Auction volumes are continuing to increase, with CoreLogic reporting a preliminary clearance rate of 81.8 per cent after 2920 properties were taken to auction across the combined capitals.
This week’s volume marks the busiest auction week since late June and the fourth busiest auction week so far this year.
However, the volume was down 5.7 per cent on the 3096 auctions initially scheduled to go ahead at the weekend.
In comparison, last week saw 2708 auctions held across the combined capitals, while this time last year 1131 homes were taken to auction.
“The higher volumes returned a slightly lower preliminary clearance rate this week, with 81.8 per cent of auctions recording a successful result,” CoreLogic noted.
That was down slightly from last week’s preliminary clearance rate of 83.3 per cent, which revised down to 80.2 per cent at final figures.
Over the same week last year, a final clearance rate of 66.2 per cent was recorded across the combined capitals.
Melbourne enjoyed its busiest week since late March, with 1478 auctions held.
Of the 1207 results reported so far, 79.4 per cent have been successful.
Last week saw 1351 homes taken to auction across the city, returning a preliminary clearance rate of 81.9 per cent, which revised down to 77.3 per cent at final figures.
This time last year, just 187 auctions were held and 60.2 per cent of reported auctions were successful.
Sydney was host to 911 auctions this week, down from the 983 originally expected. The previous week saw 825 homes taken to auction across the city, while this time last year 704 auctions were held.
Of the 808 results reported so far, 85 per cent have been successful, marking the highest preliminary clearance rate the city has recorded since early April.
The previous week recorded a preliminary clearance rate of 83.2 per cent, which revised down to 81.7 per cent at final figures.
This time last year, 69.1 per cent of reported auctions were successful.
“Sydney’s final auction clearance rate has held above 80 per cent for the past seven weeks and this week is likely to be no different once final results are collected,” CoreLogic said.
The smaller capitals
Across the smaller auction markets, Canberra recorded the highest preliminary clearance rate at 90.7 per cent, followed by Perth (86.7 per cent), Adelaide (82.3 per cent) and Brisbane (78.5 per cent).
There was just one auction held in Tasmania this week and it was successful.
Domain has reported a national preliminary clearance rate of 78.6 per cent after tracking 1970 auctions across the major capitals.
So far, results are in for 1388 of those auctions, with 1091 properties selling (to the value of $1026.1 million), while 176 properties were withdrawn.
Last week, the final clearance rate settled at 79.1 per cent after 1863 properties were taken to auction.
Results were provided for 1604 of those auctions, with 1269 properties selling (to the value of $1095.9 million), while 157 properties were withdrawn.
This time last year, the clearance rate was 67.4 per cent after 896 properties were taken to auction.
Results were provided for 826 of those auctions, with 557 properties selling (to the value of $760.5 million), while 87 properties were withdrawn.
Sydney’s preliminary clearance rate is sitting at 82 per cent after 677 properties were taken to auction this week.
So far, results are in for 490 of those auctions, with 402 properties selling (to the value of $497.4 million), while 55 properties were withdrawn.
Last week, Sydney’s final clearance rate settled at 83.7 per cent after 610 properties were taken to auction.
Results were provided for 522 of those auctions, with 437 properties selling (to the value of $477.8 million), while 47 properties were withdrawn.
This time last year, Sydney’s clearance rate was 71.5 per cent after 637 properties were taken to auction.
Results were provided for 586 of those auctions, with 419 properties selling (to the value of $646.9 million), while 59 properties were withdrawn.
Melbourne’s preliminary clearance rate is 74.2 per cent after 993 properties were taken to auction this week.
So far, results are in for 709 of those auctions, with 526 properties selling (to the value of $400.1 million), while 105 properties were withdrawn.
Last week Melbourne’s final clearance rate was 73.9 per cent after 936 properties were taken to auction.
Results were provided for 796 of those auctions, with 588 properties selling (to the value of $439.6 million), while 98 properties were withdrawn.
This time last year, Melbourne’s clearance rate was 56.9 per cent after 127 properties were taken to auction.
Results were provided for 109 of those auctions, with 62 properties selling (to the value of $53.4 million), while 14 properties were withdrawn.
