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In defiance of the slowdown in activity typically observed in the run up to winter season, capital cities bucked the seasonal trend with a preliminary clearance rate above 70 per cent for the fourth consecutive week.
According to CoreLogic’s data, the week ending 28 May 2023 saw 1,912 homes go under the hammer across the country.
While the figures are almost at par with the 1,921 auctions held last week, auction activity was significantly higher this time last year (3,226) when the market downturn was just starting to gather momentum.
So far, 75.9 per cent of the 1,522 results in the combined capitals collected have returned a positive result, marking the fourth consecutive week where at least seven out of every 10 auctions ended in a property being turned over to a new owner.
The latest preliminary clearance rate across capitals not only marks the highest level since November 2021 but also demonstrates a significant increase compared to the 59.3 per cent success rate seen during the same period last year.
Notably, the figures are only slightly lower than the previous week’s preliminary clearance rate of 75.3 per cent, which was revised to 70.4 per cent at final figures.
CoreLogic researcher Kaytlin Ezzy noted the continued strength in the clearance rate is yet more evidence indicating the market has moved “past its floor”.
“If selling conditions remain favourable, we could see more vendors testing the market this winter in hopes of beating the rush of listings come spring,” she stated.
Melbourne continued to be the epicentre of auction market activity, as the Victorian capital hosted 858 auctions, just up one from the 857 auctioned last week but 41.9 per cent fewer than the 1,478 held this time last year.
Of the 708 results reported so far, 77.1 per cent have returned a successful result, marking the seventh consecutive week the Victorian capital has registered a preliminary clearance rate above 70 per cent.
Notably, the city’s 74.4 per cent preliminary clearance rate in the previous week was revised to 69.6 per cent when the figures were finalised.
Melbourne’s south-east was its strongest-performing sub-region after it recorded a preliminary clearance rate of 85.9 per cent from 100 auctions, while Mornington Peninsula was the poorest-performing sub-region after only 60 per cent of its 13 auctions resulted in properties changing hands.
Sydney was host to 708 auctions, down 5.2 per cent from the 747 auctions held last week.
The NSW capital has recorded a preliminary clearance rate of 78.5 per cent from 562 results collected so far. This marks the ninth consecutive week the city’s preliminary clearance rate has held above 70 per cent.
Ms Ezzy attributed improvement in the clearance rate to stronger buyer demand, with the portion of properties passed in at auction falling to 10.3 per cent, while the withdrawal rate inched higher to 11.2 per cent.
Sydney’s preliminary rate of 78.2 per cent in the previous week was revised to 72.1 per cent at final figures.
With a preliminary clearance rate of 95.5 per cent from 81 auctions, Blacktown was the harbour city’s strongest-performing sub-region, On the other end, Central Coast was the poorest-performing region with only 50 per cent of the 16 auctions held ending successfully.
Among the smaller capital cities, Brisbane emerged as the frontrunner with 140 auctions, closely trailed by Adelaide with 117 auctions. Both cities witnessed a notable increase in auction activity this week, with the Sunshine state capital experiencing a rise of 14.8 per cent and South Australian capital seeing a growth of 11.4 per cent week-on-week.
Canberra rounded up the top three with 72 properties going under the hammer in the nation’s capital during the period.
In terms of preliminary clearance rates, the highest percentage was achieved by Adelaide at 81.8 per cent, followed by Canberra (67.8 per cent) and Brisbane (60.3 per cent).
Three of the 11 results collected in Perth this week were successful, while no auctions were held in Tasmania this week.
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