Consecutive long weekends have continued to impact auction volumes, with 1613 properties taken to auction across the combined capitals this week to return a preliminary clearance rate of 62.3 per cent.
Despite the Labor Day long weekend in many states and the Queen’s Birthday public holiday in Queensland, CoreLogic reported this week’s volume was 22.6 per cent high than last week when 1316 auctions took place due to the Queen’s Memorial public holiday on Thursday and the AFL Grand Final in Melbourne on Saturday.
This time last year, 1986 auctions were held across the combined capitals.
CoreLogic noted of the results collected so far, 62.3 per cent were successful, which is 1.7 percentage points higher than the previous week’s preliminary clearance rate of 60.6 per cent.
That figure later revised down to 60 per cent at final count.
“This is the fifth consecutive week that the combined capital city preliminary clearance rate has held above 60 per cent, while the final clearance rate has held at or above 60 per cent for the past two weeks,” CoreLogic said.
“One year ago, 83.2 per cent of homes taken to auction were successful.”
There were 823 homes taken to auction in Melbourne this week, up 533.1 per cent from the previous week when 130 auctions took place due after two consecutive public holidays led to an extended long weekend across the city.
Of the results collected so far, 64.3 per cent were successful.
This was down 1.8 percentage points from the previous week’s 66 per cent preliminary clearance rate, which revised down to 64.6 per cent at final figures.
This time last year, 805 auctions were held across the city, returning a clearance rate of 85.3 per cent.
There were 489 auctions in Sydney this week, down 39.4 per cent from the previous week when 807 auctions took place.
The lower volume this week was attributed to a combination of the Labor Day long weekend and the NRL Grand Final.
This time last year, 753 auctions were held across the city.
Of the results collected so far, 60.4 per cent were successful.
This was down just 20 basis points from last week’s preliminary clearance rate of 60.6 per cent, which revised up to 61.3 per cent at final figures.
“Last week’s final clearance rate was the highest the city has seen since the week ending 10 April when 61.7 per cent of Sydney auctions were successful,” CoreLogic said.
This time last year, 81.6 per cent of homes taken to auction across the city were sold.
The smaller capitals
Across the smaller capital cities, Brisbane was the busiest auction market this week with 116 homes taken to auction across the city, followed by Adelaide (102) and Canberra (61).
There were 19 auctions held in Perth this week, and just three in Tasmania.
Adelaide has recorded the strongest preliminary clearance rate so far (78.3 per cent), followed by Canberra (62.5 per cent), Brisbane (45.9 per cent) and Perth (40 per cent).
In Tasmania, one of the three auctions has been successful so far.
Domain’s data indicates 1155 properties went to auction across the major capitals this weekend, resulting in a preliminary clearance rate of 62.5 per cent.
So far, results are in for 817 of those auctions with 511 properties selling (to the value of $408.4 million), while 116 properties were withdrawn.
Last week, the final clearance rate settled at 60 per cent after 1036 properties went to auction.
Results were provided for 849 of those auctions, with 509 properties selling (to the value of $471.4 million), while 152 properties were withdrawn.
This time last year, the clearance rate was 77.1 per cent after 1140 properties went to auction.
Results were provided for 1093 of those auctions, with 843 properties selling (to the value of $1219.4 million), while 91 properties were withdrawn.
Sydney’s preliminary clearance rate is sitting at 57.2 per cent after the long weekend saw 288 properties go to auction.
So far, results are in for 187 of those cautions, with 107 properties selling (to the value of $104.5 million), while 49 properties were withdrawn.
Last week, Sydney’s final clearance rate was a higher 60.1 per cent after 725 properties went to auction.
Results were provided for 591 of those auctions, with 355 properties selling (to the value of $365.8 million), while 130 properties were withdrawn.
This time last year, Sydney’s clearance rate was 78.9 per cent after 424 properties went to auction.
Results were provided for 412 of those auctions, with 325 properties selling (to the value of $655.5 million), while 38 properties were withdrawn.
Melbourne enjoyed a preliminary clearance rate of 63.6 per cent after 724 properties went to auction this weekend.
Results are currently in for 541 of those auctions, with 344 properties selling (to the value of $264.1 million), while 59 properties were withdrawn.
Last week, Melbourne’s clearance rate was 63.2 per cent after just 97 properties went to auction due to the Queen’s memorial day and AFL Grand Final weekend.
Results were provided for 68 of those auctions, with 43 properties selling (to the value of $30.2 million), while 11 properties were withdrawn.
This time last year, Melbourne’s clearance rate was 76 per cent after 494 properties went to auction.
Results were provided for 463 of those auctions, with 352 properties selling (to the value of $402.5 million), while 44 properties were withdrawn.
Ray White results
While it was a long weekend in Queensland, the Australian Capital Territory, New South Wales and South Australia, the Ray White Group noted a large number of bidders still took to the streets to kick off what is shaping up to be a strong month of auctions.
The group reported a preliminary clearance rate of 68 per cent, with 195 Ray White auctions conducted nationally.
The average number of registered bidders sat at 3.6, while the number of actively participating bidders sat at 2.6.
The standout city of the day was Adelaide, coming in at an 84 per cent clearance rate and averaging 5.8 registered bidders per auction.
Many agents and auctioneers noted that volume was generally low, meaning that those who chose to take their properties to market have generally been rewarded with an influx of bidders while stock is tight.
Ray White data shows sellers who went all the way to game day on Saturday netted almost 11 per cent more on their auction sale price than if they had taken the highest offer prior.
Ray White Victoria Chief Auctioneer Matt Condon said a large percentage of sellers chose to push their auction date back a week, with the AFL Grand Final last weekend.
This created a significant spike in auction volume across the state with 210 auctions scheduled for Ray White Victoria.
“This increase in supply was met with an equal level of demand from buyers.
“Based on preliminary data from the Ray White group, this week has seen on average 3.9 confirmed bidders at auction.
“The exceptional Melbourne weather and large crowd sizes also created a great auction day atmosphere,” Mr Condon said.
“New and renovated properties that are ready to move into are proving to be very popular with buyers at the moment. Sellers that chose to meet the market today were rewarded with bidding, competition and ultimately a good result.”
Ray White Queensland chief auctioneer Gavin Croft said auction volume was slightly down in Brisbane, which was to be expected over a long weekend and school holidays.
“In my travels today all motorways heading to the coast were extremely busy, with many Queenslanders taking advantage of the long weekend,” Mr Croft said.
“While auction volumes were a little more subdued today, a lot of astute sellers brought their auctions forward to midweek, allowing buyers the chance to lock in their dream home before the long weekend.
“It was delightful to still see very good crowds and bidding on selected properties. Buyers are cognisant to future interest rate rises but are still bidding to their limits.
“I suspect clearance rates will remain hovering around 50 per cent as we continue to see some sellers slightly above the market compared to the buyers,” he said.
Ray White South Australia chief auctioneer John Morris said 85 per cent of all Ray White auctions sold this week, with a huge 10 registered bidders as the average.
“In comparison, last week we had 70 per cent clearance with an average of six registered bidders,” he said.
“While the auction day clearance rate has dropped slightly, it is still comfortably above 70 per cent, which is down on last year but it is way up on the last normal market in 2019/20.”
Ray White New South Wales chief auctioneer Alex Pattaro said the auction landscape was quiet in Sydney on Saturday, which was to be expected from a long weekend.
“After the first Saturday in October we have confidence that there are still plenty of buyers out and about,” he said.
“Willing buyers are still keen to bid, though sellers must take into consideration the market prices if they want to secure a sale.”