Tue 09 November 2010
Auction clearance rates dropped over the weekend in both Sydney and Melbourne with Sydney’s clearance rates falling to 54%, a decline that can be attributed to the rise in interest rates mid week.
Over the next 3 weekends we will see over 2500 properties line up for auction, with many predicting further pressure on clearance rates. Buyers will be spoilt for choice with stock levels approaching a yearly high. It can be a difficult time for vendors, as they are facing the prospect of selling into a weaker market, with hopes of a turnaround or upswing in sentiment unlikely.
The highlight auction on the weekend was a 2 bedroom apartment in the increasingly popular suburb of Potts Point. This area is a favourite among investors and home owners alike and has become one of Sydney’s most desirable locations, catering to a wide demographic including all price points.
The apartment below sold for $745,000 after competitive bidding amongst young, first home owners. The eventual, successful bidder was an overseas investor who was attracted to the prospective $800 weekly rental.