The public sale markets round Australia had the busiest begin to the yr on document.
The momentum from final yr’s document excessive public sale volumes has continued into 2022 with the Australian residential public sale market reaching its busiest first quarter on document.
The most recent knowledge reveals 23,748 houses went below the hammer within the first three months of 2022, making it the busiest March quarter since data started in 2008, primarily based on CoreLogic’s Quarterly Public sale Market Assessment.
For comparability, there have been 19,004 capital metropolis houses taken to public sale within the first quarter of 2021 and 18,902 over the March 2020 quarter.
In the course of the three months to December 2021, 42,918 houses went to public sale, setting a brand new benchmark and carrying via to an sooner than ordinary choose up on this yr’s public sale volumes.
Nevertheless, the mixed capital metropolis clearance charge of 69.9% for the March 2022 quarter was down from the December results of 71.3% and weaker once more when in comparison with the corresponding quarter in 2021 when the clearance charge was 80.0%.
The primary quarter of the yr noticed the pattern in public sale volumes and clearance charges heading in numerous instructions
Whereas the variety of auctions held reached a March quarter excessive, the clearance charge regularly drifted decrease via the quarter.
As demand turns into extra thinly stretched, decrease clearance charges on larger volumes are a reasonably regular pattern.
Nevertheless, larger general itemizing numbers and a slowing charge of sale in Sydney and Melbourne had been additionally impacting market situations.
Sydney’s public sale clearance charge over the March quarter was 69.1%, in comparison with 69.9% over the earlier quarter, and 84.5% over the March quarter of 2021.
There have been 8,283 auctions held in Sydney within the first three months of 2022.
General, Melbourne’s clearance charge was recorded at 68.5% over the March quarter, down from 69.7% over the earlier quarter and 77.5% over the March 2021 quarter.
By way of public sale quantity, there have been 10,315 houses taken to public sale throughout the town over the March quarter.
Of the smaller capital metropolis markets, Adelaide was the highest performer with a clearance charge of 80.6% for the March quarter from 1,797 auctions.
Canberra recorded a clearance charge of 77.9% from 1,227 auctions and in Brisbane 1,916 houses went below the hammer leading to a clearance charge of 67.9%.
The smaller public sale markets had been usually stronger via the quarter, particularly Adelaide the place clearance charges held above the 80% mark.
With such sturdy promoting situations, we’ve seen a progressively bigger portion of houses being taken to public sale in Adelaide; a metropolis that has traditionally favoured gross sales campaigns by non-public treaty fairly than auctions.
Easter is historically one of many quietest public sale intervals of the yr and usually marks the beginning of the winter promoting season.
Though this yr’s Easter week was the busiest on document with 937 houses taken to public sale throughout the mixed capital cities, I predict the pattern will likely be for fewer auctions within the coming months.
This can be a seasonal pattern we see via the winter months, however as promoting situations regularly swing in direction of a buyer’s market, we could also see clearance rates trending lower.
Sydney sub-region summary
Sydney saw the volume of auctions increase across all but one of the 15 sub-regions over the March 2022 quarter, compared to the March 2021 quarter.
However, the higher volume resulted in lower clearance rates.
North Sydney and Hornsby recorded the highest clearance rates this quarter (73.4%), followed by Baulkham Hills and Hawkesbury (72.7%) and Sutherland (72.5%).
North Sydney and Hornsby was the busiest sub-region this quarter, with 1,205 homes taken to auction, followed by City and Inner South (913) and Inner South West (894).
Melbourne sub-region summary
In Melbourne, the Inner region was the busiest spot for auctions with 2,049 auctions held over the quarter, up from 1,987 over the March 2021 quarter.
All nine of Melbourne’s sub-regions recorded a fall in clearance rates over the quarter compared to the same quarter last year.
The Mornington Peninsula was the best performing sub-region over the March quarter (76.5%), followed by the Outer East (74.0%) and Inner South (72.0%).
Highest volume and clearance rates
Based on the total auctions held across suburbs during the March quarter, Reservoir in Melbourne was the country’s busiest with 168 auctions followed by Randwick in Sydney’s Eastern Suburbs with 123.
West End in Brisbane (40), Ngunnawal in Canberra (35), Magill in Adelaide (30) and Dianella in Perth (8) had the highest volume of auctions in their respective capital cities.
All 21 homes auctioned in Carlton in Melbourne’s inner north sold under the hammer in the March quarter for a 100% clearance rate, the best performer in the country.
Cammeray in Sydney recorded a 90.9% clearance rate from 22 auctions, slightly higher than Casey in Canberra where 29 of the 32 auctions (90.6%) sold under the hammer in the first quarter.
