Clearance rates see a small uplift

DESPITE a drop in volumes, national auction clearance rates showed a small lift last week, according to property data analysts Cotality.

The preliminary combined capitals auction clearance rate rose to 56.5 per cent, its highest early success rate in 12 weeks.

This came despite falls in the two largest markets, where Sydney eased 1.4 percentage points and Melbourne 3.4 percentage points.

Cotality said the gains were concentrated in the smaller markets, with Adelaide (up 15.1 percentage points), Brisbane (up 13.8 percentage points) and the ACT (up 14.1 percentage points) all improving.

For the second consecutive week, the combined clearance rate remained above 55 per cent. This improvement is from a low base, having risen from a cyclical low of 47.4 per cent in the week ending 21 June.

“Clearance rates remain significantly below the decade average of 68 per cent. At this level, market values continue to decline and buyers retain a stronger negotiating position,” Cotality said.

There were 1309 auctions last week, down 5.3 per cent on the previous week and 31.9 per cent on the same week a year earlier.

Volumes are set to rise again, with about 1420 homes scheduled for auction this week and around 1540 next week.

Melbourne was again the busiest market, with 596 homes going under the hammer.

The preliminary clearance rate eased to 57.4 per cent, down from 60.8 per cent a week earlier, while volumes fell 9.6 per cent week on week and were 36 per cent below a year ago.

A total of 425 homes went to auction in Sydney, up 3.2 per cent from the week before but down 39.7 per cent from the same week last year.

The preliminary clearance rate eased to 55.6 per cent, off 1.4 percentage points from 57 per cent, a 15th straight week under 60 per cent and well adrift of the 70.1 per cent decade average.

In Brisbane, 145 homes went to auction, 9.9 per cent fewer than the previous week but 6.6 per cent above the same time last year, according to Cotality.

Just over half found a buyer, with the preliminary clearance rate at 51.9 per cent.

That was a 13.8 point rise from the previous week and the city’s best early result in 13 weeks.

Adelaide’s 88 auctions were down 6.4 per cent from the previous week, yet 3.5 per cent higher than a year earlier.

The standout was the clearance rate, which reached 61.9 per cent.

Cotality said that was up 15.1 percentage points from the week before and the strongest early figure since the week ending June 7.

In the ACT, the preliminary clearance rate increased to 60 per cent, surpassing this threshold for the first time since the week ending May 12.

The 45 auctions held were down 4.3 per cent from the previous week and down 11.8 per cent from the same week last year.

Perth held 10 auctions and Tasmania held none.