Interest rate cut is clearly having a beneficial impact to auction market: Robert Larocca

A preliminary weighted average clearance rate of 77.7% was recorded this week across capital cities compared to 74% last week and 76.2% this time last year.

At this stage this is the highest clearance rate recorded on a national level since September 2009.

Last week’s momentum has been carried into this week with solid demand evident in Sydney, Melbourne and Canberra. The interest rate cut is clearly having a beneficial impact.

In Sydney a preliminary clearance rate of 87.8% was recorded and this is higher than any other week in the past year. This is compared to 83.3% last week and 84.2% last year. This result is the sign of a strong market but not against the trend at this time last year.

In Melbourne preliminary clearance rate was 74.9%, compared to 70.9% last week and 73.5% this time last year. The Melbourne auction market has lifted by around 15 points in the past two weeks.

In Brisbane a preliminary clearance rate of 68.9% was recorded compared to 49.5% last week.

In Adelaide a preliminary clearance rate of 55.2% compared to 69% last week.

In Canberra a clearance rate of 72.9% was recorded compared to 72.3% last week. This is the third week with a clearance rate in excess of 70% and means the Canberra auction market has had a stronger start than last year.

In Perth a clearance rate of 53.8% was recorded.