Auctions and clearance rates jump after Federal election
The number of properties up for auction in Australia slumped before the Federal election. After the election was over the number rebounded and almost doubled according to key industry reports.
While the election per se has no direct bearing on the price or value of properties, what it does is affect people’s sentiment.
As we all know, many people hate uncertainty. In some instances, people will prefer not to take action or delay any decision when faced in an uncertain situation.
Like previous federal elections, the most recent one was a major factor that drove people’s sentiment. It’s reason enough for many people to hold off selling or buying property. And this was reflected in the auction and clearance rates seen before and after the election.
According to CoreLogic, the sharp increase in the number of properties for auction after a new government was elected represented the busiest auction period since before Easter 2022.
Across Australia, a total of 3,229 auctions were held in the major capitals. This is 11.2% higher than the numbers a year ago.
Melbourne proved to be the outright leader as it held 1,460 auctions across the city. CoreLogic says this is a 105.1% jump from the auctions held a week earlier. Clearance rate reached 62.2%.
Coming in strongly at second place, Sydney also saw a surge in auction activity this week with 1,119 auctions held across the harbour city. However, despite the rise in total auctions, the number is still -4.7% down from last year’s figures. Clearance rate reached 58.4% for the week.
Other capital cities also showed increasing auction numbers – up 51.9% across the smaller capitals with a total of 650 auctions held.
Brisbane overtook Adelaide as the busiest amongst the smaller capitals, taking 252 homes to auction. Adelaide held a total of 224 auctions and Canberra (149).
Adelaide recorded the strongest preliminary clearance rate, up 11.4 percentage points from the week prior (68.0%) with 79.4% of auctions held recording a successful result. This was followed by Canberra (73.5%) and Brisbane (55.1%) which both recorded a fall in preliminary clearance rates.
In Perth, eight of the 15 auction results collected so far were successful.
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.