Auction clearance rates in Sydney and Melbourne remained rock-solid last week, with preliminary figures from CoreLogic for both cities coming in at over 80%.
Red-hot levels again, coming despite a sharp uplift in properties being taken to auction, newly-implemented rules from Australia’s banking regulator, APRA, to limit interest-only lending and renewed warnings from the RBA on building financial stability risks as a result of increased leverage being used within the housing market.
They had no impact whatsoever, as seen in the table below from CoreLogic showing preliminary clearance rates across Australia’s capitals last week. The timing of the federal budget in early May, which could include changes to housing policy, may explain the strength seen last week.
“Auction activity ramped up across the combined capital cities this week in the lead up to Easter, with 3,424 homes taken to auction this week, recording the highest volume of auctions year-to-date,” said CoreLogic.
“The preliminary clearance rate remains strong despite the increase in volumes over the week, with 77.6% of auctions reporting as successful.”
The group will release final figures for the week — which have a tendency to be revised down as tardy, often unsuccessful results trickle through — on Thursday.
However, as it currently stands, the preliminary figure is stronger than the 67.1% level registered in the same week a year earlier and the final reading of 75.9% reported in the previous week.
Sydney and Melbourne, at over 80% apiece, clearly drove that national result with no other capital recording a clearance rate in the 80s let alone the 70s.
“Across Melbourne’s sub-regions, the Mornington Peninsula region recorded the highest clearance rate of all the regions, with 87.0% of the 66 auctions successful, followed by the North West region, where an 86.1% clearance rate was recorded across 107 auctions,” said CoreLogic.
For Sydney, the Outer-West and Blue Mountains region recorded the strongest clearance rate of all sub-regions at 90.0%, albeit off low volumes.
The group will released updated figures, including capital city house price movements last week, later on today.