Lower auction volumes across capital cities but clearance rates hold strong in Sydney and Melbourne
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Mar 25, 2019
Lower auction volumes across capital cities but clearance rates hold strong in Sydney and Melbourne
Auction volumes again took a hit across Australia last week, but clearance rates showed the week was not without some solid performances.
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The Home Page16 Mccook Street Red Hill Queensland was sold by Apollo Auctions on the weekend.
A decline in auction volumes across combined capital cities last week has headlined the latest data from CoreLogic.
Research from the company has indicated there were 1,669 homes taken to auction across the combined capital cities this week, down from 1,875 over the previous week.
The number contrasts sharply with the corresponding week in 2018, where there were 3,990 homes taken to auction across what was the pre-Easter weekend - traditionally one of the busiest weeks for auctions each year. ,
Preliminary results show a clearance rate of 56% across the combined capital cities this week, increasing from last week’s final clearance rate of 51.4 per cent although this will revise lower as the remaining results are collected.
The finalised clearance rates have sat above 49.0 per cent for 5 of the last 6 weeks and it’s likely that this week will be no different.
Over the same week last year the final clearance rate was recorded at 62.7%.
Source: CoreLogic
Sydney
The state election was expected to produce a dip in auction activity across the city, and while there was a decrease from 638 the previous week to 506, there was a preliminary clearance rate of 62.2%.
At the same time last year, there were 1,383 auctions were held and the clearance rate came in at 61.1%.
CoreLogic market commentator Kevin Brogan said the city's preliminary clearance rate reflected a "reasonably strong performance".
"It's worth noting that the city and inner south did extremely well," he said.
"I think it shows that desirable properties can still attract attention in a softening market."
Properties that went under the hammer included 36 Barwon Avenue, Turramurra, which ended up being passed in.
Agent David Bokor of LJ Hooker Turramurra said some hardball bidding on the day led to the result.
"We had a lot of interest throughout the campaign," he said.
"The buyers had someone representing their interests and they wanted to play hardball under the hammer, so we ended up passing it in."
The property at 36 Barwon Avenue, Turramurra was passed in at the weeekend. Picture: Luxury List
Melbourne
According to CoreLogic, there were 820 auctions held across Melbourne in the past week, returning a preliminary clearance rate of 57%.
This is down from last week when there were last week there were 920 auctions returning a final clearance rate of 52.1 per cent.
At the same time last year, there were 2,071 auctions were held across the city, returning a clearance rate of 65.8 per cent.
Mr Brogan said the clearance rate was evenly spread across the regions.
"The lowest was 56.7% and the highest was 66.7%, so there's not much of a difference there," he said.
"The Mornington Peninsula did quite well, as did the North West."
There were 554 auctions reported to the REIV, with 325 selling and 229 being passed in, 128 of those on a vendor bid.
REIV CEO Gil King said the preliminary results showed a strengthening of Victoria’s clearance rate, with houses faring better than units for three consecutive weeks.
"Mount Waverley was home to the most auction sales this weekend with seven homes, followed by Kew and Reservoir with six successful auctions in each," he said
"Northern suburbs of Greenvale and Lalor cleared all their four listings in each as well.”
Brisbane
Brisbane returned the lowest preliminary clearance rate of all the capital cities with 34.2 from 121 auctions.
At the same time last year, the city boasted a clearance rate of 45.2% from 195 auctions.
Apollo auctions auctioneer Justin Nickerson said there was stronger bidding in other areas of the state.
"As Queensland sweltered through another weekend the auction clearance rate maintained its rage with another strong showing," he said.
"The number of auctions that sold prior to auction dipped this week but was replaced by a number of under the hammer sales with multiple registered parties.
"The active bidding percentage was strong, again demonstrating that when buyers see value they are prepared to back their judgement. Despite the extreme heat attendance at auctions was still strong returning an average of 23 attendees per auction."
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