Clearance rates show improvement

By Gerv Tacadena | 12 May 2020

Despite fewer properties being up for grabs, auction clearance rates continue to improve, figures from CoreLogic show.

For the first time since late March, the overall clearance rate has bounced back above 60%, hitting 64.5%. This indicates that buyers are willing to break into the housing market amid the economic downturn brought about by the COVID-19 outbreak, said Jade Harling, analyst at CoreLogic.

"The lower withdrawal rate is the main factor driving an improvement in clearance rates. However, we are also seeing a recent trend towards a higher proportion of homes selling at auction, rather than prior to the event, implying vendors are becoming more willing to test the market under auction conditions," she said.

Also read: Auction Recovery Needs Bigger Boost

The highest clearance rate was recorded in Sydney at 70.8%. Of the 209 auctions, 144 were sold in the city. Melbourne came in second with 60.3% of 160 auctions pushing through.

Overall auction volumes remained low, down to 473 from 612 in the previous weekend.

Activity in the coming weeks is expected to improve, given that some states have already announced easing of restrictions, which will allow resume on-site auctions and inspections.

"With news over the week that the ban on on-site auctions and inspections as a result of COVID-19 would now be lifted in NSW, WA and more recently announced in SA and Qld, along with a broader relaxation of social distancing policies, there’s likely to be a lift in confidence and volumes over the coming weeks," Harling said.

The table below shows the performance of each capital city auction market:

Clearance rates across capital cities are recovering but volumes are still low due to COVID-19 restrictions

Top Suburbs : wentworthville , albion , new farm , campsie , tweed heads south


Get help with your investment property

Do you need help finding the right loan for your investment?

When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.

Just fill in a few details below and we'll then arrange for a local mortgage broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus an appointment is free.

How soon would you like a mortgage?
What is your Annual Household Income i $
Do you currently own any Investment Properties?
Do you own your own residence?
How much equity do you have in all your current properties?
First Name
Last Name
Where do you live?
What number can we reach you on?
E-mail address
We value your privacy and treat all your information seriously - you can check out our privacy policy here