CoreLogic auction activity analysis found that over the 3 months to December 2019, the combined capital cities clearance rate came in at 70.3 per cent from 26,923 auctions; a significant jump on the previous quarter where auction volumes were 16,730 and returned a clearance rate of 69.9 per cent. The clearance rate is remarkably higher than the December 2018 quarter, when the clearance rate was 43.6 per cent.
With the exception of Melbourne and Tasmania, clearance rates across the capital cities outperformed both the previous quarter, and the December 2018 quarter. Melbourne saw the clearance rate improve year-on-year however over the 3 months to December 2019 the clearance rate for the city came in at 72.8 per cent, slightly lower than the previous quarter (73.5 per cent).
Looking at the non-capital city markets, clearance rates have increased across 3 of the 5 regions over the December quarter. The Geelong region returned the highest clearance rate over the quarter (62.8 per cent), while the Gold Coast was the busiest region with 634 homes taken to auction.
Eliza Owen who heads up CoreLogic residential research, “As prices in Sydney and Melbourne rose 6.2% and 6.1% respectively in the December quarter, a corresponding increase in auction market activity is expected. Vendors have been responsive to higher prices, with auction volumes up by 4.0% year on year.”
Capital city auction clearance rate & volumes:
Highest number of auctions for the quarter across capital city suburbs
Based on total auctions held across the suburb over the reporting period
- Melbourne: Reservoir - 221
- Sydney: Mosman - 141
- Brisbane: Sunnybank Hills - 35
- Canberra: Kambah - 35
- Adelaide: Prospect – 28
- Perth: Dianella - 21
Highest clearance rate for the quarter by capital city suburbs
Clearance rates are calculated when there has been at least 20 auction results reported over the period
Balaclava 100% (captured results: 22, scheduled auctions: 25, number sold: 22)
Camperdown 100% (captured results: 26, scheduled auctions: 29, number sold: 26)
Kingsford 100% (captured results: 27, scheduled auctions: 35, number sold: 27)
Panania 100% (captured results: 22, scheduled auctions: 23, number sold: 22)
Kambah 72.4% (captured results: 29, scheduled auctions: 35, number sold: 21)
Paddington 66.7% (captured results: 21, scheduled auctions: 29, number sold: 14)
Prospect 53.8% (captured results: 26, scheduled auctions: 28, number sold: 14)
Sydney sub-region Summary
Auction volumes increased across all 15 sub-regions over the December quarter with North Sydney and Hornsby hosting the most auctions (1,450). Looking at clearance rates, 12 of the 15 sub-regions recorded a clearance rate above 65.0 per cent. The Inner West region returned the highest clearance rate (80.8 per cent), followed by City and Inner South (80.4 per cent), while the Outer West and Blue Mountains region returned the lowest clearance rate (41.4 per cent).
Overall Sydney has seen auction volumes increase both over the quarter and year-on-year. The quarterly clearance rate for the city was slightly higher than the previous quarter, despite higher auction volumes.
Melbourne sub-region Summary
Auction activity increased across each of the 9 Melbourne sub-regions over the December 2019 quarter with 8 of the sub-regions hosting a minimum of 1,000 auctions each. Melbourne’s Inner region had the highest volume of auctions (2,223), followed by the Inner South (1,946). Despite the higher volumes, clearance rates held above 70 per cent in 7 of the 9 sub-regions. Melbourne’s Inner East recorded the highest clearance rate over the quarter (76.4 per cent), down from 78.7 per cent over the previous quarter. All 9 sub-regions saw significantly higher clearance rates when compared to this time last year.
Overall Melbourne’s clearance rate was recorded at 72.8 per cent across 12,870 auctions over the quarter, compared to 73.5 per cent across 7,426 auctions over the previous quarter and 45.4 per cent across 12,372 auctions over the December 2018 quarter.