This week’s preliminary clearance rate has come in at 65.9 per cent on the back of slightly higher volumes nationally compared to both last week and the same time last year.
Interestingly, it was Victoria where the success rate really spiked, lifting to 73 per cent despite low volumes amidst lockdown conditions. Although CoreLogic tips this will later revise lower, they note it reflects fewer withdrawals than seen in previous weeks.
This week CoreLogic reports 1160 homes were taken to auction across the combined capital cities, similar to the previous week when 1154 auctions were held, and slightly higher than this time last year (1111).
The 65.9 per cent combined capital city preliminary auction clearance rate is slightly higher than last week’s preliminary result of 65.3 per cent, which later revised down to 58.7 per cent, but below the final clearance rate of 67.8 per cent during the same week last year.
With tough lockdowns now in place, Melbourne’s volume fell to 298 homes scheduled for auction, down from 357 over the previous week and 500 this time last year.
“The number of auctions held across Melbourne has reduced sharply through the lockdown period,” CoreLogic stated.
“But withdrawal rates have been much lower relative to the previous lockdown period in April and early May earlier this year.
“The preliminary collection indicates only 18 per cent of Melbourne auctions were withdrawn from the market this week, compared with a peak of 65 per cent through the second week of April.
“Of the 244 auction results collected so far, 73 per cent were successful, although this will likely revise lower as the remaining auction results are collected.
“Last week saw a final clearance rate of 55.1 per cent recorded across the city, while this time last year, 72.3 per cent of Melbourne auctions were successful.”
Sydney was host to 642 auctions this week, up from 566 over the previous week and 367 this time last year.
Of the 483 auction results collected so far, 65.8 per cent have returned a successful result.
Last week, a final clearance rate of 60.7 per cent was recorded, while one year ago, a success rate of 76.2 per cent was achieved across Sydney.
The smaller capitals
Across the smaller cities, Canberra came in with the highest preliminary clearance rate over the week (73.2 per cent), followed by Adelaide (71.4 per cent).
Domain also reported a solid national preliminary clearance rate of 60.4 per cent, resulting from a higher volume of auctions in capitals other than Melbourne, but an upswing in the Melbourne success rate.
This week their data indicated 914 auctions were scheduled nationally, with 526 results reported so far. Of those, 425 properties sold (to the value of $343.1 million) and 178 were withdrawn.
Last week, the clearance rate came in at 58.2 per cent after 919 properties were scheduled for auction. Of those, 664 results were reported, 481 properties sold (to the value of $332.2 million) and 16 properties were withdrawn.
In the same week last year, both the volume of properties listed for auction and clearance rate was higher, with 976 properties scheduled for auction and a clearance rate of 65.3 per cent. During that week, 840 results were reported, 584 properties sold (to the value of $612.3 million) and just 55 properties were withdrawn.
Only 218 properties were scheduled for auction at the weekend and at this point results for only 123 are available. The preliminary clearance rate indicates 60.3 per cent were successful, with 108 sold (to the value of $69.1 million) and just 56 withdrawn.
Last week Melbourne returned a clearance rate of 56.8 per cent on the back of 285 properties listed for auction, 191 results reported, 150 sales made (to the value of $73.8 million) and 73 withdrawals.
In the same week last year, 496 properties were taken to auction and the clearance rate was 66.5 per cent, with 433 results reported, 300 sales made (to the value of $294.2 million) and 18 properties withdrawn.
Sydney’s preliminary clearance rate also sat comfortably at 61.5 per cent after 577 properties were scheduled for auction and 328 results were reported. Figures to date indicate 265 properties sold (to the value of $239.2 million) and 103 properties were withdrawn.
Last week Sydney’s clearance rate came in at 59.8 per cent with slightly fewer properties scheduled for auction. Domain reported 509 properties listed, 370 results, 279 sales made (to the value of $213.1 million) and 79 withdrawals.
In the same week last year, only 325 properties were scheduled for auction, 271 results were reported, 215 sales were made (to the value of $267.8 million) and 29 properties were withdrawn.
Ray White results
Ray White noted all eyes were on the real estate to see how it performed across the weekend, and their results indicated buyers were out in force.
The Ray White Group booked a healthy 77 per cent preliminary auction day clearance rate with 4.5 bidders registered on every lot. They also noted a jump in sold priors which this week climbed to 17 per cent as a response to the Stage 4 lockdown in Melbourne.
Ray White Victoria and Tasmania Chief Executive Officer Stephen Dullens said it was pleasing to see that, once again, the Melbourne property market remained “resilient and strong”.
Online auctions were conducted from auctioneer’s garages, spare rooms and home offices, and they all went off without a hitch, with the group clearing 80 per cent of auction stock in Melbourne.
“No matter what gets thrown at us, we can handle it. Our members are well prepared and well versed at online auctions and today saw a strong level of activity across all price points,” Mr Dullens said.
“We have called almost 700 auctions online since March across Victoria. Our auctioneers have mastered the art of creating competition in isolation.
“After a week with so much change across Victoria, it has been tremendous to see such fantastic results achieved across all property segments in Melbourne.
“Despite Stage 4 restrictions commencing in Melbourne and Stage 3 across regional Victoria, it has been pleasing to see so many successful sales and one of our best clearance rates of the year.
“Our teams spent time this week moving some auctions earlier, pushing some auctions later and ensuring they did whatever required to achieve the best results for our customers.
“Buyers logged online in their droves, with fierce competition on many of our online auctions and a number of results well, well ahead of vendors expectations.”
New South Wales
Ray White NSW Chief Auctioneer Alex Pattaro said there was no better time to transact than now.
“We’ve seen strong competition across Sydney auctions this weekend. We saw an average of five registered bidders and three active bidders across Ray White auctions,” Mr Pattaro said.
“In recent times there have been a number of first home buyers who have been hesitant to purchase although we have seen an uplift in first home buyer activity signalling that there could be some more positivity.
“Buyer activity continues to increase week on week with more buyers flooding open for inspections. Attendance in some areas are at similar levels to what we saw pre-COVID, this is a wonderful sign to what may come in spring.”
Ray White Queensland Chief Auctioneer Mitch Peereboom said it had been another outstanding week of auctions results for Ray White Queensland.
“Our clearance rate and average number of bidders per auction has remained consistent with recent weeks,” Mr Peereboom said.
“Our members continue to achieve fantastic sale prices for our customers through their ability to create competition.
“Buyers were bidding with absolute confidence this week and the social proof of auction creating every reason for them to bid further.
“We’ve seen performances across a multitude of markets with strong bidding from $300,000 right through to $2 million plus.
“For any seller considering coming to the market, the only question we have is what are you waiting for? Market conditions are in the favour of the seller and we look forward to assisting you with your sale.”
Ray White South Australia Chief Auctioneer John Morris said there was an 80 per cent preliminary auction day clearance rate in the state on Saturday.
“The market seems to be very strong in and around Adelaide,” Mr Morris said.
“With an average of five bidder registrations per auction and four of these participating, it looks like these great results are going to continue.”