Sydney auction market heats up ahead of predicted rate cuts

Apprehension over how another interest rate cut might push up home prices has been driving increased bidding activity at auctions, with a flurry of big sales coming in just days before the Reserve Bank’s expected announcement of another cash rate cut Tuesday.

Experts revealed that Tuesday’s predicted rate cuts, combined with the typical spring sales boom, could see a bumper season of auctions ahead and some buyers have been eager to get ahead of the rush.

Buyers have been particularly eager in Sydney, where auction clearance rates surpassed 70 per cent last week –– a success rate that has been maintained for weeks and was 10 per cent higher than this time last year. Adelaide and Melbourne auctions had a similar success rate.

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The RBA is expected to cut the cash rate tomorrow afternoon. Picture: NewsWire/John Appleyard.

Preliminary figures for last week showed nearly three quarters of auctions scheduled during the week produced a sale.

It comes as more than 90 per cent of the housing market analysts and economists polled by comparison group Finder.com.au revealed they expected the RBA to announce a rate cut tomorrow.

Ray White NSW Head of Auctions Dave McMahon said market watchers were anticipating the outcome of the Reserve Bank Board meeting this Tuesday.

“If the central bank cuts the cash rate on Tuesday, we expect the market will accelerate again across the Harbour City and the rest of the country too,” he said. “We have such low stock on offer right now and plenty of buyers.”

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30 Darwin St, West Ryde sold for $4.068m.

Mr McMahon said Ray White’s auctions this weekend had an average of five registered bidders per property, with more than three of them actively participating in the auctions.

“The bidders numbers are well above the long term average,” he said.

Up in West Ryde, eight registered bidders battled it out for a huge family home which sold for $4.068m.

Scerri Auctions auctioneer Chris Scerri said the “incredible” auction at 30 Darwin St saw around 75-80 bids.

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Auctioneer Chris Scerri. Picture: Max Mason-Hubers.

“The auction was just gangbusters,” he said. “It ended up going to a younger couple buying a home for their family. It’s a big 1000 sqm property that ticks all the boxes for that.”

The six-bedroom home sold for $268,000 over reserve.

Mr Scerri said the auction market was showing signs of growth.

“There’s so much confidence in the marketplace right now and it’s growing week by week, so a potential rate cut will definitely help that.”

58 Amy St, Campsie drew a huge crowd thanks to its granny flat.

To the southeast, another property cleared its reserve by over $200,000 on what the agent called “the golden mile of Campsie”.

McGrath Strathfield sales agent Matthew Selvaraju said there was a “massive turnout” of at least 80 people at the auction for 58 Amy St on Saturday.

According to Mr Selvaraju, the home’s $3.01m sale was a street record, and the owners left happy with a sale $210,000 over reserve.

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Sales agent Matthew Selvaraju with the buyer of 58 Amy St, Campsie.

There were 11 registered bidders on the day with five being active.

Mr Selvaraju said the seven-bedroom property attracted great interest thanks to its adjoining granny flat.

“It was bought by a family moving to the area, with the idea of also making income off the home,” he said. “They’ll be leasing out the granny flat.”

10 Archbold Rd, Roseville sold for $3.36 million on Saturday.

There was also a huge auction turnout at 10 Archbold Rd, Roseville, to the point where the seller could not get into his own living room.

Vendor Johnson Koea is understood to have lived in the property for a decade before deciding it was time to sell.

The four-bedroom home sold for $3.36m on Saturday morning, $6,000 over reserve.

“It was very hard for me to sell this house,” Mr Koea said.

“With a four-year-old child, we need to find a new place with more space.”

Johnson Koea sold his home at auction after living there for 10 years.

Ray White Upper North Shore agent Jessica Cao said the new buyers were attracted to the North Shore area, as well as the easy maintenance of the four-bedroom, two-bathroom property.

There were four registered bidders and two active bidders on the day of the auction, with Mr Koea saying the rain did not deter a huge crowd.

“There were so many people who came, I couldn’t even make my way into the living room,” he said. “I stood at the back.”

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