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Auction clearance rate continues to rise upwards
According to the latest Corelogic auction clearance rate reporting, the level of activity and auction volume has continued in an upward direction, with 2,405 properties taken to auction in combined capitals, with a preliminary clearance rate of 75.7 per cent. This week’s volume represents a 35.2 per cent increase from last weeks figures, where 1,779 properties were taken to auction.
As we approach the halfway mark of February, there is no sign of any slowing down at this stage. The week once again represents a higher success rate in comparison to last week, which initially came in at 74.2 per cent, later revised down to 72.5 per cent for final figures.
Despite the upward trend, this week’s clearance rate is still below those recorded this time last year, when 77.1 per cent of auctions were successful.
This week 1,033 homes were taken to auction in Melbourne, up from the 573 from the previous week. In comparison to the same time last year when 635 homes were taken to auction, this year represents an increase of 62.7 per cent.
In terms of the success rate, of the 895 results gathered thus far, 70.3 per cent of auctions held were successful. This week’s preliminary clearance rate represents a slight decrease in successful auctions in comparison to last week when the success rate was 74.7 per cent.
There were 892 auctions held in Sydney this week, experiencing an increase of 48.6 per cent on last week’s numbers where 600 homes were taken to auction. In terms of the same time last year, there were 267 more auctions this year compared to the 625 last year.
Of the results gathered so far, 739 auctions results have been gathered, with a 79.6 per cent clearance rate. It’s worth noting that, despite the increases in volume, Sydney experienced its highest preliminary clearance rate since late October.
Adelaide, Brisbane, Canberra & Perth
When looking at the results for the aforementioned cities, according to the initial figures, Canberra recorded its highest preliminary clearance rate for the third week running at 81.9 per cent for the 117 auctions held, followed closely by Brisbane at 80.7 per cent, Adelaide at 80.4 per cent and Perth at 73.3 per cent.
In terms of Tasmania, there were four auctions held this week, one of which has been recorded as a successful result thus far.
Across the smaller capitals, auction activity has slowed slightly following a strong start to the year, with activity down 19.6 per cent compared to the week prior. However, regardless of the aforementioned, the number of auctions held across the smaller capitals is still more than double those seen this time last year.
If you would like to discuss the Australian property market in more detail, please reach out to the team to organise a time to have a conversation about how Wealthi can help you build a successful property portfolio.
Chris Hynes is Wealthi’s Global Research Analyst, Based in London