The Sydney auction market hit a new low on Saturday, with the clearance rate dropping below 60 per cent for the first time in three years.

There were 1011 auctions scheduled for Saturday and with 652 results reported, Domain Group put the clearance rate at 59.2 per cent – well down on last weekend’s 64.4 per cent.

“The market has crashed below 60 per cent with no sign of bottoming out,” said Domain Group senior economist Dr Andrew Wilson.

“Parts of Sydney are now clearly buyers’ markets so if you’ve sold and you’re a buyer, that’s pretty good.”

On Saturday some sellers were shocked to discover that no buyers had turned up to their auction.

At Kirribilli, a two-bedroom apartment with a balcony and postcard views of the Opera House at 73/22 Waruda Street failed to attract any registered bidders despite 70 groups inspecting the property during its sales campaign.

Catherine O’Neill of Laing + Simmons North Sydney, who had issued five contracts, is now looking for offers over $800,000.

Up the road in North Sydney an 1885 five-bedroom Victorian terrace Playfair House passed in on a bid of $2.85 million failing to reach the reserve of $3 million.

Selling agent, Jennifer Hampton, had fielded more than 170 inquiries and issued 10 contracts on the commercial-residential zoned property.

“One bidder had a panic attack and walked out,” she said.

The first auction of the day was a three-bedroom weatherboard at 18 Collins Street, Rozelle.

Despite having undergone a tasteful renovation, the freestanding three-bedroom home passed in on the highest bid of $1.75 million, $75,000 short of the reserve.

Listing agent Matthew Hayson of Cobden & Hayson said there had been a “loss of confidence” in the market, with buyers unwilling to commit to purchasing until they themselves had sold.

“Two months ago they would have said, “Stuff it. I’ll buy this and then sell mine’,” he said.

“That’s not happening anymore. . . open home attendees have halved in the past two months.”

Other sellers were able to secure a sale on the day by revising their expectations. That was the case when a unique property at 18 Oswald Street in Randwick sold under the hammer for $2,865,000.

A crowd of about 80 gathered in the sunny backyard of the four-bedroom Federation house that drew wide interest for its granny flat in converted stables, level garden, pool and proximity to the planned light rail.

However, when bidding stalled at $2.81 million, vendors Penelope Roberts and her husband Nicholas agreed to call the property on the market, despite their undisclosed reserve.

The property sold to a young couple who plan to live in the home.

In pockets of Sydney there were still some strong sales on Saturday.

In the inner west, a two-bedroom Marrickville semi offered for the first time in 60 years sold for $1,115,000 – $115,000 above reserve.

A young couple came out on top of two other active bidders. All three parties had been home hunting for six months. The couple plan to renovate and live in the home at 1 Middle Street.

“Clearance rates are still quite strong if you are 10-15 kilometres from the city,”

“In the east and inner west properties are still selling . . . it is the other areas that are letting us down,” said selling agent Kate Webster of McGrath Inner West – Leichhardt.

Competition was also fierce at the auction of 17 Gelding Street in Dulwich Hill where a Federation house on 468 square metres sold for $1,801,000, $220,000 over reserve.

Shad Hassen of McGrath Estate Agents said the property was popular for its location, block size and potential to add value.

Despite the low clearance rate auctioneer Will Hampson of My Auctioneer had a good day on Saturday, selling seven out of his nine scheduled auctions.

He noted that buyers were thinner on the ground now that the prospect of capital growth had waned.

“After four years of growth the sentiment is that the market has capped out,” he said.