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After an uplift over the last week of July, August’s first auction figures stall on previously strong winter figures.
The latest Property Market Indicator Summary for the week ending 6 August 2023 from CoreLogic showed that auction activity was down -11.7 per cent over the first week of August, following three weeks of upward-trending activity.
A total of 1,742 auctions were held across Australia’s major capital cities. While a drop from the 1,973 auctions that took place over the last week in July, this week’s preliminary figures were on par with the 1,734 auctions that took place two weeks ago – and markedly higher than the 1,471 auctions that took place over the same period in 2022.
Based on preliminary results, the clearance rate jumped for the first time in three weeks to 71 per cent – an 80 basis point lift on the preliminary clearance rate recorded one week ago.
That rate revised down to 64.9 per cent at final numbers, which was higher than the final clearance rate reported over the same period in 2022, at 56.6 per cent.
Sydney saw the most unusual figures for the week, with 702 homes up for grabs via auction, which was a 6.3 per cent drop in activity from the week prior when 749 homes went under the hammer.
Despite less activity, the city couldn’t muster up a stronger clearance rate, with the NSW capital seeing its preliminary clearance rate drop below 70 per cent for the first time since March to 69.1 per cent.
That was -3.3 per cent lower than last week’s reported preliminary clearance rate of 72.4 per cent, which revised down to 66.7 per cent at final count.
As well as a decline in the clearance rate, the city also saw its withdrawal rate rise to 16.9 per cent from 11.99 per cent the week prior.
Even with the lower figures, Sydney is still outperforming its historical figures. Over the same period in 2022, just 56.4 per cent of the 480 auctions held across the city found buyers.
Melbourne also saw its auction figures drop despite the inverse effect on its clearance rate. The number of homes that went under the hammer dropped by -12.5 per cent to 761 homes.
Even so, the city recorded a preliminary clearance rate of 71.9 per cent – the first time the Victorian capital has achieved a clearance rate above 70 per cent for the past three weeks.
Last week, 870 homes up for grabs saw a preliminary clearance rate of 69.9 per cent, which revised to 63.7 per cent at final figures.
Looking to the smaller capitals, Adelaide was the busiest market for the period, with 105 homes going under the hammer, followed by Brisbane, which recorded 83 auctions, and Canberra, which had 82 homes vying for buyers.
Adelaide saw its preliminary clearance rate land at 76.7 per cent, while Brisbane reported a preliminary clearance rate of 74.6 per cent, followed by Canberra at 71.4 per cent.
In Perth, two of the five homes that went under the hammer found buyers, while Tasmania had a 50 per cent success rate from a total two auctions.
Despite this week’s drop in activity, CoreLogic is expecting an uplift for the first full week of August, with “just shy” of 2,000 homes across Australia’s capital cities scheduled in for auction.
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