Australian clearance rates have steadied at levels consistent with modest house price growth

Photo by Brad Barket/Getty Images

Australian capital city auction clearance rates remain at levels consistent with modest growth in house prices.

According to preliminary figures released by CoreLogic on Sunday, a national clearance rate of 71.5% was achieved last week, rising slightly from the levels reported a week earlier.

“The first week of August saw fewer auctions held across the combined capital cities, with 1,846 held this week, down from the 1,987 auctions held last week,” the group said.

“Over the last month, auction volumes have remained relatively steady and while clearance rates have shown a softening, with final results consistently in the high 60% range since the first week of June.”

This table from CoreLogic shows how individual capital city markets fare last week, comparing clearance rates and auction volumes to those seen in the same corresponding week in 2016.

Source: CoreLogic

Melbourne retained the title as the hottest auction market of all Australian capitals, edging out Perth, Sydney, Canberra and Adelaide for top spot last week.

“In Melbourne, Australia‚Äôs largest auction market, 75.7% of the 799 reported auctions sold this week,” said CoreLogic.

“The strongest clearance rate was recorded across the North West region and Mornington Peninsula region, where an 87.0% and 79.2% rate of clearance were recorded respectively.”

In Sydney, Australia’s other major auction market, preliminary clearance rates edged up to 71.1% from a final reading of 65.4% in the previous week.

“Across the Central Coast region, where 17 results have been reported so far, the preliminary clearance rate was 64.7%, while across City and Inner South (84.9%) and Inner West (82.1%) the success rate of reported auctions was much higher,” CoreLogic said.

All other capitals aside from Brisbane recorded preliminary clearance rates of 69% or higher last week.

The preliminary national result points to the likelihood that the final clearance rate for the week — released on Thursday — will print in the high 60% region, consistent with the levels seen in recent months.

These levels have historically corresponded with 10% per annum gains in Australian capital city house prices in average weighted terms.

CoreLogic will release updated information on house price movements last week later in today’s session.

In July, Australian capital city prices rose by 1.5% in weighted terms, leaving the increase on a year earlier at 10.5%.

Melbourne, home to the highest clearance rates at present, led gains across the country with the median dwelling price in the city jumping 3.1% from a month earlier.

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