The Australian auction market experienced a unique period where the preliminary combined capitals’ clearance rate edged higher despite the disruption of a long weekend in most states. Data collected by Cotality (formerly CoreLogic) analyst Caitlin Fono reveals that the preliminary combined capitals clearance rate rose to 71.9%, up slightly from 71.4% the week prior (which was later revised lower to 68.7% on final results).
This rise in the clearance rate occurred amid mixed activity across the major capital cities. Overall, the volume of auctions bounced 13% higher relative to the previous week, with 1,961 homes going under the hammer across the combined capitals.
The Melbourne Rebound: Main Driver of the Higher Rate
The primary factor driving the overall higher preliminary clearance rate was the massive surge in activity in Melbourne. Melbourne had previously seen activity disrupted by the AFL Grand Final long weekend. Last week, however, Melbourne saw a rebound with the number of auctions held jumping 422%, reaching a volume of 1,169.
Consequently, Melbourne’s early clearance rate increased by a substantial 7.0 percentage points from the week prior, settling at 71.6%. Melbourne’s total auctions (1,169) accounted for the majority of the combined capitals’ 1,961 auctions for the week. Out of Melbourne’s 1,169 auctions, 922 results were collected, showing 660 cleared auctions and 262 uncleared auctions.
Sydney’s Long Weekend Slump
In stark contrast to Melbourne’s robust recovery, Sydney saw a 56% slump in auctions. This decrease in volume was attributed to the dual factors of the long weekend and the NRL Grand Final. The total number of Sydney auctions held was 509.
Despite still reporting a relatively strong outcome, Sydney’s preliminary clearance rate actually dropped. So far, 72.4% of Sydney auctions have returned a positive result, which is down from the 73.5% preliminary rate recorded the previous week (which was later revised lower to 70.2% once finalized). Within its 509 total auctions, 421 results were collected, resulting in 305 cleared and 116 uncleared auctions.
Activity in Smaller Capitals
Activity in the smaller capitals also showed variance:
• Brisbane hosted the most auctions among the smaller capitals, with 147 homes going under the hammer. Brisbane reported a preliminary clearance rate of 69.3%, marking its highest clearance rate in three weeks.
• Adelaide held 67 auctions, representing a 14% decrease from the prior week. Adelaide achieved a high preliminary success rate of 78.8%.
• The ACT (Canberra) saw 56 homes go to auction, which was less than half the volume (116) recorded the week before. Canberra’s early clearance rate was 70.6%.
• Perth held 13 auctions, with eight results reported as successful, leading to a preliminary clearance rate of 72.7%. There were no auctions reported in Tasmania.
Looking ahead, the market is set to see auction activity building momentum. The schedule anticipates approximately 2,600 capital city homes going to auction this week, with volume expected to rise further to around 2,670 next week.