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Capital city auctions record highest clearance rate in more than a year

The combined capital cities have recorded their highest preliminary auction clearance rate since November 2021, with 75.9 per cent of properties selling under the hammer last week.

According to CoreLogic’s latest Property Market Indicator Summary, the result was the best since the 76.1 per cent preliminary clearance rate recorded in about 18 months.

“The continued strength in the clearance rate is yet more evidence indicating the market has moved past its floor,” CoreLogic research analyst Duane Kaak said.

“If selling conditions remain favourable, we could see more vendors testing the market this winter in hopes of beating the rush of listings come spring.”

Mr Kaak also said auction numbers were also higher for this time of year than would traditionally be the case.

“In defiance of the easing trend usually seen this time of year, capital city auction numbers held firm this week, with 1912 homes taken to auction across the combined capitals,” he said.

“With 1522 results collected so far, the combined capital’s preliminary clearance rate (75.9 per cent) rose 60 basis points this week, overtaking the week prior (75.3 per cent, revised to 70 per cent at final numbers) as the combined capital’s highest preliminary rate since early November 2021 (76.1 per cent).”

Sydney recorded the highest preliminary clearance rate, with 78.5 per cent of properties selling at auction. 

Mr Kaak said the Harbour City hosted 708 auctions, down 5.2 per cent from the 747 auctions held the week before, but with a clearance rate 30 basis points higher than the previous week.

“This week tied with the week ending 7th May as Sydney’s highest preliminary clearance rate over the year to date and the highest rate since mid-February 2022 (79.6 per cent ).

“Improvement in the clearance rate was driven by buyer demand, with the portion of properties passed in at auction falling to 10.3 per cent, while the withdrawal rate inched higher to 11.2 per cent. 

“Over the same week last year, Sydney hosted 1,109 auctions and a clearance rate of 56.4 per cent.”

Across Melbourne, 858 homes went under the hammer this week, one more than the 857 auctioned last week but down on the 1,478 held this time last year. 

“Melbourne’s preliminary clearance rate held above 70 per cent for the seventh consecutive week, with 77.1 per cent of the 708 results collected so far returning a successful result,” Mr Kaak said.

“Last week’s preliminary clearance rate (74.4 per cent), which revised to 69.6 per cent at final figures, was 2.7 percentage points lower, while this time last year, 60.4 per cent of auctions were successful.”

In the smaller capitals, Brisbane hosted 140 auctions, while in Adelaide 117 were held, with activity up 14.8 per cent and 11.4 per cent respectively.

“Adelaide recorded the highest clearance rate across the smaller capitals, at 81.8 per cent, followed by Canberra (67.8 per cent) and Brisbane (60.3 per cent),” Mr Kaak said.

Canberra’s auction numbers held steady, at 72, while three of Perth’s 11 collected auction results were sales. 

There were no auctions in Tasmania.

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