Auction clearance rates up across capitals

Auction clearance rates across the capital cities combined have increased over the week, rising from 66.0 per cent last week to 68.7 per cent this week, according to RP Data.

At 72.8 per cent, Sydney recorded its third consecutive week of auction clearance rates above 70 per cent.

While the clearance rate saw an increase from 71.9 per cent last week, the number of auctions across the city fell slightly from 593 last week to 588 this week.

The Australian Property Monitors (APM) recorded a clearance rate of 77.4 per cent for Sydney, which was the city’s best result in 10 years.

Senior economist for APM, Dr Andrew Wilson said buyer activity in Sydney’s auction market had continued to rise since Easter, following strong results over April and May.   

In Melbourne, RP Data recorded an increase in auction clearance rates this week, rising from 68.1 per cent last week to 71.2 per cent.

APM reported that Melbourne’s clearance rate was 67.8 per cent, which was similar to last week’s result of 68.6 per cent.

The Real Estate Institute of Victoria (REIV) recorded a clearance rate of 73 per cent for Melbourne, a rise from 69 per cent last weekend and 55 per cent this time last year.

There were 601 auctions reported to the REIV this weekend, with 437 selling and 164 being passed in - 76 of those on a vendor bid.

“The slight increase in the clearance rate this week may be due to the First Home Owner Grant for established dwellings coming to an end on 30 June 2013,” said CEO Enzo Raimondo.

According to director of the Jason Andrew Group, Jason Andrew, the last two weeks of June had brought better results as vendors began to moderate their expectations on auction days.

“Many vendors coming to market this year have held onto inflated price expectations, largely driven by media reports of a market recovery that is yet to appear and is not evident on the horizon,” he said.

“While buyer activity remains elevated compared to the corresponding period in 2012, the clearance rate in June last year was 52 per cent."

The latest data from the Jason Andrew Group found that there were polarised expectations between seller and buyer price expectations in Queensland. This had led to an overall drop in the June clearance rate to 46 per cent.

However, Mr Andrew said if buyers continued to remain active and sellers continued to moderate their expectations based on their understanding of current marketplaces, the market would see an ongoing increase in the clearance rate.

“Traditionally, there are less properties available for sale in winter, so the next two months will offer realistic vendors the opportunity to transact in a less competitive environment than the one they may experience later in the year,” said Mr Andrew.

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