Auction clearance rates in Melbourne continue to climb – another sign that our property markets are improving.
The trend started at the beginning of the year and Corelogic reported that auction clearance rates continued to climb over June quarter.
But auction clearance rates have been in the higher since the reported period – in the high 60 percent range for much of July 2019 – albeit on low volumes.
CoreLogic reported that clearance rates across Melbourne, Australia’s largest auction market, showed an increase over the June quarter while Sydney’s clearance rate has outperformed both the previous quarter and the June 2018 quarter.
Capital city June quarter auction clearance rate & volumes:
- Sydney 59.1 % (6,776 auctions);
- Melbourne 59.5% (7,838 auctions);
- Brisbane 32.3 % (1,380 auctions);
- Adelaide 47.0 % (1082 auctions);
- Perth 27.4 % (409 auctions);
- Tasmania 60.0 % (41 auctions);
- Canberra 50.8 % (578 auctions);
- Combined capitals 55.5 % (18,104 auctions).
Across the non-capital city markets, clearance rates increased across all five regions tracked over the June quarter with Geelong leading the charge for regional auction markets, returning the highest clearance rate over the quarter (56.4 per cent), while the Gold Coast was the busiest of the regions with 571 homes taken to auction.
Auction results are highly correlated with housing market conditions in Sydney and Melbourne, while other capital cities generally show a much smaller proportion of properties are taken to auction.
The improved trend in auction market results provides further evidence that housing conditions are stabilising, especially in Sydney and Melbourne, where a trend towards higher clearance rates has been most pronounced.
Over the 3 months to June 2019, the clearance rate across the combined capital cities came in at 55.5 per cent across 18,104 auctions, the strongest quarterly clearance rate since the June quarter last year.
By comparison, the previous quarter saw fewer auctions and a lower clearance rate (49.9 per cent across 14,647 auctions), although the March quarter is traditionally quieter due to the seasonal slowdown in January, so lower volumes is not that surprising.
The weekly trend in clearance rates also improved, with clearance rates holding above 50 per cent for 11 of the 13 weeks.
Across the last 3 weeks of the quarter, clearance rates sat above 60.0 per cent.
It will be interesting to see if this continues.
Highest number of auctions for the quarter across capital city suburbs.
(Note: Based on total auctions held across the suburb over the reporting period)
Despite an improvement in capital city clearance rates, auction volumes are down -30% from the June 2018 quarter when 25,824 homes were taken to auction.
The combined capital city clearance rate over the June 2018 quarter was also slightly stronger with 57.8 per cent of auctions recording a successful result.
Highest clearance rate for June 2019 quarter x capital city suburbs
(Note: excludes suburbs with fewer than 20 auctions results reported over the quarter).
Sydney: Lane Cove 91.7% (captured results: 24, scheduled auctions: 32, number sold: 22).- Melbourne: Armadale 85.7% (captured results: 28, scheduled auctions: 33, number sold: 24).
- Brisbane: Camp Hill 48.0% (captured results: 25, scheduled auctions: 26, number sold: 12).
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Auction Market Review Highlights
Quarterly summary, capital cities
Weekly clearance rate and volume of auctions, combined capital cities
Quarterly summary, regional
Capital city key statistics
Capital city sub-regions (Melbourne)
| Sub-region | Clearance rate (Jun Qtr ’19) | Total auctions (Jun Qtr ’19) | Clearance rate (Mar Qtr ’19) | Total auctions (Mar Qtr ’19) | Clearance rate (Jun Qtr ’18) | Total auctions (Jun Qtr ’18) |
| Inner | 61.4% | 1,537 | 54.5% | 1,288 | 65.1% | 2,198 |
| Inner East | 65.7% | 869 | 57.0% | 767 | 56.4% | 1,377 |
| Inner South | 62.7% | 1,239 | 53.9% | 1,039 | 61.5% | 1,635 |
| North East | 57.5% | 927 | 49.7% | 651 | 62.6% | 1,538 |
| North West | 59.4% | 727 | 50.8% | 616 | 65.1% | 1,179 |
