Increased auction activity has kickstarted the month of May, boding well for the continued strength of Australia’s major auction markets.
CoreLogic has reported that capital city auction volumes have rebound once again, after a 20 per cent fall recorded last week.
The research group reported that 2,876 homes were taken to auction across the combined capital cities in the week ending 2 May 2021. Of the 2,425 results collected so far, 80.4 per cent returned successful clearances.
This was significantly higher than the previous week’s 2,087 auctions, which yielded a final clearance rate of 77.2 per cent.
Both results were far higher than 2020, when only 47.5 per cent of 612 auctions were successful, as restrictions around onsite auctions and inspections dampened much of the nation’s auction activity.
Homing in on the capital cities, Perth emerged with the highest preliminary clearance rate at 92.3 per cent, followed by Canberra with 90.6 per cent, Adelaide with 86.1 per cent, Sydney with 83.5 per cent, Melbourne with 77.1 per cent and Brisbane with 64.9 per cent.
All capital cities saw auction activity rise, with Melbourne recording the highest number of auctions at 1,277, followed by Sydney at 1,121.
Adelaide reported 201 auctions, Brisbane had 133, Canberra had 120, Perth had 22 and Tasmania had 2.
Looking at the weekly change in home values, CoreLogic pointed to a 0.4 of a percentage point growth in combined capital city values over the same week.
Of the capital cities, only Sydney surpassed the average, recording a weekly rise of 0.7 of a percentage point. This was followed by Adelaide with 0.4 of a percentage point, Brisbane with 0.3 of a percentage point, Melbourne with 0.2 of a percentage point, and Perth with 0.1 of a percentage point.
Month-on-month data saw Sydney maintain its lead with a 2.3 per cent increase. It was followed by Adelaide with 1.9 per cent, Brisbane with 1.6 per cent, Melbourne with 1.2 per cent and Perth with 0.7 of a percentage point.
Year-to-date changes still pointed to Sydney as the winner, further widening its gap from other capital cities with a rise of 9.4 per cent. This time, Brisbane came in second with 6.6 per cent, followed by Melbourne with 6.4 per cent, Perth with 5.9 per cent and Adelaide with 5.3 per cent.
Over the most recent four-week period, Sydney and Canberra clocked the highest capital city private treaty median price for houses at $870,000 and $850,000, respectively — surpassing the capital city average of $676,504.
Sydney also held the pole position for units, with a private treaty median of $653,000, while Melbourne followed with an average figure of $565,000.
On the other hand, Adelaide was the most affordable capital city for houses, with the private treaty median price sitting at $500,000. Brisbane has taken the crown for most affordable units, with median prices sitting at $405,000.
Private treaty sales now represent around 85 per cent of all dwelling sales across the country, according to CoreLogic.
Average time on market for houses was shortest in Sydney at 27 days, followed by Hobart (28), Melbourne (30), Adelaide (31), Perth (33), Canberra (34) and Brisbane (39). Darwin had the longest time on market at 41 days.
For units, Hobart recorded the lowest number at 21 days, while Brisbane was the highest at 51 days, followed by Darwin (47), Melbourne (40), Adelaide (39), Sydney (38), Canberra (37) and Perth (36).