Sydney median auction price breaks records at $1.92 million amid lockdown

Sydney, Brisbane, and Canberra recorded the highest clearance rates for the month of August  

Despite Australia’s two biggest capital city markets under lockdown, Australians continued to buy property at record prices during August, reported Domain.  

The latest Domain Auction report revealed that Sydney’s auction median reached AUD1.92 million (USD1.41 million) and Melbourne at AUD1.19 million (USD876,619), while Sydney, Brisbane, and Canberra recorded the highest clearance rates for August.  

Nicola Powell, chief of research and economics at Domain, said capital city auction markets showed unusually intense competition and demand.  

“It’s phenomenal. For some buyers, lockdowns aren’t deterring,” she said. “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 mainly driven by fewer homes available on the market but a high level of demand from buyers.  

However, Melbourne’s median auction price may be up, but the city’s ban on one-on-one inspections has caused the withdrawal rate to double and the clearance rate to plunge 52.5 percent.  

Powell said Melbourne’s median auction price increased only because there wasn’t enough supply to satisfy demand.  

Most Melbournians said they would hold off selling until in-person inspections were allowed again, which is expected to resume on September 19 with 70 percent of Victoria’s eligible population vaccinated with at least one dose.  

“That, in itself, is great news for the market,” Powell said. “It gives so much clarity for buyers and sellers and means sellers are postponing rather than withdrawing. Before that date, they were withdrawing because there was no end in sight.” 

In Brisbane, Peter Burgin, chief auctioneer at Place Estate Agents, said auctions had well and truly cemented their place in the property market in 2021. 

More: Australia household lending goes off the charts with 95% increase

“Everything about August was unprecedented. In terms of volume, it was unprecedented; the number of buyers was unprecedented. We’re now averaging eight people for every auction. That number last year would have been three, possibly four,” he said. 

“The market is exceeding vendor expectations. Every week you go into another bunch of auctions and say, is this the week the market is going to give us a bit of a black eye – but no, bang, it’s back on. People are going with fairly aggressive bids and bidding competitively.”