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The hot property market is starting to cool down as clearance rates start to slip while volumes remain high.
According to the latest figures from CoreLogic, 3,276 properties went under the hammer in the combined capitals of Australia. While this is down from 3,546 homes the previous week, it still saw the week hailed as 2021’s third-busiest week for auctions so far.
The clearing rate has been slowly declining over the last two weeks, despite strong auction volumes. With 2,620 auction results in so far, the combined capitals have returned a preliminary clearing rate of 76.1 per cent this week, down from a recent high of 83.2 per cent reported for the week ending 3 October.
The preliminary clearance rate is already lower than the final clearance rate reported for the last week in October of 76.8 per cent, a slight drop from the originally reported clearance rate of 78.9 per cent.
But, it is still a far cry from the 69 per cent auction clearance rate reported over the same period in 2020, when just 1,757 homes went under the hammer.
Sydney’s weekly auction volumes have grown by approximately 50 per cent since restrictions were eased in the second week of October. Nevertheless, clearance rates have steadily fallen over the same time span, but withdrawal rates have increased. These measures are likely to continue to drop as more housing supply enters the market.
With 1,228 residences up for sale this week, Sydney enjoyed its biggest auction week since March and the second-busiest of the year. In the preceding week, 1,151 properties were auctioned, compared to 851 auctions at the same time last year.
Sydney’s 1,046 results gave it a preliminary clearance rate of 75.9 per cent. The previous week had a preliminary clearing rate of 79.3 per cent, which was reduced to 76.6 per cent in final numbers, while 73.3 per cent of reported auctions were successful at the same period last year.
In Melbourne, 1,395 properties were auctioned, a decrease from the previous week’s 1,752 auctions but an increase over the 611 auctions held at this time last year.
Melbourne reported 1,127 auction results, its lowest preliminary clearance rate since the second week of September, with only 72 per cent of auctions yielding a positive outcome. The preliminary clearance rate for the previous week was 77.4 per cent, but it went down to 75.2 percent in final numbers. This time last year, 68 per cent of auctions were successful.
Canberra had the best preliminary clearance rate of 91.4 per cent among the smaller auction markets, followed by Adelaide at 85.8 per cent and Brisbane at 84.7 per cent.
Perth had a preliminary clearance rate of 50 per cent, from just 16 auctions. Four results have been obtained from the five auctions set to take place around Tasmania this week, with three of the results successful.
ABOUT THE AUTHOR
Noemi Paminuan-Jara
Noemi is a journalist for Smart Property Investment and Real Estate Business. She has extensive experience writing for business, health, and education industries. Noemi is a contributing author of an abstract published by the American Public Health Association, and Best Practices in Emergency Pedagogical Methods in Germany. She shares ownership of the copyright of an instructional video for pharmacists when communicating with deaf patients. She attended De La Salle University where she obtained a double degree in Psychology and Marketing Management.
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