Melbourne, Brisbane defy auction rate slide

Auction clearance rates in Melbourne and Brisbane defied recent trends by lifting on the weekend, but the number of properties on the market in all capital cities has continued to decline.

In Melbourne, the nation’s biggest sale-by-auction market, 65% of properties for auction were sold, up from last week’s 63% clearance rate, according to the Real Estate Institute of Victoria.

Clearance rates also lifted from 31% to 53% in Brisbane, although much smaller volumes there means clearance rate figures can be volatile, Australian Property Monitors data shows.

The other two capital cities with significant auction activity, Sydney and Adelaide, both experienced a slight decline in line with recent trends, with clearance rates in Sydney falling from 51% to 49% and Adelaide from 54% to 50%.

Despite the small rise of clearance rates in Melbourne and Adelaide, however, the number of properties sold by auction in absolute terms continues to fall as a mood of pessimism drives vendors away from the market or to alternate methods of selling.

The total number of properties in all cities for sale by auction fell over the weekend, with the biggest drop in Melbourne, where the number of properties for auction fell from 660 to 561, and in Sydney, down from 294 to 270.