The preliminary auction clearance rate is holding firm, with the capital cities this week returning a success rate of 64.3 per cent on the back of slightly lower volume.
This week CoreLogic reported 1042 properties were taken to auction across the combined capitals, which was down from 1150 over the previous week and 1228 this time last year.
“Preliminary results show that of the 810 results collected so far, 64.3 per cent have recorded a successful result, down slightly from last week’s preliminary clearance rate of 65.9 per cent, which revised down to 58.4 per cent on final numbers,” CoreLogic noted.
“This time last year, the combined capital cities recorded a final clearance rate of 73.0 per cent.”
Melbourne
In Melbourne, auction volumes continued to decline with 189 homes scheduled for auction this week, down from 294 over the previous week and 588 this time last year.
CoreLogic explained the number of auctions held across Melbourne was averaging around 530 each week prior to the implementation of new restrictions.
“Of the 151 results collected so far, 63.6 per cent were successful, while 29.1 per cent were withdrawn,” CoreLogic said.
“Melbourne’s clearance rate has held much firmer compared with the previous lockdown phase, when clearance rates fell below 30 per cent and withdrawal rates approached 65 per cent.
“In comparison, last week saw a final clearance rate of 63.7 per cent, while 23.3 per cent were recorded as withdrawn.
“One year ago, Melbourne recorded a clearance rate of 76.2 per cent.”
Sydney
There were 668 homes scheduled for auction in Sydney this week, up from 640 over the previous week and 446 this time last year.
“Sydney hasn’t recorded this many auctions over a week since the first week of April,” CoreLogic noted.
“Preliminary results show the city recorded a clearance rate of 67.8 per cent this week, slightly higher than last week’s preliminary result of 65.8 per cent, which later revised down to 58.8 per cent.”
This time last year, a final clearance rate of 76.2 per cent was recorded across the city.
The smaller capitals
Across the smaller cities, Canberra came in with the highest preliminary clearance rate over the week (75.9 per cent), followed by Adelaide (60.0 per cent).
Domain results
Domain also tracked a clearance rate in the mid-60s this week, with 735 properties taken to auction across the capitals, resulting in a preliminary success rate of 64.6 per cent.
This volume was lower than both last week and last year, with the limited stock in Melbourne contributing to the downturn.
At this stage results for 449 of the 735 properties have been reported, with 372 sold (at a value of $295.9 million) and 127 properties withdrawn.
Last week, 923 properties were taken to auction, 643 results were reported, 473 sold (to the total value of $373.5 million) and 183 were withdrawn resulting in a final clearance rate of 57.3 per cent.
In the same week last year 1044 properties were listed for auction, 909 results were reported, 659 properties sold (to the value of $741 million) and just 60 properties were withdrawn, resulting in a final clearance rate of 68 per cent.
Melbourne
As expected, the Victorian capital remains subdued in terms of volume, with only 124 properties listed for auction this week, compared to 545 in the same week last year.
That said, the clearance rate is still a healthy 60.2 per cent. Domain explained of the 124 properties listed for auction, 64 results were reported, with 62 properties sold (to the value of $42.1 million), while 39 were withdrawn.
Last week 223 properties were listed for auction, 143 results were reported, 121 properties sold (to the value of $77.8 million) and 56 properties were withdrawn, resulting in a clearance rate of 60.8 per cent.
In the same week last year, 545 properties were listed for auction, 473 results were reported, 346 properties sold (to the combined value of $354.6 million) and 23 properties were withdrawn, for a clearance rate of 69.3 per cent
Sydney
Both Sydney’s clearance rate and volume continued to remain steady this week, with 523 properties listed for auction, 330 results reported, 272 properties sold (to the value of $228.7 million) and just 83 withdrawn, resulting in a clearance rate of 65.9 per cent.
Last week, 580 properties were taken to auction, 404 results were reported, 294 sales were made (to the value of $259 million) and 108 properties were withdrawn, for a final clearance rate of 57.4 per cent.
In the same week last year, only 375 properties were listed for auction, 320 results were reported, 253 properties sold (at a combined value of $344.9 million) and 30 properties were withdrawn for a clearance rate of 72.3 per cent.
Ray White results
Ray White noted the seller’s market showed no sign of slowing down, with the group returning a preliminary clearance rate of 57.3 per cent nationally.
Sydney was the star of the show with a strong preliminary clearance rate of 65.2 per cent, while the group reported 5.3 registered and 2.7 active bidders per property, on average.
New South Wales
Ray White NSW Chief Auctioneer Alex Pattaro said the property market was on fire.
“The North Shore, Eastern Suburbs, Inner City and Inner West are the key markets where we have seen strong results and ferocious competition,” Mr Pattaro said.
“This week our average number of bidders rose north to seven, with four raising their paddles. Our auction day clearance rate is sitting just north 65 per cent.
“This weekend, we’re yet to have a reported auction where we saw no active bidding, which is indicative of the competition. Stock levels remain tight, and while this trend continues, it will be a great time to transact.
“With prices holding firm, competition at auctions, and minimal stocks levels, it should only give vendors confidence knowing that they’re achieving maximum price.”
Victoria
Ray White Victoria and Tasmania CEO Stephen Dullens said this week was yet another test for the Melbourne and Victorian property markets and, pleasingly, yet another successful result.
“With another week of significant change and uncertainty, it’s pleasing to see so many strong results for our customers. Buyers were certainly out in force over the weekend,” Mr Dullens said.
“Our auctioneers once again called auctions from their homes – be it their bedrooms, garages or lounge rooms. It’s been pleasing to see a preliminary clearance rate above 60 per cent.
“While a number of auctions were brought forward to last week and many vendors chose to accept strong offers prior to auction day, those that chose to run their auctions have once again been rewarded.
“What is clear is buyer demand remains strong with several properties selling hundreds of thousands over vendors’ expectations. The Victorian property market remains resilient, despite a full week of Stage 4 and Stage 3 restrictions.”
Ray White Victoria and Tasmania Chief Auctioneer Matt Condon said results exceeded expectations.
“It was evident that the shortage of properties is creating demand,” Mr Condon said.
“Based on our prelim data, we’ve seen an average of 6.3 registered bidders per auction. These are some of the highest numbers we have seen all year.
“Sellers that chose to continue their auction campaign today amid the new restrictions were certainly rewarded with a number of properties selling above reserve.
“It’s a privilege to be able to provide exceptional service to our clients while operating in a safe environment 100 per cent online.”
Queensland
Ray White QLD Chief Auctioneer Mitch Peereboom said he was thrilled to report another strong week of auction results across the Sunshine State.
“The average number of registered bidders is consistently over four, and the clearance rate is tipping over 60 per cent yet again,” Mr Peereboom said.
“That’s been a number of weeks now with a strong clearance, just showcasing the activity in the market. We know buyers are competing and the competition created at auctions is leading to outstanding prices.
“We’re so proud of how hard our members are working to get these outcomes. Right now is a great time to take advantage of the competition.
“We’ve seen a number of sales from $300,000 through to $2,000,000 this week – every segment of the marketplace is seeing activity and doing well.”
South Australia
Ray White SA Chief Auctioneer John Morris said the Ray White group enjoyed another successful week.
“This Saturday we had 15 scheduled and so far the clearance rates are looking very positive. The Adelaide market is looking to continue going from strength to strength over the coming weeks and months,” Mr Morris said.
