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Cities chalk up over 80% auction success rates

Auction clearance rates exceeded 80 per cent across the capital cities last week, although a public holiday across some parts dampened volumes, according to data.

Property research group CoreLogic has released auctions data for the week ending 7 March, which revealed that there were 1,587 capital city homes taken to auction during the reporting period.

Of the 1,311 results collected so far, 84.5 per cent have reportedly sold, which, according to CoreLogic, is an improvement on the previous week’s preliminary clearance rate of 81.9 per cent when volumes were higher, with 2,473 homes going under the hammer.

Final figures for the week prior revealed that the preliminary clearance rate was revised down to 79.3 per cent.

Commenting on the fewer homes going to auction for the week ending 7 March, CoreLogic said: “The lower volumes this week can be attributed to four of the states and territories welcoming a public holiday on Monday, including Melbourne where volumes are substantially down over the week.”

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In Melbourne, there were 477 homes auctioned last week, down from 1,299 homes last week. Of the results collected so far, there was a preliminary clearance rate of 80.9 per cent.

Last week, the final clearance rate was 76.4 per cent, while one year ago, 66.1 per cent of auctions cleared out of a lower volume of 418 homes taken to auction.

In Sydney last week, 812 homes were taken to auction, returning a preliminary auction clearance rate of 86.7 per cent.

Last week, 844 auctions were held in Sydney, with a final clearance rate of 85.3 per cent, while a year ago 830 homes were taken to auction with a 75.2 per cent success rate recorded.

According to CoreLogic, all of the other small auction markets exceeded 80 per cent in preliminary clearance rates, with Canberra returning the highest preliminary clearance rate of 91.5 per cent out of the 64 homes taken to auction and the 59 results collected so far.

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Brisbane held 107 auctions last week, returning a preliminary success rate of 82.3 per cent out of the 79 results collected so far, while Adelaide cleared 81.7 per cent of the 101 auctions held and 71 results collected so far.

Perth held only 25 auctions, and cleared 81.8 per cent out of the 11 results collected so far, according to CoreLogic figures.

Home values continue to rise

Across the combined five capitals, home values have risen by 0.5 per cent over the week, and 2.3 per cent over the month, while recording a year to date rise of 3.2 per cent, the figures show.

Furthermore, over the past 12 months, home values have increased by 2.6 per cent.

Adelaide has led the pack, with home values increasing by 7.4 per cent over the last 12 months, while values increased by 5.2 per cent in Brisbane, 5.1 per cent in Perth, and 3.1 per cent in Sydney.

Melbourne was the only capital city to record a decline, with home values dropping by 1.2 per cent over the last 12 months.

However, Victoria’s capital recorded an increase in properties listed for sale over the last 12 months, with listings rising by 2.5 per cent.

This has defied the trend in every other capital city across the states and territories, while listings across the combined capitals plummeted by 16.5 per cent over the last 12 months.

Sydney recorded the highest median prices for houses at $871,500, while Adelaide recorded the lowest at $490,000.

Mortgage market activity records weekly dip

Demand for housing finance has declined for the week ending 7 March compared with the week prior, the CoreLogic figures show.

Nationally, mortgage activity increased by 23.9 per cent month-on-month last week, down from the 37.8 per cent increase for the week ending 28 February.

All states recorded a month-on-month increase in activity last week, with NSW posting a 39.7 per cent rise, while demand also grew in Queensland (21.9 per cent).

The other states experienced a smaller rise in demand, with Victoria recording a 15.4 per cent increase, Tasmania a 14.5 per cent growth, South Australia a 13.7 per cent rise, and Western Australia a 13.5 per cent rise.

[Related: Home loan demand gains ground]

Cities chalk up over 80% auction success rates
Cities chalk up over 80% auction success rates
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Malavika Santhebennur

Malavika Santhebennur is the features editor on the mortgages titles at Momentum Media.

Before joining the team in 2019, Malavika held roles with Money Management and Benchmark Media. She has been writing about financial services for the past six years.

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