Strong national auction clearance rate maintained: Shana Miller

GUEST OBSERVATION

Auction volumes increased this week, albeit from a low base due to the Easter long weekend, with 1,568 auctions scheduled across the combined capital cities this week.

A total of 1,014 results were recorded with the preliminary clearance rate remaining stable at 79.0%, up only slightly from 78.9% last week. At the same time last year, 67.2% of all capital city properties taken to auction recorded a successful sale, while volumes were much higher at 3,534; however volumes were elevated in what was last year’s lead up to the Easter long weekend.

As Australia’s largest auction market, Melbourne’s preliminary auction clearance rate was recorded at 77.7% this week, more than 10% higher than at the same time last year, when over the week the auction clearance rate was recorded at 64.4%.

The number of Melbourne homes taken to auction this week was 674, compared to just 63 last week and 1,530 over the same week in 2014. Across Melbourne’s sub-regions, the strongest performers this week were the Outer East region (91.7%), followed by Melbourne’s Inner East, where the clearance rate was recorded at 84.9%.

Sydney vendors continued to experience strong conditions across the auction market this week, with the preliminary auction clearance rate recorded at 84.8% with 619 auctions held across the city.

In comparison, over the previous week, 427 Sydney auctions were held with a highly comparable clearance rate of 84.7%, while one year ago, Sydney’s auction clearance rate was recorded at 74.8% across 1,496 auctions.

This is the ninth week in a row where Sydney’s auction clearance rate has been recorded above the 80% mark. An exceptional result was recorded across Sydney’s Eastern Suburbs this week, with 35 auctions reported to CoreLogic RP Data and 34 of these recording a sale.

Brisbane saw 111 auctions take place this week, with just over half of all results collected recording a sale (50.9%). This week’s preliminary clearance rate is stronger than both last week, when 40.0% of Brisbane auctions sold and at the same time last year, when the final auction clearance rate was recorded at 45.3%. Across the Gold Coast, 57 auctions were held this week, with the preliminary clearance rate recorded at 56.5%.

A total of 80 Adelaide homes were taken to auction this week, with a strong preliminary clearance rate of 88.5%, up from 69.4% at the same time last year, and higher than the 83.3% recorded last week.

Perth’s preliminary clearance rate this week was recorded at 77.8%, up from 60.0% the previous week and also higher than the 43.5% recorded at the same time last year.

76.0% of Canberra auctions were successful this week, which leaves the clearance rate relatively stable when compared to last week (71.8%) and much higher than at the same time last year (55.8%).

There were 10 Tasmanian auctions this week. 7 results were reported to CoreLogic RP Data, with four sales recorded.

Shana Miller is a research analyst at RP Data.