Sydney property market goes from strength to strength

The-Sydney-property-market-continues-to-clean-up_157_77236_0_14100915_300The Sydney market continues to leave the others in the dust. After back-to-back weeks of high clearance rates and auction numbers, the trend looks like it’s at no risk of slowing down anytime soon.

The Sydney market was again the star performer among the capital cities for the week ending July 20. According to the RP Data National Auction Comment for the week, Sydney’s preliminary clearance rate was 76.9 per cent, by far the highest rate among the capitals. The Sydney market was also well above the weighted average rate for the capitals.

Only Adelaide was close behind, at second with 72.7 per cent. To put this into perspective, however, Sydney had nearly nine times the amount of auctions in this week that Adelaide had, making its high clearance rate all the more impressive.

With such strong buyer activity in the New South Wales capital, property sellers should have little problem unloading their real estate.

These superb results seem like they’re set to continue. Unlike in a number of capitals, such as Melbourne and Adelaide, the amount of auctions Sydney’s expected to hold in the upcoming week is expected to be even more than its already large number of auctions.

These high figures are no doubt being bolstered by the tightness of Sydney’s market. According to the recently released RP Data Quarterly Rental Report, Sydney had the lowest vacancy rate out of all the other capitals at 1.4 per cent. Brisbane was a distant second with a rate of 2.4 per cent.

With less vacancies, investors holding onto property have the potential to profit. Rental rates tend to rise higher when there’s more competition among tenants, which could present an opportunity for investors to increase their revenue streams and repay their loans faster.

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