- Australian auction clearance rates softened last week, led by renewed weakness in Melbourne and Sydney.
- 1,890 auctions were held, up from 1,839 a week earlier.
- Canberra and Adelaide recorded the strongest preliminary clearance rates last week.
Australian auction clearance rates softened last week, led by renewed weakness in Melbourne and Sydney.
According to CoreLogic, a combined capital city preliminary clearance rate of 64.5% was reported, down from the 65.3% preliminary result in the first full week of April.
Of the 1,890 auctions held during the week, the group received results from 1,535. Of those, 993 properties changed hands while 542 failed to sell.
The preliminary result was slightly above the prior week’s final figure of 62.8% when 1,839 auctions were held.
However, with a large number of results yet to be reported, the final clearance rate is likely to be revised down to the low 60% region as late, often unsuccessful outcomes, are reported to Corelogic.
The group will release final results for the week on Thursday.
As seen in the chart below from CoreLogic, while clearance rates remain above the levels seen late last year, the trend has been lower over the past month or so.
By type of dwelling, CoreLogic said preliminary clearance rates for units continued to outperform those for houses, standing at 69.1% and 62.4% respectively for the week.
Helping to explain the decline in the headline rate, CoreLogic said preliminary clearance rates in Melbourne and Sydney both softened from a week earlier.
In Melbourne, the busiest individual market last week, just 64.3% of reported auctions resulted in a sale, down from the preliminary estimate of 69.6% in the prior week. The result was also below the final clearance rate of 68.2% reported over that period.
874 properties went under the hammer, below the 720 number of a week earlier.
In Sydney, a preliminary clearance rate of 64.9% was reported, down from the preliminary reading of a week earlier of 67.1%. 774 properties were put up for sale, almost unchanged from the prior week.
The preliminary result was marginally above the 62.9% final clearance rate reported in the prior week.
However, fitting with the recent divergence in price data, preliminary clearance rates rose in all other capitals week-on-week, an outcome that may have been helped by a lower number of properties being taken to auction.
Canberra, at 74.3%, recorded the highest preliminary clearance rate of any capital at 74.3%, edging out Adelaide where 70.6% of auctions cleared.
Here’s how each individual capital fared over the week.
Following the release of the preliminary auction report, CoreLogic will release updated weekly price data for Australia’s mainland state capitals later today.
Prices have been falling in average weighted terms since the beginning of the year, largely reflecting continued weakness in the Sydney and Melbourne markets.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.