There has been a slight increase in auction volume this week as the preliminary clearance rate also took an upward turn.
“Of the 1207 results collected so far, 72.3 per cent were successful,” they said.
“The previous week saw a preliminary auction clearance rate of 67.3 per cent, which revised up to 67.7 per cent at final figures, while this time last year, 63 per cent of auctions were successful.”
In Melbourne, 510 homes were taken to auction this week, which was down 7.9 per cent on the 554 originally scheduled.
Last week, 430 auctions were held across the city, while this week last year just 13 auctions were held.
Of the 320 results collected so far, 42.5 per cent were withdrawn, and a preliminary auction clearance rate of 54.4 per cent was recorded.
Of the 174 sold results, 50.6 per cent were sold prior to the scheduled auction date.
In comparison, 52.9 per cent of reported auctions were withdrawn over the previous week and a final auction clearance rate of 43.8 per cent was recorded.
“The 54.4 per cent preliminary auction clearance rate recorded this week is the highest preliminary clearance rate Melbourne has seen since mid-august, and can be attributed to a lower withdrawal rate,” CoreLogic said.
There were 668 auctions held in Sydney this week, compared to 607 over the previous week and 600 over the same week last year.
Of the 593 results collected so far, 83.8 per cent were successful, making it the seventh consecutive week where the city has recorded a preliminary auction clearance rate above 80 per cent.
Of the 497 sold results, 52.7 per cent were sold prior to the scheduled auction date.
Last week, Sydney’s preliminary auction clearance rate was slightly higher (84 per cent), revising down to 81.2 per cent at final figures.
The smaller capitals
Across the smaller auction markets, Adelaide was the best performing this week with a preliminary auction clearance rate of 88.1 per cent, followed by Canberra (69.4 per cent), Brisbane (68.1 per cent), and Perth (63.6 per cent).
There were only two auctions recorded in Tasmania this week and they were both sold prior to auction.
Domain has reported a preliminary clearance rate of 80.3 per cent, after 1150 properties were taken to auction nationally.
So far, results are in for 676 of those auctions, with 543 properties selling (to the value of $522.2 million), while 84 properties were withdrawn.
Last week, the final clearance rate settled at 75.5 per cent after 1398 properties were taken to auction.
Results were provided for 856 of those auctions, with 646 properties selling (to the value of $572.5 million), while 137 properties were withdrawn.
This time last year, the clearance rate was a lower 61.4 per cent after 645 properties were taken to auction.
Results were provided for 627 of those auctions, with 385 properties selling (to the value of $506.5 million), while 85 properties were withdrawn.
Sydney was again the catalyst behind this week’s high clearance rate. Preliminary data indicates the harbour city had a clearance rate of 82.9 per cent after 511 properties were taken to auction.
So far, results are in for 375 of those auctions, with 311 properties selling (to the value of $340 million), while 36 properties were withdrawn.
Last week, Sydney’s final clearance rate was 82.7 per cent after 496 properties were taken to auction.
Results were provided for 439 of those auctions, with 363 properties selling (to the value of $383.6 million), while 35 properties were withdrawn.
This time last year, Sydney’s clearance rate was 62.5 per cent after 523 properties were taken to auction.
Results were provided for 507 of those auctions, with 317 properties selling (to the value of $445.4 million), while 73 properties were withdrawn.
Melbourne’s preliminary clearance rate increased to 76.2 per cent this week on the back of reduced volume, with only 414 properties taken to auction.
So far, results are in for 164 of those auctions, with 125 properties selling (to the value of $98.7 million), while 31 properties were withdrawn.
Last week, Melbourne’s clearance rate was 64 per cent after 626 properties were taken to auction.
Results were provided for 214 of those auctions, with 137 properties selling (to the value of $97.8 million), while 68 properties were withdrawn.
This time last year, Melbourne’s clearance rate was zero, after only seven properties were listed for auction, and of those, five were withdrawn.
Ray White results
Despite ongoing lockdowns and restrictions, the Ray White Group said auction sellers across Australia continued to capitalise on red hot buyer demand, incredible price growth and a shortage of stock that means less competition on the market.
This weekend, the Ray White Group recorded a national clearance rate of 84 per cent of the 75 auctions conducted.
Average registered and active bidder numbers came in at 9.8 and 4.8 respectively, with the group noting it proved buyers remained totally undeterred by the lockdown markets.
Ray White Chief economist Nerida Conisbee said one of the main trends coming out of COVID-19 had been a greater desire for more space.
“Being stuck at home a lot is tough, but more challenging if you don’t have enough room to easily work or study,” Ms Conisbee said.
“Because of this, suburban living is having a renaissance at the moment, something that has not been seen since the 1970s.
“Despite this, living in a big house in the outer suburbs is still far more affordable than an inner-city terrace.”
Looking at all sales over the past two years, Ms Conisbee said she had taken a look at the suburbs with the biggest and smallest houses.
“Topping the list for big properties are the outer eastern suburbs of Melbourne, as well as the Adelaide Hills,” she said.
“The suburb of Park Orchards tops the list with the average-sized home more than 1700sq m, well over three times the average sized block of land.
“At the other end of the scale, houses in North Sydney are less than a 10th the size of houses in Park Orchards but cost on average $1 million more.
“And while the big house list is dominated by Melbourne and Adelaide suburbs, the small house list is dominated by Sydney and Brisbane suburbs.
“This perhaps reflects the more difficult geography to build large homes, and to adequately service them.”
New South Wales
Ray White NSW chief auctioneer Alex Pattaro said the market remained consistent with previous weeks, seeing strong bidding activity and property prices under the hammer.
“We continue to see buyers exceed their pre-auction offers, and buyers are happy to stretch their budgets to meet vendor expectations,” Mr Pattaro said.
“As we start to enter into the warmer months we’re seeing an influx of auction properties, meaning this would be a great time for more sellers to come to market.
“As we’ve seen throughout the year, sellers are fearful to come to market as they worry about having to re-buy.
“With more stock coming to market, more sellers have the opportunity to sell and re-buy which alleviates a common fear for sellers throughout 2021.”
Ray White Victoria and Tasmania Chief Auctioneer Matt Condon said despite the slow start to spring selling season, auction numbers were starting to pick up due to a sense of urgency to transact from both buyers and sellers.
“Auction results across Victoria continue to remain very strong with the shortage of properties available across Victoria creating a huge level of demand per property,” Mr Condon said.
“Preliminary data from the Ray White Group has revealed an average of eight bidders tuning in online today to bid for their desired property.
“Buyers are also bidding quickly and aggressively to ensure the best possible chance of securing a property.”
Ray White Queensland chief auctioneer Gavin Croft said Brisbane’s clearance rate was through the roof, reaching 95.5 per cent on Saturday.
“We’re reaching that milestone of clearance levels Queensland hasn’t seen for perhaps the last 20 years,” Mr Croft said.
“Bucking the trend that we’ve seen in the last few weeks is that local owner-occupiers are back in full force, counteracting that trend of southern buyers and investors snapping up property in our local markets.”
Ray White South Australia chief auctioneer John Morris said there were strong numbers coming from South Australia at the weekend.
“The market does not look like it has slowed down at all, we’re stepping into spring for the first two weeks exactly how we intend to go on, it looks like nothing can slow us down,” Mr Morris said.
“There was an incredible market share throughout the state with around 40 per cent of auctions flying a yellow flag very proudly, and I can see that continuing for weeks and months to come.”