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Auction clearance rates strengthen as Melbourne activity ramps up

The combined capital city preliminary auction clearance rate hit 72.4 per cent this week as national volumes rose.

CoreLogic reports 1134 homes were taken to auction this weekend, up from the 1084 auctions held last week.

Of the 878 results collected so far, 72.4 were successful – higher than last week’s preliminary figure of 71.5 per cent, which by final collection on Wednesday revised down to 66.4 per cent.

Over the same week last year, a final clearance rate of 72.1 per cent was reported across a higher 1955 auctions.

Melbourne

Melbourne saw a substantial increase in scheduled volumes this week, with 188 homes taken to auction, up on the 59 auctions last week and the largest number of auctions in two months.

Of the 143 results collected so far, 93 were successful and 14 were withdrawn, equating to a preliminary clearance rate of 65 per cent and a withdrawal rate of 10 per cent.

“Of the sold results collected, 27 per cent sold prior to the scheduled auction event, which was much lower than the recent trend where a high proportion of auctions have been selling prior to the auction being held rather than under the hammer,” CoreLogic said.

One year ago, 915 Melbourne homes were auctioned with 73.3 per cent selling.

Sydney

Sydney continues to make up over 60 per cent of all auction activity, although volumes were lower over the week, with 707 homes taken to auction compared to 751 the week prior.

Of the 560 results collected a preliminary clearance rate of 75.9 per cent was achieved.

Last week, Sydney’s final clearance rate came in at 67.2 per cent and this time last year a final auction clearance rate of 79.2 per cent across 727 auctions was recorded.

The smaller capitals

Across the smaller markets, Canberra recorded the highest preliminary clearance rate of 85.7 per cent, followed by Adelaide (70.6 per cent), Perth (55 per cent) and Brisbane (54.7 per cent).

Domain results

Domain’s results indicate the national volume was down marginally on last week, but the preliminary success rate trended higher and the number of Melbourne properties going to auction more than doubled.

This week they reported a preliminary success rate of 72 per cent, after 916 properties were listed for auction nationally. So far, results are in for 671 of those auctions, with 483 properties successfully selling (to the value of $401.1 million) while 84 properties were withdrawn.

Last week, 956 properties were listed for auction, and a final success rate of 65.9 per cent was recorded. Results for 822 properties were provided, with 542 selling (to the combined value of $479.2 million) while 110 properties were withdrawn.

This time last year 1687 properties were listed for auction nationally, and the final success rate came in a 68.2 per cent. Results were provided for 1567 properties, 1068 of those successfully sold (to the value of $1211.6 million) and 107 properties were withdrawn.

Sydney

Sydney’s volume was down on the week prior, but the success rate was significantly higher at 74.9 per cent. This week Domain reports 639 properties were listed for auction in the harbour city, with results in for 487 properties so far.

Of those, 365 successfully sold (to the value of $329.9 million) while 58 were withdrawn.

Last week Sydney achieved a final success rate of 67.3 per cent after 724 properties were listed for auction. Of those, results were provided for 637 properties, with 429 successfully selling (at a combined value of $403 million) while 98 were withdrawn.

This time last year Sydney recorded a clearance rate of 75.3 per cent after 618 properties were listed for auction. Results for 587 properties were provided with 442 selling successfully (to the value of $579.7 million) while 46 properties were withdrawn.

Melbourne

The Melbourne auction market continues to be a major focus for commentators, with volumes steadily increasing on the back of lifting lockdowns.

This week, Domain reports 138 properties were listed for auction in Melbourne, with the city returning a preliminary clearance rate of 59.8 per cent. This data is based on the 87 results so far reported and the fact 52 properties have successfully sold (to the value of $31.8 million), while only 13 properties were withdrawn.

Last week Melbourne returned a final clearance rate of 57.6 per cent on the back of 59 properties listed for auction. Of those listings, 33 results were provided, with 19 properties selling (to the value of $10.1 million) while six properties were withdrawn.

This time last year, Melbourne accounted for a major share of the auction market with 872 properties listed for auction and a clearance rate of 67.4 per cent. Of those listed, results for 794 properties were provided, with 535 successfully selling (to the value of $557.2 million) and 46 properties were withdrawn.

Ray White Results

Ray White noted this week was all about sellers as Ray White auctions across the country achieved premium results for those putting their trust in the market.

The Ray White Group booked a preliminary clearance rate of 59.6 per cent, with Sydney the star of the show, clocking up a strong preliminary clearance rate of 66.7 per cent.

The group also saw 5.6 registered and 2.8 active bidders per property, on average.

New South Wales

Ray White New South Wales Chief Auctioneer Alex Pattaro said the spring rush continued with strong open for inspection attendance and bidder numbers at auctions.

“We’re seeing strong bidding activity with most auctions obtaining early bids,” Mr Pattaro said.

“Our Ray White data suggests that auctions that see over six registered bidders holds a clearance rate of circa 90 per cent.

“We have an influx of properties coming to market and early indications suggest November will be a bumper month.

“We’ve also noticed a number of buyers who are upsizing and trying to get into the housing market.

“Buyers understand that there’s competition in the market and suggest they’re prepared to go above and beyond to secure their dream home.”

Victoria

Ray White Victoria and Tasmania Chief Auctioneer Matthew Condon  said since the reintroduction of private inspections in Melbourne, the number of scheduled auctions for Ray White Victoria this week had significantly increased

“It was great to see that the increased supply was met with even higher buyer demand,” Mr Condon said.

“Based on preliminary data from Ray White Victoria, we averaged over six registered bidders per auction, with a healthy preliminary clearance rate.

“This was evident in our online auctions today with competitive bidding – even once properties were announced on the market and selling.

“It’s amazing to see that sellers who decided to launch their properties for sale amid Stage 4 restrictions have been heavily rewarded with exceptional results.”

The return of private inspections several weeks ago in Melbourne is beginning to pay off for buyers and sellers this weekend.

With 34 auctions scheduled by the Ray White Group in Victoria’s capital, it’s clear the property market is trending up.

Queensland

Ray White Queensland Chief Auctioneer Mitch Peereboom said it was wonderful to see another week of great activity with plenty of registrations across auctions this week.

“Buyers are actively competing for properties, they’re willing to be involved, and certainly it’s coming through with some great results for our sellers,” Mr Peereboom said.

“If you look at the different market segments as to what’s performing, we’re seeing some excellent results across the board.

“Today, we had an auction with Angela Duncan from Ray White Aspley at 2pm which was outstanding. There were 12 registrations and selling for $875,000 in Banyo.

“It shows that buyers are out, looking to buy, and are looking to settle before Christmas.”

South Australia

Ray White South Australia Chief Auctioneer John Morris said the Adelaide property market was red-hot at the moment.

“If I was considering selling in the next 12 to 18 months, I would certainly bring it forward to now with the results we’re seeing,” Mr Morris said.

“Last week, we saw 8.2 average registered bidders per auction with at least half of these participating in the action, and that resulted in a 75 per cent clearance rate.

“It looks like we’ll be having much the same this week. We had 53 scheduled auctions taking place across South Australia…

“Preliminary results for this week show 8.9 average bidder registrations so far and every single auction has had bidding and this has led to a very healthy 75 per cent clearance rate.”

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