It’s been the busiest auction week since April last year, and volume is set to increase again, with CoreLogic tipping a three-year auction volume high next Saturday when 3800 properties are slated to go under the hammer.
Key auction market points
- Busiest week since April last year
- Preliminary clearance rate: 82 per cent
- Severe weather did little to impact Sydney market
- Sydney now enjoying six weeks above 80 per cent final clearance
- Volume tipped to increase to three-year record next Saturday
CoreLogic notes there were 2731 homes taken to auction across the combined capital cities this week, the busiest auction week since the first week of April last year when 3,209 capital city homes were taken to auction.
In comparison, last week saw 2218 auctions held across the combined capitals, while at the same time last year, 2599 homes were taken to auction.
Despite the higher volumes, the preliminary clearance rate held relatively firm, with 82 per cent of auctions recording a successful result, down only slightly from last week’s preliminary clearance rate of 83.2 per cent, which revised down to 80 per cent at final figures.
Over the same week last year (which was showing early negative impact from the onset of COVID-19), a final clearance rate of 56.9 per cent was recorded across the combined capitals.
Melbourne saw 1319 auctions held over the week, and of the 1159 results reported so far – 78.9 per cent have been successful.
Last week saw 1102 homes taken to auction across the city, returning a final clearance rate of 77.6 per cent, while this time last year, 1343 auctions were held and 58.4 per cent of reported auctions were successful.
Sydney was host to 1048 auctions this week, increasing from 806 over the previous week, and 946 this time last year.
Despite the severe weather, the preliminary clearance rate came in at 87.5 per cent this week, similar to the previous week’s preliminary clearance rate of 87.4 per cent, which revised down to 84.3 per cent at final figures.
This time last year, 58.8 per cent of reported auctions were successful.
Sydney’s final auction clearance rate has held above 80 per cent for the past six weeks and this week is likely to be no different once final results are collected.
The smaller markets
Across the smaller auction markets, Canberra recorded the highest preliminary clearance rate at 85.1 per cent, followed by Adelaide at 77.5 per cent.
Auction volumes are set to increase substantially next week, with CoreLogic currently tracking over 3800 auctions across the combined capital cities.
This will make it the busiest week for auctions since the week ending 25 March, 2018 when 3990 homes were scheduled for auction.
Domain’s data also reflected increased volumes and a high clearance rate. This week they reported 2190 properties for auction in the major markets and a preliminary clearance rate of 84.3 per cent.
So far results are in for 1672 of those auctions, with 1409 successfully selling (to the value of $1317.6 million) while 92 were withdrawn.
That volume is higher than last week when 1904 properties went under the hammer, and the final clearance rate came in at 78 per cent.
Last week, results were provided for 1789 auctions, with 1396 properties successfully selling (to the value of $1242.8 million).
This time last year, the clearance rate and withdrawals were starting to feel the COVID-19 lockdown effect. In the same week last year, 2227 properties were taken to auction, and the clearance rate was 56.9 per cent.
Results were provided for 2055 of those auctions, with 1770 selling (to the value of $1318.6 million), while 236 were withdrawn.
Domain concurred that the severe Sydney weather had little impact on auctions at the weekend, with 856 properties taken to auction, resulting in a preliminary clearance rate of 90.5 per cent.
So far results are in for 640 of those auctions, with 579 properties successfully selling (to the value of $679.6 million), while 33 properties were withdrawn.
Last week, the Harbour City saw 716 properties go to auction, and the final clearance rate came in at 83.7 per cent.
Results were provided for 675 of those auctions, with 565 properties successfully selling (to the value of $602.6 million) while 57 properties were withdrawn.
This time last year, 784 properties were taken to auction in Sydney and the clearance rate was 59.3 per cent.
Breaking that down, results were provided for 727 of those auctions, with 431 properties successfully selling (to the value of $607.9 million), while 116 were withdrawn.
Melbourne’s volume is also on the rise with 1117 properties taken to auction this weekend, resulting in a preliminary clearance rate of 79.4 per cent.
So far, results are in for 870 of those auctions, with 691 successfully selling (to the value of $545.3 million) while 51 were withdrawn.
Last week, Melbourne’s final clearance rate settled at 74.3 per cent after 978 properties were taken to auction.
Results were provided for 918 of those auctions, with 682 properties successfully selling (to the value of $539.9 million), while 57 properties were withdrawn.
This time last year, Melbourne saw 1243 properties taken to auction, and the final clearance rate was 57.4 per cent.
Breaking that figure down, results were provided for 1141 of those auctions, with 655 properties successfully selling (to the value of $644.5 million), while 99 properties were withdrawn.
Ray White results
The weather might be changing as we head into the cooler months but, according to the Ray White Group, the pulsating auction market remains the same, and this weekend was no different.
“There seems to be no stopping the popularity of auction as the method of sale with innovative internal auction data showing that Ray White’s number of scheduled auctions this week is up 7.3 per cent compared to the same dates in 2020,” Ray White reported.
The property group and auction house booked a preliminary auction day clearance rate of 84.3 per cent on Saturday – with properties attracting six registered bidders on average.
“The absolute stand-out cities were Sydney and Melbourne, as they booked a preliminary clearance rate of 93.8 per cent and 81.1 per cent, respectively,” Ray White notes.
“Brisbane also enjoyed a current clearance rate of 69.2 per cent.”
New South Wales
Ray White NSW Chief Auctioneer Alex Pattaro said the wild Sydney weather certainly did not put buyers off across the city.
“We’ve seen overly large crowds and strong registrations across all Sydney properties,” Mr Pattaro said.
“We’re seeing an increased number of buyers who have missed out on the housing market and that is fueling demand in larger apartments.
“More buyers are starting to drift further out of Sydney as prices within 10km of the CBD continue to move north.”
Ray White VIC/TAS Chief Auctioneer Matt Condon said auction volume in Victoria continued to increase week after week.
“Despite the increase in volume, we continue to maintain a high level of active and registered bidders per auction,” Mr Condon said.
” On the ground, buyers were doing everything they possibly could to secure their desire property – from starting the auction on a very high bid, through to aggressively bidding in high increments against their competition, and it was great to see even once properties were announced on the market and selling, we continued to see competition and momentum past that point.”
Ray White QLD Chief Auctioneer Mitch Peereboom said it had been an outstanding week of auctions across the Sunshine State at both in-room and on-site auctions.
“The stand-out performances today have been properties in the $500,000 to $1 million price bracket with great sales across multiple suburbs,” Mr Peereboom said.
“If you look at the activity, it’s very consistent around all price brackets.
“During the week we had some landmark sales including an $8 million rural property in the Gold Coast Hinterland, so no matter what you’re selling, we’re very confident to advise you to come to the market.
“We’re seeing some outstanding sale prices through competition at auction. Don’t sell to the first offer that comes along. Don’t take the first price that comes along.”
Ray White South Australia Chief Auctioneer John Morris said property was one sector that just refused to lie down.
“The market is on steroids and pumping iron 24/7, particularly the auction market,” Mr Morris said.
“The numbers are absolutely fantastic and the preliminary numbers coming in today are reflecting exactly that.
“We’re looking at 10 registrations on average per auction, with just under half of those actually participating, and there has been bidding at every single auction.”