Spring selling season delivers improved auction clearance rates


According to the most recent statistics from RP Data, a total of 2,321 properties were put up for auction across all capital cities last week, resulting in a healthy combined auction clearance rate of 54.6 per cent.


When compared to previous results, these clearance rates provide further evidence of the modest recovery taking place in Australia’s residential property market; at the same point last year, fewer than 1,600 auctions were held throughout Australia’s capital cities and the combined auction clearance rate was 44.9 per cent.


In Australia’s two largest capital cities, auction clearance rates were significantly higher than in the preceding week, despite a large increase in the number of properties on the market.


In Sydney, the auction clearance rate was 54.6 per cent, up from 51.4 per cent the week prior, while Melbourne saw a 61.5 per cent auction clearance rate, compared to 53.6 per cent the week before.


According to RP Data’s Research Director, Tim Lawless, the positive auction clearance rates indicate that demand for residential property is growing across Australia - giving vendors the necessary confidence to maintain their initial asking price:


“Vendor discounting (the percentage difference between the original listing price and the ultimate selling price) has been consistently improving since July last year.


“This can be attributed to both vendors setting more realistic asking prices for their properties, and buyers losing some leverage in their negotiation position as market conditions show signs of recovery”, said Mr. Lawless.


In a separate statement, Enzio Raimondo, CEO of the Real Estate Institute of Victoria commented that clearance rate results were extremely promising, given the high number of auctions:


“A further sign of the improving sentiment is the increase in residential transaction volumes this spring, with around 9 per cent more auctions being held than at the same time last year,” Mr Raimondo said.


For more information on market conditions in your area, please contact your local CENTURY 21 Innovative Realty, for clear and expert advice.