Auction round up - Capital cities

Auction round up - Capital cities

Investors serious about expanding their real estate portfolio will no doubt have their finger on the pulse of what's happening in the country's key property markets.

An awareness of current mortgage interest rates is certainly useful when it comes to arranging the appropriate finance, while an interest in auction activity across the nation's capital cities is a must in order to stay a step ahead in the market.

The preliminary weighted average clearance rate for the the capital cities in the week ending June 22 showed an increase from the previous week, according to RP Data's Robert Larocca.

In the week ending June 22, the clearance rate was 66.6 per cent, exhibiting a 1.1 per cent increase on the previous week's figure (65.5 per cent).

The rate is up 0.6 per cent year-on-year, showing market stability.

"A medium term review of the national auction market shows stable performance after a period of appreciation in 2013 and the previous two years when the clearance rate was at comparatively soft levels of 44.7 per cent in 2011 and 54.1 per cent in 2012," Mr Larocca explained in a June 23 statement.

Those considering capitalising on the currently cheap home loans on offer may pay attention to Sydney, which recorded a clearance rate well ahead of the national average, coming in with a figure of 71.9 per cent.

This places the New South Wales capital at the top of the capital cities for success at auction. Melbourne was next (69.1 per cent), followed by Adelaide (58.8 per cent) and Brisbane (38.1 per cent).

Melbourne's rate was 0.1 per cent lower than the previous week, while Adelaide's clearance rate was 6.5 per cent higher than its 52.3 per cent figure the previous week.

Strong clearance rates may be indicative of consistent interest in a market and while they shouldn't solely define a purchasing decision, they can be useful for investors to evaluate.

Image credit: Brian Turner