Australian auction clearance rates softened last week as more properties went under the hammer

Mark Metcalfe/Getty Images
  • Australian auction clearance rates softened last week as more properties went under the hammer.
  • Clearance rates fell in Sydney and Melbourne, pointing to the likelihood that prices in both cities will continue to ease in the period ahead.
  • CoreLogic will release two reports on home prices this week, including one today.

Australian auction clearance rates softened last week as more properties went under the hammer.

According to CoreLogic, a preliminary combined capitals clearance rate of 58.4% was achieved, down marginally from 60.6% reported seven days earlier.

A total 1,534 properties were taken to auction, an increase from 1,257 in the prior week.

Of those that went under the hammer, CoreLogic received results from just 1,177, pointing to the likelihood of a steep downward revision when final figures are released on Thursday.

691 properties sold prior, at or after auction while 486 failed to clear, including 83 homes that were withdrawn prior to hitting the market.

In the prior week, a final clearance rate of 57% was achieved. One year ago, a national combined capitals clearance rate of 68.7% was achieved.

CoreLogic

Reverting to the theme seen over much of the past few months, clearance rates for units were far stronger than for houses, standing at 63.1% and 56.5% respectively for the week.

Across the capitals, and explaining the national decline, clearance rates in Melbourne and Sydney fell over the week, more than offsetting a mixed performance across smaller markets.

Melbourne’s preliminary clearance rate fell to 60.3%, down from 62.3% reported seven days earlier.

803 properties went under the hammer, up from 612 one week earlier. CoreLogic received results from 668, hinting that Melbourne’s final clearance rate will likely be revised down to the mid-50% region.

In the prior week, Melbourne’s final clearance rate stood at 59.9%.

CoreLogic

Like Melbourne, Sydney’s preliminary clearance rate also fell during the week, dropping from 61.3% to 56.6%.

465 properties were taken to auction, up slightly from the 400 level one week earlier. Only 339 results were received by CoreLogic, pointing to the likelihood of a final clearance rate of around 50%.

Previously, Sydney recorded a final clearance rate of 55.2%.

Across the smaller capitals, preliminary clearance rates rose in Brisbane, Perth and Canberra but fell in Adelaide. The stronger results across most of these markets came despite an increase in activity over the week.

It also suggests the recent divergence in prices between Sydney and Melbourne and other capital city markets will likely continue in the period ahead.

We’ll get further information on that front later today when CoreLogic releases weekly price movements for Australia’s five mainland state capitals.

The group will also release its more comprehensive monthly Home Value Index for July on Wednesday, including price movements across smaller capital city markets and regional areas.

In June, Australia’s median home price fell 0.2% to $556,384, largely reflecting declines in the top end of the market.

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