Sydney not slowing down, prices could match peak by 2020: SQM's Louis Christopher

Sydney not slowing down, prices could match peak by 2020: SQM's Louis Christopher
Sydney not slowing down, prices could match peak by 2020: SQM's Louis Christopher

Sydney’s top weekend result was on the lower North Shore at Cremorne where $7.32 million was paid for a four bedroom contemporary home.

Set just above Primrose Park, its vendors Cate and Torod Holst had commissioned Goran Stojanovic of X.PACE Design Group to build the home in 2013.

With filtered views of Willoughby Bay, it sold through Di Jones Lower North Shore who had given a $6 million guide.

The five-bedroom home at 118 Young St, Cremorne (above) sold $770,000 above reserve to a Chinese-Australian family who postponed a flight to China to be at the auction.

The weekend focus was on the Sydney market with Melbourne's spring racing carnival cutting the volume of auction listings.

Sydney achieved a preliminary clearance rate of 79 per cent across 832 auctions listed, according to CoreLogic figures.

Sydney not slowing down, prices could match peak by 2020: SQM's Louis Christopher

On Saturday there were 672 auctions with 510 results and 404 being sold, with the ensuing 79 percent success rate, the first time below 80 percent since late September.

However the boss of research at SQM Louis Christopher said the fact that the clearance rate hadn't fallen far in a seasonal trend meant Sydney could see dwelling prices match their peak of two years ago by the middle of 2020.

The prediction to the Australian Financial Review was based on clearance rates in the late spring selling season typically falling to the low 60 per cent or high 50 per cent range by November, according to Mr Christopher. In the downturn last year they had fallen into the 40 per cent range.

"This indicates that the market is still strong in Sydney and prices were still rising," Mr Christopher said.

CoreLogic noted the weekend saw 41 percent fewer homes taken to auction across the combined capital cities with the auction activity significantly lower across Melbourne amid the Spring Racing Carnival. 

There were 1,535 capital city homes auctioned, lower than the 2,622 last week and similar to the 1,541 auctions held over the same week one year ago. 

The lower week-on-week activity returned a preliminary auction clearance rate of 73 percent which was lower than last week’s preliminary figure of 75 percent across the higher volumes, which later revised down to 72 percent at final figures.

The dearest house sale in Melbourne was $1.876 million was paid for 39 Ray Drive Balwyn North (below), according to the REIV.

Sydney not slowing down, prices could match peak by 2020: SQM's Louis Christopher

The marketing by Buxton stressed the four bedroom, two bathroom house was in the school zone.

The price guidance had been $1.4 million to $1.5 million.

There was also a 1470 sqm development site at 6-8 Lisbon Street, Glen Waverley which fetched $4.98 million.

It was mid-range on the estimate of $4.8 million to $5.2 million given pre-auction by Andy Lou at LLC Real Estate.

There had been a $4.3 million opening bid.

It is likely to become a family home.

Ray White Craigieburn agent Daniel Diamantopoulos sold 14 Medway Rd, Craigieburn (below) for $560,000 with four active bidders pushing the price to $40,000 over reserve.

Sydney not slowing down, prices could match peak by 2020: SQM's Louis Christopher

The vendors has been in the home for 45 years.

"It was also great to see a first home buyer out-muscle a builder and a developer," Diamantopoulos said.

There were 254 Melbourne homes taken to auction.

The lower volume saw the preliminary clearance rate fall, with 73 percent of homes selling after last week’s final auction clearance rate of 75 percent.

Across the smaller auction markets, Canberra was the best performing with a 74 percent  success rate as volumes doubled across the city. 

Adelaide followed with 64 percent of auctions returning a successful result.

The nation's cheapest sale was in Adelaide.

It was a $180,000 sale of a three bedroom house at Elizabeth Downs.

It represented a loss on its last sale in 2009 at $229,000.

The vacated 20 St Leonard Cr, Elizabeth Downs offering was under mortgagee instructions.

"It is in need of fresh paint, up-grading and T.L.C so bring your paint brush, overalls and new ideas," the Ray White agent Dominic Cirillo said.

He also suggested it was an opportunity for property developers, looking to sub-divide & build two or three new dwellings on the 880 sqm holding.

Tags: 
Clearance Rate Weekend Auctions

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