Australia’s clearance rates continue to climb upwards

The number of auctions, and with it the clearance rate, across Australia’s capital cities has continued its recent momentum upwards, with the latest CoreLogic data noting a spike in both over the week ended 6 February.

As per this latest Property Market Indicator Summary, the number of combined capital city auctions for this previous week (1,786) was over 53 per cent higher than the week prior (1,166), while the preliminary clearance rates across the nation’s capital cities were recorded at 74.2 per cent – one basis point higher than last week’s preliminary figures. 

Compared to this week last year (1,304), auctions are distinctively higher, with the latest figures reporting growth of more than 31 per cent.

Melbourne was the only capital city to report a lower figure compared to the same week last year, recording a 6.75 per cent decrease of 615 to 573. 

As per the property research body, the surge in this week’s auctions was seen in Sydney (590) and Melbourne, but the shift was most distinctively seen in Brisbane (increasing from 84 last year to 220), Adelaide (84 to 194) and Canberra (58 to 148). 

But while auctions and clearance rates are currently ticking upwards, continuing a recent trend and reversing a previously observed swing of increasing auctions and decreasing clearance rates, the number of properties being cleared still remains lower than it did this time last year. 

As per these latest figures, the weighted average of clearance rates this week is 5.1 per cent lower than this week in 2021. 

The only city to report a comparative increase was Adelaide, with the South Australian capital recording a 6.5 per cent increase this week (89.8 per cent) to this time last year (83.3 per cent).

Adelaide’s preliminary clearance rate was also reported as the highest this week, with Perth (33.3 per cent) and Brisbane sitting at the bottom (56.8 per cent) – the latter recording its lowest clearance since January last year (55.2 per cent) and distinct fall to its final clearance rate of 80.1 per cent last week. 

According to CoreLogic, Brisbane’s plummeting rate was largely driven by an increase in withdrawals – said to be due to a series of storms, with the Queensland capital recording its highest withdrawal rate (24.6 per cent) since May 2020. 

Further, these latest figures put the combined monthly change for Sydney, Melbourne, Brisbane, Adelaide and Perth at 0.6 per cent, and 1 per cent for a collective year-to-date change. 

Compared to this time last year, this value shift upwards is at 21 per cent with Brisbane (29.5 per cent), Sydney (25.4 per cent) and Adelaide (25.1 per cent) reporting the most growth in value over this time.

[Related: RBA eyes lending standards amid credit rebound]