Perth and Adelaide continued to perform strongly, posting rates of about 78 per cent and 63 per cent respectively. Perths clearance rate this time last year was 42 per cent.
Michelle May, a buyers agent in Sydneys inner west and east, said: There would have to be an enormous increase in supply to meet demand. Potential buyers are queuing to inspect properties.
Ms May said investors are also coming back into the market, restructuring their portfolios by replacing underperformers with new stock.
A five-bedroom house in Cremorne featuring an infinity edge mosaic pool, wine cellar and views over Willoughby Bay was one of the weekend’s top performers, selling for around $6 million.
Patrick Bright, a buyers agent targeting Sydneys top-end, added there are plenty of buyers for well-presented properties in good locations with four bedrooms and two bathrooms.
Bidding by first home buyers, who are eligible for government home buyer incentives, broke reserve prices for properties around $1 million in North Sydney and Lane Cove, according to agents.
In Melbourne, Emma Bloom, a buyers agent for Morrell & Koren, says demand is strong but buyers continue to be price sensitive, particularly at the top end where there are about 16 properties for sale worth more than $20 million.
A three-bedroom, three bathroom house in inner-Melbourne Avoca Street, South Yarra, sold for more than $7 million, compared to a reserve price of between $6 million and $6.6 million.
Cate Bakos, another buyers agent, said very positive sentiment is contributing to multiple bidders and smashed reserves in Melbournes inner western suburbs through to Geelong, a regional centre about 75 kilometres south-west of Melbourne.
A lot of potential buyers are feeling remorseful they missed out when markets were weaker earlier in the year, she says.
According to real estate agency Ray White, December auctions got off to a flyer, particularly in Brisbane, where it sold riverfront land with demolition approval in New Farm to a local developer for nearly $10 million.
There has been a big influx of buyers from Melbourne and Sydney, said Matt Lancashire, a Ray White agent.
AMPs Oliver said the rebound in house prices is not a concern for the Reserve Bank of Australia, which is more focused on reducing unemployment.
But it may become more of an issue later next year if house price gains gather price, debt starts to rise more rapidly and if lending standards start to slacken, he said.