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Property market update: what to expect out of Spring
August 29, 2017
As things start to heat up leading into the real estate market’s busy Spring season, what can you expect for your city?
This month we are already seeing a growth in activity in the country’s two largest markets. Melbourne’s 1,039 auctions expected this week will again outstrip Sydney’s 760 auctions; last week these numbers were respectively at 1,001 and 720 auctions held. This is relatively high for markets that are still in the final grips of winter, so we can expect an increase in auction activity as we move into September.
“Melbourne and Sydney account for almost 90% of the residential auction market,” says CEO of view.com.au, Enzo Raimondo. “Because of this they are certainly the main drivers of the 20% increase in national clearance rates in the past six years.
“Other cities are also driving growth, with Canberra leading clearance rate increases in Spring. Comparing September 2015 to 2016, Canberra saw a 10% increase, followed by Sydney (7.7%), Melbourne (4.2%) and then Tasmania (2.2%).”
The below table highlights average national clearance rates for September of 2015 and 2016:
|2015: 67.8% 2016: 75%||2015: 49.5% 2016: 48.6%||2015: 63.5% 2016: 73.7%||2015: 73.9% 2016: 78.15%||2015: 40% 2016: 37.1%||2015: 73.1% 2016: 80.8%||2015: 35.9% 2016: 38.1%|
Even though Melbourne, Sydney and Tasmania saw a decrease in auction activity for the same period, they all experienced a growth in clearance rates as can be seen above. On top of this, in September 2016 Melbourne saw only a 2.1% difference between the month’s lowest and highest clearance rates, while Sydney experienced a 1.2% difference.
“This CoreLogic data reveals low clearance rate variability in the two largest markets – Melbourne and Sydney – which confirms the likelihood of further growth in Spring,” continues Mr Raimondo.
“The second half of the year has traditionally been a time where we see significant activity and clearance rate increases. This September we can expect to see growth not just in the two largest cities but in the smaller markets too, especially in Canberra and Brisbane, which experienced only a small clearance rate decline last September.”