Both auction volumes and the preliminary clearance rate fell this week in the wake of lockdowns across Australia’s three largest capitals.
CoreLogic notes 1672 auctions were held, resulting in a success rate of 76.4 per cent.
Last week, a preliminary auction clearance rate of 79.2 per cent was recorded, later revising down to 77.2 per cent at final collection on Wednesday.
Final numbers indicate that 1761 homes proceeded to auction last week, down 15 per cent on the initial predicted numbers.
This week, so far 10 per cent of the original predicted count (1860 auctions) have been rescheduled to a later date.
One year ago, 1150 capital city homes were auctioned, returning a final auction clearance rate of 58.4 per cent.
Melbourne was the busiest auction market this week, with 710 homes taken to auction. However, this was down 15 per cent on the initial predicted count as the city announced a lockdown coming into the weekend.
Over the previous week, 656 auctions were held and one year ago 294 took place.
“A preliminary auction clearance rate of 73.5 per cent has been recorded this week, which is considerably lower than the 77.1 per cent preliminary result last week,” CoreLogic said.
Last week’s final clearance rate came in at 77.2 per cent, while one year ago a final clearance rate of 63.7 per cent was recorded.
Of the results collected so far this week, 18 per cent were reportedly withdrawn and of the 411 sold results 35.3 per cent sold prior to auction.
There were 576 Sydney auctions held this week as the city remains in lockdown.
A preliminary auction clearance rate of 80.4 per cent has been recorded, which is slightly lower than the 80.8 per cent preliminary figure last week, later revising down to 76.1 per cent at final collection on Wednesday.
“The city has shown resilience under lockdown conditions, with over 500-600 homes proceeding to auction each week since the lockdown commenced and the final clearance rate remaining well over 70 per cent each week,” CoreLogic said.
Of the results collected so far this week, 14 per cent were reportedly withdrawn and, of the 403 sold results collected, 63.3 per cent sold prior to the scheduled auction date.
The smaller capitals
Canberra was the best performing of the smaller auction markets this week with a preliminary auction clearance rate of 86.7 per cent. Adelaide followed with a preliminary figure of 78 per cent.
Brisbane was the busiest of the smaller auction markets with 160 auctions held, however, similar to other areas involved in a lockdown, the proportion of auctions withdrawn jumped over the week to 22.5 per cent and a larger than normal proportion of auctions sold before going under the hammer (47.3 per cent).
Domain’s data indicates around three-quarters of properties sold at auction this weekend with the preliminary clearance rate sitting at 75.1 per cent after 2100 properties were taken to auction.
So far, results are in for 1104 of those auctions, with 829 properties selling (to the collective value of $684.1 million), while 210 properties were withdrawn.
Last week, the clearance rate settled at 73.8 per cent, after 2205 properties were taken to auction.
Results were provided for 1320 of those auctions, with 974 properties selling (to the value of $895.5 million), while 188 properties were withdrawn.
This time last year, the national clearance rate was 58.3 per cent after only 873 properties were taken to auction.
Results were provided for 841 of those auctions, with 490 properties selling (to the value of $571.2 million), while 182 properties were withdrawn.
Sydney’s clearance rate lifted this week, but volume was lower. Domain reported 532 properties were taken to auction in the harbour city, resulting in a preliminary clearance rate of 81.5 per cent.
So far, results are in for 410 of those auctions, with 334 properties selling (to the value of $336 million), while 60 properties were withdrawn.
Last week, Sydney’s clearance rate was 72.6 per cent after 625 properties were taken to auction. Results were provided for 544 of those auctions, with 395 properties selling (to the value of $446.5 million), while 101 properties were withdrawn.
This time last year, 561 Sydney properties were taken to auction and the clearance rate was 58.7 per cent.
Results were provided for 526 of those auctions, with 309 properties selling (to the value of $421.4 million), while 107 properties were withdrawn.
After the announcement of yet another snap lockdown, Melbourne’s preliminary clearance rate dropped to 67.9 per cent on the back of higher volume.
This week, 1301 properties taken to auction and so far results are in for 517 of those auctions, with 351 properties selling (to the value of $238.3 million), while 129 properties were withdrawn.
Last week, Melbourne’s clearance rate settled at 74.6 per cent after 1264 properties were taken to auction.
Results were provided for 515 of those auctions, with 384 properties selling (to the value of $313.8 million), while 65 properties were withdrawn.
This time last year, Melbourne’s clearance rate was 60.5 per cent after only 196 properties were taken to auction.
Results were provided for all those auctions, with 121 properties selling (to the value of $99.9 million), while 56 properties were withdrawn.
