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These are the best 4 capital city suburbs to auction a home

Image: Bloomberg via Getty
Image: Bloomberg via Getty

Homes across the country are selling at auction nearly 20 percentage points less than they were a year ago, and some regions are suffering in particular.

In the three months to the end of December only 43.6 per cent of Australian homes cleared auction, down from 53.6 per cent in the last quarter and 62.3 per cent over the same period in 2017, the latest data from CoreLogic reveals.

Australians took more homes to auction (25,894) than in the September quarter (20,653) but to no joy.

However, there is some good news.

These four capital city suburbs are enjoying auction clearance rates substantially higher than the city, and sometimes national average.

Source: CoreLogic
Source: CoreLogic

The best-performing suburb in Brisbane, Ashgrove, was only slightly higher than the capital city average of 31.8 per cent, with 33.3 per cent of homes clearing auction.

For comparison, this is how each capital city performed
Source: CoreLogic
Source: CoreLogic

The auction figures coincide with a major international report describing Australian property as “severely unaffordable” despite the sustained fall in property values over 2018.

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The Demographia International Housing Affordability Survey for 2018 warned that all Australian major markets were “severely unaffordable” and referenced the OECD’s warning that the over-leveraged market posed a substantial risk to the market.

“Australia’s housing market is a source of vulnerability,” the OECD warned in December last year.

“Prices have more than doubled in real terms since the early 2000s and household debt has surged. The market has started to cool over the last year, with prices falling most notably in Melbourne and Sydney.

“So far, data point to a soft landing without substantial consequence for the overall economy. Nevertheless, risk of a hard landing remains.”

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