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Auction volume increases, but Victorian withdrawals weigh down results

Continuing lockdowns in Melbourne again saw a high volume of properties withdrawn from auction this week, weighing down the national preliminary clearance rate, which came in at 59.2 per cent.

This week’s preliminary figure was the same as last week, but came off the back of higher volume. CoreLogic reported 1344 capital city homes were taken to auction this week.

“This week’s clearance rate was the exact same as last week’s preliminary figure which later revised down to 53.1 per cent at final collection, although last week there were a lower 1176 auctions held,” CoreLogic said

“It’s likely this week’s final clearance rate will come in around the same early 50 per cent seen last week as we continue to see large numbers of Melbourne auctions withdrawn from the market.

Over the same week last year a lower number of auctions were held (1124) with a higher rate of success (68.6 per cent).

“Comparing the results across Australia’s two largest auction markets highlights the impact of Melbourne’s lockdown,” CoreLogic noted.

“The preliminary numbers show 41 per cent of Melbourne auctions were withdrawn from the market this week compared with only 16 per cent in Sydney.

“The larger number of withdrawn auctions in Melbourne, which are counted as unsuccessful auctions, has seen the clearance rate drop from the early-to-mid-60 per cent range through late May and June to the low 40 per cent range over the past two weeks, while Sydney clearance rates are holding above 60 per cent.

“Removing withdrawn auctions from the clearance rate calculation shows the two markets are returning a similar ‘adjusted’ reading in the low 80 per cent range, highlight that those properties which aren’t withdrawn from the market are still finding buyers.”

Melbourne

There were 545 Melbourne homes scheduled for auction this week. Of the 450 results collected so far, 186 were withdrawn results and 224 were successful, equating to a 41 per cent withdrawal rate and a preliminary clearance rate of 49.8 per cent.

Of the sold results collected more the 50 per cent reportedly sold prior to the scheduled auction date.

One year ago, a similar 544 Melbourne homes were auctioned returning a final clearance rate of 71.7 per cent.

Sydney

In Sydney, 602 homes were taken to auction this week returning a preliminary auction clearance rate of 68.3 per cent, while last week a final clearance rate of 61.4 per cent was achieved across a lower 515 auctions.

Over the same week last year, volumes were a lower 394 with a success rate of 75.7 per cent.

Smaller capitals

Across the smaller cities Canberra returned the highest preliminary clearance rate with an 80.5 per cent success rate, followed by Adelaide (60.7 per cent), Brisbane (43.9 per cent) and Perth (28.6 per cent).

Domain results

Domain reported a preliminary national clearance rate of 55.1 per cent on the back of 1188 properties listed for auction, 644 results reported, 513 sales (valued at $371.2 million) and 287 withdrawals (predominantly in Victoria).

Volume was slightly up on last week when 1050 properties were listed for auction, returning a final clearance rate of 52.3 per cent.

Breaking down last week’s results, 638 auction results were reported, 481 properties sold (to the value of $350.9 million) and 281 were withdrawn.

In the same week last year, Domain recorded a final clearance rate of 65.6 per cent off the back of 956 properties listed for auction. Of those, 803 results were reported, 568 properties sold (at a combined value of $537.4 million) and just 63 properties were withdrawn.

Sydney

As was widely anticipated, Sydney clocked the higher clearance rate this week, recording a 63.5 per cent preliminary success rate from 546 properties listed for auction. Of those, 338 results were reported, 268 properties sold (for a collective value of $220.2 million) and 83 properties were withdrawn.

Both volume and value were up on last week when the clearance rate was 61.7 per cent off the back of 472 properties listed for auction. Of those, 324 results were reported, 248 properties sold (for a collective value of $216.5 million) and 78 were withdrawn.

In the same week last year, 346 properties were listed for auction, 286 results were reported, 224 properties sold (at a combined value of $258.1 million), and 32 were withdrawn for a clearance rate of 70.4 per cent.

Melbourne

Withdrawals again weighed down the Melbourne clearance rate this week, with preliminary figures coming in at 45.7 per cent.

This week Domain reported 527 properties were listed for auction in Melbourne, 229 results were reported, 196 properties sold (for a combined value of $119.2 million) and 203 were withdrawn.

Last week, the Victorian capital saw 482 properties listed or auction, 239 results reported, 188 property sales (at a combined value of $103.9 million) and 196 withdrawals for a clearance rate of 43.2 per cent.

One year ago, Melbourne had 489 properties listed for auction, 423 results were reported, 298 sales (valued at $251.8 million) and just 18 withdrawals for a clearance rate of 67.6 per cent.

Ray White results

Ray White noted buyers were “out in force” with their data indicating a big jump in active bidder numbers.

The group booked a preliminary national clearance of 69.7 per cent today for its 237 auctions with 5.4 registered bidders per lot across Australia. Average active bidders was 3.4 per lot, up one on a year ago.

Ray White’s Sydney agents almost cleared 80 per cent of their auction stock, while the online auctions in Melbourne recorded a healthy 64.7 per cent clearance too.

Elsewhere, Brisbane agents booked a solid 64.3 per cent clearance while Adelaide members had a day in the sun with 77.8 per cent preliminary clearance.

New South Wales

Ray White NSW Chief Auctioneer Alex Pattaro said there was absolutely no sign of the Sydney market slowing down.

“Despite all the talk, competition at auction continues to defy all speculation. Our average crowd attendance was circa 40+ today which shows buyers are out and about.”

Victoria

Ray White Victoria and Tasmania Chief Auctioneer Matt Condon said there was an increase in volume this week, with 128 auctions scheduled.

“It is great to be able to report that Victoria’s real estate market is continuing to exceed expectations. We have seen one of our strongest weeks for 2020, in terms of average number of active bidders per auction,” Mr Condon said.

“It is a privilege to be able to provide exceptional results for our clients, while operating 100 per cent online.”

In the middle of the lockdown in Melbourne, Ray White Oakleigh managed to achieve a 100 per cent clearance rate with their auctions this week, selling nine from nine under the hammer this week alone.

“We are not backing down from auctions, in fact we are going for more than ever before. The online auction process is working so seamlessly. We are running between five to 10 every single week,” said Chris Kelepouris, CEO and Founder of Ray White Oakleigh | Clayton.

“I think our key to success is that we practise consistency; we know what works and we nail the basics. We put a lot of emphasis on getting the process right; we are adapting but not straying away from the processes we have always used.

“Through this tough time, the team’s attitudes have been amazing – the team has been really wonderful in helping each other stay pepped up, and getting each other through a stressful period. Teamwork and process is the winning combination for our office.”

Queensland

Ray White Queensland Chief Auctioneer Mitchell Peereboom said all the auction metrics were up strongly again this week.

“The clearance rate is over 60 per cent and average registered bidders is over four, which is so strong,” he said.

“Just three, six or 12 months ago, these metrics were lower, so you’d have to describe this as a strong market. Buyers are getting involved and want to buy property at all price points and our sellers are seeing the social proof knowing they’ve taken every last dollar out of the market.

“Now is a favourable time to sell. What are you waiting for? We know the market is ready,” Mr Peereboom said.

South Australia

Ray White South Australia Chief Auctioneer John Morris said it was sunny skies across Adelaide, ensuring that the bidders were out in force.

“We had the highest number of auctions we’ve had this year,” Mr Morris said.

“All of the auctions I called today sold, with an average of six registered bidders per auction. Long may this continue.”

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