Ray White results
With half of the Australian population restricted to their homes this weekend, the usual Saturday auction frenzy looked a little different, according to the Ray White Group.
They noted buyers, sellers, agents and auctioneers across Sydney, Melbourne and Brisbane proved once again that the restrictions could not dampen the hot auction market.
The group reported a preliminary clearance rate of 87 per cent of its 105 auctions conducted on Saturday, with 7.4 average registered bidders per lot – almost double the number of bidders on a year ago.
More than half of the group’s 356 booked auctions at the weekend did not proceed. Most were postponed to a later date when the snap lockdowns were announced, but those sellers who opted to push ahead with the online format were richly rewarded.
Ray White Chief Economist Nerida Conisbee said the biggest challenge right now was a lack of stock.
“Winter selling season started off incredibly strong but lockdowns throughout July dramatically decreased the number of properties for sale, particularly in Sydney,” Ms Conisbee said.
“The best case scenario for buyers is that these lockdowns end as soon as possible. Our analysis of previous lockdowns has shown a jump in properties for sale once they end.”
New South Wales
As Sydney and other parts of NSW endured another week of lockdown, Ray White New South Wales Chief Auctioneer Alex Pattaro said online auctions once again proved themselves as the best way to sell.
“Sellers who decided to come to market are reaping the rewards with strong prices, typically obtaining over reserve and smashing buyer feedback indications,” Mr Pattaro said.
“While we understand the hesitation around coming to market, sellers need to be assured that the Ray White Group has measures in place to ensure everyone is kept safe.
“If you want to come to market, now is an exceptional time before more stock comes to market later in the year,” he said.
With real estate settings across Melbourne relaxed for just nine days before their sixth lockdown, Ray White agents and auctioneers once again found themselves in the familiar position of a frantic rush to move onsite auctions online.
Ray White Victoria and Tasmania CEO Stephen Dullens said Saturday was another example of the industry adapting quickly.
“We’ve seen once again the situation change very quickly – after only a single weekend of on-street auctions – we’re back online. Our agents have done a terrific job to communicate with vendors and buyers to ensure we could adjust to the new settings, something that is now becoming almost automatic,” Mr Dullens said.
“While our volume was already lower this weekend due to the short timeframe from the previous lockdown, the vast majority of auctions that were scheduled have gone ahead.
“Buyers remain undeterred, with a lack of listings unable to meet the strong demand.”
After the sudden lockdown was called in Brisbane last weekend, Ray White Queensland Chief Auctioneer Gavin Croft swiftly moved all auctions online.
“We are seeing a huge influx of bidders, and it is really fantastic to see more than 30 onlookers at all our online auctions,” Mr Croft said.
Ray White New Farm | Bulimba | Spring Hill | East Brisbane group made the decision to push forward with their online auction event in a digital format, where five from five properties across inner Brisbane sold under the hammer.
More than 50 bidders and an extra 50 onlookers tuned in for the auction event, with Principal and Auctioneer Haesley Cush commenting that a lot of the properties were only two-week campaigns.
“When people are at home, their search for real estate is intensified, in the same way all online shopping is,” Mr Cush said.
“Lockdown has meant that people really have time to browse, chat to agents, get their finance approvals sorted. They also don’t have to worry about travel or babysitters when it comes to auction time.
“The pandemic has made people face inward and place greater value on where they live, which explains the huge bidder numbers of late.”
Mr Cush said the quick switch to moving online has been met with much less angst than at the start of the pandemic.
“What we saw today was a perfect example of how well we have all adapted. Online auctions have been around for a while, but they are now commonplace in the industry,” he said.
The five properties on the order of sale:
- Lot 1: 11 David St, Morningside – Brandon Wortley & Daniel Lazzaroni – 2,012,000
- Lot 2: 69 Quay St, Bulimba – Jonothan Peck – $2,155,000
- Lot 3: 13 Arthur Tce, Red Hill – Nick Mogridge & Matt Lancashire – $1,706,000
- Lot 4: 15 Hazlewood St, Paddington – Tom Lyne – $950,000
- Lot 5: 36 Harris St, Hawthorne – Brandon Wortley & Scott Darwon – $3,310,000
Ray White South Australia Chief Auctioneer John Morris said in keeping with tradition of the last few weeks, bidding registrations hovered around 10 per auction.
“We sold 100 per cent of our auctions today, with plenty of action to go throughout the weekend,” Mr Morris said.
“We have an amazing number of auction advocates in our state network, and they are continually producing fantastic results for their clients.”