Property agents say that the next two weeks in December will be a "sweet spot" for property buyers in both Sydney and Melbourne.
Sydney
The lowest auction rates in Sydney was recorded for 2015, a preliminary clearance of 55.6 percent in the biggest housing market and might drop to 50 percent, the agents stated. Yet, according to Financial Review, some of the popular areas like the inner west, eastern suburbs, and central business district cleared over 60 percent on Dec. 5, Saturday.
Ray White's auctioneer Scott Smith said that in his 24 years of experience in selling, the no. 1 month for buying is December. "It's the shortest month, and motivation for both sellers and buyers would mean buyers can wrap it up for Christmas," he added.
The "December effect" was evident when a 219 square-meter townhouse at 61 Grasmere Road in Cremorne in Sydney's lower north shore was sold. A bid was made by a local family just $2000 higher than the seller's bid to have the property despite the fact that they have not seen the $1.5 million reserve price.
"There are still good buys out there, leading up to Christmas ... [little competition] with buyers shifting attention to other things," agent Nicolas Boot of McGrath said.
Another evident effect is the increased demand from holiday expatriates who are after the low interest rates. A property at 45 Sutherland Street in Lane Cove was sold to a couple from Singapore without viewing the home. The property was sold for $1.8 million; a three-bedroom abode on a 702 meters of land. Melbourne had a 63 percent record of a preliminary clearance sale on Saturday, indicating a decrease compared to the 65.9 percent in the previous week.
Melbourne
Sydney showed good records but the "December effect" has better results for the "Garden City," Melbourne. The latter recorded an initial 63 percent clearance rate on Dec. 5, Saturday and 65.9 percent for the previous week.
Another three-bedroom at 33 Gnarwyn Road in Carnegie was sold for $660,000, a $10,000 less than the reserve price made possible by Hocking Stuart's Chris Janssens and Mark Staples' negotiations.
"Up until 15 December there's a sweet spot to buy ... 10 days of good buying left," Scott Patterson of Kay & Burton said. "Vendors are a bit more motivated than usual, given the summer break means holding properties ... vendors are willing to meet the market, while buyers are cautious," he added.
A four-bedroom property at 4 A'Beckett Street in Kew was also sold for $4.65 million by Patterson and Dave Oster after bidding started at $3.7 million.
"There's a lot of talk about the market collapsing but we're not seeing it, there's still good depth in the bidding and among buyers, local and offshore. There's enough money to last to 2016," Patterson stated. He predicted a strong start by 2016 having the months of February and March the best time to sell.
A local family bought a luxury home at 1 Connor Street in Brighton East for $3.3 million -- this sale was considered as Melbourne's stronger auction market. John Clarkson from Buxton said, "Stock levels are still high and there's going to be good value between now and Christmas ... with little competition in the market for buyers." He sold the Connor Street property together with Tom Davidson. "No doubt it's a transition stage, with the vendors catching the stairs and buyers the elevator."
Preliminary auction clearance rates fell 59.2 percent across the nation from 60.1 percent a week prior. A rate of 63.7 percent in 2014. After the previous week's year-high of 3729, auction volume also declined to 3209 this week.
