City auction markets log highest clearance rate in over a year
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Jul 22, 2019
City auction markets log highest clearance rate in over a year
There were 901 homes taken to auction across the combined capital cities this week returning a preliminary clearance rate of 70.6 per cent, according to CoreLogic.
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Luxury List55 Suncoast Drive, Blackmans Bay, Tasmania was sold for $1,370,000 through Knight Frank.
Capital city auction markets recorded the highest preliminary clearance rate in over a year, reaching 70.6 per cent, according to new data from CoreLogic.
The research firm's Property Market Indicator Summary for week ending 21 July 2019 indicated that 901 homes were taken to auction across the combined capital cities returning a preliminary clearance rate of 70.6 per cent.
Last week saw 847 homes taken to auction with the final clearance rate coming in at 65.4 per cent. This is the first time the final clearance rate has held above 65 per cent since March 2018.
Over the same week last year, auction activity was higher with 1,257 homes taken to auction returning a clearance rate of 57.0 per cent.
Source: CoreLogic
Melbourne
Melbourne was host to 416 auctions this week, returning a preliminary clearance rate of 70 per cent. In comparison, last week saw 348 homes taken to auction and a final clearance rate of 70.6 per cent was recorded. Over the same week last year, a clearance rate of 59.9 per cent was recorded across 613 auctions.
REIV CEO Gil King said there were 285 auctions reported to the REIV, with 202 selling and 83 being passed in, 34 of those on a vendor bid.
“The REIV has recorded a clearance rate of more than 70 per cent for five consecutive weeks, which has not occurred since November 2017.
"Middle Melbourne suburbs are back as the top performers with Mount Waverley and Reservoir both selling seven listings under the hammer, followed by Craigieburn and Glen Waverley with five sales each," he said.
"The Inner Northern suburbs of Essendon and Preston both cleared all four of their listings.”
Ray White Victoria/Tasmania Chief Auctioneer Matthew Condon said it was one of the best Saturdays of the year for Melbourne in terms of auctions.
“Winter 2019 is proving to be a great time to be selling a property and that’s reflected in the strong clearance rates we’ve seen today,” Mr Condon said.
“The clear weather really brought bidders and buyers out into the open and we’re seeing this trend where people want to get their property bought before spring selling season begins.
“Stock levels remain quite low which means the competition for properties is high and that’s highlighted in yet another increase in the number of active registered bidders,” he said.
Sydney
Sydney recorded a preliminary clearance rate of 81.5 per cent across 303 auctions this week. Over the previous week, 72.8 per cent of the 316 auctions were successful, the second week in a row where the final clearance rate held above 70 per cent.
One year ago, 407 auctions were held across Sydney returning a final clearance rate of 55.2 per cent.
Ray White NSW Chief Auctioneer Alex Pattaro said families, in particular, were coming back into the buyer’s circle this week.
“Local families are trickling back into the market place and we’ve certainly seen a rise in this demographic through open homes and at auctions today,” Mr Pattaro said.
“Whether it be upsizing, downsizing or upgrading, our preliminary data shows that auction attendance is holding firm at 45 attendees per auction on average.”
Mr Pattaro also said, "With the Coalition winning the election, interest rate cuts and the new train station opening recently, it has been the perfect cocktail for buyers wanting to get into Castle Hill.
“Not including today, we had 216 people through the open homes which is incredible, and the interest was reflected in the bidding," he said. Adding, "the Castle Hill market is going from strength to strength".
Smaller markets
Across the smaller auction markets, Brisbane and Tasmania saw higher auction volumes week-on-week while Adelaide saw three fewer homes taken to auction. Perth saw no change in auction volumes.
Apollo Auctions recorded an average attendance of 15.6 people and 1.9 registered bidders, with an overall clearance of 44.4%.
Auctioneer Justin Nickerson said it was a consistent week for South East Queensland.
“The South East Queensland market continued its steady run in the week just passed, with sales prior to auction still featuring strongly. Registrations of bidder numbers also remained consistent, although the numbers of those participating dipped slightly," he said.
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