Combined capital clearance rates have risen to an eight-week high after plummeting for an extended period of time as buyer confidence plunged.
New data has shown that finalised combined capital clearance rates rose to 49.7 per cent in the week ending 26 July, the highest in eight weeks.
Cotality’s Market Indicator Summary showed that the result was 4.4 percentage points higher than the previous week’s 45.3 per cent, and 2.3 points above the four-week average of 47.4 per cent.
Despite being an eight-week high, the clearance rate was still well below the 68.5 per cent in the same week last year.
There were 1,415 auctions across the capital cities last week, which was a 3.5 per cent increase from the previous one, but 17.3 per cent fewer than the 1,710 auctions held in the same week last year.
Sydney’s clearance rate saw the sharpest increase, rising by 10.9 percentage points to 53.3 per cent, marking the highest result among the capitals and its best clearance rate in 17 weeks.
However, the number of auctions fell by 3.8 per cent to 426.
Melbourne’s clearance rate rose by 1.1 percentage points to 51.7 per cent, its strongest result in the past five weeks, with 710 homes auctioned, an 18.5 per cent increase from the previous week.
Brisbane recorded a clearance rate of 29.5 per cent – its lowest rate in two weeks and the weakest among the major mainland markets.
Meanwhile, Adelaide’s clearance rate was relatively steady at 49.0 per cent, up 0.8 points, and 51.4 per cent of Canberra auctions returned a successful result, rising sharply by 20.4 points.
Perth cleared 20.0 per cent of 10 auctions, and Tasmania held no auctions after a single unsuccessful auction the week before.
Cotality said the market was clearing both fewer properties and a smaller proportion than it was 12 months ago.
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