Auction Clearance Rates Continue to Slide

As the number of auctions held continues its seasonal rise, Australia's auction clearance results remained below 50 per cent for seven consecutive weeks.

Across the combined capital cities there were 2,384 auctions held last week, returning a preliminary auction clearance rate of 46.8 per cent, reveals Corelogic.

This figure is an increase on the previous week when the final auction clearance rate dropped to its lowest reading since June 2012, at 42.7 per cent with 1,541 auctions.

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In its property market indictor summary, Corelogic says this is a considerably softer trend to what was seen over the same period last year when clearance rates were tracking around the 60 per cent range.

The weakening result is largely attributed to the slowing mammoth markets of Sydney and Melbourne, the two capital cities have accounted for 83 per cent of all auctions this year.

“Given this week’s preliminary result is the lowest we’ve seen yet, it’s likely that as final results are collected, this week’s final clearance rate could come in lower again, potentially nudging the low 40 per cent range,” Corelogic said.

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Melbourne recorded a preliminary clearance rate of 48.3 per cent, with 1,141 auctions held across the city. An increase on the previous week’s 45.7 per cent final result when only 266 auctions were held.

In Sydney, 48.4 per cent of homes sold at auction, after the previous week saw Sydney’s final auction clearance rate drop to its lowest since December 2008 levels at 42.6 per cent.

Results across each of the smaller markets were varied, with Adelaide recording the highest preliminary auction clearance rate of 47.5 per cent, Perth only 20 per cent of auctions cleared.