- Australian auction clearance rates remain entrenched at multi-year lows.
- Final clearance rates across every capital city market came in below 50% last week. Sydney’s success rate was the lowest since December 2008.
- Auction volumes will lift again this week, largely reflecting a surge in Melbourne.
Australian auction clearance rates remain entrenched at multi-year lows.
According to CoreLogic, 43.3% of reported auctions cleared last week, lifting marginally from the six-year low of 42.3% recorded in early November.
The modest increase came despite a lift in auction volumes across the capitals, rising to 2,386 from 1,541 seven days earlier.
Melbourne’s clearance rate rose to 46.2%, up from 45.7% a week earlier, despite a sharp increase in activity following the conclusion of the Melbourne Cup Carnival.
In contrast, Sydney’s clearance rate fell to 42.1% from 42.6% in the prior week. It was the weakest result since December 2008.
Auction volumes in the city increased modestly from seven days earlier.
Across the smaller auction markets, clearance rates improved across Brisbane but fell in Adelaide, Canberra, Perth and Tasmania.
No capital city monitored recorded a clearance rate of more than 50%.
In what will provide a stern test of market conditions at a time when demand is soft, auction volumes will lift again in the coming week, increasing to 2,602.
1,300 homes will go under the hammer in Melbourne, increasing from 1,127 last week. In Sydney, volumes are expected to remain steady at 845.
Elsewhere, Adelaide will see a decline in activity while Brisbane, Perth and Tasmania will see auction activity increase.
Canberra will see little change compared to a week earlier.