Capital city weekly volumes inch higher with over 3,000 auctions heading into summer season
DECEMBER2023
By Kaytlin Ezzy, Economist, CoreLogic Australia
Auction activity across the combined capitals is set to inch higher through the first week of summer, with 3,041 homes scheduled for auction. Up 3.1% compared to last week (2,949), this week is slated to be the capital’s second busiest of the year, behind the week ending 29th October (3,381), with both Sydney and Adelaide expecting their busiest week of the year. This time last year, auction numbers were -16.6% lower, with 2,537 homes auctioned across the capitals.
Melbourne is expecting a 6.1% rise in weekly auction numbers, with 1,389 homes set to go under the hammer this week. The previous week saw 1,309 homes auctioned, while this week last year, 1,158 auctions were held across the city.
Auction activity across Sydney is set to inch 0.6% higher this week, after hosting the busiest auction week of the year so far last week (1,142). This week, 1,149 homes are currently scheduled for auction. This week’s expected numbers are 58.7% higher than the weekly average seen over the year so far (724) and 29.0% higher than the 891 homes auctioned this time last year.
Across the smaller capitals, Adelaide is set to host the busiest auction week, with 190 homes currently scheduled for auction, up 21.8% week-on-week. Brisbane’s weekly auction numbers are expected to fall -11.1% to 177, while 118 auctions are currently scheduled to occur in Canberra, down -3.3%. In Perth, 16 homes are set to go under the hammer, while just two auctions are expected in Tasmania this week.
Auction activity is expected to remain strong over the first few weeks of summer before easing over the festive season. The coming weeks will be an important touchstone for how market conditions could play out in early 2024.
Summary of last week’s results
Auction activity across the combined capitals eased slightly last week, with 2,949 capital city homes auctioned, down just -1.4% from the 2,990 held the week prior. As the third busiest auction week of the year, last week’s auction numbers were 60.2% higher than this year’s weekly average (1,841) and 22.2% higher than this time last year (2,414).
While auction numbers remain elevated, buyer demand has continued to ease, with the combined capitals recording the lowest final clearance rate of the year. With just 60.8% of auctions reporting a successful result, last week’s clearance rate was down -1.6 percentage points compared to the week prior (62.4%) but remained 4.4 percentage points higher than this time last year (56.4%).
Auction activity across Melbourne trended lower last week, with 1,309 homes auctioned, down -7.2% from the previous week (1,410). Melbourne’s final clearance rate fell below the 60% mark last week, declining -3.5 percentage points for the week prior (61.2%). At 57.7%, last week’s result was in line with the week ending 5 November (57.7%), when the spring carnival festivities saw the city record its lowest clearance rate since Easter (50.9%). Over the same week last year, 1,011 homes were taken to auction across the city, and a final clearance rate of 56.1% was reported.
Sydney hosted its busiest auction week of the year last week (1,142), overtaking the week ending 29 October (1,071). Up 7.4% compared to the previous week (1,063), last week’s numbers were 22.9% higher than this time last year, when 929 homes went under the hammer across the city. At 63.9%, Sydney’s final clearance rate held steady last week, tying with the week prior as the city’s lowest since early August (63.4%). The flat clearance rate was driven by a 50-basis point fall in the potion of properties passed in at auction (21.5%), perfectly balancing the 50-basis point rise seen in the withdrawal rate (14.6%). This time last year, 58.6% of auctions held in Sydney were successful.
Across the smaller capitals, Brisbane (199) was the busiest auction market, with auction activity holding fairly steady relative to the week prior (-1.0%), followed by Adelaide (156), down -16.6% week-on-week, and Canberra (122), up 11.9%. Perth was the most successful auction market, albeit on low numbers (18), with 77.8% of auctions reporting a successful result, followed by Adelaide (75.5%). Brisbane’s clearance rate rose 3.5 percentage points higher to 59.3%, while Canberra’s fell below the 50% mark, with just 46.7% recording a positive result. All three auctions held in Tasmania last week were passed in at auction.
For the full Auction Market Preview, which includes a summary of last week’s clearance rates, please see the attached PDF.
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