Withdrawn properties in Victoria continued to weigh down the clearance rate this week, but as CoreLogic and others reflect, it’s important to keep things in perspective.
This week 1167 properties went to auction across the capitals, returning a preliminary clearance rate of 59.2 per cent.
In Sydney, early results indicate a success rate of 68.9 per cent, but as expected Victoria is trending much lower.
In the garden state, CoreLogic notes early results indicate 47.5 per cent were successful and 43.6 per cent were reported as withdrawn.
Remove the withdrawn properties from the tally and things can be viewed in a whole new light.
“Excluding withdrawn auctions from the clearance rate calculation, and focussing purely on those auctions that proceeded shows a much higher 84 per cent ‘adjusted’ preliminary clearance rate, with the majority of these (55 per cent) selling prior to the auction rather than under the hammer or post event,” CoreLogic explains.
Meanwhile, Ray White said, considering the circumstances, the results were nothing short of “tremendous”, and REIV president Leah Calnan maintained the Victorian market is still strong.
The latest Quarterly median prices released by the Real Estate Institute of Victoria show, while there has been a small adjustment from the previous quarter, the market is in much better shape than it was in 2019 across all property types.
Ms Calnan notes the underlying strength of the Victorian market is evident as prices have stayed firm despite volume of sales transactions significantly reduced due to the restrictions imposed by the pandemic.
Twenty-nine per cent fewer properties sold in Victoria for the June 2020 quarter when compared to June 2019 quarter.
Read the REIV’s statement on Victorian property prices here.
This week’s auction results
There were 1167 homes scheduled for auction across the combined capital cities this week, down from 1269 over the previous week, although higher than this time last year (896).
Of the 938 results that have been reported so far, 59.2 per cent were successful, up from last week’s final clearance rate of 56.2 per cent, and lower than this time last year (65.4 per cent).
Sydney
In Sydney, 512 homes were scheduled for auction this week, down from 566 over the previous week, although higher than one year ago when 303 homes were taken to auction across the city.
Of the 411 auction results collected so far, 68.9 per cent were successful. Although this will revise lower as the remaining results are collected, CoreLogic predicts.
In comparison, the previous week reported a final clearance rate of 61.8 per cent, while a clearance rate of 72.8 per cent was recorded this time last year.
Melbourne
There were 499 auctions scheduled in Melbourne this week, similar to the previous week when 506 homes were taken to auction, and higher than the same week last year (410).
Preliminary results show that of the 413 results collected so far, 47.5 per cent were successful, while 43.6 per cent were reported as withdrawn (compared with 15.1 per cent of Sydney auctions).
“As mentioned the previous week, the withdrawn numbers are not overly surprising given that Melbourne is currently in lockdown,” CoreLogic notes.
“The previous week saw a final clearance rate of 51.2 per cent, while this time last year, 67.5 per cent of Melbourne auctions reported a successful result.
“With restrictions in place across Melbourne for another four weeks, we are likely to see more auctions being withdrawn from the market than normal, which will drag the clearance rate lower.”
The smaller capitals
Across the smaller capitals, Canberra recorded a preliminary clearance rate of 90.6 per cent, followed by Adelaide at 64.3 per cent. Brisbane reported a preliminary clearance rate of 59.1 cent, while Perth had a 40.0 per cent success rate although volumes were low.
Domain results
Domain’s statistics also highlighted the high withdrawal rate in Victoria this week, with over 40 per cent of all Melbourne properties slated for auction withdrawn.
This resulted in the national preliminary clearance rate slumping to 54.8 per cent, despite a stellar effort from Sydney.
This week Domain reported 1050 properties were listed for auction nationally, 518 results were reported, 436 sales were made to the collective value of $317.5 million and a total of 277 properties were withdrawn.
Last week’s final results had the clearance rate at 51.7 per cent after 977 properties were listed for auction, 620 results were reported, 448 sales were made (valued at $315 million) and 247 properties were withdrawn.
During the same week last year, 758 properties were listed for auction nationally resulting in a clearance rate of 65.1 per cent. Domain notes the breakdown of those figures saw 615 results reported, 434 properties sold to the collective value of $414.8 million and just 52 properties were withdrawn.
Sydney
In Sydney this week, 471 properties were listed for auction resulting in a clearance rate of 64.4 per cent. That came off the back of 270 results reported, 224 properties sold (at a value of $197.4 million) and 78 properties withdrawn.
Last week Sydney’s final clearance rate was 59.3 per cent from 453 properties listed for sale. Of those, 313 results were reported, 227 properties sold to the value of $191.7 million and 70 properties were withdrawn.
In the same week last year, 267 properties were listed for auction in Sydney, 221 results were reported, 178 properties sold (valued at $220.7 million) and 23 were withdrawn for a clearance rate of 73 per cent.
Melbourne
In Melbourne this week, 483 properties were listed for auction with the clearance rate falling to 44.1 per cent. Those figures came off the back of 197 reported auctions, 172 properties sold (valued at $92.6 million) and 193 withdrawals.
Last week, Melbourne posted a final clearance rate of 44.5 per cent after 416 properties were listed for auction, 219 results were reported, 170 properties sold (valued at $96.3 million) and 163 properties were withdrawn.
In the same week last year, Melbourne had a clearance rate of 66.4 per cent after 377 properties were listed for auction, 317 results were reported, 219 sales were made (valued collectively at $171.5 million) and 13 properties were withdrawn.
Ray White results
Ray White said this weekend buyers once again proved there is no obstacle insurmountable when it comes to buying a property, with bidders across the country flocking to auctions – both onsite and online.
Ray White booked a preliminary clearance rate of 57.6 per cent and noted Melbourne, despite the return of lockdown measures, was the star of the show with a preliminary clearance rate of 61.8 per cent – and a whopping average of 5.1 registered bidders per auction.
Victoria
Ray White Victoria/Tasmania Chief Auctioneer Matt Condon said given the circumstances in the Garden State right now, the results were nothing short of tremendous.
“I have to pay tribute to our members for standing by auction as the method of sale and for taking confidence in the fact we have perfected the online auction process,” Mr Condon said.
“Every member can be proud of the results they’ve produced for their vendors today and it shines a light on just how innovative and fleet-of-foot the Ray White Group is, when challenged.
“Today we saw an auction that had 40 registered bidders so that defies all of the negative speculation that the market will soften with the return of restrictions – we’re just not seeing it.
“Not only were registered bidder numbers up today, but so were the number of active bidders, meaning increased competition and the seller’s market staying red-hot right now.”
New South Wales
Ray White NSW Chief Auctioneer Alex Pattaro said it had been yet another cracking week in terms of auctions for the state.
“Our auction campaign clearance rates suggest we are selling seven out of 10 properties when you include those sold prior to auction,” Mr Pattaro said.
“Auction volume this week is up 65 per cent year on year, signalling that auction is the preferred method of sale. It remains the only sale process to ensure maximum price.
“Buyers require a platform that allows them to see the competition, in order for them to reach their maximum budgets.”
Queensland
Ray White QLD Chief Auctioneer Mitch Peereboom asked the question for any seller that was looking at coming to the market, what were they waiting for?
“We’ve had an average of four registered bidders across all our auctions in Queensland this week,” Mr Peereboom said.
“We’re seeing some outstanding sale prices that are coming from the competition we are able to create – buyers can see the other buyers and they can see the social proof of what someone else is willing to pay, and it’s the best way to sell real estate in this marketplace.
“Overwhelmingly, we’re so confident to talk about what’s happening and the great results we’re getting. The buyers are out in force, they’re confident with the marketplace and they’re making decisions.”
