The latest report from CoreLogic RP Data has shown Sydney’s auction clearance rate had a historic spike to 83.3% last week.
Meanwhile, Melbourne’s auction clearance rate has jumped by 10% from the previous week to 70.9%. The number of auctions scheduled in the area this week rose to 936 from last week’s 584.
For CoreLogic RP Data's auction specialist Robert Larocca, the upward trend in auction clearances reveals how buyers welcomed the rate cut imposed by the Reserve Bank of Australia (RBA) this month.
He added that this trend will also encourage more vendors to enlist their properties on the market to satisfy the strong demand.
Meanwhile, new figures this week also showed an all-time high in residential land prices in 2014 due to an undersupply of vacant land.
RBA governor Glenn Stevens has earlier lamented that undersupply is the main barrier to housing affordability in Australia.