There's now little doubt that Australian auction clearance rates are improving

Photo: iStock
  • Auction clearance rates improved again last week in Australia
  • Clearance rates rose in all capitals aside from Perth and Sydney
  • Auction volumes look set to fall in the coming week

Australian auction clearance rates are improving following a sharp slump late last year.

According to CoreLogic, a final clearance rate of 66.8% was reported across the country last week, up from 66.1% a week earlier.

Making the small increase all the more impressive, it came despite a huge lift in the number of properties being taken to market, rising from 1,992 to 3,313, the highest level seen this year.

As seen in the chart below, clearance rates nationally appear to be turning up.

Source: CoreLogic

Here’s the performance of each individual market over the week.

Source: CoreLogic

The national increase was driven by improved performances from all capitals except for Sydney and Perth.

“Melbourne‚Äôs final auction clearance rate last week maintained strength across a significantly higher volume of auctions week-on-week with a total of 1,606 auctions held across the city returning a 70.6% rate of clearance,” CoreLogic said.

“[This was up] from the week prior when 69.8% of the 932 auctions held were successful.”

Clearance rates also rose in Adelaide, Brisbane, Canberra and Tasmania despite a higher number of auctions.

Clearance rates in Perth were largely unchanged while those in Sydney fell.

“In Sydney a final auction clearance rate of 65.1% was recorded across 1,259 auctions, down from the previous weeks 67.8% level when 737 auctions were held,” CoreLogic said.

Despite the small decline, clearance rates in Australia’s largest city have improved sharply from the levels seen late last year, coinciding with a moderation in price declines from previous months.

This table shows how individual areas of Sydney and Melbourne performed last week.

Source: CoreLogic

Looking to the weekend ahead, CoreLogic is currently tracking 2,762 capital city auctions this week, down from 3,313 held last week.

“Both Melbourne and Sydney are set to see fewer auctions take place this week,” the group says.

“1,411 Melbourne homes are currently scheduled to go under the hammer, down from 1,606 last week. 978 auctions are scheduled across Sydney, decreasing from the 1,259 auctions held last week.”

Auction volumes will also decline in all other capitals aside from Adelaide where the number is relatively unchanged.

NOW READ: Australian home prices are still falling — but there are signs it may not last

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