Australia auction clearance rates rise but stay weak

Fewer than half of homes taken to auction across Australia's combined capital cities sold last week, with Cotality reporting a weighted average final clearance rate of 45.2%.

That was up from 40.7% a week earlier, but well below the 65.9% recorded in the same week last year.

A total of 1,695 auctions were held across the capitals, 18 fewer than the previous week and 44.8% below the 3,068 held a year earlier. Over the past four weeks, the average clearance rate was 44.3%, indicating the market remained subdued.

Melbourne and Sydney accounted for most of the annual fall in auction activity. Melbourne held 794 fewer auctions than a year earlier, while Sydney held 494 fewer, together making up most of the national decline of 1,373 auctions.

Melbourne recorded the strongest weekly improvement among the mainland capitals. Its clearance rate rose 7.4 percentage points to 51.7% from 44.3%, making it the only mainland capital where more than half of scheduled auctions cleared.

The Victorian capital also saw auction volumes rise over the week, with 594 homes taken to auction, up 14.9% from 517. Even so, its clearance rate was still 14.2 percentage points below the 65.9% recorded a year earlier.

Sydney remained the busiest auction market, with 692 homes going under the hammer. That was 18 fewer than the previous week, while its clearance rate was largely unchanged at 45.2% from 45.1%.

Sydney's auction market was also weaker than a year ago, with its clearance rate 19.3 percentage points below the 64.5% recorded in the same week last year.

Adelaide posted a modest weekly rise in both activity and sales outcomes. Auction volumes edged up to 147 from 144, while the clearance rate increased to 42.2% from 35.4%.

Brisbane remained the weakest mainland capital for auction sales for the fourth consecutive week. Its clearance rate rose to 27.0% from 23.8%, but was still far below the 69.9% recorded a year earlier.

The Queensland capital also recorded a sharp week-on-week decline in auction numbers, with volumes falling 25.7% to 176 homes from 237.

Canberra's auction activity fell to 68 homes from 78 the week before, a drop of 12.8%. Its clearance rate lifted to 42.6% from 40.3%, though that was still well below the 61.8% posted a year earlier.

Perth recorded a clearance rate of 37.5% from 17 auctions, up from 33.3% across 24 auctions the previous week. In Tasmania, the sole auction resulted in a sale.

Outlook this week

More homes are scheduled to go under the hammer across the capitals this week, with 1,951 auctions expected. That is 15.1% higher than last week's 1,695, although still 39.1% below the same week last year.

Sydney is set to remain the busiest market, with 803 homes scheduled for auction. That is 111 more than last week, but still 431 fewer than the 1,234 auctions held in the comparable week a year earlier.

Melbourne is expected to host 660 auctions, up 11.1% from last week's 594. It also has the largest annual shortfall, with 791 fewer auctions than the 1,451 held in the same week last year.

Brisbane is forecast to record the strongest weekly increase in activity, with 236 homes scheduled for auction. That would be up 34.1% from last week and 10.3% above the 214 held a year ago.

Adelaide is expected to hold 151 auctions, four more than last week and five fewer than a year earlier. Canberra is scheduled to host 85 auctions, up 25.0% on last week but still 53 below the same week last year.

Perth has 15 auctions scheduled, two fewer than last week and four more than a year earlier. Tasmania is expected to have one auction, while Cotality estimates roughly 1,800 homes are scheduled to go to auction the following week.