Sydney’s Eastern Suburbs Defy Auction Slump With 55.3% Clearance

Domain chief residential economist Dr Nicola Powell said the numbers send a clear message. "Sydney is a buyer's market. That is what that clearance rate tells me; it is screaming buyer's market," she said.

She said premium areas such as the eastern suburbs fell in price earlier than elsewhere. Buyers there are high-income and equity-rich, she said, and "could be less impacted by rate hikes and more impacted by the opportunity of purchasing in some of these locations that have pulled back in price."

What local agents say

Ray White Eastern Beaches selling agent Angus Gorrie said fewer homes than usual were on the market. "Anyone selling now has probably adjusted already their price estimate," he said, describing motivated sellers who understand conditions.

"There are still buyers wanting to live in the east and buy in the east. It is a desirable spot," Gorrie said. His October sales included a $7 million Maroubra bungalow. He added that the first-home-buyer apartment market was the strongest segment.

Ray White (Phillips & Co) selling agent David Tyrrell also reported limited stock, though some good properties were arriving. "We are running a lot more auctions than we used to," he said. "Auctions are working better in this marketplace."

Tyrrell sold a Bronte home for $12.12 million at auction. He said many potential buyers came from the north shore, although a local won.

New price rules start November 17

From November 17, real estate agents in New South Wales must include a selling price or price range on property listings. Agents have been able to list a property as "price on inquiry"; the reforms end that.

Powell did not expect the change to affect prices. She said it would "create greater transparency for buyers" and help them judge whether a home fits their budget.

Agents will also have to use the three most comparable sales when setting or revising an estimated selling price. Advertisements must be updated within one business day of a revision. Agents may not advertise a price lower than a written offer rejected as too low, or the highest bid at an auction that passed in.

The government pushed ahead after a media investigation found almost half of Sydney auction sales sold more than 10 percent above the guide. From February 8, NSW agents must also publish a statement of information explaining how an estimated price was reached.