This week marks 12 months since the combined capital city auction market last recorded a clearance rate above 70 per cent, with selling conditions progressively weakening over the year as property values fall resulting in fewer homes selling at auction. There were 2,287 homes taken to market this week across the capital cities, returning a preliminary clearance rate of 59.7 per cent, after last week saw the final clearance rate fall to the lowest recorded since late 2013, with 56.8 per cent of properties selling (2,100 auctions). While preliminary results show improvement this week across the slightly higher volume of auctions the revisionary final clearance rate is likely to show less of an improvement.
Looking at results across the individual property types, the unit market has continued to outperform the house market with 64.9 per cent of units selling this week, while only 57.6 per cent of houses sold. While the proportion of units going to market is generally considerably lower, looking at the trend over time, the weakening selling rate is more evident across the larger segment of the market with 18.2 per cent more houses selling one year ago, compared to an 11.7 per cent difference across the unit segment.
Auction results by property type
Melbourne recorded a preliminary clearance rate of 60.9 per cent this week across 1,132 auctions, falling on last week’s final clearance rate of 62 per cent when 1,033 auctions where held and significantly lower than the 74.2 per cent last year when volumes were also higher (1,366). It is likely Melbourne’s final clearance rate this week will weaken further and fall below 60 per cent as results are collected.
Volumes increased across Sydney this week, with 808 auctions held across the city. The higher volumes returned a 62.7 per cent preliminary clearance rate, increasing on last week when the final clearance rate dropped to 54 per cent; the lowest since late 2017.
The performance across the smaller auction markets as usual were quite varied, with Adelaide recording the highest clearance rate of 66.7 per cent, while only 31.6 per cent of homes sold in Perth.