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Despite activity falling in line with temperatures, Australia’s preliminary clearance rate increased to its highest point in three weeks, according to CoreLogic.
The week ending 25 June saw auction activity drop 8 per cent with 1,790 homes taken to auction across a chilly winter weekend. Despite this, the research firm reported a higher portion of the 1,285 results collected so far ended successfully this week (73.8 per cent) than in any of the previous three weeks. This represents the eighth consecutive week the national preliminary clearance rate has held above 70 per cent.
Such results starkly contrast those reported 12 months ago, when 56.8 per cent of auctions were successful, a sign of the national markets recovery from the early implications of the Reserve Bank of Australia’s (RBA) monetary policy tightening cycle.
Sydney held more auctions than any other market this week with 733 auctions hosted across the harbour city, down 4.1 per cent on last week. From 507 results collected so far, the NSW capital reported a preliminary clearance rate of 78.7 per cent.
Blacktown registered a near-perfect auction recorded this past week, with 96.6 per cent of the region’s 63 auctions returning a positive result, marking it as the city’s most positive subregion. Conversely, both Sydney’s Eastern Suburbs and Outer West and Blue Mountains laid claim to the city’s poorest performing sub-region after both reported a preliminary clearance rate of 70 per cent from 76 and 14 auctions, respectively.
Melbourne, where 730 auctions were hosted, reported a preliminary clearance rate of 70.1 per cent, its lowest figure in 11 weeks. The inner south, which recorded an 82.4 per cent success rate from 91 auctions, was the city’s strongest performing subregion, while the west, where just over half of the 95 auctions ended positively, was the Victorian capital’s poorest performing subregion.
Among the smaller capitals, Brisbane hosted the most auctions (135), followed by Adelaide (103), and Canberra (78), with the national capital reporting the largest week-on-week increase (26).
The South Australian capital reported a higher success rate than any other capital (79.7 per cent), followed by Canberra (72 per cent), and Brisbane (67.5 per cent). In Perth, three of the seven results collected so far have been successful, while the one auction scheduled in Tasmania this week was withdrawn.
According to CoreLogic, capital city auction rates are set to reduce further next week as the nation buries itself deeper within winter. So far, a 10.5 per cent activity decline is forecast with 1,600 homes pencilled in to go under the hammer.
The research firm reported this trend reflects the typical seasonal winter decline in activity as many vendors hold their properties until the market heats up again in spring.
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