Sydney’s clearance rate drives down the capital city clearance rate, while Melbourne’s auction volumes show a temporary fall

CoreLogic RP Data National Auction Preview, week ending 1 November 2015

AuctionPreview04The final auction clearance rate last week fell to 64.9 per cent, down from 67.4 per cent the previous week and similarly, lower than one year ago (68.1 per cent). The fall in capital city clearance rate can be largely attributed to a weaker result across Sydney last week, the second largest capital city auction market.

Last week was Melbourne’s busiest for the year, with 1,690 auctions held, however given the Melbourne cup next Tuesday, auction activity across the city this weekend is set to be somewhat quieter, with just 621 scheduled for the week. Melbourne was the strongest performing capital city market last week, with 69.7 per cent of reported auctions successful and CoreLogic RP Data estimates over 1,150 transactions took place as a result of the cities auction activity.

In Sydney, last week there were 1,024 auctions with a clearance rate of just 61.3 per cent, far from the strength seen earlier this year, when for 22 consecutive weeks the city recorded a clearance rate of 80 per cent or above. Despite the weaker result last week, there are 1,450 Sydney homes scheduled for auction this week, more than at the same time last year (1,259) and the highest number of weekly auctions seen since the final week of March this year.

Although auction activity is set to slow down temporarily this week in Melbourne, the same cannot be said for Adelaide, where there will be 155 auctions this week, compared to 103 last week, Canberra, with 131 scheduled compared to 58 last week and Perth, up from 33 last week to 49 this week.

Brisbane is the only other capital city where auction volumes will be lower this week, down to 197 from 223 last week, which was the busiest week for auctions across the city so far this year. Despite the increased activity, Brisbane’s final auction clearance rate last week showed that less than half (48.8 per cent) of the auctions resulted in a transaction.

The lower volumes across Melbourne this week have added some more variety into the list of the busiest individual suburbs for auctions, as opposed to last week when each of the suburbs were located in Melbourne.

–   20 auctions in Reservoir (Vic)
–   18 auctions in Bellevue Hill (NSW)
–   16 auctions in Paddington (NSW)
–   15 auctions in Coogee (NSW), Killara (NSW) and St Ives (NSW)

About Shana Miller

Shana joined CoreLogic RP Data in 2007, heading up CoreLogic RP Data’s 'agents advice' team which is responsible for collecting sales data directly from industry participants. Having gained a solid background in data collection, storage and reporting, Shana joined CoreLogic RP Data’s research team as an analyst in 2011. Shana's day to day activities include compiling CoreLogic RP Data’s regular analysis such as auction and private treaty metrics as well as reporting on housing markets at a local through to national level. Shana has now joined the CoreLogic RP Data commentating team to deliver weekly blog updates on housing market activity across the country.

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