Capital city clearance rate remains strong for the first week of Summer at 75 per cent, while the number of auctions has fallen week-on-week

The combined capital city preliminary clearance rate rose this week to 75.0 per cent, up from last week’s final clearance rate of 73.0 per cent. This week’s auction market results indicate that clearance rates are maintaining strength coming into summer, a trend that is very different compared with last year’s performance when auctions clearance rates were tracking in the high 50 per cent to low 60 per cent range.  The number of properties taken to auction this week fell across the capital cities, with 3,173 reported auctions, down from 3,398 last week, which was the second busiest week for auctions this year. In Melbourne and Sydney, the number of auctions held have decreased (1,410 and 1,158) while across the smaller capital cities, auction volumes have increased over the week.  Auction activity is expected to slow over the remaining weeks of December, however the strong trend in clearance rates is showing no signs of easing.

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Melbourne’s preliminary clearance rate increased to 79.3 per cent, up from 76.1 per cent over the previous week. Auction volumes decreased with 1,410 auctions held over the week, slightly down from 1,616 over the previous week. Over the corresponding week last year, the clearance rate was 63.3 per cent across 1,622 auctions. Looking at Melbourne’s sub-regions, the North East region was the best performer in terms of clearance rates, with an 88.6 per cent success rate across 166 auctions, followed by the North West region, where 83.0 cent of the 97 auctions sold.

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In Sydney, 1,158 auctions were held this week, down from 1,262 over the previous week. The preliminary clearance rate of 77.7 per cent is up from 77.1 per cent last week, and also higher than the corresponding period last year, when a clearance rate of 52.9 per cent was recorded across 1,070 auctions. Looking at the sub-regions of Sydney, the Northern Beaches region recorded the strongest clearance rate of 88.9 per cent across 112 auctions, while the North Sydney and Hornsby region had the highest volume of auctions (168).

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Brisbane was host to 202 auctions this week and so far 123 results have been reported with a preliminary clearance rate of 50.4 per cent. Last week, auction volumes across the city were lower with 191 auctions held across the city and a 43.8 per cent clearance rate recorded. Across the Gold Coast, there were 68 properties up for auction this week. Of the 26 results reported, 57.7 per cent were successful.

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This week, Adelaide saw a preliminary clearance rate of 64.4 per cent, with 104 reported results across a total of 165 scheduled auctions. In comparison, over the previous week Adelaide’s clearance rate was 63.1 per cent and 60.0 per cent one year ago.

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Perth’s clearance rate of 67.3 per cent across 88 auctions is up from the previous week, when 67 auctions were held and a clearance rate of 27.3 per cent was recorded. Over the same week last year, the clearance rate was a lower 36.0 per cent, and 67 auctions were held.

Across Canberra a total of 136 auctions were held this week, compared to 112 last week and 123 at the same time last year. Canberra’s preliminary clearance rate of 63.8 per cent is lower than it was the previous week (72.1 per cent).

Of the 14 Tasmanian auction results reported so far this week, 4 sales have 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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