Under the hammer: Canberra’s clearance rate remains on top
CoreLogic data for the week ending 9 May reported the second highest number of properties auctioned this year. A total of 3,033 properties were taken to auction across Australia’s capital cities which saw lower clearance rates recorded. Canberra recorded the highest preliminary clearance rate of 85.5%, followed by Sydney with 82.6% and Adelaide with 77%.
Those looking to buy properties would find no respite from extremely competitive conditions with the auction clearance rate dipping below 90%. On the same weekend last year, a clearance rate of 56.1% was recorded.
Figures released by SQM Research reveal national residential property listings rose by 2.4% in April 2021 to 262,617, up from 256,568 in March 2021.
The largest monthly rises in property listings were in Canberra, Perth and Sydney, while Hobart listings fell 4.8% as they continue a downward trend, putting pressure on asking house prices. Compared to 12 months ago, listings fell 10.3% across the nation.
In Canberra, the monthly increase in listings is largely offset by there being 14.1% fewer properties on the market, falling from 4,187 in April 2020 to 3,598 last month. Over a two-year period, the total number of listings has fallen by 20%, which is a significant portion of the overall market.
Robust buyer demand has seen the number of listings advertised for greater than 180 days fall 38% year on year. Even though the overall number of listings has decreased, there was a sharp increase in the number of properties advertised for less than 30 days, increasing by 10.7% in April.
Asking prices for units have increased 8.9% year on year in Canberra, aligning with the wider property market momentum.
Louis Christopher, managing director of SQM Research, said “With low interest rates expected to prevail for some time yet, a benign end to JobKeeper and many households flush with cash, we expect to see moderate to strong activity in the housing market over this quarter, which will likely push house prices even higher”.
“We are, however, seeing ongoing oversupply of units in Sydney and Melbourne with falls in asking unit prices over the month, leaving some space open for first home buyers and investors to enter the property market.”
Auction clearance rates are an early indicator of where values are heading. While the market continues achieving clearance rates above 80%, it is likely values will continue increasing. This makes it important for prospective buyers to act quickly and decisively when they find the right property or risk the market accelerating values away from them.
With Sam Dodimead, local property professional and host of Canberra Property Podcast where you can get to know the consultants contributing toward delivery of new buildings. Stream from wherever you listen to podcasts.
Find property listings at Canberra Weekly Real Estate.