Preliminary clearance rates bounced back to above 70% across the combined capital cities as auction activities inched up this week.
As the property market recovers from late 2022 and more vendors are willing to match buyers’ expectations, early data from CoreLogic shows that Sydney led the success as 78% of the homes were sold.
Preliminary total auction rate
Capital cities recorded 1,825 auctions – up by 23.1% from the 1,482 auctions held in the last week. Compared to last year’s record (2,898), the number of homes taken to auction this week is still over 1,000 below.
According to Tim Lawless, CoreLogic’s research director, “Auction clearance rates have been improving and getting into the 70s range since the end of last year, but these numbers are a step-up,”
“We’re seeing the daily home index virtually levelling out for Sydney, if not showing a subtle rise in the past week, while Melbourne and Brisbane flattened.”
Based on CoreLogic’s research, Melbourne led the market with 790 auctions, up by 40.1% from 564 the previous week. However, this was way down from the same week last year (1,323).
Sydney recorded 690 auctions, which was 14.8% higher compared to last week (601) but -32.4% lower this time last year when 1,021 auctions took place.
Of the smaller capitals, Brisbane led the auctions with 124 homes. Coming in second place was Adelaide with 107 and Canberra with 98.
Meanwhile, Perth held 14 auctions while Tasmania still only had two.
“The number of capital city auctions is set to rise further next week, with around 2,500 homes currently scheduled to go under the hammer, providing a further test of the market’s depth,” said Kaytlin Ezzy, CoreLogic’s economist.
Preliminary total clearance rate
Of the 1,447 results collected so far, 70.8% turned out successful. This was up by 5.6% from the previous week’s preliminary rate of 65.2%, which was revised to 62.8% in the final figures. According to CoreLogic, this was the highest preliminary rate since mid-April 2022 when Australia’s early clearance reached 73.3%.
“Overall, clearance rates are continuing to hold substantially higher compared with late 2022, when the weighted average across the combined capitals was consistently around the low-to-mid 50% range,” said Ezzy.
Up by 14.8%, Sydney’s preliminary clearance rate hiked to 78% after recording 67.4% in the past week (revised to 65.7% at the final tally). Moreover, the city’s withdrawal rate this week decreased to 10.6%.
Tailing Sydney was Melbourne with 67.7% successful auctions so far. This was 3.9% higher than last week’s when the city recorded an early clearance rate of 63.8%.
Among the smaller capitals, Adelaide had the most successful preliminary clearance rate with 68.7% of the homes being sold. Meanwhile, Canberra had a success rate of 65.6%, which was 5.6% higher, followed by Brisbane with 62.5%.
In Perth, one of the four results turned out successful while Tasmania sold one.
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