Clearance rates at lowest level since April 2020

Across the combined capitals 1,864 homes went under the hammer, down from 2,364 the week prior, preliminary data from CoreLogic showed.

According to the Property Market Indicator report from CoreLogic, of the 1,453 results collected so far, just 55 per cent were successful, the lowest national preliminary clearance rate since the early days of the pandemic in late April 2020. 

The stats showed that there is a falling appetite for auctions, which had been at record-high clearance rates over the past year. However, clearance rates and demand for property have been falling in recent months, off the back of rising interest rates, easing property prices, cost-of-living pressures and flooding in the eastern states.

Melbourne, which for the first time in weeks wasn’t the busiest capital city, hosted 628 auctions this past week, down from 1,000 the week before. With 56.8 per cent of results collected so far as successful, the Victorian capital has registered its lowest preliminary clearance rate since the week ended 19 September 2021 (56.4 per cent). 

The city’s inner east had the strongest results for the week, with a preliminary clearance rate of 60.9 per cent from 54 total auctions, whereas the Mornington Peninsula saw the weakest results, with just 43.8 per cent of its 17 auctions returning a positive result.

In Sydney, the nation’s busiest capital for auction last week, 766 homes went under the hammer throughout last week, down from 890 the week before. A 52.5 per cent preliminary clearance rate from the 629 results collected so far is the lowest rate recorded in the Harbour City since April 2020. 

Based on current data, Corelogic is reporting that Sydney’s final clearance rate is likely to duck below 50 per cent once all remaining results are collected. 

The city’s inner west registered the highest preliminary clearance rate (60.7 per cent) from 67 auctions, while 19 homes went under the hammer in the Central Coast, with 21.4 per cent returning a positive result. 

Among the smaller capitals, Adelaide was the busiest, hosting 192 auctions whilst also boasting the highest preliminary clearance rate (71.3 per cent). Brisbane, which held the second-highest number of auctions (154), recorded its lowest preliminary clearance rate (43.8 per cent) since early November 2020. 

Similarly, Canberra reported its lowest week of positive results (43.5 per cent) since April 2020, occurring during a week where the nation’s capital hosted 101 auctions. In Perth, 50 per cent of the 21 auctions recorded a positive result, while Tasmania’s two auctions are yet to return a result.

Early indicators are suggesting auction activity is set to fall again this coming week, with just 1,700 properties scheduled to go under the hammer across the combined capital cities next week. The flooding in NSW will likely impact auctions in Sydney this coming week, too. 

[Related: Auction activity continues to fall, clearance rates lift marginally]