Auction clearance rates on the up across the capitals
Buyers are making their move amid rising interest rates and higher property values
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Last weekend’s auction clearance rate in Australian capitals was the highest in more than a year, CoreLogic data reveals.
Of the 1,750 auctions held over the weekend, 75.1 percent were sold according to preliminary figures, the highest since February 2022, which had a clearance rate of 75.7 percent.
The number of properties put to market was consistent with figures from the previous week, where 1,739 homes were offered for sale nationally. However, figures were still down on this time last year when 2,059 homes went to auction.
In signs that buyer confidence is gaining ground, of the 732 auctions held in Melbourne, the preliminary clearance rate stayed above 70 percent for the fourth week in a row, at 76 percent. The market was similarly buoyant in Sydney, with a clearance rate of 78.5 percent, based on preliminary data. The number of properties put to market was also up, 650 homes last weekend compared with 570 the week prior. This time last year, 659 were auctioned.
Among the smaller capitals, Adelaide has so far recorded the strongest results, with 72.1 percent of the 128 homes put to market being sold.
The results come less than a week since the RBA made the surprise decision to raise the cash rate by a further 25 basis points to bring the official interest rate up to 3.8 percent, in a move widely criticised by construction and housing industry bodies.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
Villa prices saw particularly strong growth, with capital values increasing by 33.4 percent year-on-year
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Dubai’s real estate market showed strong performance in the second quarter of 2024, with notable increases across the residential, office, and retail sectors, according to a new ValuStrat real estate report for Q2 2024.
Villa prices experienced particularly strong growth, with capital values rising by 33.4 percent year-on-year.
Haider Tuaima, Director and Head of Real Estate Research at ValuStrat said: “The Dubai real estate market has shown impressive growth and resilience in recent months. The ValuStrat Price Index for Residential Capital Values increased by 6.4 percent quarterly and 28.2 percent annually, reaching 178.2 points.
“Despite severe flooding caused by record rainfalls in April, the quick and effective response from developers and authorities helped to control the damage, ensuring that market activity and property valuations remained robust in the subsequent months.”
The office sector also performed well, with the VPI for office capital values surging by 31.7 percent annually and 9.4 percent quarterly, reaching 212.5 points—the highest quarterly increase in a decade.
In the retail sector, Emaar Properties reported 98 percent occupancy in their prime mall assets, while overall mall occupancy stood at 96 percent during the first quarter of 2024. The hospitality sector also saw growth, with total international guests reaching 8.12 million as of May 2024, a 9.9 percent increase compared to the same period last year. Hotel occupancy reached 81 percent, rising by 1.4 percent year-on-year.
Despite these positive indicators, Tuaima added, “The decline in transaction volumes calls for a closer examination of market dynamics as stakeholders navigate this evolving landscape.”
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
