Preliminary clearance rates hit highest levels in over a year
Auction numbers in Australia’s capital cities climbed last week, with 1,972 homes going to auction – a 24.3% increase from the previous week and the highest level in seven weeks.
The uptick follows the Reserve Bank’s August rate cut, which coincided with a rise in the combined capitals’ preliminary auction clearance rate to 75%. This figure is 3.3 percentage points higher than the previous week and marks the strongest early clearance rate since April last year. All capital cities reported higher preliminary clearance rates compared to the prior week.
According to figures from Cotality, Melbourne recorded 961 auctions, up 29.5% from 742 the week before, also reaching a seven-week high. So far, 75.5% of Melbourne auctions have been reported as successful, an increase of 4.6 percentage points from the previous week and the highest early result since late July.
Sydney saw 720 homes auctioned, a 29.5% rise from 556 the previous week and the highest weekly total since late June. The city’s preliminary clearance rate stands at 75%, the highest since mid-July and the third highest so far this year.
Brisbane held 137 auctions, up 10.5% week-on-week, with a preliminary clearance rate of 69.6%, 2.6 percentage points higher than the previous period; while Adelaide hosted 90 auctions, with 78% reported as sold, the highest preliminary clearance rate since late June and the third highest this year.
Canberra’s auction numbers dipped slightly to 52 from 57 the week before, but the city’s preliminary clearance rate jumped to 80.6%, the highest since June last year. In Perth, six of 11 auction results have been collected, with three reported as successful. Tasmania had one scheduled auction, which was sold after the event.
Auction activity is expected to increase further this week, with around 2,100 homes scheduled for auction. This would be the first time since late June that capital city auction volumes have exceeded 2,000.
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