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A reduction in activity has brought with it a reduced success rate for Australia’s auction market, according to data from CoreLogic.
Over the week ending 2 July 2023, 1,530 homes went under the hammer across the country, down from just over 1,700 last week. A lower number of auctions brought with it the nation’s lowest preliminary clearance in nine weeks. Despite this, the portion of auctions which ended in a positive result remained above 70 per cent, with 70.3 per cent of the 1,138 results collected so far coming to a successful conclusion. By contrast, 73.8 per cent of auctions resulted in a sale according to last week’s preliminary numbers.
Sydney, the nation’s busiest market, held 696 auctions over the week. This represents a 3.9 per cent drop on the previous week’s volume. So far, 514 results have been collected to this point, 71.2 per cent ended positively. CoreLogic reported this clearance rate reduction was largely driven by a rising number of properties passed in (up 3.5 per cent) and a 15.6 per cent withdrawal rate.
The Northern Beaches was the harbour city’s strongest performing sub-region with 88.6 per cent of the region’s 49 auctions ending successfully. Conversely, Sydney’s south-west, which reported a preliminary clearance rate of 38.1 per cent from 41 auctions, was the city’s poorest performing sub-region.
A hefty 30.5 per cent volume decrease saw Melbourne host 517 auctions this past week. Of the 439 results collected so far, 70.2 per cent were successful, marking the 12th consecutive week the Victorian capital’s preliminary clearance rate has held above 70 per cent.
No sub-region held more successful auctions than the city’s outer east, which registered a preliminary clearance rate of 83.9 per cent from 39 auctions. On the opposite end of the spectrum, the Mornington Peninsula was the city’s worst performing sub-region after 57.1 per cent of its 16 auctions ended successfully.
Across the smaller capital cities, Brisbane was the busiest with 132 auctions, followed by Adelaide’s 111 and Canberra’s 68. The South Australian capital hosted more successful auctions (81.8 per cent), followed by Brisbane (64.3 per cent), and Canberra (60.5 per cent).
In Perth, none of the three results so far were successful, while there were no auctions held in Tasmania last week.
CoreLogic is seeing Australian auction activity to dip by -5.2 per cent next week, with 1,450 pencilled in so far, indicating the usual seasonal winter decline has well and truly set in.
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