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Auction volumes below predictions due to Melbourne’s lockdown

Auction volumes dropped below the number previously predicted this week, with 2691 properties going under the hammer across the combined capitals to record a preliminary clearance rate of 73.5 per cent.

CoreLogic explained this was lower than the 3101 auctions predicted earlier in the week.

“The downwards revision is largely due to the extension of Melbourne’s lockdown,” they noted.

In comparison, the previous week saw 2905 homes taken to auction while this time last year, 711 auctions were held.

Of the 2223 results collected so far this week, 73.5 per cent were successful, compared to 75.7 per cent over the previous week which revised down to a final clearance rate of 73.5 per cent.

Melbourne

Despite Melbourne remaining in lockdown, 1098 auctions were held across the city, revising down from the 1452 originally scheduled.

Over the previous week, 1246 auctions were held, while this time last year, just 195 homes were taken to auction across the city.

The extended lockdown has also impacted the clearance rate this week with preliminary figures showing 67.3 per cent of the auctions collected so far were successful.

This is lower than the previous week, when a preliminary clearance rate of 72.8 per cent was recorded, which later revised down to 71.7 per cent at final figures.

Of the 935 auctions collected so far this week, 29.5 per cent were withdrawn, and of the 629 sold results, 59.0 per cent were sold prior to auction.

“As mentioned last weekend, over the year to date and excluding the temporary lock down period in February, the average proportion of auctions sold prior to the auction event was about 26 per cent and only around 4.5 per cent of auctions are withdrawn,” CoreLogic said.

Sydney

There were 1171 homes taken to auction across Sydney this week, compared to 1174 last week and 398 this time last year.

There have been 956 auction results collected so far, returning a preliminary auction clearance rate of 79.6 per cent.

“Last week’s preliminary clearance rate was a higher 81 per cent, which revised down to 76 per cent at final figures.

The smaller capitals

Across the smaller capital cities, Canberra recorded a preliminary auction clearance rate of 78.5 per cent, followed by Adelaide where preliminary results show 73.3 per cent of auctions were successful.

Brisbane recorded a preliminary auction clearance rate of 69.0 per cent, while in Perth, 61.5 per cent of reported auctions were successful.

Domain results

Domain’s data indicated 2697 properties were listed for auction in the major markets at the weekend, resulting in a preliminary clearance rate of 70.8 per cent.

This preliminary success rate is slightly lower than recent weeks, largely due to the ongoing lockdown in Melbourne, and comes on the back of May being heralded the busiest auction month in Domain’s record-keeping history.

Domain notes of the 1773 results collected so far for this week, 1255 properties sold (to the value of $1120.1 million), while 392 properties were withdrawn.

Last week the final success rate was 71 per cent after 2508 properties were taken to auction.

Results were provided for 2109 of those auctions, with 1497 properties selling (to the value of $1254.6 million), while 322 properties were withdrawn.

This time last year only 50.7 per cent of the 495 auctions that were scheduled were successful.

Results were provided for 446 of those auctions, with 226 properties selling (to the value of $279.6 million), while 71 properties were withdrawn.  

Sydney

Sydney proved the star performer of the major capitals, with 1048 properties scheduled for auction this week, resulting in a preliminary clearance rate of 77 per cent.

So far results have been provided for 770 of those auctions, with 593 properties selling (to the value of $655.6 million), while 97 properties were withdrawn.

Last week Sydney’s final clearance rate settled at 71. 4 per cent after 984 properties were slated for auction.

Results were provided for 916 of those auctions with 654 properties selling (to the value of $702.3 million), while 100 properties were withdrawn.

This time last year, Sydney’s clearance rate was 51.5 per cent after 310 properties were taken to auction.

Results were provided for 272 of those auctions, with 140 properties selling (to the value of $199.8 million), while 58 properties were withdrawn.

Melbourne

With ongoing lockdowns, Melbourne’s preliminary clearance rate dropped to 62.5 per cent after 1369 properties were taken to auction.

Results have so far been provided for 803 of those auctions, with 502 properties selling (to the value of $350.1 million), while 281 properties were withdrawn.

Last week, 1272 properties were taken to auction, resulting in a clearance rate of 69.5 per cent.

Results were provided for 983 of those auctions, with 683 properties selling (to the value of $444.7 million), while 211 properties were withdrawn.

This time last year just 138 properties were listed for auction in Melbourne and the clearance rate was 49.6 per cent.

Results were provided for 133 of those auctions, with 66 properties selling (to the value of $62.7 million), while 11 properties were withdrawn.

Ray White results

Ray White reported a strong start to the winter selling season, with the group noting a preliminary national clearance of 84 per cent, despite Melbourne’s second week in lockdown.

“The unwavering surge in demand from buyers meant reserve prices were knocked out of the park, with record breaking bidding action,” the Ray White group said.

On Saturday, the group recorded an average of 7.2 registered bidders across 413 scheduled auctions for the day.

“The resounding feedback from agents, auctioneers and vendors was that taking the property all the way through to auction day paid huge dividends,” they said.

On average, vendors received 13.54 per cent more under the hammer nationally, compared to the highest offer prior. And yet, some 21 per cent of all auctions booked on Saturday, still sold prior.

Victoria

The standout market of the day was Melbourne where stoic Victorians demonstrated their well-honed online auction skills with the group’s auctioneers selling in a Covid-safe way over the internet after lockdown was extended.

Over two-thirds (68 per cent) of the auctions booked for Melbourne did not proceed, however of the ones that did proceed, 90 per cent sold.

Ray White Victoria and Tasmania CEO Stephen Dullens said all auctions which were moved online performed extremely well.

“It has been a hectic few days for our agents who once again had to convert auctions online, but there was no stress or pressure and all our auctioneers once again took over their spare bedrooms and living rooms to ensure the real estate activity could continue.”

“We are grateful we can still trade during the extended lockdown, and it was once again pleasing to see our agents do whatever was required to ensure our customers could still transact, most importantly in a safe environment,” Mr Dullens said.

“In the last 15 months, we’ve called well in excess of 2000 online auctions across Victoria, more than any other group, and we are confident we can assist our customers no matter the circumstances.”

New South Wales

Ray White New South Wales Chief Auctioneer Alex Pattaro said the Sydney property market continued to radiate heat.

“Auctions continued to be fast paced with strong bidding activity, although we have noticed that opening bids have started slowing down,” Mr Pattaro said.

“There has been a slight cool off at open for inspections, although the buyers coming through are genuine, cashed up and ready to make some strong decisions,” he said.

“While we see these strong clearance rates and low interest rates, it is a great time to get involved, whether that means buying or selling.”

Queensland

The flight to the sunshine state over the past year was still evident, with happy buyers and sellers chasing their piece of Brisbane on Saturday.

Ray White Queensland Chief Auctioneer Mitch Peereboom said the results continued to be exceptional both onsite and in-room.

“We are seeing a huge amount of bidders, which is leading to stand out sale prices and a huge increase from offers prior,” Mr Peereboom said.

“One thing to remember is that we know sellers’ expectations are rising with the heat of the market, but be conscious that auction truly is the best environment to get your maximum price achievable,” he said.

South Australia

South Australia had another cracking day of auction activity.

“Our average registered bidders per auction is currently sitting at about nine, with four participating with active bidding,” Ray White SA/NT chief auctioneer John Morris said.

“I believe the clearance rates are only going to rise over the coming weeks,” he said.

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