Auctions at 'unprecedented' high

by AB27 May 2014
Take note, potential borrowers – there were an unprecedented number of scheduled auctions across Australian capital cities over the last week.

There were 3,111 auctions scheduled across Australia over the week to 25 May with 2,589 scheduled in capital cities – a “remarkable” 53% more than the 1,687 auctions held a year ago, research house RP Data said.

A preliminary auction clearance rate of 66.1% was recorded across capital cities, compared to 66.6% the previous week and 67.1% this time last year.

While vendors may have been concerned about the high volume of competing auctions, demand from buyers seemed sufficient to make sure the clearance rate was largely unaffected by the substantial 61% rise in homes on offer at auction compared to this time a year ago.

The increase in auction volumes is largely as a result of an “unprecedented surge” in May of listings in Melbourne and Sydney, which both had more than 1,000 auctions scheduled, RP Data said.

In the Sydney market demand strengthened with a preliminary clearance rate of 76.2% recorded compared to 69.9% last week.

In Melbourne demand and supply continue to be well balanced with a preliminary clearance rate of 61.7% recorded compared to 68.8% last week.

In Brisbane a preliminary clearance rate of 49.5% was recorded compared to 46.5% last week. Adelaide recorded a clearance rate of 67.2% compared to 63.8% last week.

In Canberra a clearance rate of 50.9% was recorded and in Perth there was a clearance rate of 45.2%. In Tasmania there were two sales from four results.

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