Australian capital city auction clearance rates remained firm in early Autumn, led by continued strength in the red-hot Sydney and Melbourne property markets.
According to preliminary data released by CoreLogic, a national clearance rate of 77.8% was recorded, down marginally on the 78.4% level reported in the previous corresponding week, which was the highest level reported since June 2015.
And the pattern of early 2017 continued, with Sydney and Melbourne both recording preliminary clearance rates of over 80%.
“Sydney saw the clearance rate remain above 80% for the fourth week in a row, and Melbourne for the second week in a row, while across the remaining cities week-on-week results showed a fall in clearance rates with the exception of Perth where results improved, and Tasmania, which remained unchanged over the week,” said CoreLogic.
As seen in the table below from CoreLogic, both the number of properties being taken to auction, along with the national clearance rates, were significantly higher than the same corresponding week in 2016.
“Over the corresponding week last year, both the combined capital city clearance rate and the number of auctions were lower, with 2,304 auctions held and 68.% reported as successful,” CoreLogic said.
The continued strength in clearance rates in Sydney and Melbourne suggests that there’s no shortage of demand in the cities despite some enormous price increases in the past year.
According to data released by CoreLogic last week, the median dwelling price in Sydney and Melbourne rose by 2.6% and 1.5% respectively in February, taking the gains over the past 12 months to 18.4% and 13.1% respectively.
From January 2009, the group says that the median price in Sydney has now doubled, rising by an enormous 104.5%. Price growth in Melbourne was slightly slower, rising by just 87.7% over the same period.