Login
iscover
It’s an unusually busy winter season for the auction market, as the clearance rate holds above 70 per cent for the 11th week while the number of properties going under the hammer continues to rise.
The week ending 16 July saw 1,518 homes auctioned across the combined capitals – up 6.3 per cent from the previous week.
CoreLogic economist Kaytlin Ezzy said the lift in auction numbers was predominantly driven by the strong activity in the bigger auction markets of Sydney and Melbourne, while auction numbers across the smaller capitals “remained relatively flat”.
Of the 1,132 results collected so far, 72.3 per cent have returned a positive result. This week’s preliminary clearance rate is 2.2 per cent lower compared to last week’s preliminary clearance rate of 74.5 per cent, which was revised to a final rate of 68.4 per cent.
Following the slowdown in auction activity during the school holidays in Victoria, auction activity across Melbourne rebounded 11.4 per cent this week. A total of 636 auctions were held across the city, marking an increase from the 571 homes auctioned last week.
Notably, the Victorian capital was the only capital to record a rise in the preliminary clearance rate this week, with 74.3 per cent of the 502 results collected to date ending in a sale. The figures are up 1.5 percentage points from last week’s preliminary rate of 72.8 per cent, which was revised to a final rate of 68 per cent.
The city’s outer east, where 80.4 per cent of the 78 auctions ended successfully, was Melbourne’s strongest performing subregion. Meanwhile, the city’s West, where only 60.4 per cent of 64 properties that went under the hammer resulted in a sale, was its poorest performing region.
In Sydney, 600 homes across the city were auctioned this week, up from 567 recorded in the previous week. Of the 434 results collected so far, 74.9 per cent resulted in a sale, down 70 basis points from the previous week.
Ms Ezzy noted the decline in the city’s preliminary clearance rate seems to be driven by “a lack of vendor confidence”, with the rate of properties being withdrawn from the market rising to 12.7 per cent while the portion of properties passed in at auction fell to 12.4 per cent.
Despite the decline, the harbour city recorded the highest preliminary clearance rate across the capitals.
The city’s inner west was the most outstanding subregion after 85.1 per cent of its 56 auctions ended successfully.
On the flip side, just 51.6 per cent of south-west’s 45 auctions recorded a positive result, making it the harbour city’s poorest performing subregion.
Across the smaller capital cities, both Adelaide and Brisbane saw 102 homes go under the hammer this week.
These markets also recorded their lowest preliminary clearance rate in four weeks, with 71.4 per cent of the South Australian capital’s auctions and 59.8 per cent of the Queensland capital’s auctions reporting a successful result.
Canberra saw a decline in both the preliminary clearance rate and auction numbers, down -16.3 percentage points and -20.8 per cent, respectively. Of the 57 homes auctioned across the nation’s capital this week, 60 per cent ended in a sale.
In Perth, 20 homes went under the hammer this week, with five having been successful so far. Meanwhile, the lone auction held in Tasmania this week also resulted in a sale.
You are not authorised to post comments.
Comments will undergo moderation before they get published.