Preliminary clearance rates dip as capital city auction activity rises

With the spring selling season just around the corner, auction activity rose above the 2,000 mark for the first time in nine weeks, with 2,018 homes auctioned across the combined capitals this week. Rising for the fourth consecutive week, this week’s auction activity is up 10.8% compared to last week (1,816) and is 3.0% above the number of auctions held this time last year (1,960). The increase in auction activity saw preliminary clearance rates dip after holding above 60% for the past two weeks. Of the 1,522 results collected so far, 59.1% returned a successful result, down 3.5 percentage points from last week’s preliminary rate (62.6%, revised to 58.8% at final figures) but 1.1 percentage points above the clearance rate recorded this time last year (58.0%).

Across Sydney, this week’s auction activity was up 23.8% compared to the previous week (639) and 33.6% higher than this time last year (592), with 791 homes auctioned across the city (the highest volume of auctions held since late June). With 591 results collected so far, Sydney recorded its lowest clearance rate in three weeks (56.9%), and highest withdrawal rate in eight weeks (25.4%). A preliminary rate of 63.4% was recorded the previous week, later revised to 59.1% at final figures, while this time last year 80.2% of auctions returned a successful result.

With 829 homes auctioned across the city, Melbourne hosted the most auctions of any capital city this week. While this week’s auction activity is up 6.4% compared to the 779 auctions held the week prior, it is -10.7% below the number of auctions held this time last year (928). With 61.3% of the 684 auction results collected so far returning a positive result, Melbourne’s preliminary clearance rate fell 3.7 percentage points this week. The previous week recorded a preliminary clearance rate of 64.9%, revised to 60.8% at final figures, while this time last year 35.9% of auctions were successful, dragged lower amid Melbourne’s sixth lockdown.

Auction activity held steady across the smaller capitals this week, with auction volumes rising across Adelaide (12.1%) and Perth (53.3%) but falling across Canberra (-13.7%), and Brisbane (-5.2%). Brisbane recorded both the busiest week and the lowest preliminary clearance rate, with 41.6% of the 145 auctions held returning a successful result. Adelaide hosted 139 auctions and recorded a preliminary clearance rate of 78.0%, while 62.7% of the 88 auctions held in Canberra sold under the hammer. Results for 14 of the 23 auctions held in Perth have been collected so far, six returned a successful result, while just one of the three auctions held in Tasmania this week was successful.