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Auction clearance rates suggest Australian property demand is anything but weak

Photo by Mark Metcalfe/Getty Images

Based on recent auction clearance rates and home loan lending data, there’s few signs yet of an imminent slowdown in Australia’s property market.

According to Corelogic RP Data, Australia’s capital city auction clearance rate held above 70% last week, continuing the run seen since the beginning of February.

Of the 2,113 auction results received so far, 1,540 properties were sold, equating to a national clearance rate of 72.4%.

The figure, above the 71.8% rate of the previous week, was down slightly on the 76.4% level of the same corresponding week a year earlier.

“This week marks the fourth consecutive week of the combined capital city clearance rate being above the 70% mark, with the stronger than expected auction results continuing through the final week of February,” said Corelogic RP Data.

“Capital city auction results haven’t recorded a four week period where the clearance rates was consistently higher than 70% since early September last year.”

The table below, supplied by the group, reveals the performance across Australia’s capitals last week. Yet again, the national figure was largely reflective of continued strength in the Sydney and Melbourne property markets.

While clearance rates for Sydney and Melbourne remain below levels seen in mid-2015, there is little in the figures to suggest that demand for property is weakening. Indeed, if you look at the the four-week average of auction clearance rates, it appears that demand, if anything, is moving back towards the lofty peaks seen in early 2015.

Tomorrow Corelogic RP Data will release its capital city house price index for February, something that, based on data received over the first 28 days of February, will likely show broad-based house price gains in all capital cities aside from Perth.

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