First Week of August Returns a Preliminary Auction Clearance Rate of 71.5%
The first week of August saw fewer auctions held across the combined capital cities, with 1,846 held, down from the 1,987 auctions held the previous week, however higher than the 1,540 auctions one year ago. The preliminary auction clearance rose to 71.5 per cent, after the previous week saw the final auction clearance rate fall slightly to 68.7 per cent (revised lower from a preliminary clearance of 70.7%). Over the last month, auction volumes have remained relatively steady and while clearance rates have shown a softening, final results have been consistently in the high 60 per cent range since the first week of June. Across the two larger auction markets, Melbourne continues to show resilience to softening conditions relative to Sydney, with Melbourne’s clearance rate sitting in the mid-high 70 per cent range for another week (75.7 per cent), while Sydney’s preliminary auction clearance rate increased over the week (71.5 per cent). Last week Sydney recorded its lowest rate of clearance so far this year (65.4 per cent).
In Melbourne, Australia’s largest auction market, 75.7 per cent of the 799 reported auctions sold this week. There were 907 auctions held across the city this week, down from 956 last week when the final auction clearance rate was 75.6 per cent and higher than the 724 auctions held one year ago, with a lower clearance rate (74.2 per cent). The Inner region of Melbourne had the highest number of auctions this week (162), with a preliminary clearance rate of 75.4 per cent. Meanwhile, the strongest clearance rate was recorded across the North West region and Mornington Peninsula region, where an 87.0 per cent and 79.2 per cent rate of clearance were recorded respectively.
Across Sydney, 615 homes were taken to auction this week with a preliminary clearance rate of 71.1 per cent across 477 reported results. Last week, the final clearance rate for the city was 65.4 per cent, across 714 auctions. One year ago, 544 Sydney homes were taken to auction and the clearance rate was 77.5 per cent. This week, the performance across Sydney’s individual sub regions was varied. Across the Central Coast region, where 17 results have been reported so far, the preliminary clearance rate was 64.7 per cent, while across City and Inner South (84.9 per cent) and Inner West (82.1 per cent) the success rate of reported auctions was much higher.
There were 153 Brisbane homes taken to auction this week, with 84 results reported so far. The preliminary clearance rate for the city is 48.8 per cent, down from 49.6 per cent last week and lower than one year ago, when 54.5 per cent of the 127 properties taken to auction were successful. Across the Gold Coast, 20 results have been reported so far, with a success rate of 40.0 per cent (8 sales). /p>
Adelaide recorded a clearance rate of 69.4 per cent across 59 auctions this week, up from 64.0 per cent across 82 auctions last week. At the same time last year, 58 homes were taken to auction, with 63.5 per cent recording a successful result.
Perth’s clearance rate of 72.7 per cent across 35 auctions is up from the previous week, when 28 auctions were held and a clearance rate of 34.8 per cent was recorded. Over the same week last year, the clearance rate was a lower 36.0 per cent, and 30 auctions were held.
Canberra’s preliminary auction clearance rate of 69.6 per cent this week is lower than last week, when the final auction clearance rate was 70.5 per cent and lower than the 74.1 per cent recorded last year.
Tasmanian auctions held this week. 1 was reported as sold.
Senior Research Analyst, CoreLogic
Cameron specialises in primary and secondary data analysis, property market commentary and consultancy. Cameron has a thorough understanding of the fundamentals such as demographics, trends, economics and spacial analysis and is a regular keynote speaker for property-related groups, regulated industry bodies, corporations and the government sectors.
Published: 7 August 2017