Global markets are in turmoil, so investors are looking for safe haven assets.
Gold is flying, as are government bonds. So too is the Sydney property market.
According to preliminary figures released by CoreLogic earlier today, Sydney’s auction clearance rate came in at 77.1% last week, marking the 10th consecutive week that a figure of 70% or greater had been recorded.
Safe as houses, as the saying goes.
As the chart below reveals, supplied by CoreLogic, the trend in auction clearances in Australia’s largest and most expensive city is clearly moving higher, having slumped in the early parts of 2016.
Of the other major capitals, Melbourne recorded a preliminary auction clearance rate of 68.4% while Brisbane, Adelaide and Perth recorded rates of 48.1%, 67.6% and 28.6% respectively.
As a result of the strength seen in the Sydney market, the national figure rose to 69.1% from 67.4%. CoreLogic will release final auction clearance rates for the week on Thursday.
Mirroring the strength in clearance rates, the group’s capital city home value index recorded an increase in Sydney property prices last week of 0.7%, extending this year’s gains to 8.9%, the fastest pace of any major Australian capital over the same period.
The table below, again supplied by CoreLogic, shows the weekly, monthly, year-to-date and 12-month change in Australian capital city house prices.
Outside of Perth, it’s clear that an expected slowdown in price growth is nowhere to be seen at present.