| Outer East | 62.6% | 498 | 52.1% | 421 | 58.5% | 897 |
| South East | 56.5% | 810 | 50.7% | 626 | 56.4% | 1,226 |
| West | 53.0% | 974 | 44.4% | 739 | 61.4% | 1,808 |
| Mornington Peninsula | 49.8% | 236 | 44.5% | 213 | 56.4% | 445 |
Melbourne
| Suburb | Clearance rate (Jun Qtr 19) | Total auctions (Jun Qtr 19) |
| Abbotsford | 50.0% | 29 |
| Airport West | 52.0% | 28 |
| Albert Park | 59.1% | 23 |
| Altona North | 48.3% | 36 |
| Armadale | 85.7% | 33 |
| Ascot Vale | 42.0% | 57 |
| Avondale Heights | 46.2% | 29 |
| Balwyn | 71.4% | 24 |
| Balwyn North | 66.7% | 31 |
| Beaumaris | 63.6% | 31 |
| Bentleigh | 66.2% | 79 |
| Bentleigh East | 65.6% | 111 |
| Blackburn | 57.9% | 41 |
| Blackburn South | 71.4% | 24 |
| Box Hill | 60.0% | 25 |
| Box Hill North | 68.8% | 37 |
| B righto n | 60.0% | 74 |
| B righto n East | 43.2% | 49 |
| Broadmeadows | 40.7% | 29 |
| Brunswick | 55.9% | 68 |
| Brunswick East | 73.1% | 31 |
| Bulleen | 57.7% | 31 |
| Bundoora | 65.1% | 45 |
| Burwood | 70.0% | 26 |
| Burwood East | 64.7% | 43 |
| Carnegie | 58.1% | 47 |
| Caroline Springs | 52.2% | 24 |
| Caulfield North | 69.0% | 53 |
| Caulfield South | 80.8% | 36 |
| Chadstone | 50.0% | 29 |
| Cheltenham | 68.5% | 66 |
| Clayton | 51.7% | 35 |
| Clayton South | 36.7% | 33 |
| Clifton Hill | 81.0% | 26 |
| Coburg | 67.9% | 62 |
| Collingwood | 80.0% | 24 |
| Craigieburn | 61.6% | 103 |
| Croydon | 46.2% | 29 |
| Dandenong | 40.0% | 26 |
| Doncaster | 59.6% | 55 |
| Doncaster East | 66.7% | 62 |
| Donvale | 71.4% | 26 |
| Elsternwick | 74.2% | 35 |
| Elwood | 58.8% | 59 |
| Epping | 50.8% | 69 |
| Essendon | 62.5% | 51 |
| Fawkner | 65.4% | 30 |
| Ferntree Gully | 63.0% | 50 |
| Fitzroy | 83.3% | 31 |
| Fitzroy North | 65.0% | 25 |
| Flemington | 54.5% | 24 |
| Footscray | 51.4% | 46 |
| Frankston | 46.7% | 30 |
| Glen Iris | 70.5% | 70 |
| Glen Waverley | 70.1% | 105 |
| Glenroy | 59.2% | 85 |
| Greensborough | 62.9% | 44 |
| Greenvale | 62.5% | 28 |
| Hadfield | 56.5% | 25 |
| Hampton | 61.8% | 40 |
| Hawthorn | 63.4% | 45 |
| Hawthorn East | 81.1% | 40 |
| Heidelberg Heights | 50.0% | 23 |
| Highett | 74.1% | 35 |
| Hillside | 50.0% | 28 |
| Hoppers Crossing | 37.5% | 27 |
| Ivanhoe | 54.5% | 24 |
| Preston | 68.5% | 82 |
| Reservoir | 52.1% | 132 |
| Richmond | 55.4% | 90 |
| Rowville | 50.0% | 25 |
| Roxburgh Park | 64.5% | 32 |
| Seddon | 52.2% | 25 |
| South Melbourne | 60.9% | 28 |
| South M o rang | 65.9% | 49 |
| South Yarra | 77.1% | 58 |
| Southbank | 41.9% | 32 |
| St Albans | 46.2% | 44 |
| St Kilda | 56.3% | 83 |
| St Kilda East | 63.3% | 64 |
| Strathmore | 58.1% | 33 |
| Sunshine North | 56.7% | 31 |
| Sunshine West | 52.0% | 27 |
| Surrey Hills | 62.5% | 36 |
| Sydenham | 75.0% | 28 |
| Taylors Hill | 55.6% | 28 |
| Templestowe | 64.3% | 33 |
| Templestowe Lower | 47.8% | 27 |
| Thomastown | 54.0% | 53 |
| Thornbury | 68.3% | 47 |
| Toorak | 57.7% | 32 |
| Tullamarine | 45.8% | 28 |
| Wantirna | 73.1% | 32 |
| Wantirna South | 58.1% | 34 |
| Werribee | 32.3% | 36 |
| West Footscray | 50.0% | 20 |
| Wheelers Hill | 75.0% | 35 |
| Williamstown | 60.5% | 52 |
| Wollert | 28.6% | 23 |
| Yarraville | 49.1% | 59 |
| Keilor East | 70.3% | 42 |
| Kensington | 65.6% | 41 |
| Kew | 77.1% | 58 |
| Keysborough | 54.8% | 31 |
| Lalor | 59.2% | 50 |
| Maidstone | 64.0% | 31 |
| Malvern | 64.3% | 30 |
| Malvern East | 58.2% | 65 |
| Maribyrnong | 43.8% | 37 |
| Melbourne | 43.6% | 43 |
| Mentone | 70.0% | 37 |
| Mernda | 42.9% | 30 |
| Mill Park | 70.4% | 75 |
| Mitcham | 78.1% | 36 |
| Montmo rency | 44.0% | 30 |
| Moonee Ponds | 61.8% | 40 |
| Moorabbin | 84.0% | 27 |
| Mornington | 53.6% | 33 |
| Mount Waverley | 56.5% | 117 |
| Mulgrave | 65.9% | 46 |
| Murrumbeena | 54.5% | 24 |
| Newport | 57.1% | 55 |
| Noble Park | 56.7% | 37 |
| North Melbourne | 66.7% | 29 |
| Northcote | 57.7% | 79 |
| Nunawading | 59.1% | 25 |
| Oakleigh | 66.7% | 21 |
| Parkdale | 50.0% | 25 |
| Pascoe Vale | 69.2% | 58 |
| Pascoe Vale South | 45.5% | 25 |
| Point Cook | 48.7% | 47 |
| Port Melbourne | 70.2% | 58 |
| Prahran | 56.8% | 54 |
