In the two major auction markets of Sydney and Melbourne, auction activity is down week-on-week, with 1,351 Melbourne auctions scheduled and 1,111 homes set to be taken to auction in Sydney. Overall auction activity remains lower compared to the corresponding week last year.
Outside Sydney and Melbourne, the other capital cities are projected to see a higher number of auctions this week compared to last week, with the exception of Perth, where auction activity is projected to remain steady.
In Brisbane 188 homes are set to be taken to auction; the numbers are 156 in Adelaide, 59 in Perth, and 110 in Canberra.
Capital city auction clearance rates were led by Sydney and Melbourne (77.1% and 76.1% respectively). In contrast, capital city auction clearance rates were lowest in Brisbane and Perth (43.8% and 27.3% respectively).
CoreLogic Property Pulse: November Results
CoreLogic also released the November results for dwelling value growth based on its hedonic index. Capital city dwelling values were 0.2% higher over the month and 9.3% higher over year. “Sydney remained the stand out for annual capital gains, with dwelling values up 13.1% over the year while Perth was the only market where values slipped lower in the last 12 months by 3.4%.”
The index further revealed that rental yields had compressed to new record lows in November due to dwelling values continuing to rise much faster than rental rates.
Meanwhile, ABS released dwelling approvals data earlier this week, which showed a seasonally adjusted 12.6% fall in approval numbers in October. This was the fifth fall in dwelling approvals over the last six months. The fall was largely due to the highly volatile unit sector, where approvals were down 23.5% over the month to be 41.8% lower compared with October last year.
House approvals, which tend to be more stable, were down 2.5% over the month to be 4.5% lower compared with last year. While approvals remain high compared to the long term average, it’s becoming increasingly clear that the approved dwelling supply has peaked.