Auction markets remain firm, recording the 14th consecutive week where the combined capital city clearance rate remains above 70%

The final weekend of October shows the auction clearance rate remains high across the combined capital cities, recording above 70.0 per cent for the 14th consecutive week. There were 2,246 auctions held across the capital cities, with a preliminary auction clearance rate of 77.6 per cent, showing only a slight decrease over last week’s final clearance rate of 78.1 per cent across 2,680 auctions. This is higher than the corresponding week last year, where 61.0 per cent of the 2,547 capital city auctions were successful. The strong clearance rate continues to be supported by exceptionally strong auction market conditions in Sydney where the preliminary clearance rate was recorded at 84.4 per cent across almost 1,100 auctions, while the preliminary clearance rate in Melbourne (78.6 per cent), Canberra (71.1 per cent) and Adelaide (75 per cent) also tracked above 70 per cent.

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Across Melbourne, despite the distraction of the Spring Racing Carnival this week’s preliminary clearance rate was recorded at 78.6 per cent, down from a high of 80.6 per cent last week and remaining well above the clearance rate for the city one year ago (65.6 per cent). This week, Melbourne was host to 629 auctions, lower than the 1,377 held last week and consistent with the same period last year, reporting the same volume (629) over the corresponding week. Of the 9 individual Melbourne sub-regions, this week the strongest performer, in terms of clearance rate was the North West region. So far, CoreLogic has collected 60 results for the region and the preliminary result shows 91.7 per cent of these auctions were successful.

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Across Sydney, 1,096 homes were taken to auction this week with a preliminary clearance rate of 84.4 per cent across 906 reported results. Last week, the final clearance rate for the city was 82.6 per cent, across 897 auctions. One year ago, 1,391 Sydney homes were taken to auction and the clearance rate was 60.2 per cent. This week, the performance across Sydney’s individual sub regions was varied. Across the Northern Beaches region, where 83 results have been reported so far, the preliminary clearance rate was 94.0 per cent, across Inner South West (74.0 per cent), and Parramatta (67.2 per cent) the success rate of reported auctions was lower.

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There were 192 Brisbane homes taken to auction this week, with 114 results reported so far. The preliminary clearance rate for the city is 52.6 per cent, up from 50.3 per cent last week and also higher than one year ago, when 48.8 per cent of the 188 properties taken to auction were successful. Across the Gold Coast 40 results have been reported so far, with a success rate of 52.5 per cent.

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Adelaide recorded a clearance rate of 75.0 per cent across 166 auctions this week, up from 71.3 per cent across 100 auctions last week. At the same time last year, 148 homes were taken to auction, with 57.0 per cent recording a successful result.

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In Perth, 60 auctions took place this week, with 18 results reported so far. Perth’s preliminary clearance rate of 50 per cent across these 18 results is higher than last week’s result (44.8 per cent) and lower the clearance rate from one year ago (58.1 per cent).

Canberra’s preliminary auction clearance rate of 71.1 per cent this week is lower than last week, when the final auction clearance rate was 73.0 per cent and slightly higher than the 71.0 per cent recorded last year.

Of the 10 Tasmanian auction results reported so far this week, 1 sale has been recorded.

About Cameron Kusher

Cameron Kusher is Head of Research at CoreLogic, specialising 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. Follow Cameron on Twitter @cmkusher

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