Capital city auctions to exceed 100,000 for the first time

CoreLogic RP Data National Auction Preview, week ending 21 December 2014

CoreLogic RP Data auction preview | capital cities (Image by Domain)There are 1,807 auctions scheduled across Australia this week. In capital cities there are 1,489 auctions expected compared to 1,332 for the same period last year.

With one week to go, the combined capital cities clearance rate for 2014 is 67.9 per cent compared to 66.2 per cent last year. Once this week’s auctions are finalised, the number of auctions held in capital cities this year will exceed 100,000 for the first time. Excluding this week, there has been a 22 per cent rise on last year with 25 per cent more homes selling.

Sydney’s auction market experienced the most significant improvement this year where the clearance rate and share of sales by auction increased. Adelaide and Canberra also had notable improvements. The likelihood of these improvements being repeated next year is largely dependent on the state of the broader economy.

The use of auctions for residential sales also increased in five of the capital cities this year.

Preliminary figures for Melbourne show that the proportion of homes sold by auction rose from 30 per cent last year to 31.3 per cent this year.There are 565 auctions scheduled in Melbourne this week, compared to 1,585 last week, and 531 this time last year.

Sydney is expecting 562 auctions compared to 1,357 last week and 532 for this week last year. The use of auctions reached an all-time high with 27.6 per cent of all homes being sold by auction compared to 22 per cent last year. This increase was a result of real estate agents and vendors seeking to take advantage of the improved market.

In Brisbane 160 auctions are expected after 252 were held last week. Compared to last year the use of auctions as a sales method remained stable at 5.7 per cent of all sales.

Adelaide is expecting 111 auctions, compared to 171 last week. Last year Adelaide recorded 8.2 per cent of sales by auction and this year it has risen to 9.4 per cent.

Canberra has 70 auctions scheduled compared to 69 last week. Canberra saw a significant rise in the use of auctions, from 13.4 per cent of sales last year to 17.3 per cent this year.

Perth has 16 auctions compared to 51 last week. Auctions remain a very small part of the Peth market with only 1.6 of sales by auction this year compared to 1.5 per cent last year.

There are 11 auctions scheduled in Tasmania.

Across Australia, the highest volume of auctions will be in Marrickville (NSW) with 13 expected.

Robert Larocca
CoreLogic RP Data Auction Market Specialist
0409 198 350

 

About Robert Larocca

Robert Larocca has built a profile over the past eight years as an expert on the Victorian residential property market. He worked for the REIV both directly and as a consultant over 8 years acting as a spokesperson, managing its research department and public policy. He has been a media and government relations consultant and spent a decade working across the three levels of government including as a Councillor and Mayor in the City of Moreland. He has well developed leadership skills in the not for profit sector and has been the Chairperson of CERES Community Environment Park for 9 years.

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