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Clearance rates hit COVID high

Auction clearance rates have risen to their highest level since the onset of the COVID-19 crisis, new data has revealed.

According to the latest data from property research group CoreLogic, Australia’s capital cities recorded a preliminary auction clearance rate of 70.9 per cent in the week ending 24 May.

This is the highest result since early March, prior to the introduction of social distancing measures to curb the spread of COVID-19.

Clearance rates were highest in Sydney (77.9 per cent), followed by Canberra (73.3 per cent), Melbourne (72 per cent), Brisbane (45.9 per cent) and Adelaide (38.5 per cent).

In volume terms, 613 homes were taken to auction, up week-on-week from 400.

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However, volumes were down significantly when compared with the same week in 2019, in which 2,055 homes were taken to auction.

CoreLogic noted that it expects volumes to pick up over the coming weeks in response to the lifting of on-site auction bans.

“Given it’s been a few weeks since the ban for on-site auctions and inspections were lifted, agents and vendors have had the chance to start implementing marketing campaigns, and we are likely to see volumes gradually increase each week,” CoreLogic stated.

However, while volumes are expected to rise, analysts are projecting a prolonged decline in dwelling values, which, according to CoreLogic, fell 0.4 per cent in the week ending 24 May.

ANZ Research is forecasting a peak-to-trough decline in property prices of 10 per cent, led by sharp declines in Hobart (11.2 per cent), Melbourne (8.5 per cent) and Sydney (8.1 per cent) over the course of 2020 and 2021.   

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The research group said it expects growth trends to begin turning positive in the back end of 2021.

[Related: PIPA brushes off property market panic]

Clearance rates hit COVID high
Clearance rates hit COVID high
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