Australia’s auction market looks set to finish the current financial year on a positive note, with excess of 2,000 auctions again scheduled this week.
Figures from
CoreLogic show 2,110 auctions are scheduled for Australia’s capital cities this week, relatively stable on last week’s 2,183.
Last week’s national clearance rate finished at 67.4%, up from 65.7% over the previous week.
In Melbourne, 982 homes are set to go under hammer this week as the city sets a record mark for auction activity in this time of the year. Melbourne finished last week with a clearance rate of 68.3%.
While it has consistently been the busiest market in 2016, volumes are down on what has been seen in Melbourne in recent years and Melbourne based buyer’s agent Cate Bakos said that has resulted in strong buyer competition, even with an election looming.
“We’ve got increased number of buyers per property and you’re seeing people that have missed out consistently and are stretching beyond what even agents would assume an energetic be prepared to stretch,” Bakos told
Australian Broker's sister publication,
Your Investment Property.
“I anticipated some election jitter and for it to sway buyer numbers, but it certainly doesn’t look like that, especially in the inner and middle rings,” she said.
For buyers, Bakos believes spring may bring some relief as she predicts an increase in volumes.
“I hope we do see increased numbers and that give buyers an easier chance to buy within the realms of what we think is fair market buying,” she told Your Investment Property.
“I really do hope that we get a bit of a reprieve through September and October and I anticipate that we probably will.”
After being the nation’s busiest auction market for a solid stretch of 2015, Sydney has fallen behind Melbourne in terms of volumes recently and will this week hold 778 auctions.
Rich Harvey, chief executive officer of propertybuyer.com.au, said the lower volumes had helped Sydney’s clearance rate retain some strength and he also believes volumes will increase later in the year.
“Everyone naturally predicts that after seeing clearance rates in the 80% range last year that the market would come down, it has come down a bit but we’ve seen some quite remarkable results in the first half of this year,” Harvey told
Your Investment Property.
“The main reason I think auction clearance rates have been quite high is simply that’s there’s been a lack of stock. There have been a reduced number of properties put up for auction,” he said.
“The clearance rate will probably hover around 70% up until spring and then we should definitely see an increase in volumes and it might push towards the mid-60% range.”
Sydney finished last week with a clearance rate of 73.4%, the highest recorded across the country over the week.
In the smaller auction markets, activity will be at usual levels this week.
Brisbane is set to hold 161 auctions, up from last week’s 121, from which it returned a clearance rate of 45.1%.
Adelaide will hold 86 auctions this week after returning a clearance rate of 64.8% from last week’s 86.
In Canberra, 55 auctions are scheduled after last week’s 66 which returned a clearance rate of 611%.
Perth’s volumes have slipped from 55 to 39 this week.
