CoreLogic captured 35 auction results across Australia in over the 25th to the 31st of March. The preliminary clearance rate for the week was 85.7% across Australia, 100% in NSW and 92.9% in Victoria. Queensland also saw one sale at auction and one property passed in.
While the preliminary results show listings are 30% down on the same week in 2016, the clearance rate is significantly higher. Last week saw 30 cleared auctions with a combined value of $86 million, compared to just 25 sales at $40 million in the same week in 2016. This indicated the strength of commercial transactions in 2017.
The month of March has seen a preliminary clearance rate of 91.4% across Australia from 139 collected auction listings. Sales have been dominated by retail transactions, with 46% of sales over the month representing shops, restaurants and showrooms. It is unclear whether these are purchased due to high transaction activity across the east coast, or with the relative ease with which retail spaces can be converted to residential, to take advantage of relatively high residential yields.
The highest number of sales was in Victoria (58) followed closely by NSW (57). This is unsurprising given the relative strength of economic activity in the states, particularly in the Sydney and Melbourne metropolitan.
Commercial Research Analyst, CoreLogic