CoreLogic Quarterly Auction Update, October 2017

A review of auction market activity over the September 2017 quarter by CoreLogic revealed that clearance rates across the combined capital city auction markets fell to 67.8%, down from 71.7% over the June quarter. Brisbane was the only capital city to see an increase in auction volumes over the quarter, with an additional 88 homes taken to auction. 

Across the non-capital city markets monitored by CoreLogic, the Sunshine Coast (up 2.6 per cent) and Geelong (up 2.3 per cent) were the only regions to see an increase in the auction clearance rate over the September quarter. 

CoreLogic research analyst Cameron Kusher said, “During the third quarter of the year we saw a consistent weakening of auction clearance rates as the quarter progressed, particularly in Sydney but also in Melbourne.  Although clearance rates weakened there was little reduction in the volume of properties being taken to auction.” 
Across Australia’s larger auction markets, clearance rates fell over the quarter; Sydney down -6.5 per cent to 66.8 per cent, and Melbourne down -3.1 per cent to 72.6 per cent. Rates also fell across Brisbane (-2.3 per cent) and Adelaide (-1.5 per cent).  

Smaller auction markets experienced an uplift in clearance rates with Tasmania recording the largest increase over the September quarter, up 13.2 per cent to 65.6 per cent, followed by Perth, up 6.3 per cent to 43.4 per cent, while Canberra increased by 2.8 per cent to 71.1 per cent.  

Overall, the report confirmed that combined capital city clearance rates for the September quarter are now lower on both a quarterly and annual basis.  
Volumes across the combined capital cities saw 1,278 fewer homes taken to auction over the September quarter when compared to June 2017.  

Brisbane was the only capital city to see an increase in auctions over the quarter, with an additional 88 homes taken to auction. Although the number of auctions held across the combined capital cities fell over the quarter, auction activity is 26.4 per cent higher than the same time last year, with 27,953 homes taken to auction over the September 2017 quarter, up from 22,119 in September 2016.  

Auction market review highlights

Capital city auction clearance rate & volumes 

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Highest number of auctions for the quarter across capital city suburbs
based on total auctions held across the suburb over the reporting period

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Highest clearance rate for the quarter by capital city suburbs: 

(Note: clearance rates are calculated when there has been at least 20 auction results reported over the period) 

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Across the non-capital city markets monitored by CoreLogic, the Sunshine Coast (up 2.6 per cent) and Geelong (up 2.3 per cent) were the only regions to see an increase in the auction clearance rate over the September quarter.  

The biggest fall was seen across Wollongong, where the clearance rate fell -14.4 per cent from 70.4 per cent over the June quarter, to 56.1 per cent over the September quarter. Clearance rates across the Hunter region remained relatively stable, down just -0.6 per cent over the quarter, while the Gold Coast clearance rate fell -5.6 per cent to 39.1 per cent.  

Auction volumes fell across all but one of the regional markets over the September quarter, with the Sunshine Coast the only place to see an increase in activity, hosting an additional 73 auctions. Compared to this time last year, Geelong saw a significant increase in auction activity with 501 auctions held this quarter, 154 more than September 2016.