Sydney’s preliminary auction clearance rate last weekend was 80% while Melbourne was 74%, according to CoreLogic. There were 2,022 homes taken to auction last week across the combined capital cities; the busiest week we’ve seen since late May. The higher volumes saw the weighted average clearance rate improve over the week, with 73.5 percent of auctions returning a successful result. This comes off the back of the 67.6 percent clearance rate the week prior, when volumes were significantly lower (1,324) and the clearance rate fell below 70 percent for the first time in eight weeks. Compared to one year ago, lower 1,851 auctions took place, although less than 50 percent sold.
While a tad lower than preceding weeks, clearance rates in the 70s still indicate a strong market. At the same time last year, they were 46% in Sydney and 52% in Melbourne. The final auction clearance rate increased last week, returning a 75.2 percent success rate, upon the week prior when 70.5 percent of homes sold at auction. The improved week-on-week clearance rate was across a higher volume of auctions with 974 held, up on the 775 auctions held the week prior. Last year, 912 Melbourne homes were auctioned with only 50.4 percent returning a successful result.
Overall, CoreLogic says weaker sales in other cities would see the final national clearance rate dip below 70%. Brisbane had a preliminary figure of only 37% while Perth improved at 63% and Canberra managed 74%.
There were concerns demand would not lift enough to absorb rising listings in Sydney and Melbourne but good auction performances and last month’s rise in house prices in both cities suggested those fears were overdone, says SQM’s Louis Christopher. “I don’t think the market has cooled down at all,” he says.
These past few months saw increased activity from buyers and sellers. Most buyers and especially to savvy investors, along with price and value, is location. Due diligence and research for property investment advisory will ensure a higher chance the next investment property will perform better.