Auction activity continues to fall, clearance rates lift marginally

A drop in auction activity in Melbourne has contributed to an overall decline in auction volume across the national combined capitals.

A total of 2,358 auctions were held throughout the course of the week ended 26 June 2022, down 6.7 per cent from the previous week.

The Victorian capital of Melbourne saw volumes drop the most, with a 22.3 per cent decline last week, however it still led the pack as the nation’s busiest auction capital, with the city still playing host to 984 auctions. 

Melbourne’s strongest performing subregion for the week was the Mornington Peninsula, which saw 21 auctions held throughout the week for a preliminary clearance rate of 87.5 per cent. Meanwhile, the city’s west was its worst performing, with 52 per cent of its 124 auctions returning a positive result.

The Victorian capital also contributed to an uplift in clearance rates.

Following steady decline in successful auctions, 61 per cent of the 817 results collected so far were positive in Melbourne, resulting in preliminary clearance rates rising above 60 per cent for the first time in four weeks.

Across the country’s capitals, CoreLogic’s preliminary data showed that 59.8 per cent of auctions returned a successful result, compared to 57.8 per cent the week prior.

In Sydney, the preliminary clearance rate rose for the first time in five weeks, up 50 bps from 55.4 per cent to 55.9 per cent. CoreLogic has reported that 898 homes went under the hammer across the Harbour City last week, up 13 per cent from the previous week.

In spite of these positive results, the city did record its highest withdrawal rate since 26 April 2020 – at 28.6 per cent.  

Sydney’s inner west was its best-performing subregion, reporting a preliminary clearance rate of 67.2 per cent from 82 auctions, as opposed to the Central Coast, its worst-performing region, where only 18.2 per cent of the 15 auctions returned a positive result.

Among the smaller capital cities, auction volumes remained consistent with the week ended 19 June.

Adelaide was both the busiest, and most successful, of the smaller states, registering a preliminary clearance rate of 68.8 per cent from 173 auctions. Brisbane was next best, hosting 161 auctions with a 65.4 per cent success rate. 

The nation’s capital of Canberra saw 121 homes go under the hammer throughout the week, with a preliminary clearance rate of 62 per cent.

Over in Perth, half of the city’s 16 auctions have so far reported a positive result, while in Tasmania, neither of the two auctions held found buyers under the hammer.

[Related: Capital city clearance rate continues nosedive]