Australian auction clearance rates have fallen to a 1-year low

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Australian capital city auction clearance rates are at a one-year low, falling for a fifth consecutive week.

Here’s the final figures released by CoreLogic earlier today, along with a chart showing the national trend over the past six years.

Source: CoreLogic

At 66.5%, the final national figure was marginally below the 66.7% level of the previous week, and left it at the lowest level since late June 2016.

“Clearance rates across Melbourne and Sydney were relatively stable week-on-week, with Sydney recording a clearance rate of 68.2% across 939 auctions last week, compared to 68.0% across 927 auctions the previous week,” said CoreLogic.

“Melbourne recorded a final clearance rate of 70.7% across 1,047 auctions last week, down slightly from 71.0% across 1,129 auctions over the previous week.”

While the figures for those markets — the largest in the country by some margin — have fallen in recent months, both remain at levels that have historically heralded modest annual price growth, rather than flat outcomes or declines.

Several factors, including recent regulatory changes from APRA, affordability constraints and tighter capital controls in China, have likely contributed to the softening in clearance rates in Australia’s largest capitals.

Of the other smaller markets, Corelogic said that the performance was varied last week with clearance rates improving in Canberra and Perth while those in Adelaide, Brisbane and Tasmania fell.

Looking ahead, the group says auction volumes look set to decline noticeably this week with 1,820 properties set to go under the hammer, down from 2,355 previously.

This infographic shows how many auctions are scheduled across the capital cities.

Source: CoreLogic

Randwick in Sydney is the busiest individual market with 17 auctions scheduled to take place.

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