Auction volumes have dropped by almost a third this week and it is not recent flooding in Queensland and New South Wales that is the culprit, but rather long weekends in four capitals.
Public holidays are also being observed on Monday in South Australia, the Australian Capital Territory, and Tasmania.
That resulted in 2090 properties going to auction across the combined capitals this week, compared to 2979 last week, and 2218 over the same week last year.
Of the 1713 results collected so far, 72.2 per cent have proved successful.
This is down slightly from the previous week’s preliminary clearance rate of 72.7 per cent, which revised down to 69.2 per cent at final figures.
“Prior to last week, the final clearance rate had held above 70 per cent for five consecutive weeks,” CoreLogic reported.
“It’s possible that this week’s final figure will slip below 70 per cent too once remaining results are collected.”
They noted the recent flooding events across Brisbane and Sydney had little impact on auction results.
Their data indicates the auction withdrawal rate has only risen moderately to 16 per cent in both cities this week, with auction clearance rates holding “reasonably firm”.
Melbourne was host to 606 auctions this week, down from 1452 over the previous week and 1102 this time last year.
Of the 516 results collected so far, 71.9 per cent have been successful.
This is higher than last week’s preliminary clearance rate of 70.4 per cent, which revised down to 67.3 per cent at final figures.
Over the same week last year, 77.6 per cent of reported Melbourne auctions were successful.
In Sydney, 1028 homes were taken to auction across the city, up from 999 over the previous week and 806 this time last year.
CoreLogic said the clearance rate was down week-on-week, with 70.4 per cent of the 859 results collected so far reporting a successful result.
The previous week saw a preliminary clearance rate of 74.6 per cent, revising down to 69.2 per cent at final figures, while this time last year, 84.3 per cent of reported auctions were successful.
The smaller capitals
Across the smaller capitals, Canberra recorded the highest preliminary auction clearance rate (87.5 per cent), followed by Adelaide (77.9 per cent) and Brisbane (68.1 per cent).
In Perth, eight results have been collected so far, with all reporting a successful result.
In terms of auction volumes, Brisbane was the busiest auction market this week with 189 homes taken to auction across the city, followed by Adelaide (160), Canberra (88) and Perth (18).
There was only one auction in Tasmania this week and it was passed in.
Domain has reported a preliminary clearance rate of 66.8 per cent after tracking 1574 auctions in the major capitals this weekend.
So far, results have been provided for 1062 of those auctions, with 709 properties selling (to the value of $732.4 million), while 213 properties were withdrawn.
Last week, the final clearance rate settled at 67.2 per cent after 2382 properties were taken to auction.
Results were provided for 2119 of those auctions, with 1432 properties selling (to the value of $1284.1 million), while 223 properties were withdrawn.
This time last year the clearance rate was 78.9 per cent after 1830 properties were taken to auction.
Results were provided for 1808 of those auctions, with 1426 properties selling (to the value of $1889.1 million), while 120 properties were withdrawn.
Sydney’s preliminary clearance rate was 66.4 per cent this week after 884 properties were taken to auction.
Results were provided for 599 of those auctions, with 398 properties selling (to the value of $480 million), while 137 properties were withdrawn.
Last week, Sydney’s clearance rate was 68.9 per cent after 843 properties were taken to auction.
Results were provided for 713 of those auctions, with 491 properties selling (to the value of $524.2 million), while 113 properties were withdrawn.
This time last year, Sydney’s clearance rate was 84.3 per cent after 695 properties were taken to auction.
Results were provided for 682 of those auctions, with 575 properties selling (to the value of $960 million), while 54 properties were withdrawn.
Melbourne’s preliminary clearance rate was 66.3 per cent this week after only 423 properties were taken to auction due to a long weekend. The volume was just over a third of that seen the week prior.
So far, results are in for 306 of those auctions, with 203 properties selling (to the value of $164 million), while 39 properties were withdrawn.
