Capital city clearance rate drops below 70%

The week ended 5 December has seen property owners across every capital city pushed for sales, with 4,136 houses being taken to auction – the second highest figure for auctions since CoreLogic’s records began in 2008 and a 41.6 per cent increase compared to this time last year. 

However, despite the surge of interest, the average preliminary clearance rates across the country’s capital cities dropped to 69.9 per cent.

The results, which were included in CoreLogic’s Property Market Indicator Summary for the week ended 5 December, reflected a continuing trend, with the week prior having seen 4,251 auctions across the capitals as well as a preliminary figure of 71.4 per cent – a sum that would drop to a final clearance percentage of 68.5 per cent. 

It equally reflects a continuing decline in clearance rates since the 3 October peak of 83.2 per cent. 

Compared to 2020, clearance rates are distinctively similar, with this period last year seeing a weighted average clearance rate of 69.9 per cent. 

However, not every city is seeing a decline in clearance rates – with Brisbane (74.6 per cent), Adelaide (76.4 per cent) and Canberra, (82.1 per cent) reporting above-average clearances for this week. 

Distinctively, Perth reported the lowest clearance rate at 43.5 per cent – a drop of 26.5 per cent compared to this time last year. 

Sydney was also the only other city reporting a decline in clearance rates compared to last year, dropping from 74.1 per cent to 67.3 per cent – the first time its preliminary rate has reached below 70 per cent since September 2020.  

But the NSW capital also reported its second-busiest week for auctions during 2021 so far, with a figure of 1,467 – the previous week being the highest at 1,546 homes. 

Melbourne experienced the highest number of auctions however, at 1,889 – an increase of almost 1,000 homes compared to this time last year. 

Brisbane, Adelaide and Canberra saw a combined total of 650 auctions during this period. 

The figures come as the combined value increase for Sydney, Brisbane, Melbourne, Adelaide and Perth reaches a 12-month change of 21.4 per cent. 

Since the start of 2021, these figures have risen by 20.3 per cent.