auction clearance rates drop but investors want to leave
Auction clearance rates dropped, but remain above last year’s levels. Image: Canva.
  • The reduced auction activity remains above levels at the same time last year.
  • Preliminary clearance rates were up 80 basis points from last week.
  • A growing number of properties coming to auction are investment homes.

Auction activity in Australia has dropped 11.7%, with 1,742 auctions held across the capital cities, according to CoreLogic.

The reduced number of auctions was expected, with the latest figures down from last week’s 1,973 auctions.

While the week-on-week activity fell, auction numbers remained elevated. This time last year saw 1,471 auctions, and the latest figures are on par with a fortnight ago (1,734).

The preliminary Australian auction clearance rates are 80 basis points above last week’s preliminary clearance rate of 70.2%; the latest preliminary result of 71% comes from 1,320 results collected so far. Last week’s clearance rate was revised to 64.9% at final numbers. This week last year recorded a final clearance rate of 56.6%.

Among notable movements:

  • Sydney’s preliminary clearance results dipped to 69.1%, the first time since mid-March figures have been below 70%,
  • Sydney saw increased numbers of withdrawals. The latest rate is 16.9%, while last week was 11.9%, and
  • Melbourne’s preliminary clearance results are now back above 70% after two weeks of results below 70%.

Drawing a crowd

Ray White similarly saw some 70% of properties sell under the hammer on Saturday, with bidder registrations rising to 4.2.

A large crowd at a Sydney auction saw 7 Heights Crescent, Middle Cove, sell for $4.9 million, with Ray White Willoughby principal, Stewart Gordon, commenting, “It certainly feels like spring.”

Twenty buyers made their presence known at a unit auction in the Brisbane suburb of Wooloowin, selling for $770,000.

Ray White Victoria and Tasmania CEO, Stephen Dullens, observed that many investors are exiting the market, as risk increasingly weighs on their minds.

“Many of these sales were homeowners making the decision to sell their investment property, largely a result of higher costs and an increased perceived risk in the residential real estate investment space.

“Ray White data tells us that across all of our Victorian auctions so far this financial year, we are seeing more than double the number of investors choosing to sell investment properties in comparison to investors who are purchasing.

“This gap has widened significantly compared to both the same period last year as well as the first quarter of this calendar year.

“Ray White manages in excess of 55,000 rental properties across Victoria and we have never seen demand from renters in Melbourne as high as it is right now. There are simply not enough rental properties available to satisfy the demand, and moves that drive negative sentiment towards investing in residential real estate across Victoria is only going to make the situation worse for renters,” added Dullens.



You May Also Like

Melbourne property market sees mom and dad builders flock to outer suburbs for the best bang for buck

The cost of building a house in these top 20 suburbs started at $272,944 and topped out at $387,688.

Australian rental market clocks in a near-40% price growth, while wages struggle to keep up

Rents soared by almost 40% across the pandemic, while wages barely clocked in 20% growth.

Gender gap closes? Women outpace men in overall property ownership

Challenges persist for younger women in achieving homeownership, highlighting the need for targeted solutions.

Exclusive: Top five regional New South Wales housing markets revealed, the affordable alternatives to Sydney

Hotspotting has exclusively revealed to TPT New South Wales housing market’s five best regional hotspots for homebuyers and investors.

Top Articles

PropertyGuru Asia Property Awards (Australia) returns for its 7th edition, including several brand new award ...

This year's awards include several brand new categories, with entries closing 2 August 2024.

Housing crisis survival guide: How to buy your first Australian property

Three property experts give the low down on how to nab a home in this tough housing market.

Strata properties as investments: All you need to know about investing in a Perth unit

As the cost of renting approaches the cost of a mortgage, more people are investing in units to escape the rental trap.