Auction clearance rates improved in most Australian capitals last week

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  • Preliminary clearance rates rose in all Australian capital cities besides Sydney last week.
  • Auction volumes were significantly lower due to public holidays in many states and territories, including in Victoria.
  • Clearance rates for apartments were stronger than those for houses.

Australian clearance rates edged higher last week, helped in part by a steep decline in the number of properties being taken to market.

According to CoreLogic, a preliminary clearance rate of 67.3% was reported across Australia’s capital cities last week, fractionally above the preliminary reading of 65.9% recorded in early March.

It was also higher than the final 63.6% clearance rate reported a week earlier, but below the 75.1% level reported in the same corresponding week a year earlier.

Source: CoreLogic

The group said total auctions near halved during the week due to a public holiday’s occurring in four or Australia’s eight states and territories on Monday.

“There were 1,721 auctions held across the combined capital cities this week, significantly lower than the 3,026 held last week,” it said.

Of the 1,721 auctions held, CoreLogic received results from 1,317. Of those, 893 resulted in a sale.

By type of property, the group said clearance rates for units continued to outperform those for houses nationwide, standing at 70% and 66% respectively for the week.

Source: CoreLogic

Of individual capitals, Canberra, at 77.6%, recorded the strongest result, beating out Adelaide for top spot where 75.4% of reported auctions resulted in a sale.

Of the major markets — Sydney and Melbourne — preliminary clearance rates were flat to higher, a result partially driven by lower stock being taken to market.

“Melbourne and Sydney saw their preliminary clearance rates rise, with Sydney at 66.6% across 936 auctions and Melbourne at 72.2% across 447 auctions,” CoreLogic said.

In the previous week, Sydney and Melbourne hosted 1,088 and 1,524 auctions respectively. Preliminary clearance rates of 66.9% and 67.3% respectively were reported during that week.

Preliminary clearance rates rose across all other capitals during the week.

CoreLogic will release updated weekly dwelling price data for Australia’s five mainland state capitals later today.

In average weighted terms, prices have been steady across Australia in the past two weeks, suggesting to some analysts that the worst of the price declines seen in late 2017 are now over.