The preliminary clearance rate came in at a lower 73.6 per cent this week after the volume of auctions dipped slightly due to COVID lockdowns in multiple Australian states.
CoreLogic reported 2177 capital city homes went to auction, down on the 2960 auctions held over the week prior.
“The lower week-on-week volumes saw the preliminary auction clearance rate dip, with 73.6 per cent of results reported as sold,” CoreLogic said.
“Last week’s preliminary clearance rate came in at 77.5 per cent, later revising down to 75.4 per cent at final collection on Wednesday.”
Melbourne is currently seeing a relatively low number of COVID cases and is not currently in lockdown.
As a result, CoreLogic reported the auction market was returning to ‘business as usual’ this week across the city.
There were 1067 auctions held over the week with preliminary results showing a clearance rate of 75.9 per cent.
This was higher than the 74.7 per cent final clearance rate recorded last week across a higher 1418 auctions.
In Sydney, 863 auctions were originally scheduled for this week, however preliminary figures show 11 per cent have been rescheduled to a later date.
Of the 672 results collected across the city so far, a preliminary auction clearance rate of 71.6 per cent has been recorded and a withdrawal rate of 23 per cent.
Of the 481 sold results 61.1 per cent reportedly sold prior to the scheduled auction date.
Last week, the city saw 1084 auctions take place with a final auction clearance rate of 77.5 per cent.
The smaller capitals
Brisbane was set to be the busiest of the smaller auction markets this last week with 153 auctions scheduled to take place, however as the city entered into a four-day lockdown ending Saturday night, 13 per cent of the original count was rescheduled to a later date.
Of the properties that were to go ahead, 16 per cent ended up withdrawn.
The city returned a preliminary clearance rate of 64.4 per cent.
Canberra returned the highest preliminary clearance rate of all our auction markets with 86.8 per cent of homes sold at auction this week.
Domain reported a preliminary clearance of 71.4 per cent this week after 1869 properties were slated for auction.
So far results are in for 1319 of those auctions, with 942 properties selling (to the value of $760.8 million), while 236 properties were withdrawn.
Last week both the volume and clearance rate were higher, with 2558 properties taken to auction, resulting in a final clearance rate of 73.9 per cent.
Results were provided for 2172 of those auctions, with 1605 properties selling (to the value of $1450.7 million), while 2424 properties were withdrawn.
This time last year the clearance rate was just 59.6 per cent and only 917 homes were listed for auction.
Results were provided for 868 of those auctions, with 517 properties selling (to the value of $615.5 million), while 114 properties were withdrawn
Melbourne enjoyed both the highest clearance rate and the highest volume this week, with 853 properties listed for auction, resulting in a preliminary clearance rate of 73.1 per cent.
So far, results are in for 654 of those auctions, with 478 properties selling (to the value of $360.1 million), while 74 properties were withdrawn.
Last week, Melbourne’s final clearance rate settled at 72.1 per cent after 1322 properties were taken to auction.
Results were provided for 1070 auctions, with 771 properties selling (to the value of $604.5 million), while 105 properties were withdrawn.
This time last year, Melbourne’s clearance rate was 57.6 per cent on the back of 365 properties taken to auction. Results were provided for 349 of those auctions, with 201 properties selling (to the value of $185 million), while 41 properties were withdrawn.
Sydney’s preliminary clearance rate dipped to 69.4 per cent after 792 properties were listed for auction this week.
So far, results have been provided for 507 of those auctions, with 352 properties selling (to the value of $329.2 million), while 139 properties were withdrawn.
Last week, Sydney’s clearance rate was 75.3 per cent after 961 properties were taken to auction. Results were provided for 864 of those auctions, with 651 properties selling (to the value of $716 million), while 120 properties were withdrawn.
This time last year, Sydney was host to 454 auctions and the clearance rate was 61.7 per cent. Results were provided for 428 of those auctions, with 264 properties selling (to the value of $389.1 million), while 66 properties were withdrawn
Ray White results
Some parts of the country might have seen residents start the new financial year in lockdown but, according to the Ray White Group it didn’t dampen demand from buyers at the weekend.
Whether auctions were held onsite or online, buyer numbers remained strong, with the Ray White Group booking a national registered bidder average of 6.9 – up 4.3 on this time last year.
While 15 per cent of auctions sold prior, a further 165 went ahead across the country resulting in an 81 per cent clearance rate and an extra 12.6 per cent on average in seller’s pockets than if they’d sold before auction.
In Sydney, where auctions were held online, Ray White New South Wales chief auctioneer Alex Pattaro said if anyone thought that online auctions and COVID would slow the market down they should reconsider.
“Today we saw competitive bidding, higher than average registered bidders and property prices continuing to exceed reserves. I have personally achieved a 100 per cent clearance rate today,” Mr Pattaro said.
“If you are looking to buy, don’t delay your search and if you’re thinking of selling now is the time to take full advantage of the influx of buyers while stock remains tight before the spring rush comes.”
In Melbourne, auctions continued on site as usual. Ray White Victoria chief auctioneer Matthew Condon said, with restrictions in place across certain areas of Australia, it was great to be fortunate enough to be calling auctions on site in Melbourne.
“The new financial year did not deter home buyers, with bidders out in force to secure their desired property,” Mr Condon said.
“It was also great to see that despite the cold weather, neighbours and crowds are returning to auctions and really adding to the atmosphere.
“Based on preliminary data from the Ray White Group, we are continuing to see strong average registered and active bidders per auction. We have also recorded an exceptionally high preliminary clearance rate this week of 86 per cent.”
In Brisbane, auctions were also held online after the three-day lockdown was extended a further 24 hours.
Ray White Queensland chief auctioneer Gavin Croft said the three-day lockdown meant a number of auctions, both in Brisbane and on the Gold Coast, had to be moved online.
“We proceeded to quickly transition from in-room auctions on the Gold Coast where some nearly 30 auctions were due to go up from the Ray White Gold Coast team, we transferred them to an online auction process,” Mr Croft said.
“We then moved 21 auctions on Wednesday under lockdown procedure, there were 80 registered bidders for the day online with approximately a clearance rate of 65 per cent.
“The other highlight during the week was the transition of a major Brisbane new financial year auction event for the New Farm and Bulimba offices where they had 11 auctions go up, eight sold giving us a clearance rate of 72 per cent. And an average of around four registered bidders per auction.”
In Adelaide, where auctions are permitted onsite, Ray White South Australia chief auctioneer John Morris said the first weekend of auctions in the new financial year was just as strong as it was in the last weekend of last financial year for Ray White in South Australia.
“Everything I have auctioned off today has sold with way more registered bidders than we were expecting, and all of them, way above expectations,” Mr Morris said.
“Again, I cannot see it slowing down anytime soon. This market is still as hot as it has been. Bring it on for the coming months.”