Reported auction clearance rates in Australia’s two biggest markets were mixed over the weekend, with Melbourne’s auction market weakening and Sydney’s seemingly continuing to boom.
In Australia’s biggest auction market – Melbourne – clearances fell to 70% on 426 auctions reported to the REIV, with only 7 auctions listed as “no result” (see below table).
The weekend’s result was significantly weaker 76% preliminary clearance rate reported last weekend on 354 auctions which was later revised down to a final clearance rate of 73% on 379 auctions. That said, it was still well above the 59% clearance rate on 359 auctions recorded on the same weekend of last year.
A big word of caution, however. As was the case last week, the REIV’s auction results for Melbourne are contradicted by RP Data, which reported only a 63% clearance rate based on 486 auction results (i.e. a much bigger sample). The fact that the REIV is now quoting significantly stronger results based on smaller sample sizes has to place a question mark over its reliability.
Sydney’s preliminary auction clearance rate was once again strong. Clearance rates were reported as:
- 79.1% by RP Data versus 79.7% last weekend;
- 81% by APM versus 81% last weekend; and
- 73% by Residex versus 73% last weekend.
