Boosted supply isn’t denting auction clearance rates
Australia’s capital cities have had their busiest auction week since before the latest round of lockdowns, according to the latest data for the week ending 17 October 2021.
The latest figures from CoreLogic have revealed that 2,920 properties were taken to auction across the combined capitals – making it the fourth busiest week for auctions in 2021 and the busiest since late June.
You’re out of free articles for this month
To continue reading the rest of this article, please log in.
Create free account to get unlimited news articles and more!
While volumes were higher, one in 20 homes originally penned in to go under the hammer didn’t make it that far – with numbers down 5.7 per cent from the 2,096 originally scheduled.
But – numbers were still far higher than this time in 2020 when just 1,131 homes were taken to auction.
While volume was up on a week prior – when 2,708 homes were taken to auction, CoreLogic’s Caitlin Fono did concede that the higher volumes had returned a slightly lower preliminary clearance rate this week compared to last.
Success was found at 81.8 per cent of auction, which was slightly lower than last week’s preliminary clearance rate of 83.3 per cent, which then revised down to 80.2 per cent at final figures.
A final clearance rate of just 66.2 per cent had been recorded over the same period in 2020.
It was a good news week in Melbourne, where 1,478 homes went under the hammer in the busiest week for auctions since late March, with most results finalised before the announcement that the city would be making its way out of lockdown.
Of the results reported so far, 79.4 per cent of auctions found success with buyers.
This time last year, just 187 properties were taken to auction, returning a clearance rate of 60.2 per cent.
Up in NSW, Sydney was host to 911 auctions this week, a drop from the 983 originally scheduled.
The figures were a boost on the previous week when 825 homes were taken to auction across the city. It was also sizeable, while this time last year 704 auctions were held.
Of the results reported so far, 85 per cent have been successful, which Ms Fono said was the highest preliminary clearance rate recorded by the city has since early April.
It’s a boost on the preliminary clearance rate of 83.2 per cent reported a week prior, which then revised down to 81.7 per cent, and is also higher than the 69.1 per cent reported over the same period in 2020.
Sydney’s final auction clearance rate has held above 80 per cent for the past seven weeks, with Ms Fono suggesting that this week is likely to continue the trend.
While Sydney’s clearance rate stayed strong, it wasn’t enough to keep it ahead of the smaller capitals.
Canberra reported the highest preliminary clearance rate among the capital cities – at 90.7 per cent off the back of 123 auctions.
Perth wasn’t too far behind, reporting a clearance rate of 86.7 per cent from a total 26 auctions.
Adelaide also had a strong showing this week, reporting a preliminary clearance rate of 82.3 per cent from 179 auctions.
Of the 202 auctions held in Brisbane, preliminary reports reveal a clearance rate of 78.5 per cent, while the one auction that took place in Tasmania found success under the hammer.