Auction activity continues to decline as market heads into winter slowdown
Auction activity experienced a decline this week, as a total of 1,530 auctions took place across the combined capitals, according to new data from CoreLogic.
This figure was down from the previous week, which saw 1,791 homes being auctioned. In comparison to the same period last year, there were 1,881 capital city auctions held.
The preliminary clearance rate for the combined capitals reached its lowest point since the week ending April 30, standing at 70.3% based on the 1,138 results collected as of Monday. In the previous week, the preliminary clearance rate was slightly higher at 73.8% (revised to 68.6% at final figures), while a year ago, only 53.2% of auctions were successful.
Sydney witnessed a total of 696 auctions this week, showing a decrease of 3.9% compared to the 724 held last week, and a decline of 7.9% compared to the 756 auctions held during the same week last year CoreLogic reported. Of the 514 results collected so far in Sydney, 71.2% reported a successful outcome. The decrease in the preliminary clearance rate can be attributed to a rise in the percentage of properties passed in at auction, increasing from 9.7% last week to 13.2% this week, along with a higher withdrawal rate from 11.9% to 15.6%.
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Melbourne hosted 517 auctions this week, which was down 30.5% from the 744 held in the previous week. Out of the 439 auction results collected so far in Melbourne, the preliminary clearance rate remained above 70%, specifically at 70.2%, according to CoreLogic. In the previous week, the preliminary clearance rate was slightly lower at 70.1%, which was later revised to 67.5% at final figures. During the same week last year, Melbourne hosted 654 auctions with a clearance rate of 55.8%.
Smaller capitals
Among the smaller capital cities, Brisbane had the highest auction market activity this week with 132 auctions, followed by Adelaide with 111 auctions and Canberra with 68 auctions, CoreLogic reported.
Adelaide recorded the strongest preliminary clearance rate among the smaller capitals, with 81.8% of auctions reporting a successful result, followed by Brisbane at 64.3% and Canberra at 60.5%. In Perth, none of the three results so far were successful, while no auctions were held in Tasmania last week.
Looking ahead, around 1,450 auctions are currently scheduled for next week, indicating a further reduction in capital city auction activity of approximately 5.2%. This trend aligns with the typical seasonal decline in auction activity during the winter period.
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