Volume of auctions across Australia continues to increase despite threat of rising rates
According to the latest Corelogic auction clearance rate reporting, the overall volume continued to rise this week, with 1,785 properties taken to auction in combined capital, with a preliminary clearance rate of 74.19 per cent. The increase in volume represents a 37 per cent increase.
Following January’s impressive results, the week represents a higher success rate in comparison to last week, which initially came in at 74.09 per cent, later revised down to 72.4 per cent for final figures.
CoreLogic reports, “The surge in auction activity is being led by the smaller capitals, with Brisbane, Adelaide and Canberra each recording auction volumes more than double those seen this time last year.”
This week 573 homes were taken to auction in Melbourne, up from the 394 from the previous week. However, in comparison to the same time last year when 615 homes were taken to auction, it represents a slight decrease in volume.
In terms of the success rate, of the 500 results gathered thus far, this represents a 74.6 per cent success rate, representing a further increase in successful auctions on the week prior where the success rate was 67.5 per cent.
There were 590 auctions held in Sydney this week, experiencing an increase of 78.2 per cent on last week’s numbers where 331 homes were taken to auction. In terms of the same time last year, there were 143 more auctions this year compared to the 447 last year.
Of the results gathered so far, 482 auctions results have been gathered, with a 76.8 per cent success rate. These figures represent an increase of last week’s auction clearance rate of 66.3 per cent. In the same week last year, 84.4 per cent of auctions were successful.
Adelaide, Brisbane, Canberra & Perth
When looking at the results for the aforementioned cities, according to the initial figures, Adelaide has for the second week running recorded the highest preliminary auction clearance rate in the country at 89.8 per cent, followed closely by Canberra 84.7 per cent.
In terms of Perth and Tasmania, of the results gathered thus far, 27 auction results were reported in Perth, with a 33.3 per cent success rate, as for Tasmania, two auctions were held and neither successful.
Last week Brisbane recorded an 80.1 per cent auction clearance rate, yet this week, Brisbane recorded its lowest preliminary clearance rate since January 2021 of 56.7 per cent of the 171 results gathered thus far. It is of belief, the low auction clearance rate this week was a result of the series of storms the city experienced over the weekend, resulting in a large number of planned auctions to be withdrawn.
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