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Melbourne auctions up despite lower clearance rate

Melbourne auctions up despite lower clearance rate

Melbourne will this week regain the title of Australia's auction capital from Sydney, with more than 700 properties slated to go under the hammer in the Victorian capital, according to CoreLogic RP Data.

Auction volumes are higher in both major capital city markets this week compared to the previous week, and are expected to keep rising in April up until the Anzac Day long weekend.

Combined, Melbourne's 730 auctions and Sydney's 624 will account for around 81% of the 1,677 auctions slated to take place across the country's capital cities.

Auction listings will remain relatively steady in Brisbane, Adelaide, Perth and Canberra compared to the previous week. 

CoreLogic has confirmed clearance rates below 70% for both Sydney (69.8%) and Melbourne (69.2%) last week—a big drop for Sydney in particular, which saw a clearance rate of almost 78% over the previous week.

But despite the overall drop, there were still some very strong results for some Sydney sub-regions. The city, inner south and eastern suburbs all saw clearance rates in excess of 90%.

By contrast, only a third of all auctions held in the Parramatta sub-region successfully cleared.

Variations among Melbourne sub-regions were less pronounced. More than 76% of auctions cleared in the city's inner east, while at the other end, only 58.3% of Mornington Peninsula auctions were successful. 

This week, the three busiest individual suburbs for auctions are all in Melbourne. Mount Waverley in the city's south-east will host 17 auctions, followed by Reservoir with 16 and Preston with 14.

In other property news, on Thursday the Bank of Queensland increased its variable home and investor loans by 12 and 25 basis points respectively, despite the Reserve Bank of Australia on Tuesday leaving the cash rate unchanged at 2%. 

The new rates will take effect on April 15. 

This article is intended to provide general information of an educational nature only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice.