Total Members: 140,867

NEWS: Property Investing and Real Estate In Australia

Auction Market Finishes 2016 Strong

Date: 20/12/2016

Auction Results for week ending December 18, 2016.

Auction Market Finishes 2016 Strong

The combined capital city clearance rate fell slightly to 70.5 percent this week and auction activity eased nationwide, while results for Sydney and Melbourne remained strong, in the mid-70’s.

The total number of auctions reported fell to 2,722, down from 3,432 last week. Although that’s a significant drop from last week’s nearly record-breaking high, the auction market remains much more active compared to the final weekend of 2015. Last year at this time, only 1,818 auctions were held, and the clearance rate was 59.4 percent.

The City Stats

In Melbourne, 1,286 homes were taken to auction, down from last week’s surge to 1,685. The preliminary clearance rate fell a few points from 78.4 percent last week to 75.7 percent this week. Over the corresponding weekend last year, 875 auctions were reported with a clearance rate of 65.7 percent.

The preliminary clearance rate increased in Sydney, up to 74.1 percent from 73.7 percent last week. Auction volume was down to 874, from 1,168 the previous week. One year ago in Sydney, 61.2 percent of 456 auctions were successful.

The Graph

auction clearance rates - Auction Results for week ending December 18, 2016

The Preliminary Numbers









Clearance Rate

















The Analysis

With Melbourne and Sydney clearance rates finishing the year in the mid-70s, we can assume that many hopeful buyers left auctions over the weekend having been outbid by someone with deeper pockets. This would indicate that there is plenty of demand still in the pipeline ready to resume bidding in February. Early 2017 may look similar to early 2015 when auction clearance rates shot up to the mid-to-high-70s by the end of February. If supply is weak, clearance rates could push even higher.

Here’s the chart from Core Logic showing the auction volume and clearance rate results for the past five years:


Year-on-year auction volume has been on the decline for the last three years, as you can see in the chart above that 2015 and 2016 achieved lower highs (grey bars). If that trend continues, weak supply together with strong east coast demand may keep prices rising for a little longer. At some point, either next year or the year after, Aussies will max out on debt, supply will exceed demand, and growth will stop.

What It Means For Investors

Manufactured growth investors hoping to secure renovation or subdivision deals in the New Year will continue to face competition from lifestyle buyers and speculative buy and hold investors. You may find it helpful to follow Matt Jone’s advice for finding great deals in hot markets.

Demand in 2017 will continue to depend primarily on the availability of cheap credit. For commentary on what 2017 may hold for interest rates, check out Alistair Perry’s most recent post.

The results listed here are based on preliminary reporting by CoreLogic.

For the historical data of weekly auction clearance rates, click here.

Auction clearance rate results posting will continue in the New Year, once the market regains steam.

Profile photo of Jason Staggers

By Jason Staggers

Jason is a personal mentor for Steve McKnight's Property Apprentices. He has helped hundreds of investors apply Steve's teachings in the real world and achieve greater results on their journey to financial freedom. To learn more about Steve McKnight's Property Apprenticeship course, click here to set up a complimentary Jumpstart Strategy Session with Jason.

Got something to say? Post a comment...

Your email address will not be published. Required fields are marked *

Step 1 - 0% Complete

Fill Out Your Member Profile Below

Fill in the required fields below to complete your registration.

Registration not only grants you full access to this website, but will also enable us to send you our newsletter, latest investor tips, strategies and information about events/products relevant to investors. You can opt out at any time.

For correspondence purposes. Will not be visible to anyone.

The name that will show up when you interact with the community.

Used to log in to the website and for targeting with messages. Alphanumeric characters only. No spaces allowed..

Member Login
Lost your password?

Register Free To Unlock Unrestricted Access To