The Australian property market has seen a sharp uptick in activity as spring selling season gains momentum according to new data.
CoreLogic research director Tim Lawless said that 2,525 auctions were held across capital cities last week, marking the second-highest volume of the spring season so far.
“Numbers are set to rise further over the coming weeks, with CoreLogic currently tracking around 2,600 properties scheduled for auction next week and more than 3,000 auctions the week after,” Mr Lawless said.
The preliminary combined capital cities clearance rate showed some improvement, reaching 66.6 per cent, up from 63.9 per cent the previous week.
However, Mr Lawless said that final clearance rates typically revise downwards.
Melbourne led the auction tally with 1,044 homes going under the hammer, while Sydney saw a significant increase to 1,044 auctions, up from 524 the previous week.
“Sydney’s preliminary auction clearance rate posted a solid bounce back from the previous week, rising to 69.0 per cent from 62.7 per cent,” Mr Lawless said.
Among smaller capitals, Brisbane hosted 216 auctions with a preliminary clearance rate of 62.5 per cent, while Adelaide saw 164 homes auctioned with 67.5 per cent selling so far.
Ray White NSW head of auctions Perry Edmondson-Clark said listings are up on last year.
“Stock remains incredibly high compared to last year’s data with 169 scheduled auctions across the group today in New South Wales and the ACT,” Mr Edmondson-Clark said.
“Despite the considerably higher level of stock available, we are still seeing very strong clearance rates.
“However, registration numbers are down, which is further cementing that there is more availability of stock for buyers to choose from.”
The coming weeks are expected to test market depth as auction volumes increase further.
“Historically, the peak in auction activity has typically occurred in late November or the first two weeks of December, although last year the peak in auction activity was in the last week of October as activity was disrupted by the November rate hike,” Mr Lawless said.
In New Zealand, buyers were out in force after the last rate cut from the Reserve Bank of New Zealand (RBNZ).
Ray White New Zealand reported 126 properties scheduled for auction last week, achieving a clearance rate of 49 per cent.
Buyer interest was strong, with an average of 2.9 registered bidders and 1.9 active bidders per auction.
Properties sold under the hammer received premiums averaging 17.2 per cent higher than the highest offer prior to auction, indicating robust competition among buyers.
Ray White New Zealand head auctioneer Sam Steele said there has been an immediate impact from the OCR cut on the market.
“The OCR’s recent announcements have had an immediate impact on the broader marketplace, sparking fiercely competitive auctions across the nation, as buyers raced to seize fleeting opportunities,” Mr Steele said.
He said the national average of 2.9 registered bidders per auction was a significant increase from July, potentially signalling the end of the current market cycle.
Auctions with four or more registered bidders saw success rates exceed 85 per cent.
Mr Steele said he was optimistic for the coming weeks, anticipating an increase in stock and renewed buyer interest.
“Nationwide, key auction metrics continue to rise, fueling optimism for an anticipated increase in stock and renewed buyer interest in the coming weeks,” he said.
