National Auction Market Preview - 27 October 2017
The combined capital cities are expected to see a surge in auction activity this week, with 3,451 homes scheduled to go under the hammer; this is an increase of 37 per cent when compared to last week’s final results which saw 2,519 properties taken to auction.
The last time volumes reached a similar level was the pre-Easter week ending the 9 April this year when final figures saw 3,517 auctions held across the capitals.
While these counts are preliminary, as the week progresses and results are collected, the number of homes taken to auction tends to revise up, which means that it’s likely this week will not only supersede April figures, but also surpass the peak in volumes recorded over the week ending 20 March 16 (3,540).
Melbourne is set to see the most notable increase in activity this week, with volumes expected to rise by 48 per cent on last week’s figures; with 1,846 Melbourne homes scheduled to go to auction, increasing from the 1,251 held last week. The highest volume of auctions on record for Melbourne was recorded over the week ending 29 Nov 15 (1,876), so this week may very well overtake that record.
Across Australia’s other largest capital city, Sydney volumes are set to increase to a lesser extent with 1,144 properties scheduled to go to auction this week, rising by 39 per cent from last week’s 823 auctions, making it the third busiest week for auctions for the city so far this year.
Across the remaining auction markets, activity is expected to fall across all of the smaller capital cities with the exception of Canberra where more auctions are scheduled this week.
Camberwell is the busiest individual suburb for auctions across the nation this week, with 27 residential homes set to go under the hammer, followed by Reservoir (25), South Yarra (23) and Craigieburn (22) all of which are in Victoria.
Summary of Last Week’s results
Last week, the final auction clearance rate across the combined capital cities fell to 64.7 per cent across 2,519 auctions, decreasing from the 67.1 per cent across a slightly higher 2,525 auctions the week prior. Compared to one year ago, the clearance rate was a significantly higher 78.1 per cent, while volumes were slightly higher (2,680).
Across Melbourne, auction volumes rose with 1,251 held, however final figures saw the clearance rate drop to 70.3 per cent, down from the week prior when 73.2 per cent of the 1,223 auctions cleared. In Sydney, the final auction clearance rate fell to 61.3 per cent last week, from 63.3 per cent the previous week across a lower volume of auctions, with 823 auctions held across the city, decreasing from 928 the week prior.
Across the smaller auction markets, clearance rates improved in Brisbane and Tasmania, while Adelaide, Canberra and Perth all recorded lower clearance rates.
Geelong was the best performing non-capital city region last week, with 68.8 per cent of the 44 auctions successful. However, the Hunter region was host to the highest number of auctions (49).
Contact for weekend our auction market commentators: Geoff White in Victoria on: 0418 330 474 & Kevin Brogan for rest of country on: 0417 085 105