Auction results continue their strong run into March, with Sydney and Melbourne recording an 80% clearance rate over the first week of the month

After recording the strongest result since June 2015 last week, the preliminary clearance rate across the combined capital cities fell slightly this week, from 78.4 per cent to 77.8 per cent, based on preliminary results. The number of auctions held across the capitals this week was lower, with 2,714 held, compared to 3,301 over the previous week which was a record high for February. In comparison, over the corresponding week last year, both the combined capital city clearance rate and the number of auctions were lower, with 2,304 auctions held and 68.6 per cent reported as successful. Sydney saw the clearance rate remain above 80 per cent for the 4th week in a row, and Melbourne for the 2nd week in a row, while across the remaining cities; week-on-week results show a fall in clearance rates with the exception of Perth where results improved, and Tasmania, which remained unchanged over the week.

This week, Melbourne was host to 1,399 auctions and preliminary results show a clearance rate of 80.4 per cent, down slightly from last week’s final clearance rate of 81.0 per cent across 1,635 auctions. At the same time last year, Melbourne’s clearance rate was 72.1 per cent, with 1,236 auctions held across the city. Looking at Melbourne’s sub-regions, the Inner region was the busiest for auctions across Melbourne with 295 homes going under the hammer, followed by Inner South (260) and Inner East (179). The North East region was the best performer in terms of clearance rates, with an 87.6 per cent success rate across 133 auctions.

Sydney’s preliminary auction clearance rate increased to 80.5 per cent from 80.0 per cent last week, the 4th week in a row where clearance rates have been at or above 80 per cent. Auction volumes were lower this week with 886 homes taken to auction, compared to 1,210 last week. The city maintains a much higher clearance rate than what was seen over the same week last year, when a clearance rate of 68.7 per cent was recorded across 708 auctions. This week, the performance across Sydney’s individual sub regions was varied. Across the South West region, where 47 results have been reported so far, the preliminary clearance rate was 66.0 per cent, while across City and Inner South (88.5 per cent) and Northern Beaches (88.0 per cent), the success rate of reported auctions was much higher.

Across Brisbane, the preliminary clearance rate was 59.8 per cent this week, down from 62.1 per cent last week and higher than one year ago (50.9 per cent). Auction volumes were also down with 148 auctions held across Brisbane this week, compared to 176 last week and a lower 133 last year. The Gold Coast was host to 55 auctions this week. Based on the 25 results reported to CoreLogic so far, 68.0 per cent have been sold.

A total of 120 auctions were held in Adelaide this week, down from 122 last week, although higher than last year (99). Preliminary results for the week show 69.5 per cent sold, down from 71.6 per cent last week when the city recorded the highest clearance rate for the year to date.

The preliminary clearance rate for Perth this week was 36.4 per cent, compared to 30.3 per cent last week and 21.7 per cent last year. This week 36 Perth auctions were held with 11 results reported so far.

Canberra’s clearance rate fell to 70.2 per cent this week, after being recorded at 76.8 per cent last week. There were 116 auctions held across Canberra this week, up from 103 last week. One year ago, 67.5 per cent of Canberra’s 88 auctions cleared.

There were 9 Tasmanian auctions held this week and with 7 results reported so far this week, 4 have sold.

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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