The preliminary auction clearance rate has hit 86.1 per cent across the capitals this week as auction volumes continue to increase.
However, CoreLogic cautions final results might yet highlight a rise in withdrawals in Melbourne where the Victorian capital has entered yet another lockdown.
The CoreLogic auction summary indicates there were 1529 homes scheduled for auction across the combined capitals this week, up from 1304 over the previous week.
“Of the 1191 results collected so far, 86.1 per cent have reported a successful result – higher than last week’s preliminary auction clearance rate of 83.8 per cent which revised down to 79.3 per cent at final figures,” CoreLogic noted.
Over the same week last year, 1596 homes were taken to auction and 73.3 per cent of reported results were successful.
“While the preliminary clearance rate came in strong, it’s important to note that as remaining auctions are collected, we will likely collect more withdrawn results, particularly in Melbourne where another lockdown is currently in place, which would lower the final clearance rate,” CoreLogic said.
Melbourne was host to 668 auctions this week, up from 615 over the previous week, while this time last year a higher 743 homes were taken to auction.
Of the 467 results collected so far, 87.8 per cent were successful, up from last week’s preliminary clearance rate of 80.8 per cent, which revised down to 76.0 per cent at final figures.
“Preliminary results show that 47.6 per cent of the successful auctions in Melbourne were sold prior, while so far, just 8 per cent have been reported as withdrawn,” CoreLogic said.
They continued that the withdrawal rate was expected to increase over the coming days as the remaining results are collected and after the city was plunged back in a stage 4 lockdown on Friday, February 12.
In Sydney, 624 homes were taken to auction this week, compared to 447 over the previous week and 583 this time last year.
The preliminary clearance rate came in at 87.5 per cent this week, down from the previous week’s preliminary clearance rate of 89.1 per cent, which revised down to 84.4 per cent at final figures.
This time last year, 75.4 per cent of reported auctions were successful.
The smaller capitals
Across the smaller cities, Canberra recorded the highest preliminary clearance rate at 91.2 per cent, followed by Adelaide (89.5 per cent).
Domain’s data indicates a preliminary clearance rate in the major markets of 81.8 per cent after 1391 properties were taken to auction.
So far, results are in for 965 of those auctions with 789 properties successfully selling (to the of $721.4 million), while 127 properties were reported as withdrawn.
These results highlight an increased volume on last week when 1085 properties were taken to auction and returned a final clearance rate of 78 per cent.
Breaking that down, last week results were provided for 1000 of those auctions, with 780 properties successfully selling (to the value of $644.7 million), while 55 properties were withdrawn.
This time last year 1375 properties were taken to auction, resulting in a clearance rate of 72.7 per cent.
Results were provided for 1245 of those auctions, with 905 properties successfully selling (to the value of $1021.4 million) while 105 properties were withdrawn.
Sydney’s preliminary clearance rate continued to prove strong on the back of higher volume this week, with 551 properties taken to auction, resulting in an 87.7 per cent success rate.
So far, results are in for 431 of those auctions, with 378 properties successfully selling (to the value of $429.5 million), while 29 properties were withdrawn.
Last week, 412 properties went to auction, resulting in a final clearance rate of 85.3 per cent.
Results were provided for 382 of those auctions, with 326 successfully selling (to the vale of $317.7 million), while 25 properties were withdrawn.
This time last year, Sydney’s clearance rate was 75.4 per cent after 510 properties were taken to auction.
Results were provided for 464 of those auctions, with 350 properties successfully selling (to the value of $501.8 million), while 45 properties were withdrawn
The withdrawal rate in Melbourne showed signs of an increase this week due to a late-announced lockdown on Friday, but still the preliminary clearance rate remains strong.
Domain’s data reveals 698 properties were taken to auction, resulting in a 75.4 per cent success rate.
So far, results are in for 439 of those auctions, with 331 properties successfully selling (to the value of $247.1 million), while 92 properties were withdrawn.
Last week, Melbourne’s clearance rate was a similar 74.6 per cent on the back of 529 properties taken to auction, but the withdrawal numbers were lower.
Results were provided for 493 of those auctions, with 368 properties successfully selling (to the value of $279.9 million), while just 27 properties were withdrawn.
This time last year, Melbourne’s clearance rate sat at 72.1 per cent after 686 properties were taken to auction.
Results were provided for 617 of those auctions, with 445 properties successfully selling (to the value of $433.8 million), while 41 properties were withdrawn.
Ray White results
The Ray White Group noted “insatiable” buyer demand continued to fuel the competitive auction market at the weekend, propelling their national clearance rate to new highs.
Despite the latest lockdown in Melbourne, Ray White members cleared a staggering 94 per cent of the 89 auctions booked in the Victorian capital.
According to Ray White data, total listings on the market nationally remain six per cent lower compared to a year ago but auction volumes are seven per cent higher compared to this time in 2020.
Over the week, the group had 351 auctions booked nationally, with 231 of those on Saturday alone.
Saturday’s auctions continued to produce stellar results for sellers as the Ray White Group recorded an 83 per cent national clearance rate with eight registered bidders on average per lot across the country.
New South Wales
Despite the rainy weather in Sydney, Ray White reported buyers were out in force on Saturday looking and ready to bid.
Ray White New South Wales Chief Auctioneer Alex Pattaro said family homes continued to be the strongest performing asset in the market across the state.
“Families are going above and beyond their initial price indications to obtain their dream home,” Mr Pattaro said.
“The prestige market around the $5-$12m price range is booming in a way that we haven’t seen in a long time,” he said.
“We are expecting an influx of stock throughout the tail end of February and March, with buyers and sellers cashing in before the Easter break. It is a great time to transact.”
Ray White Victoria and Tasmania chief auctioneer Matt Condon said it was exciting to be able to report that the lockdown did not appear to have any effect on Saturday’s results.
“In fact, this week’s results are the strongest we have seen all year. We have seen an increase in both registered and active bidders as well as our overall clearance rate,” Mr Condon said.
In the Sunshine State, Ray White Queensland Chief Auctioneer Mitch Peereboom said the clearance rate remained strong heading into the February selling season.
“This week, we have seen remarkable results and record sale prices. We are seeing the greatest results coming from auction campaigns, exceeding the offers prior,” Mr Peereboom said.
“When it comes to auctions, the market is certainly willing and ready to pay.”
In South Australia, Ray White Chief Auctioneer John Morris said the market in Adelaide and its surrounds continues to run hot and there was no doubt the same will continue in the coming weeks.
“Ray White has held 35 per cent of auctions across the state this week. Going into the weekend, we were sitting on an 80 per cent clearance rate with 5.5 average registered bidders,” Mr Morris said.