The capital city clearance rate continued to climb, according to preliminary figures from CoreLogic.
There were 1,107 auctions across the country during the week ending 11 August, with an average clearance rate of 70.4% – an improvement from the previous week.
Sydney and Melbourne were major contributors to the growth, according to Kevin Brogan, a CoreLogic auction market commentator.
“We've got a really strong result out of Sydney this week, above 80% – that(’s) a kick up,” Brogan told the Australian Associated Press.
Sydney had 365 auctions, recording an 81.2% clearance rate. Strong sales in the unit market also contributed to the rate, according to the figures.
North Sydney and Hornsby were the top performers, recording a 90% clearance rate from 42 auctions, according to Brogan.
Melbourne also recorded a 73.2% clearance rate from 501 auctions in the week ending 11 August, up from the previous week’s 70.9%, the figures showed.
Southeast Melbourne had the highest clearance rate at 87.2% from 52 auctions, according to the figures.
The consistently higher clearance rates imply that the market is responding to lower mortgage rates, following two rate cuts by the Reserve Bank of Australia, Brogan said.
“What we've been seeing since the federal election is increased confidence in the buyer side of the auction market. We're hanging out for spring because that's when some more supply will come on and the resilience of the confidence will be tested," he said.
Meanwhile, the auction markets in Brisbane and Perth are subdued, with clearance rates staying below 40%, according to the figures.