Public holidays and the AFL reduce auction traffic

The number of auctions held in the combined capitals fell by 39.9 per cent this week compared to the 2,203 auctions held the previous week, and it fell by 18.6 per cent compared to the volumes recorded at this time last year. 

For the fourth week running, preliminary clearance rates in the combined capitals remained above 60 per cent, with 60.6 per cent of the 1,028 results obtained so far reporting a successful result. 

The preliminary clearance rate (62.5 per cent) from last week was revised downward to a final clearance rate of 60.1 per cent, the highest since the middle of May (61.3 per cent). A year ago, at this time, 86 per cent of auctions in major cities were successful.

This week saw the highest number of auctions in Sydney since late July, with 808 houses being auctioned off. Auctions increased by 4.7 per cent from the previous week’s total of 772.

Based on 672 results gathered so far in Sydney, the clearance rate is 60.6 per cent. This is the fourth week in a row that it has been above 60 per cent, which is in line with the trend set by the combined capitals. 

Compared to last week’s preliminary rate of 60.2 per cent, which was later changed to 57.1 per cent, this week’s preliminary rate showed an increase of 40 bps. 

Even though the clearing rate went up a little, the number of withdrawals in Sydney went up by 1.7 percentage points to 22.6 per cent. Last year at this time, 829 of the city’s homes that were put up for auction were sold, or 81.7 per cent.

In Melbourne, just 132 auctions were held this week — an 86.9 per cent drop in activity compared to the week prior. (1,626). 

It was the slowest auction week since mid-January (44). The Queen’s memorial public holiday and the AFL Grand Final this weekend are to be attributed to the lower number. Last week, 1,008 homes were taken to auction in the city. 

At this time last year, there were only 352 auctions. So far, 106 results have been collected, and Melbourne’s preliminary clearance rate is now 66.0 per cent, up 1.7 percentage points (its highest preliminary rate since early May). 

The preliminary clearance rate for last week, which was 64.4 per cent, was changed to a final rate of 62.4 per cent. At the same time last year, 75.7 per cent of auctions were successful.

Auction activity also fell across the smaller capitals — by 9.5 per cent for the week. Auction volumes fell in Brisbane by 18.1 per cent, Adelaide by 9.4 per cent, and Perth by 60 per cent. Canberra was the only city to buck the trend, with activity up by 13.6 per cent. 

Brisbane had the most auctions of the smaller capitals, with 140 taking place around the city. Canberra and Adelaide came in second and third, with 117 and 86 auctions, respectively (116). 

The highest preliminary clearance rate was in Adelaide, where 70.3 per cent of auctions were successful. In Canberra and Brisbane, the rates were 57.0 per cent and 52.6 per cent, respectively. 

So far, the results of three of the eight auctions held in Perth have been collected, and one of them was successful. 

In Tasmania, one of the two auctions held this week also had a successful result.