The Super Saturday property auction surge is spurred by economic recovery and not just by first home buyers making a late run for generous federal government grants, NSW Premier Nathan Rees says.

On Saturday 672 properties were going under the hammer across Sydney, making it the city’s largest auction day on record, Fairfax has reported.

The surge has been dubbed Super Saturday by real estate agents, but there are conflicting accounts of what has caused the flurry of activity.

Some pundits say buyers have been urged on by next week’s winding back of the federal government’s first home owners grant.

But Mr Rees said NSW had posted record auction rates over the past four months, and this weekend’s bumper auction rate was due to growing confidence in the state’s economy.

‘We’ve had four record months of assistance to home buyers – it’s not a factor that’s only been prevalent in the last couple of weeks,’ Mr Rees told reporters in Sydney.

‘Indicators in the economy, consumer confidence, retail sales have held up quite well in NSW, are a pointer that the worst of the global recession is behind us.

‘I think there is more confidence. People probably have less concern about jobs and so on that they may have had four to six months ago.’

The first home owner’s grant was increased in October last year to $14,000 for those purchasing an existing home or $21,000 for those buying or building a new home.

From October 1, the temporary boost will be scaled back to $10,500 for existing homes and $14,000 for new homes.