Last week, Melbourne’s clearance rate was 67.1 per cent after 1211 properties went to auction.
Results were provided for 1107 of those auctions, with 743 properties selling (to the value of $625.6 million), while 75 properties were withdrawn.
This time last year, Melbourne’s clearance rate was 75.1 per cent after 950 properties were taken to auction.
Results were provided for 922 of those auctions, with 692 properties selling (to the value of $784.8 million), while 54 properties were withdrawn.
Ray White results
The Ray White Group cleared 72 per cent of all 640 auctions booked this week out of the 2173 properties scheduled nationally.
The group noted their auction market share has been sitting around 25 per cent on average.
On Saturday alone, the group had 359 auctions scheduled, and its preliminary clearance was 70 per cent, with 4.6 average registered bidders.
The auction volume on offer this weekend was a touch lighter due to long weekends in Adelaide, Melbourne and Canberra.
But that didn’t stop Ray White Henley Beach in Adelaide from breaking the state’s auction record with a $4.7 million sale of a beachfront property in a fast and furious auction in front of 300 people in the crowd.
The group’s real time auction data showed that while local buyers make up the vast (88.2 per cent of all sales), Brisbane had the highest number of international buyers this week at 4.8 per cent.
Ray White New Farm Principal and Auctioneer Haesley Cush said Saturday was an outstanding auction day in the river city.
“Today was always going to be a good read on the market after the recent flooding events,” Mr Cush said.
“We had 15 scheduled auctions and seven sold prior.
“Under the hammer today we sold the full property selection from 48 Markwell St, Hamilton at $6.2 million to a local buyer to a unit in Bowen Hills which sold to a first home buyer for $420,000,” Mr Cush said.
New South Wales
Ray White New South Wales Chief Auctioneer Alex Pattaro said the Sydney property market could be described right now as “balanced and consistent”.
“We continue to see a high number of registered bidders across top tier Sydney homes. Auctions where we are seeing fewer buyers are still obtaining good quality sales with buyers who are ready to make a decision now. There is an abundance of stock in the market now and sellers can take confidence the market remains stable.
“We see no reason why sellers and buyers wouldn’t transact in the current market.”
A warm and sunny March day in Melbourne was the perfect setting for a busy Saturday of auctions, with close to 100 auctions scheduled across the Ray White Group in Melbourne this weekend.
Ray White Victoria and Tasmania CEO Stephen Dullens said strong results continued to be achieved.
“White it is fair to say some auction crowds are a little smaller than we were seeing at the end of last year, this certainly hasn’t impacted sales,” Mr Dullens said.
“Serious buyers remain out in force and while there may be a few less people in the crowd, those who are bidding are well researched and determined to secure their future property,” Mr Dullens said.
Overall, it was a strong preliminary clearance rate across Melbourne of 77 per cent.
Ray White Queensland Chief Auctioneer Gavin Croft said the true highlight of Saturday was higher volume of properties going to auction, with 60 auctions scheduled across Brisbane alone.
“I think it will be a good test of the market this week. I don’t expect we’re going to get the dizzy heights of the 90-100 per cents of last week as volumes almost doubled from the week before but it will be a good litmus test,” he said.
Ray White South Australia chief auctioneer John Morris said it may be a long weekend in many states across the country, but the auctions were anything but long in South Australia.
“Short, sharp, fast and furious was the order of the day,” he said.
“The bidding is going crazy. We’ve got a preliminary clearance rate of 91 per cent. Last week we cleared 84 per cent with 10 average registered bidders option and 40 per cent of those participating in the bidding.
“CoreLogic posted a 79 per cent clearance last week for Adelaide, so the Ray White group was ahead of the rest of the other groups around once again.
“We have 65 auctions scheduled next week which is in excess of 40 per cent of all auctions scheduled across the state.
“We’ll be flying that yellow flag and that’s the first time we’ve hit that milestone this year. So long shall it continue.”