Capital city auction activity drops 11.7%

CoreLogic’s latest Property Market Indicator recorded 1,742 auctions held across the capital cities for the week ended 6 August 2023, revealing a drop of 11.7 per cent (from 1,973 the previous week) following upward trends over the past three weeks.

However, this week’s auction numbers are still in line with the 1,734 auctions held two weeks ago albeit the drop and were still above the 1,471 auctions that were held at the same time last year, according to CoreLogic.

The combined capital’s preliminary clearance rate rose to 71 per cent with 1,320 results collected, up 80 bps from the previous week’s preliminary rate of 70.2 per cent (this was revised to 64.9 per cent at final numbers).

A final clearance rate of 56.6 per cent was reported during the same week in 2022.

In Sydney, auction activity was down 6.3 per cent (702 homes) from the 749 held last week. Sydney’s preliminary clearance rate dropped to 69.1 per cent (with 544 results collected so far), marking the first time it fell below 70 per cent since mid-March.

Sydney’s preliminary clearance rate was 3.3 per cent lower than the previous week’s of 72.4 per cent, which was revised down to 66.7 per cent at final numbers.

Melbourne’s auction numbers fell by 12.5 per cent with 761 homes auctioned across the city after hosting its busiest auction week since early April (870). The city’s preliminary clearance rate returned above the 70 per cent mark after sitting below the mark for two weeks with 71.9 per cent of the 604 results collected so far returning successful results.

Adelaide recorded the busiest auction market of the week among the smaller capitals, despite a 7.9 per cent decline in activity, with 105 homes taken to auction across the city.

This was followed by Brisbane at 83 homes, which recorded its quietest auction week since Easter (76) and Canberra at 82 homes in its busiest auction week in 12 weeks.

For preliminary clearance rates, Brisbane recorded the highest rate since early June, with 74.6 per cent of auctions reporting successful results, while Canberra recorded an 80-bp increase in its preliminary clearance rate at 71.4 per cent.

Adelaide’s preliminary clearance rate fell 6.1 per cent to 76.7 per cent.

Two out of the five auction results collected so far from Perth returned a successful result, while one of the two auctions held in Tasmania were successful.

According to CoreLogic, auction activity is expected to rebound next week as around 2,000 capital city homes are scheduled for auction.

[RELATED: Home value growth is easing: CoreLogic]