Capital city auction markets record the highest preliminary clearance rate so far this year, reaching 80.2 per cent

Spring is seeing a lift in the auction market.  The number of homes taken to auction this week increased to 2,641, compared with 2,443 over the previous week.  The preliminary clearance rate of 80.2 per cent is the highest recorded for the year so far, up from 76.2 per cent last week. Over the corresponding week last year, the clearance rate was significantly lower at 64.9 per cent however auction volumes were higher, 3,143 auctions were held. Every capital city except Perth has recorded a preliminary clearance that was higher than a year ago, while the two largest auction markets, Sydney and Melbourne, recorded a preliminary clearance rate higher than 80 per cent.

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In Melbourne, Australia’s largest auction market, 81.8 per cent of the 1,229 reported auctions sold this week. This is the second time this month the clearance rate for Melbourne has been above 80 per cent.  There were 1,378 auctions held across the city this week, up from 1,182 last week when the final auction clearance rate was 77.7 per cent and lower than the 1,690 auctions held one year ago, with a notably lower clearance rate (69.7 per cent). The Inner region of Melbourne had the highest number of auctions this week (295), with a preliminary clearance rate of 78.6 per cent. Meanwhile, the strongest clearance rate was recorded across the North West region, where 89.5 per cent of auctions were successful.

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In Sydney, 866 auctions were held this week, down from 913 over the previous week. The preliminary clearance rate of 85.6 per cent is the highest recorded for the year to date.  Since the beginning of spring Sydney’s clearance rate has remained above 78 per cent.  This week’s clearance rate (85.6 per cent) is up from 81.4 per cent last week; it is significantly higher than this time last year, when a clearance rate of 61.3 per cent was recorded across 1,024 auctions. Looking at the sub-regions of Sydney, the Blacktown region recorded the strongest clearance rate of 93.8 per cent across 22 auctions, while the North Sydney and Hornsby region had the highest volume of auctions (135).

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Brisbane was host to 192 auctions this week and so far 118 results have been reported, with 53.4 per cent of successful sales. Last week, auction volumes across the city were much lower with 151 auctions held across the city and a lower clearance rate of 44.9 per cent recorded.  The number of homes taken to auction this week across the Gold Coast was 43. Of the 20 results reported, (70.0 per cent) were successful.

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This week, Adelaide saw a preliminary clearance rate of 77.4 per cent, with 62 reported results across a total of 98 scheduled auctions. In comparison, over the previous week Adelaide’s clearance rate was 62.5 per cent and 70.3 per cent one year ago.

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Perth’s clearance rate of 46.2 per cent across 33 auctions is similar to the previous week, when 34 auctions were held and a clearance rate of 52.0 per cent was recorded.  Over the same week last year, the clearance rate was a lower 25.9 per cent, and 33 auctions were held.

Across Canberra a total of 64 auctions were held this week, compared to 72 last week and 58 at the same time last year. Canberra’s preliminary clearance rate of 74.4 per cent is lower than it was the previous week (82.8 per cent).

Tasmania saw 10 auctions take place this week, 4 results have been reported so far, with 4 sales.

 

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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