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Residential auction market records busiest quarter since 2017
Eliza Owen Source: CoreLogic
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  • CoreLogic data for the June quarter 2021 shows 31,605 homes were taken to auction across the combined capital cities in the three months to June 2021
  • These figures make it the busiest quarter for auctions since the December 2017 quarter when 32,408 capital city auctions were held
  • In comparison, the March 2021 quarter saw 19,004 homes put up for auction
  • The auction market results for the June quarter, according to CoreLogic head of research Eliza Owen show solid home market conditions
  • Taylor Lakes in Melbourne and Forestville and Kirrawee in Sydney all enjoyed a 100 per cent clearance rate

In another sign of increased enthusiasm in the Australian property market, new data has shown the June quarter to be the busiest auction market in nearly four years.

According to CoreLogic's Auction Market Review for the June quarter of 2021, 31,605 houses were auctioned across all major cities in the three months leading up to June 2021.

This is the biggest quarter for auctions since the December 2017 quarter, when 32,408 auctions were held in capital cities.

In comparison, the March 2021 quarter saw 19,004 homes put up for auction, while the June 2020 quarter saw only 13,783 capital city homes put up for auction during tightened COVID-19 social restrictions, including a temporary ban on on-site auctions and in-person property inspections.

The auction market results for the June quarter, according to CoreLogic head of research Eliza Owen show solid home market conditions.

"A combined capital city clearance rate of 75.7 per cent sits well above the historic average clearance rate of 63.5 per cent," Ms Owen said.

"The strong result also coincided with a 6.2 per cent uplift in dwelling values across the combined capitals, well above the previous decade average quarterly growth rate of one per cent.

"Despite the strong result, there has been an easing in the clearance rate from the March quarter, when 80 per cent of properties sold. This reflects a broader loss of momentum in the Australian housing market, as affordability constraints set in, and March looks to be a peak period of growth for the current cycle."

Ms Owen said the slight loss in momentum can be seen at the suburb level.

"This is particularly true of Sydney, where the clearance rate has dropped -6.1 percentage points in the quarter," she said.

"The March quarter saw 100 per cent of auctions cleared across higher-priced, popular suburbs such as Coogee, Glebe and Cherrybrook in Sydney, where clearance rates have eased through the June quarter. There were however, two Sydney suburbs that still achieved a clearance rate of 100 per cent."

Taylor Lakes in Melbourne and Forestville and Kirrawee in Sydney all enjoyed a 100 per cent clearance rate.

Canberra had the highest clearance rate in the quarter, with 88.3 per cent of homes sold at auction.

Ms Owen stated that according to CoreLogic's weekly auction statistics, Canberra has had the highest capital city clearing rate for 21 of the 24 weeks examined so far through 2021.

"High demand for housing in Canberra has stemmed from a relatively tight labour market and containment of COVID-19, against a backdrop of low mortgage rates and relatively low listings volumes," Ms Owen said.

"Owner occupiers remain highly active across the market, with ABS housing finance data pointing to secured finance for purchases sitting 93.5 per cent above the decade average."

Source: CoreLogic

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