Auction clearances solid

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ScreenHunter_02 Feb. 13 11.55

By Leith van Onselen

Auction clearance rates in Australia’s two biggest markets – Sydney and Melbourne – were once again solid over the weekend.

In Australia’s biggest auction market – Melbourne – clearances rose to 73% on 601 auctions reported to the REIV. However, with 54 auctions listed as “no result”, the final clearance rate is likely to be downgraded by a few percentage points as late results come in (see below table).

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Despite the likelihood that the final auction clearance rate will be revised downwards somewhat, the weekend’s result was an improvement on the 71% preliminary clearance rate reported last weekend on 681 auctions which was later revised down to a final clearance rate of 69% on 746 auctions. The weekend’s result was also well above the 55% clearance rate on 473 auctions recorded on the same weekend of last year.

That said, it is likely that this weekend’s result in Melbourne might have been inflated by the first home owners grant for established dwellings coming to an end on the 30 June 2013, which likely pulled some demand forward.

Sydney’s preliminary auction clearance rates were also solid, reported as:

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  • 72.8% by RP Data versus 72.5% last weekend;
  • 72% by Residex versus 71% last weekend; and
  • 73% by APM versus 75% last weekend.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.