Capital cities see a big drop in late 2018 clearance rates: CoreLogic

Capital city clearance rates have dropped to just 43.6 per cent in the three months to December 2018, according to recent CoreLogic findings.

CoreLogic found, it was down from 53.6 per cent over the previous quarter and 62.3 per cent over the same period a year prior.

The lowest weekly clearance rate for the quarter was recorded over the week ending 16 December (40 per cent across 2,406 auctions), while the highest clearance rate was recorded over the week ending 7 October (49.5 per cent across 1,817 auctions).

The findings stated, "Individual capital cities saw a decline in clearance rates everywhere except Tasmania, which remained unchanged at 50 per cent."

"The largest fall in clearance rates was seen across Canberra (down -13.4 per cent from the previous quarter), followed by Adelaide (-12.2 per cent), Perth (-11.9 per cent) and Melbourne (-11.2 per cent).

"Activity actually increased over the December quarter with 25,894 homes taken to auction across the combined capital cities (up from 20,653 over the September quarter), but current volumes remain much lower than the same period last year, when 32,408 homes were taken to auction," according to their findings.

Capital city auction clearance rate & volumes: 

• Sydney 43.1 % (8,828 auctions) 
• Melbourne 45.4 % (12,372 auctions) 
• Brisbane 31.8 % (1,642 auctions) 
• Adelaide 48.5 % (1,423 auctions) 
• Perth 25.0 % (499 auctions) 
• Tasmania 50.0 % (40 auctions) 
• Canberra 46.9 % (1,090 auctions) 
• Combined capitals 43.6 % (25,894 auctions)

Highest number of auctions for the quarter across capital city suburbs: 

• Melbourne: Reservoir 216 
• Sydney: Mosman 126 
• Brisbane: Camp Hill 39 
• Adelaide: Prospect 33
• Canberra: Griffith & Narrabundah 32 
• Perth: South Perth 15

Highest clearance rate for the quarter by capital city suburbs:

• Sydney: Bellevue Hill 80.0% (captured results: 40, scheduled auctions: 52, number sold: 32)
• Melbourne: Windsor 71.4% (captured results: 21, scheduled auctions: 24, number sold: 15)
• Canberra: Griffith 58.3% (captured results: 24, scheduled auctions: 32, number sold: 14) 
• Adelaide: Prospect 57.6% (captured results: 33, scheduled auctions: 33, number sold: 19) 
• Brisbane: Ashgrove 33.3% (captured results: 21, scheduled auctions: 27, number sold: 7)

CoreLogic found that, in non-capital city markets, auction volumes increased across all five regions over the December quarter when compared to the previous quarter, but mirroring the combined city results, clearance rates have fallen over the same period too.

The largest fall in clearance rates was seen across the Hunter region, down -18.8 per cent over the quarter, followed by Geelong (-17.3 per cent), Wollongong (-10.2 per cent), Gold Coast (-5.9 per cent) and the Sunshine Coast (-3.1 per cent).

The Gold Coast region was host to the highest number of auctions over the 3 months to December 2018 (616), followed by Geelong (579).