Auction Volumes Increase Week-On-Week Returning A Preliminary Clearance Rate of 66.9%
There were 3,409 homes taken to auction across the combined capital cities this week, returning a preliminary auction clearance rate of 66.9 per cent, overtaking last week as the third busiest week for auctions so far this year. Last week, based on final results, 60.9 per cent of the 3,390 auctions held recorded a successful result, the lowest clearance rate since late 2015/early 2016. Once final results are collected, the combined capital city clearance rate tends to revise down so at this stage it’s looking like the final clearance rate on Thursday will be in the mid to low 60 per cent range for the sixth week in a row. Sydney and Melbourne, the two largest auction markets, have seen clearance rates increase week-on-week after last week saw both cities recording their lowest clearance rates for the year so far, however as usual, these clearance rates will revise lower over the week. Over the same week last year, a total of 3,398 homes were taken to auction across the combined capital cities, and a clearance rate of 73.0 per cent was recorded.
Across Melbourne, preliminary results show that 69.0 per cent of the 1,456 reported auctions sold this week, making it the third week in a row where the clearance rate has been below 70 per cent. There were 1,727 properties taken to auction across the city, compared to 1,732 last week when the final clearance rate slipped to 66.9 per cent, the lowest clearance rate the city has seen since July 2016. Over the same week last year, 1,616 auctions were held and a clearance rate of 76.1 per cent was recorded. Looking at the sub-regions of Melbourne, the Inner region was host to the highest number of auctions this week (317), followed by the West (255). The West also recorded the highest clearance rate (76.4 per cent across 212 results).
Sydney was host to 1,200 auctions this week and a preliminary clearance rate of 66.2 per cent was recorded, after last week saw the lowest clearance rate since late 2015/early 2016 when just 54.8 per cent of the 1,061 auctions recorded a successful result. The final clearance rate for Sydney has been sitting below 60 per cent for the last 4 weeks so it will be interesting to see what happens this week. This time last year, 77.1 per cent of the 1,262 homes taken to auction were sold. Looking at the sub-regions of Sydney, the Sutherland (77.5 per cent), Eastern Suburbs (76.2 per cent), and Inner West (75.0 per cent) regions recorded the highest clearance rates. North Sydney and Hornsby was the busiest region with 205 homes taken to auction.
The preliminary clearance rate in Brisbane rose to 57.6 per cent across 152 auctions this week, from 46.7 per cent across 217 auctions last week, while this time last year 191 auctions were held and a clearance rate of 43.8 per cent was recorded. Meanwhile, across the Gold Coast, 41.0 per cent of the 39 reported auctions were successful.
In Adelaide, a 67.0 per cent preliminary result was recorded this week across 153 auctions. Last week, 151 Adelaide auctions returned a clearance rate of 64.5 per cent for the city, while at the same time last year, 144 homes were taken to auction, with 63.1 per cent recording a successful result.
Perth’s clearance rate of 38.9 per cent across 18 auction results is down from last week, when 85 auctions were held and a clearance rate of 39.7 per cent was recorded. Over the same week last year, the clearance rate was a lower 27.3 per cent, and 67 auctions were held.
Across Canberra, 128 homes were taken to auction this week. Preliminary results show a clearance rate of 66.1 per cent, up from 62.8 per cent the previous week.
Tasmania was host to 6 auctions this week and so far 3 results have been reported, returning a preliminary clearance rate of 33.3 per cent.
National Auction Market Commentator,CoreLogic
Research Analyst, CoreLogic