Ray White results
The Ray White Group has reported that in many parts of the country sellers have begun to mobilise as prices grow and buyer demand remains high.
They note another capital city was added to the list of those permitted to host onsite auctions, with Sydney auctioneers now allowed back on the street with gavel in hand.
“While some were itching to get back onsite, others continued online but regardless of the method, the day still produced some impressive sales,” the Ray White Group said.
They recorded an 81 per cent clearance rate across the country while on average 6.7 registered bidders either tuned in or turned up to an auction and 3.5 actively participated by bidding.
“Auction still seems the way to go, with the group’s data showing that those that went all the way to auction day sold on average 11.61 per cent more than if they had taken the highest offer prior.”
Ray White chief economist Nerida Conisbee said the number of active bidders at auction hit a record high of 4.1 in September across Australia.
“The drivers of this are well documented – lots of money, lots of buyers but relatively little on market, particularly in Melbourne and Sydney,” Ms Conisbee said.
“Will this high level of competition continue into the remainder of the year? It is likely that competition will remain elevated from previous years however there are two things that are looking to slow the market.
“The first is that we are heading into a late spring listing boom. As of this week, listings authorities across Ray White were 14 per cent above the same week in 2020. More stock on the market will be a welcome relief for buyers.
“The second is that APRA’s restrictions to finance come into place on November 1.
“This will reduce borrowing capacity by five per cent on average and is expected to moderate pricing most significantly in suburbs that are popular with first home buyers, as well as those that are more affordable.”
According to Ray White data, the region that has been most hotly contested at auction so far this year has been south-east Brisbane with Mansfield, Wishart and Greenslopes topping the list.
The New South Wales’ central coast also makes an appearance twice with Tascott and Ettalong Beach making the top 10 list.
New South Wales
In Sydney, Ray White New South Wales chief auctioneer Alex Pattaro said the outlook for the last few months of the year was strong.
“With more stock coming to market we feel this is only fuelling a buyer frenzy with plenty of buyers within the market trying to secure their next home,” Mr Pattaro said.
“Buyers are cautious and won’t overpay what is already stretched budgets and require the auction competition for them to pay premium prices on auction day.
“More stock coming to market makes now a great time to be able to buy, sell and settle before Christmas.”
Momentum continues to grow in Melbourne and Victoria with strong results being recorded across the state, the Ray White Group said.
Ray White Victoria and Tasmania CEO Stephen Dullens discussed the impact that pent up demand was having on the real estate market.
“With nearly a month since the return of private inspections in Melbourne and more easing of restrictions only a few weeks away, confidence in the Victorian real estate market continues to grow,” Mr Dullens said.
“Buyers and sellers remain very active with strong online auction numbers this week and in the weeks to come.”
Mr Dullens said with confidence increasing, more buyers and sellers are returning to the market.
“In recent weeks. we’ve seen a large increase in new listings coming to market. Despite this, buyer demand continues to significantly outweigh properties available for sale,” he said.
“This is resulting in competitive bidding at auctions driving strong results and high clearance rates.”
In Brisbane, Ray White chief auctioneer Gavin Croft said it was an incredibly busy 48 hours for Ray White Queensland auctions.
“Starting on Thursday morning we held the Gold Coast auction event at the Sheraton on the Gold Coast where 25 properties were submitted to auction from the Ray White Burleigh Group, Ray White Broadbeach Waters and Ray White Robina, selling 22 from 25,” Mr Croft said.
“Today, we had a really strong outcome for a Graceville home, selling to a buyer from interstate who had not set foot in the property.
“It’s certainly something that we’re seeing a lot. We saw it very much at Thursday’s Gold Coast auction event.
“It’s certainly becoming a theme, where buyers are comfortable enough to be able to acquire and purchase off the back of seeing the property virtually.
“I would suggest that one in every five over the last two weeks has been purchased in that particular fashion.
“And strong clearance rates feel like they’re going to remain from now until the end of the year – there’s good energy.”
In Adelaide, Ray White South Australia chief auctioneer John Morris said South Australia as a whole was truly embracing the auction method as their preferred way to sell.
“There is now about 10 per cent of all properties going to auction whereas in the past this has always been below five per cent,” Mr Morris said.
“This is just the springboard for an absolutely fantastic month to come.”