This week CoreLogic recorded 65 commercial auctions held across Australia in the week ending the 20th of October. Of these, just 31 properties were recorded are sold. This suggests a preliminary clearance rate of just 47.6% across Australia. While this is the lowest clearance rate since February this year, it is the highest number of events recorded for the month.
The strongest performing region according to the preliminary results was Victoria, where 22 properties sold out of 38 auction events. Of the sold properties in Victoria, a majority of sales were in metropolitan Melbourne.
The preliminary results suggest there were 14 industrial properties cleared at auction, 11 retail sales and 3 office spaces sold. Two motels also sold – one in St Kilda, Melbourne, and one in Haberfield, Sydney. Although warehouses continue to be the most common auction sale type, there were 28 industrial auction events, suggesting a clearance rate within this segment of 50%.
The results suggest that demand in the commercial sector is relatively subdued. However, with labour market conditions tightening, demand for office or industrial space may increase over the course of the year, if higher levels of employment increase occupancy rates and rents.
The table below indicates National Auction Clearance Rate figures.