Property research group CoreLogic’s latest quarterly auction update has reported a “significant increase” in clearance rates and auction volumes in the three months to 31 December 2019.
Over the quarter, the combined capital city clearance rate increased to 70.3 per cent from 26,923 auctions, up from a clearance rate of 43.6 per cent from 25,894 auctions in the previous corresponding period.
All major capitals reported higher clearance rates in the three months to December 2019 when compared with the same quarter in 2018.
The highest clearance rate over the December quarter was recorded in Sydney (74.9 per cent from 9,546 auctions), followed by Melbourne (72.8 per cent from 12,870 auctions), Canberra (68 per cent from 937 auctions), Tasmania (62.2 per cent from 53 auctions), Adelaide (57.4 per cent from 1,385 auctions), Brisbane (45 per cent from 1,615 auctions) and Perth (39.5 per cent from 517 auctions).
According to Eliza Owen, head of CoreLogic residential research, the rise in auction activity has coincided with the rebound in property prices.
“As prices in Sydney and Melbourne rose 6.2 per cent and 6.1 per cent, respectively, in the December quarter, a corresponding increase in auction market activity is expected,” she said.
“Vendors have been responsive to higher prices, with auction volumes up by 4 per cent year-on-year.”
According to the latest data from property research group CoreLogic, national home values have now risen by 4 per cent in the three months ending December 2019, following an 18-month downturn that saw values dip 8.4 per cent.
This comes as CoreLogic’s latest Pain and Gain report for the three months ending 30 September reported that 87.4 per cent of homes were resold for a profit, up 0.1 per cent compared with the previous quarter.
Property resales over the September quarter delivered a gross profit of $18.7 billion, up by $2.4 billion from $16.3 billion.
[Related: Property resale profits rise to $18.7bn]