The $7.95 million sale of a warehouse in inner-city Sydney has broken the record price for Surry Hills as auction clearance rates across the NSW capital remain strong at the start of the spring selling season.

The 780-square-metre four-bedroom three-level warehouse in Bennett Place was one of about 540 properties scheduled to go under the hammer across the city on Saturday – fetching some $400,000 higher than the previous top price of $7.45 million prior.

Domain Group put the Sydney clearance rate at 80 per cent and CoreLogic at almost 84 per cent.

It is the fourth consecutive weekend with clearance rates at or above 80 per cent.

“Since the final week in April this year, Sydney has consistently recorded weekly clearance rates above the 70 per cent mark,” CoreLogic’s Kevin Brogan said.

The warehouse, a mid-19th century building that had undergone a transformation by designers Hare & Klein, had attracted interest from across Sydney and internationally.

The space came with a four-car garage, artist’s studio, plus plenty of open-plan living areas with lofty ceiling and industrial throwbacks. 

The Bennett Place warehouse previously held the suburb record the last two times it traded, for $5.71 million in 2012 and $3.1 million in 2009.

It ranks among the more authentic of the warehouses in Surry Hills, which once housed the city’s rag-trade industry. The 1870 building, first recorded in Sands Directory as being a carriage and livery stable, has 760 square metres of floor space.

The $7.55 million sale last year secured a heart-shaped pool as the centrepiece of the 450-square-metre converted warehouse.

The Surry Hills warehouse sold for a suburb record price. Photo: Sydney Sotheby’s International Realty

It offers four bedrooms and four bathrooms. Photo: Sydney Sotheby’s International Realty

The ground level comprises a huge artist studio. Photo: Sydney Sotheby’s International Realty

Auction numbers are down across Australia, however, with 1858 homes taken to auction at the weekend, compared to 2153 auctions last week and 2297 one year ago, according to CoreLogic.

The 78 per cent national clearance rate was higher than the previous week’s result of 74 per cent and up from last year, when the clearance rate was recorded at 73 per cent and in decline.

The results show that Sydney’s 83.9 per cent rated higher than the improving Melbourne which had a 79 per cent success rate.

Melbourne’s preliminary clearance was up from last week’s result of 77.4 per cent.

The 79 per cent clearance rate is the highest preliminary rate Melbourne has recorded this year.

“It also marks the ninth week in a row that Melbourne’s clearance rate has been recorded above 70 per cent,” Mr Brogan said.

There were 826 auctions held in Melbourne, down from last week’s 1060 auctions and lower than the 992 auctions held at the same time last year.

Melbourne’s top seller at the weekend was a five-bedroom 1930s house on 1300 sq m in Kew sold through Jellis Craig for $6.24 million.

It last sold in 1997 at $1.27 million. More than $5.5 million was the pre-auction price guidance.

This Kew home features resort-style grounds incorporating a floodlit tennis court and salt-water pool/spa oasis. Photo: Jellis Craig

It has elegant formal rooms and an exec library. Photo: Jellis Craig

Kew also had Melbourne’s second dearest sale at $4.8 million at 51 Rowland Street.

Sydney had the nation’s highest sale when a four-bedroom waterfront home at 78 Wrights Road, Drummoyne sold for $8.05 million.

The pre-auction price guidance was $6 million to $6.5 million. The waterfront home came with jetty, pontoon and a permanent boat mooring facility. 

Sydney’s most expensive auction price at the weekend was this home in Drummoyne. Photo: Ward Partners

The property has a paved swimming pool area which leads onto the level lawn and the water’s edge. Photo: Ward Partners

With 135 Brisbane homes taken to auction, the Queensland capital recorded its highest preliminary clearance rate this year at 58 per cent, up from 44 per cent last week and higher than one year ago, when 42 per cent of the 130 properties taken to auction were successful.

In Brisbane, the most expensive residential property to sell was a renovated Hamptons-style, five-bedroom house at Bardon which sold for $2.5 million to a Singaporean couple.

The pre-war Queenslander at 167 Simpsons Road was transformed with an 18-month renovation and had previously traded at $1,186,000 in late 2014.

The Bardon home has five bedrooms and three bathrooms. Photo: Place – Bulimba

Entertainer’s delight. Photo: Place – Bulimba

Brisbane also had the nation’s cheapest weekend auction result when a two-bedroom house with water views across the bay at 137 Beelong Street sold for $330,000 on Macleay Island.

Adelaide saw a preliminary clearance rate of 80, across 57 reported auctions; the highest Adelaide has recorded for the year.

In Perth, auction numbers fell to 26 this week with a preliminary clearance rate of 16 per cent. Just six auctions have been reported.

Last week, the final clearance rate for Perth was 34 per cent across 29 auctions.

Canberra’s preliminary rate was 77 per cent this week – the highest the capital has seen since early March this year. That is compared to 71 per cent last week and 71 per cent one year ago.

Jonathan Chancellor is editor-at-large at Property Observer.