Capitals see second-busiest auction week of 2023

Combined capitals record lowest preliminary clearance rate in 32 weeks with 3,019 auctions held last week, the combined capitals hosted the second busiest auction week of the year-todate. Exceeding the 3,000 mark for only the second time this year, volumes were up 13.7% compared to the week prior (2,656) and 31.4% higher than this time last year (2,298).

The rise in auction numbers was accompanied by a drop in the preliminary clearance rate. At 68.0%, with 2,262 records collected so far, last week's combined capital city preliminary clearance rate was the lowest since Easter (67.8%). The dip was primarily driven by vendors, with the combined capital's withdrawal rate rising to 10.9%, while the portion of properties passed in at auction fell to 21.2%. The previous week's preliminary clearance rate was one percentage point higher at 69.0% (revised to 63.1% once finalised), while 60.2% of auctions held this time last year were successful.

Across Melbourne, 1,414 homes went to auction last week, up 19.7% from the 1,181 held the week prior. The second busiest auction week of the year so far, behind the week ending 29th October (1,725), last week's numbers were 40.3% higher than this time last year (1,008). While in line with the combined capital's result, Melbourne's preliminary clearance rate (68.0%) rose 30 basis points, with 1,089 results collected so far. The previous week's preliminary clearance rate of 67.7% was revised to 60.7% at final figures, while this week last year, 62.3% of auctions reported a successful result.

Sydney hosted its busiest auction week in almost 18 months, with 1,081 homes taken under the hammer last week. Up from the 1,020 auctioned the week prior and 778 held this time last year, last week's numbers were the city's highest since late May 2022 (1,109). At 68.7%, with 828 results collected so far, Sydney's preliminary clearance rate fell below 70% for the first time in six weeks. Last week's result was the city's lowest preliminary rate since mid-February (67.4%) and was 1.7 percentage points below the previous week's preliminary rate (70.4%). The previous week's revised numbers were in line with the final results recorded this time last year when 64.2% of auctions were successful.

As we approach the peak in seasonal activity, auction numbers are set to rise slightly this week, with around 3,100 auctions currently scheduled to be held across the capital. With more than 1,000 auctions scheduled for both Sydney and Melbourne, this week will provide a timely test of the market's depth of demand.

All data to week ending 19 November 2023

Source: CoreLogic