A subdued property market seems to be underscoring most of the property talk in the past few months. With the most recent rate cuts now filtering down to home buyers by the commercial banks, it is hoped that this will stimulate buying activity in the market. However, for many suburbs the last few months have not been all bad news, with several suburbs performing well and experiencing above average clearance rates, despite what the media would have you believe.
Top performing Suburbs
Several suburbs have fared well, indicating resilience despite softer market conditions. Leichardt remained strong, recording a clearance rate of 74.1% in Q1 2011, rising to an above average clearance rate of 86.4% in Q1 2012. Marrickville also bucked the trend, with an average clearance rate of 73.5% in Q1 2011 and rising to 83.3% in Q1 2012. Sydney’s inner eastern suburb of Paddington also experienced strong clearance rates in the first quarter of 2012, with rates rising from 69.2% in 2011 to 82.1% in 2012. Likewise, Mosman saw the clearance rate rise from a solid 66.1% in Q1 2011, to 73.9% in Q1 2012. These figures show that suburbs fairing best in the current market climate are those within close proximity to Sydney’s CBD . In addition softer market conditions have made these sought after areas more attractive for buyers who were previously priced out of the market – which is fueling higher clearance rates than the New South Wales market average.
Clearance Rate Snapshot 2011 vs Q1 2012.
Not so good news for others
For some areas it was not all good news with clearance rates trending downwards year on year. Maroubra’s clearance rate fell from 86.1% in Q1 2011, to 67.3% in Q1 2012, however despite the decline Maroubra is still enjoying above average clearance rates. Randwick has also seen clearance rates decline slightly year on year from 72.3% to 68.2% – however similar to Maroubra is still showing strong demand in the local area.