Auction clearance level best in three years

Sydney's property market had a boom-time auction clearance rate of 79 per cent at the weekend as buyers shrugged off any concerns about the economy, employment or the election.

Low interest rates and steady employment are driving a confident return by buyers to the market after more than two years in the doldrums.

Data from Australian Property Monitors reveal an average 75 per cent clearance rate for the past month.

Melbourne also turned in a strong clearance rate of 73 per cent over the weekend. Figures from the Real Institute of Victoria show an average 70 per cent clearance rate for the past month.

While some of the higher-priced properties in Sydney's eastern suburbs failed to sell, a modest three-bedroom house in Coogee South sold before auction for $3.1 million through Goodyer Donnelly.

There was nothing modest about the waterfront location of 12 Bunyah Parade, however.

Goodyer Donnelly agent Alex Phillips said the price was only slightly higher than expected for the area.

"The market's been strong all year. People have been sitting on cash for a few years now but they're not making much in interest any more," he said.

"Stock levels are down by about 30 per cent on last year and that's also driving the prices."

Sydney's clearance rate was derived from 268 sales.

The Real Estate Institute of Victoria recorded its clearance rate from 617 auctions results. A further 33 results are outstanding.

Buyers' advocate David Morrell said the mood at the top end was cautious but there was plenty of activity at about the $1.5 million mark.