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Report shows more property going to auction despite slipping clearance rates

CoreLogic’s latest Quarterly Auction Results report shows that, although clearance rates dropped to their lowest for 2018 in the three months leading to December, the number of properties being taken to auction actually increased significantly.

Across the December quarter of 2018, the combined capital cities saw clearance rates drop to 43.6 per cent, down from 53.6 the previous quarter. The week with the lowest clearance rate was that ending 16 December – 40 per cent across 2,406 auctions.

That’s compared to the highest clearance rate for the quarter, which was seen the week ending 7 October – 49.5 per cent across 1,817 auctions.

These figures clearly show the boost in auction numbers across the three months, indicating that agents and vendors still have faith in the auction process.

All capital cities saw a decline in clearance rates except Tasmania, which remained at 50 per cent across the three-month period. Canberra saw the largest drop: -13.4 per cent from the previous quarter.

But this dip didn’t seem to put sellers off, and the December quarter saw 25,894 homes go under the hammer across the cities – up from 20,653 the previous quarter. This is still down on the previous year; the same quarter in 2017 saw 32,408 homes taken to auction.

Auction volumes increased in non-capital city markets too, but clearance rates also fell in these areas. The Hunter region was hit the hardest with an 18.8 per cent drop in clearance rates, followed by Geelong with -17.3 per cent, Wollongong at -10.2 per cent and the Gold Coast with -5.9 per cent. The Gold Coast region was host to the highest number of auctions over the three months to December 2018 with 616, followed by Geelong at 579.

In terms of where the best results were coming in, Sydney’s Bellevue Hill did the best out of the capital city markets with an 80 per cent clearance rate across 52 auctions over the three months. Windsor in Melbourne saw 71.4 per cent, making it the top of the state, and in Canberra it was Griffith with 58.3 per cent.

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Hannah Blackiston

Hannah Blackiston was an in-house journalist with Elite Agent. She worked with the company from January 2018 to January 2019.