Auction clearance rates steadily rising above 80% across capital cities

by Micah Guiao12 Oct 2021

Capital cities saw 2,727 homes taken to auction this week, the busiest it’s been for the market since mid-July, according to recent figures from CoreLogic.

The numbers are much higher than last week’s 1,986 and last year’s 1,084. Of the 2,244 results collected so far, 83.3% were successful, marking the third consecutive week that preliminary clearance rates went above 80%.

In comparison, the preliminary clearance rate was at 84.4% last week and 66.4% last year.

Melbourne had 1,357 homes taken to auction this week, up 68.6% from the week prior. Of the 1,114 results collected so far, 81.9% were successful and only 7.7% were withdrawn – a stark contrast to the 61.6% withdrawal rate recorded in late August after a ban on home inspections.

Of the 912 successful results reported, 36% were sold prior to auction.

For weeks now, CoreLogic has been noting a strong return in vendor confidence as evidenced by a sharp reduction of withdrawals in Melbourne.

Meanwhile, Sydney saw 832 homes taken to auction, slightly down from the previous week’s 890 but up from the last year’s 751. Of the 734 results collected so far, 83.2% were successful, also continuing its streak of clearance rates above 80% in the seventh consecutive week.

However, the withdrawal rate was slightly higher at 10.6%, compared to last week’s 10.3%. Of the 611 successful results so far, 53.4% were sold prior to auction.

“The trend in Sydney’s auction volumes has returned to the upward trajectory observed since late August following a small dip during last week’s long weekend,” CoreLogic said. “With Freedom Day scheduled for today, we are likely to see some pent-up supply flowing into the markets as Sydney siders prepare to reopen.”

Across smaller markets, Canberra has become the best-performing capital city at 93.6% – the highest the city has recorded since late July. This was followed by Adelaide at 89.7% and Brisbane at 81.3%.