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Preliminary Results Show 70.2% of Auctions Successful

Author: Jade Harling and Kevin Brogan
Source: CoreLogic

Preliminary figures show 70.2 per cent of auctions were successful across the combined capital cities, while auction activity increases week-on-week.

The combined capital city preliminary clearance rate increased to 70.2 per cent this week, after last week’s revised final clearance rate fell to 66.4 per cent, which was not only the lowest combined capital city clearance rate so far this year, down -0.1 per cent from the previous low seen over the week ending 25 June 2017 (66.5 per cent), but the lowest clearance rate since June 2016 across the combined capitals. It will be interesting to see what the final clearance rate looks like on Thursday once the remaining records have been captured. Auction volumes increased week-on-week with 2,225 properties taken to auction this week, up from 2,074 last week, and higher than this time last year (2,062).

Across Melbourne, preliminary results show that 73.2 per cent of the 938 reported auctions sold this week. There were 1,097 properties taken to auction across the city, up from 976 last week when the final clearance rate was recorded at 71.3 per cent. Over the same week last year, 974 auctions were held and a clearance rate of 78.3 per cent was recorded. The Inner region of Melbourne had the highest number of auctions this week (214), with a preliminary clearance rate of 71.7 per cent. However, the strongest rate of clearance was recorded across the North West region, where 86.6 per cent of the 82 reported auctions were successful. 7 of the 9 sub-regions recorded clearance rates above 70.0 per cent.

Sydney was host to 810 auctions this week and a preliminary clearance rate of 72.3 per cent was recorded, rising from 65.5 per cent last week across 779 auctions, although this will fall over the week. One year ago, 758 auctions were held across Sydney and 80.6 per cent were successful. Looking at the sub-regions of Sydney, 4 of the 15 sub-regions recorded clearance rates above 75.0 per cent with the stand outs being the Northern Beaches (85.5 per cent), Ryde (81.2 per cent) and Baulkham Hills and Hawkesbury (80.0 per cent) regions. The lowest clearance rate was recorded across the Sutherland region where 57.1 per cent of the 42 reported auctions were successful.

The preliminary clearance rate in Brisbane this week was 43.9 per cent, down from 45.6 per cent last week. Auction volumes were similar this week with 137 auctions held, compared to 138 last week. Meanwhile, across the Gold Coast, 29.4 per cent of the 34 reported auctions were successful.

In Adelaide, a 67.2 per cent preliminary result was recorded this week across 74 auctions. Last week, 76 Adelaide auctions returned a clearance rate of 50.0 per cent for the city, while at the same time last year, 88 homes were taken to auction, with 68.0 per cent recording a successful result.

Perth’s clearance rate of 36.8 per cent across 19 auction results is lower than last week, when 26 auctions were held and a clearance rate of 62.5 per cent was recorded. Over the same week last year, the clearance rate was a lower 27.3 per cent, and 29 auctions were held.

Across Canberra, 72 homes were taken to auction this week. Preliminary results show a clearance rate of 69.2 per cent, up from 66.1 per cent the previous week.

Tasmania was host to 4 auctions this week and so far 3 have been reported with just 1 successful sale.

 


Kevin Brogan
National Auction Market Commentator,CoreLogic

Jade Harling
Senior Research Analyst, CoreLogic