% 245 35.1% 287
Tasmania 53.3% 15 69.2% 26 51.3% 66
Canberra 85.4% 796 80.7% 1134 65.1% 639
Combined Capitals 80% 19,004 69.4% 20,489 62.5% 18,902

Source: CoreLogic

Dominique Gurbisa
Dominique Grubisa

Lawyer, Asset Protection Specialist and Property Educator

Dominique Grubisa is a practicing legal practitioner with over 25 years of legal and commercial experience. She is a property investor and developer, an entrepreneur with businesses in Australia and Southeast Asia, a speaker, educator, writer and published author. You may contact Dominique at info@dginstitute.com.au

This column has been written for general information purposes only. It is not intended as legal, financial or investment advice and should not be construed or relied on as such.