Auction Clearance Rates Rise By 6.6 Percentage Points Over March Quarter
Roughly half our homes that were up for auction across Australia’s capital cities were sold during the 1st quarter of 2019, with its latest CoreLogic Quarterly Market Review showing the clearance rate of 49.9% across all combined capitals. This shows an increase of +6.6 percentage points of the December quarter results.
The March quarter clearance rates are on the up, which pale in comparison to the same quarter last year, when they had 64.6% of properties across the combined capitals sold at the auction.
“Auction volumes and clearance rates are mirroring the broader slowdown in property transaction and housing market conditions. Auction clearance rates over the March 2019 quarter were 14.7 percentage points lower than they were over the March 2018 quarter,” says Cameron Kusher at CoreLogic.
Across combined nations 14,647 residential auctions scheduled March 2019 quarter compared to 25,894 which was in December 2018 quarter 20,701 over March quarter a year ago. “Vendors are less confident of achieving a positive result at auction, and this has further impacted auction volumes during what is traditionally a quiet start to the year.”
Sydney posted the largest improvement in auction clearance rates relative to the December quarter last year
CoreLogic Quarterly Auction Market Review found quarterly clearance rates have increased across all capital cities but Hobart (-5.2% points) and Canberra (-1.6% points). Canberra was reported the most outstanding drop year to year, with as clearance rate of it falling to -22.6% points to 45.6% in the March 2019 quarter.
Sydney vendors achieved high quarterly clearance rates of 53.2% out of the 5,278 properties for auction selling in 3 months to March. It was +10.1% point increase related to the December quarter, but -10.4% points were lower than 12 months ago.
Australia’s busiest capital city market that remained over the March quarter was Melbourne, with 6,375 auctions scheduled (51.8% clearance rate), which was down from 12,372 in the latest quarter and 9,488 a year ago. Tasmania had the lowest auctions scheduled with 45 properties for sale, however it was the only capital city to report which increased in the auction volumes over the past quarter.
Capital city auction clearance rate & volumes, March quarter 2019
Sydney 53.2 % (5,278 auctions)
Melbourne 51.8 % (6,375 auctions)
Brisbane 31.3 % (1,062 auctions)
Adelaide 48.8 % (933 auctions)
Perth 31.4 % (317 auctions)
Tasmania 44.8 % (45 auctions)
Canberra 45.3 % (637 auctions)
Combined capitals 49.9 % (14,647 auctions)
The quarterly clearance rates have improved across 14 out of Sydney’s 15 sub-regions, with Central Coast the only sub-region to experience a decline in auction sales since December 2018 (-0.9% points). Ryde was reported the highest increase in quarterly clearance rates, with a 61.9% of auction properties selling, and increased with 20.7% points over the past 3 months. Year on year, Blacktown (+5.7% points) and Ryde (+8.5% points) were the only sub regions with rates that improved.
All regions had a lower volume of auction properties within the March quarter compared to the previous quarter and therefore the same quarter last year. The North Sydney and Hornsby region maintained its quality as an auction hot spot, with biggest number of scheduled auctions (839) and therefore the highest clearance rate (62.0 per cent).
The Eastern Suburbs was the upcoming busiest region with 832 auctions going down (56.6 per cent clearance), whereas the Outer West and Blue Mountains command the fewest auctions. Sellers were also least prone to secure sale in the Outer West and Blue Mountains wherever the clearance rate was solely 30.0% over the past quarter.
Across the suburbs, Erskineville boasted the very best clearance rate at 83.3%, closely followed by Cremorne (80.6 per cent), whereas Randwick had the very best variety of scheduled auctions.
Melbourne quarterly clearance rates enhanced in all regions, with the best improvement occurring within the Inner East (+12.7% Points). The Inner East conjointly had the very best clearance rate over the quarter at 57.0%. At the opposite end of the dimensions, the least clearances rates were within the West (44.4%) and therefore the Mornington Peninsula (44.5%).
Year on year, the North West suffered the largest drop in clearance rates, dropping -23.7% points since March 2018.
Auction volumes were highest in Inner Melbourne, that had 1,288 properties below the hammer over the March quarter. The Mornington Peninsula had the smallest amount activity with 213 properties scheduled for auction within the initial 3 months of the year.
Craigieburn and Reservoir were Melbourne’s busiest auction suburbs, with 99 scheduled auctions over the quarter. Vendors were most
successful in Hillside with a clearance rate of 75%, Fitzroy (73.9 per cent) and Caulfield South (71.1 per cent).
Highest number of auctions for the quarter across capital city suburbs (based on total auctions held across the suburb over the reporting period)
Melbourne: Craigieburn & Reservoir 99
Sydney: Randwick 73
Brisbane: Sunnybank Hills 24
Adelaide: Norwood & Adelaide 15
Canberra: Curtin 23
Perth: Dianella & East Perth 10
Highest clearance rate for the quarter by capital city suburbs
Calculated when there have been at least 20 auction results reported over the period
Sydney: Erskineville 83.3% (captured results: 24, scheduled auctions: 24, sold: 20)
Melbourne: Hillside 75.0% (captured results: 20, scheduled auctions: 22, sold: 15)
Brisbane: Sunnybank Hills 35.0% (captured results: 20, scheduled auctions: 24, sold: 7)
Geelong records highest regional clearance rates despite declining auction volumes
The CoreLogic Quarterly Auction Review additionally analysed regional auction volumes and clearance rates across Hunter, Geelong, Gold Coast, Sunshine Coast and Wollongong.
Quarterly auction volumes fell in all the regions aside from the Gold Coast, that had by far the biggest activity with 635 scheduled auctions (up from 616 over the last quarter). With 242 scheduled auctions, Geelong noted the biggest decline in annual auction volumes, down from 458 within the March 2018 quarter.
Geelong recorded the best clearance rates with 45.5%of properties sold at auction, followed by Hunter at 41.6%. The Hunter qualified the biggest quarterly growth in clearance rates, with a rise of 8.7%.