RP Data recorded a preliminary auction clearance rate of 70.4 per cent this week, with 1,506 auctions held across the capital cities.
Auction volumes are down substantially when compared to the previous week, when there were 2,712 capital city auctions, with public holidays being held on Monday in Victoria, South Australia, the Australian Capital Territory and Tasmania.
Over the previous week, the final auction clearance rate was recorded at 74.2 per cent, revised up slightly from the preliminary figures released earlier in the week.
Over the same week last year, there were 996 capital city properties taken to auction with a clearance rate of 61.6 per cent.
Since August last year, Sydney has consistently been recording the strongest clearance rate of all Australian capital cities.
This week was no different, with a preliminary clearance rate of 80.2 per cent and 844 auctions held in the city. Over the previous week, 1,035 residential properties were taken to auction with a clearance rate of 77.6 per cent.
Strong auction market conditions are highlighted by the fact that over the same week last year, there were 533 Sydney auctions with a clearance rate over 10 percentage points lower than the most recent week, recorded at 67.6 per cent.
On a year to date basis, auction volumes across the city are around 60 per cent higher than they were last year, meaning that with stronger clearance rates, a higher number of properties are selling successfully under auction conditions.
For Melbourne, the preliminary clearance rate of 63.3 per cent was recorded this weekend compared to 76.6 per cent last weekend.
The lower clearance rate does not indicate a change in market conditions as the volume was low due to the long weekend.
With the first phase of the real estate year now concluded it is clear that this is the best start for the Melbourne market recorded since 2010.
Property values rose in January and remained unaffected by the record auction volumes in February providing proof of the solid demand underpinning the market right now.
There were 140 auctions held in Brisbane over the most recent week and the clearance rate was recorded at 49.4 per cent, increasing from 46.2 per cent over the previous week when there were 149 auctions held across the city. As shown in the below graph, Brisbane’s auction clearance rate has generally been trending upwards since early 2011.
At the same time last year, there were 99 Brisbane auctions held over the week with a clearance rate of 39.0 per cent.
Adelaide Auction Results
Across Adelaide, 80 auctions were held last week and the preliminary auction clearance rate was recorded at 66.0 per cent, remaining almost unchanged from 66.2 per cent over the previous week when there were 97 auctions. In comparison, over the same week last year, 71 Adelaide properties were taken to auction and the clearance rate was 62.3 per cent.
At the end of last year, Adelaide was experiencing some of the strongest clearance rates seen in the city since 2009 and 2010.
This week, we expect auction volumes to increase again with 2,161 capital city auctions currently scheduled. 1,035 of these are set to take place in Melbourne, with the city clocking up another busy week of auction activity.
*Melbourne auction commentary provided by Robert Larocca, RP Data’s Victorian Housing Market Specialist