As Victoria returns to in-person auctions, the national market is gaining moment, with a surge in Melbourne listings contributing to 1456 capital city homes taken to auction this week.
The figure is the highest volume of auctions seen since early April, while the clearance rate also proved strong, with preliminary data indicating 76.2 per cent of properties sold.
CoreLogic notes both volume and clearance rate are up on last week when 1131 auctions were held, resulting in a clearance rate of 72.4 per cent.
This later revised down to 66.2 per cent by final collection on Wednesday
One year ago, a much higher 2622 capital city auctions took place with a 72.2 per cent success rate.
“The increase in overall volumes this week can be attributed to the ramp up in activity across Melbourne, where 505 homes were taken to auction,” CoreLogic stated.
“This makes it the busiest week the city has seen since July and also the largest number of auctions held across Melbourne on a grand final weekend historically.”
The increase in activity across the city returned a preliminary auction clearance rate of 72.6 per cent, which was significantly higher than the 65 per cent preliminary figure last week that later revised down to 60.2 per cent by final collection.
Sydney also gained momentum with 712 auctioned this week. Of the 551 results collected so far, 80.4 per cent of these were sold results.
“Both volumes and clearance rates increased over the week after last week saw a slightly lower 704 homes taken to auction and a final auction clearance rate of 69.1 per cent,” CoreLogic said.
Last year, 771 Sydney auctions were held, returning a final auction clearance rate of 74.3 per cent.
The smaller capitals
Across the smaller cities, Adelaide and Canberra both returned clearance rates above 80 per cent this week, however Canberra was the better performer with a higher clearance rate and a rise in weekly volumes.
Domain’s data also highlighted an improvement in volumes and clearance rate compared to previous weeks, with Melbourne leading the charge.
This week their figures indicate 1083 properties were slated for auction, with results in for 804 of those auctions so far.
Their preliminary clearance rate currently sits at 70.4 per cent after 566 properties successfully sold (to the collective value of $453 million) and 107 were withdrawn.
Last week 916 auctions were held nationally resulting in a clearance rate of 67.7 per cent after results on 808 auctions were provided.
Domain notes last week 547 properties sold at auction (to the value of $450.8 million) and 87 were withdrawn.
This time last year the volume was twice as high with 2330 properties listed for auction, and the clearance rate sat at 68.1 per cent.
This was based on results provided for 2141 auctions, with 1459 properties sold (to the value of $1742.1 million), while 113 properties were withdrawn.
All eyes were of course on Melbourne where the lifting of recent restrictions is beginning to take effect on the country’s largest auction market.
This week, Domain’s data indicates 304 Melbourne properties were taken to auction with results so far provided on 223, and a clearance rate of 61.9 per cent.
In total, 138 properties have so far sold (to the value of $91.6 million) and just 35 were withdrawn.
Last week, less than half that volume was reported, with 139 properties listed for auction, results provided on 107 and a clearance rate of 57 per cent.
Domain reported 61 properties sold (to the value of $37.1 million), while 14 were withdrawn.
Last year, Melbourne had the highest auction volumes in the country, with 1467 properties listed.
Results were provided on 1337 auctions, and the clearance rate came in at 70.5 per cent after 943 properties sold (to the value of $1049.9 million) and 41 properties were withdrawn.
Domain’s data indicates Sydney’s volume was almost on par with the previous week, with 637 properties listed for auction.
So far results are in for 474 of those auctions and the preliminary clearance rate sits at 73.8 per cent after 350 properties successfully sold (to the value of $313 million), while 63 were withdrawn.
Last week, 640 properties were slated for auction, with results provided for 576. Ultimately the clearance rate came in at 71.4 per cent after 411 sold successfully (to the value of $366.9 million), and 59 were withdrawn.
This time last year, Sydney was in a similar position. In the same week in 2019, 641 properties were listed for auction, results were provided on 594 and the clearance rate sat at 71 per cent.
This was based on 411 properties successfully selling (to the value of $625.1million), while 64 were withdrawn.
Ray White results
Ray White agreed the market focus was definitely on Melbourne where on-site auctions were finally allowed in a limited capacity for the first time since early July.
Nationally, the Ray White Group booked a preliminary national clearance rate of 74.5 per cent, with 618 auctions booked across the country.
They reported this volume was a 20.9 per cent increase over same time last year.
In Melbourne, the group cleared 70 per cent of their auction listings under the hammer while in Sydney that figure hit 77 per cent.
Ray White reports AFL Grand Final day on Saturday was a very different day in Melbourne this year.
While the date is normally blocked off in the calendar as reserved exclusively for the big game, the Ray White group enjoyed a flurry of real estate activity, resulting in the highest auction volume activity recorded on the big day in more than a decade.
“With restrictions easing in recent weeks and a return to on-site auctions in Melbourne with a cap of 10 people in the crowd, sentiment in the market from both vendors and buyers continues to grow,” they noted.
Ray White Victoria & Tasmania CEO Stephen Dullens said buyers were out in force taking advantage of the eased restrictions and the increased real estate activity.
“This week the Ray White group conducted more than 100 auctions in Melbourne – the highest number of auctions conducted in a single week since June and second highest since March,” he said.
“While the majority of these auctions remained online, the increased confidence of buyers certainly showed with a preliminary clearance rate of 70 per cent and on average 5.5 registered bidders.
“With more than 100 auctions scheduled again next week, vendors and buyers have been quick to make up for lost time under lockdown conditions.”
New South Wales
Ray White New South Wales Chief Auctioneer Alex Pattaro said he had seen many double-digit registration numbers across the state auctions on Saturday.
“The competition at auction is fuelling house prices and we are consistently seeing and hearing of record sales Sydney-wide,” Mr Pattaro said.
“With more properties coming to the market in November, strong prices and buyer numbers are making it a great time to transact within the market.
“We see no better time to sell than now, and we expect this trend to continue for the rest of 2020.”
Ray White Queensland Chief Auctioneer Mitch Peereboom said there had been some outstanding auction results throughout the state on Saturday, due to the high number of registered bidders which has remained strong and consistent throughout October.
“In terms of clearance rates, we have seen some of the highest of the year this month, showing the strength in the marketplace,” Mr Peereboom said.
“We have seen strong results through a cross section of price ranges, from mid-$200,000 apartments across the city through to large rural sales; we saw a $17m sale for our Ray White Rural network yesterday under the hammer.
“Listing numbers are lower due to the speed of the market at the moment, and buyers don’t have the choice that they usually would.
“If you are thinking of selling, the lead up to December is going to be a huge one this year, and we are still able to get you settled before Christmas time.”
Elsewhere, Ray White South Australia Chief Auctioneer John Morris said the auction culture was alive and well in the festival state.
“(For) two weeks in a row every single auction has had bidding and there’s 5.2 average registered bidders per auction…Why would you wait to sell?”