Melbourne outperforms Sydney's weekend auction clearance rate as Toorak pips Wollongong

Melbourne’s 75.6% weekend clearance rate topped Sydney's 74.9% for the first time this year, according to Australian Property Monitors after a slow-down in sales in Sydney’s mid-price range suburbs.

According to Andrew Wilson, senior economist for Australian Property Markets some Sydney suburbs could have hit the “affordability ceiling” especially around Sydney’s inner west. 

At times pre-Easter there was up to a 11% gap in Sydney's advantage over Melbourne, which has been bouyed by a strong inner south.

The last weekend when Melbourne pipped Sydney was December 21, the last busy weekend before Christmas 2013.

Property Observer has noted revised final figures are deteriorating to sit in the low 70% range in Sydney since Easter.

The 10 May weekend was revised down to 70.3%.

Previously Sydney recorded 10 consecutive clearance rates at or above 80%, on the initial preliminary figures, from 1 February which followed 13 consecutive 80% plus weekend clearance rates reported over spring last year.

Belle Property Wollongong - which sold 11 of 16 auctions yesterday - secured NSW's highest sale when 2 Norman Street, Mangerton (pictured below) fetched a record $3.6 million. It was a record for a single dwelling non-waterfront, announced by Cooley auctioneer Damien Cooley at $3 million.

There were six registered bidders at the auction through Belle Wollongong agents Darren Kay and Nicole Kay. The house has ocean views from above the golf course.

Toorak had the nation's highest sale when buyers' agent David Morrell represented the buyer of a $3,955,000, two-storey house at 22 Cole Street, Toorak (pictured in the top gallery above) at its Marshall White auction.

Bidding opened at $3.5 million and three bidders took the price to $3.8 million before the property was passed in for successful negotiations.

“A market is not flying when there are three or four bidders and the property does not sell under the hammer and the property is passed in,” he told the AFR.

“This is not a market that is running away from itself.” The house, which had been a single family home for about 50 years, is on a 817-square metre block of land is likely to be demolished for apartments.

But Mal James, another buyers' agent noted there was momentum.

"We saw a 76% clearance rate on the 34 auctions we covered.

"More than seven out of 10 auctions had more than two bidders, and a quarter were 'volcanoes' with four or more bidders. APM's reports an unprecedented surge in listings for May with well over 2,000 properties set to go under the hammer.

Auction numbers will surge over the next two weekends leading up to the Queen’s Birthday holiday break with over 1,600 properties scheduled to go under the hammer.

Canterbury Bankstown produced the best regional clearance rate at the weekend with a strong 90% result. Next best was the lower north with 84.4% closely followed by the upper north shore with 83.7%, the city and east with 79.6% and the northern beaches with a clearance rate of 76%.

There were 599 properties listed well up on the prior weekend’s 378. 

Auction numbers in metro Melbourne are also set to surge to high levels over the remainder of May leading up to the Queen’s Birthday weekend with up to 2000 properties set to go under the hammer.

There were 860 properties on the weekend, well up on the prior weekend’s 600 auctions.

The outer east remains Melbourne’s best regional performer recording yet another strong 79.7% result.  Next best was the north east with a 79.5% clearance followed by the inner south with 78.1%, the inner east at 77.6% and the west with a weekend clearance rate of 76.5%.