Clearance rates drop across capitals

The latest research from CoreLogic has revealed that combined capital city clearance rates dropped to 43.6 per cent in the three months to 31 December 2018, down from 53.6 per cent over the previous quarter and 62.3 per cent over the same period a year prior.

According to the research, the lowest weekly clearance rate for the quarter was recorded over the week ending 16 December (40 per cent across 2,406 auctions), while the highest clearance rate was recorded over the week ending 7 October (49.5 per cent across 1,817 auctions).

The decline in clearance rates was reported across all capital cities except Tasmania, where the clearance rate remained unchanged at 50 per cent.

The sharpest drop in clearance rates was seen across Canberra (13.4 per cent from the previous quarter), followed by Adelaide (12.2 per cent), Perth (11.9 per cent) and Melbourne (11.2 per cent).

Conversely, auction activity increased over the December quarter with 25,894 homes taken to auction across the combined capital cities (up from 20,653 over the September quarter).

However, CoreLogic noted that current volumes remain lower than the same period last year, when 32,408 homes were taken to auction.

 Capital city auction clearance rate and volumes are as follows:

• Sydney 43.1 per cent (8,828 auctions)
• Melbourne 45.4 per cent (12,372 auctions)
• Brisbane 31.8 per cent (1,642 auctions)
• Adelaide 48.5 per cent (1,423 auctions)
• Perth 25.0 per cent (499 auctions)
• Tasmania 50.0 per cent (40 auctions)
• Canberra 46.9 per cent (1,090 auctions)
• Combined capitals 43.6 per cent (25,894 auctions)

The extent of the slowdown in housing market conditions has also been highlighted by the latest data from the Australian Bureau of Statistics, which has reported a 2.5 per cent fall in the value of home loan approvals in November 2018, in seasonally adjusted terms, with housing approvals also falling, plunging 32.8 per cent in the year to 30 November 2018.

Figures provided by property research firm CoreLogic have also revealed that national dwelling values have slumped by 4.8 per cent nationwide, driven by a 6.1 per cent drop across Australia’s capital cities, led by an 8.9 per cent fall in Sydney and a 7 per cent decline in Melbourne

[Related: New residential building starts fall by 6%]