Adelaide’s property market is continuing to exceed expectations with a 78% auction clearance rate for the final weekend of August.
With the spring selling season just around the corner, a total of 139 homes went under the hammer in the city of churches. This figure attributes to Adelaide’s steep home value increases, which outstrip all other capital cities.
“The Adelaide market is still extremely strong and growing, which is why we are still seeing our auction clearance rates outperform the other Australian capital cities,” said Marissa Schulze (pictured above left), managing director of Adelaide brokerage Rise High Financial Solutions. “Whilst listings are increasing, we are still seeing a shortage of stock when it comes to family homes, which are still very much in demand with not enough supply which is driving growth.”
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Schulze said this demand would continue to drive growth for the foreseeable future.
“All the fundamentals suggests that the Adelaide property market will continue to experience growth for the coming months,” she said. “We are also seeing very strong rental returns here, which is appealing for local and interstate investors as our rental vacancies are sitting at all-time lows.”
CoreLogic has revealed auction activity is increasing across each of the capital cities and rising above the 2,000 mark for the first time in nine weeks.
There were 2,018 homes auctioned across Brisbane, Sydney, Canberra, Melbourne, Hobart, Adelaide, Perth and Darwin on Aug. 27 and 28.
CoreLogic economist Kaytlin Ezzy (pictured above right) said auction activity was up 10.8% compared to last week (1,816) and was 3% above the number of auctions held this time last year (1,960).
“The increase in auction activity saw preliminary clearance rates dip after holding above 60% for the past two weeks,” Ezzy said. “Of the 1,522 results collected so far, 59.1% returned a successful result, down 3.5% from last week’s preliminary rate but 1.1% above the clearance rate recorded this time last year (58.0%).”
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Ezzy said across Sydney, this week’s auction activity was up 23.8% compared to the previous week and 33.6% higher than this time last year, with 791 homes auctioned across the city.
“This was the highest volume of auctions held in Sydney since late June,” she said. “With 591 results collected so far, Sydney recorded its lowest clearance rate in three weeks (56.9%), and highest withdrawal rate in eight weeks (25.4%).”
Ezzy said 829 homes were auctioned in Melbourne, which hosted the most auctions of any capital city this week.
“While Melbourne’s auction activity is up 6.4% compared to the 779 auctions held the week prior, it is -10.7% below the number of auctions held this time last year (928),” she said. “Melbourne’s preliminary clearance rate fell 3.7% this week. In the previous week, it recorded a preliminary clearance rate of 64.9%, revised to 60.8% at final figures, while this time last year 35.9% of auctions were successful, dragged lower amid Melbourne’s sixth lockdown.”
Ezzy said Perth was also a strong performer, with its auction volume increasing 53.3%.
“Results for 14 of the 23 auctions held in Perth have been collected so far, with six returning a successful result,” she said. “Meanwhile, Brisbane recorded both the busiest week and the lowest preliminary clearance rate, with 41.6% of the 145 auctions held returning a successful result.”
