Australian property auction volumes are down a third on a year ago

PETER PARKS / AFP / Getty Images

After a lull due to the footy finals and a long weekend in many parts of the country, Australia’s capital city auction market springs back to life this week led by another busy period in Melbourne.

According to CoreLogic, 2,161 properties are scheduled to go under the hammer, well above the 872 held in the prior week.

Despite the surge, the number is well below the 3,016 auctions that were held in the corresponding week a year earlier.

Though auctions only make up a proportion of total property sales, the decline goes some way to explaining recent weakness in housing credit and loans figures, and an acceleration in price seen in some cities. CoreLogic notes there are currently 231,650 total properties advertised for sale across the country, down 1.9% on the same period a year ago.

By capital, there are 1,085 auctions scheduled for Melbourne, followed by Sydney, Brisbane and Adelaide with 731, 150 and 95 respectively.

Unsurprisingly, Melbourne dominates the list for the busiest suburbs by auction volumes.

“Reservoir in Melbourne is the busiest individual suburb for auctions across the nation this week, with 20 residential homes set to go under the hammer,” notes CoreLogic. “Glen Waverley is also quite busy with 17 auctions whilst Bentleigh East, Essendon, Mount Waverley and Pascoe Vale each have 14 scheduled auctions.”

Last week a national capital city auction clearance rate of 75.8% was achieved, something CoreLogic put down to low volumes due to long weekends and the AFL and NRL grand finals.

Melbourne, at 87.2%, recorded the highest clearance rate of all the capitals, albeit based off results from just 78 auctions.

Here’s how the other capitals fared last week:

Given the lift in auction volumes this week, analysts at CoreLogic suggest that “it will be interesting to see if the recent auction market strength can be maintained”.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.