The auction clearance rate is the highest since March after strict social distancing measures sparked by the coronavirus pandemic put a strain on the property market.
According to a report by CoreLogic, a final auction clearance rate of 59.9 percent was delivered in the week ending May 10, rising from a rate of 47.5 percent the previous week and a low of just 30.2 percent four weeks ago.
CoreLogic Head of Research Australia Eliza Owen told 9news.com.au the rise was partly due to auctions resuming in New South Wales at the weekend.
“An onsite auction may create a more tangible, competitive experience for potential buyers, which has enabled agents to secure more sales,” Ms. Owen said.
“However, it is worth noting that the clearance rate has increased consecutively for the past four weeks anyway, off the back of improving consumer sentiment.
“It is the highest clearance rate result since the week ending March 15, before the strictest social distancing measures were rolled out across Australia.”
Sydney had the highest amount of properties sold at auction in the country at 66.3 percent, followed by Melbourne at 56.5 percent, Canberra at 56.1 percent, and Adelaide at 51.9 percent.
But despite the upturn of clearance rates, Ms. Owen said “serious challenges” lay ahead for the Australian economy and housing market demand.
“There are some efficiencies to easing restrictions on property inspections and holding on-site auctions, but it is not enough to make up for the 7.5 percent of employed positions that have been lost, or the 8.2 percent decline in wages paid,” she said.
“We cannot confidently expect a turn-around in the housing market until certain economic indicators improve.”
Credit: 9NEWS Australia
