Australian auction clearance rates remain firm, and not just in Sydney and Melbourne

Photo: Fiona Goodall/Getty Images.

Whether due to the selloff in financial markets on Friday or other factors, Australian capital city auction clearance rates dipped modestly last week, although they remain at elevated levels.

And the strength previously isolated to the Sydney and Melbourne markets appears to be spreading to other mainland capitals.

According to CoreLogic, a preliminary auction clearance rate of 76.4% was achieved last week, down marginally on the 77.1% figure seen a week earlier. Although slightly softer, it was up on the 71.2% clearance rate achieved the same week a year earlier, albeit on significantly reduced volumes.

Of the 2,026 properties that went under the hammer, the group received results from 1,683. Of those, 1,306 properties were sold. In the same corresponding week in 2015 there were 2,654 properties that were taken to auction.

CoreLogic will release final figures for the week on Thursday. If the past pattern is repeated, it’s likely to be lower than the preliminary figure as results — often reporting that a property failed to sell — are reported.

As the table from CoreLogic reveals below, while Sydney and Melbourne continue to lead, there are clear signs of strength emerging in other markets, particularly in Adelaide and Canberra.

Fitting with the trend seen in clearance rates, property prices continued to lift, in some cases by eye-watering amounts.

CoreLogic’s separate capital city home value change index, somewhat at odds with other house price gauges, rose by 0.7% over the week, led by a substantial 1.3% gain in Melbourne prices.

Reduced supply, compared to historic norms at this time of year, is clearly a contributing factor.

Sydney is still the hottest capital city housing market this year based off changes in the index. It logged an increase of 0.8%, outpacing gains of 0.3% and 0.1% for Adelaide and Brisbane.

Perth, perhaps predictably given continued weakness in clearance rates, saw prices fall 0.6%, leaving them down 5.6% year to date.

The index tracks changes in house prices across Australia’s mainland state capitals:

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