Sydney’s median auction house price has soared to a record $1.92 million, up an astounding 32.3 per cent over the year and 11.8 per cent in just one month.
Australians continued to buy property under the hammer at record rates during August, according to the latestDomain Auction Report Card, despite the protracted lockdowns in its two biggest capital city markets.
In the depths of lockdown — and winter — Sydney’s clearance rate of 77.3 per cent was the highest for the month of August since Domain records began.
The median auction price for units hit $1,113,000, also a record high.
“It’s phenomenal. For some buyers, lockdowns aren’t deterring,” said Domain chief of research and economics Nicola Powell.
“The fact is, lockdowns or not, some people still need to buy; they could be in between houses, they could have missed out earlier in the year, and now they’re ploughing ahead and making a strong offer.”
Sydney’s strong clearance rate was largely supported by the fact that there were fewer properties on the market while buyer demand remained high.
“The volume of auctions has been declining now for three consecutive months, so that means buyers are competing for fewer homes on the market,” Dr Powell said.
“When you compare it to the rest of the year when the volume of auctions was higher, there have been huge amounts of demand and people have continually missed out.
“Those people are still buying. I think Sydney’s strong clearance rate and extraordinary median auction price illustrates the sentiment that buyers just want to secure those homes. They’re putting forward strong offers, and that’s why we’re seeing that strong price growth.”
Exceptionally strong clearance rates were recorded at auctions in the city and south, eastern suburbs, northern beaches, North Sydney and Hornsby, Ryde and the outer west and Blue Mountains.
Sydney region clearance rates
| Greater Sydney regions | Clearance rate | Annual percentage point change | |
| Baulkham Hills And Hawkesbury | 74.5% | 13.9 | |
| Blacktown | 71.4% | 8 | |
| Central Coast | 74.2% | 9.7 | |
| City And Inner South | 80.1% | 24.1 | |
| Eastern Suburbs | 82.3% | 25 | |
| Inner South West | 75.6% | 12.8 | |
| Inner West | 77.9% | 18.4 | |
| North Sydney And Hornsby | 81.8% | 22.4 | |
| Northern Beaches | 80.3% | 13.7 | |
| Outer South West | 72.7% | 6.1 | |
| Outer West And Blue Mountains | 84.6% | 51.3 | |
| Parramatta | 61.4% | 4.9 | |
| Ryde | 84.1% | 23.6 | |
| South West | 59.8% | 11.5 | |
| Sutherland | 80.9% | 18.7 |
The ability to inspect properties in person had helped Sydney’s auction market continue in a way Melbourne’s had not been able to, Dr Powell said.
“I think there’s been this realisation that, in or out of lockdown, we’re going to be transacting property under some sort of restrictions for some time,” she said.
“That will be pushing buyers to continue with their plans.”
Capital city auction performance for August 2021
| City | Clearance Rate | Auctions Scheduled | Auctions Sold | Passed in | Sold prior | Withdrawn |
| Sydney | 77.3% | 2272 | 1737 | 155 | 46.5% | 15.8% |
| Melbourne | 52.5% | 4138 | 1526 | 121 | 28.3% | 43.4% |
| Brisbane | 60.1% | 546 | 323 | 151 | 24.8% | 11.7% |
| Adelaide | 71.2% | 538 | 371 | 111 | 13.2% | 7.5% |
| Canberra | 83.6% | 368 | 255 | 15 | 30.8% | 11.5% |
| Geographies are based onABSGCCSA geography. Auction reporting rates are 98.9 per cent in Sydney, 98.4 per cent in Brisbane, 96.8 per cent in Adelaide, 82.9 per cent in Canberra and 70.3 per cent in Melbourne. Melbourne’s collection rate is impacted by a higher than normal number of postponed auctions. | ||||||
Auctionworks chief auctioneer and director Jesse Davidson said some home owners were still nervous about selling during lockdown, but all the data showed vendors were fetching top dollar.
“It’s the biggest question we get: ‘will I get a premium price?’ And the answer is yes. Prior to lockdown, our average number of registered bidders was 5.3 – that’s now doubled to 10,” he said.
“Stock numbers have fallen by about 40 per cent, but the buyers are still there, rushing their way to the existing properties. In August, 89 per cent of the properties we sold went beyond the owner’s reserve price. I just sold one the other weekend for $2.8 million over reserve.
“The engagement [from buyers] has been mind-blowing.”
Sydney’s lockdown situation had only reiterated people’s need for space, he said.
“People are still getting divorced, upsizing, downsizing; all these factors are still occurring,” he said.
“That old dream of owning a home and living with space has well and truly come back. They’re feeling the importance of a larger home more than ever, and the idea of living smaller and closer to the city and ducking out to the park just doesn’t cut it anymore.”
Included in Sydney’s auction clearance rate is the number of properties sold prior. A massive 46.5 per cent of sellers accepted an offer prior to auction day. This is almost double the decade average and an all-time high since Domain records began in 1995.
Sydney’s strong auction performance was likely only to get stronger once restrictions are eased, Dr Powell said.
“Even though auction numbers may be lower, we can learn from previous lockdowns that decisions to sell do not change; they are delayed. And it is likely that this pent-up supply will hit the market quickly once Sydney has a roadmap out of lockdown.”
