Despite a long weekend in many states, CoreLogic has reported the busiest auction week since mid-July, with the preliminary clearance rate also on the rise and Melbourne returning its second highest initial success rate of the year.
This week, CoreLogic data indicates 1986 homes were taken to auction across the combined capital cities, resulting in a preliminary clearance rate of 84.4 per cent.
The volume has increased from 1626 auctions last week and 648 this time last year, making it the busiest auction week since mid-July.
Meanwhile, the preliminary clearance rate is also on the rise. Last week an initial success rate of 82.4 per cent was recorded, revising down to 80.6 per cent by final collection on Wednesday.
This time last year, 64.4 per cent of reported auctions were successful.
Melbourne was the busiest auction market this week with 800 homes taken to auction across the city, up significantly from 352 over the previous week and 55 this time last year.
“Melbourne had seen a large number of rescheduled auctions over the past couple of months, however we have not seen that this week, with auction volumes actually increasing slightly from the initial predicted count,” CoreLogic noted.
“Of the 679 auction results reported so far, 87 per cent were successful, which is the second highest preliminary clearance rate the city has seen all year.”
Last week, Melbourne recorded a preliminary auction clearance rate of 77.2 per cent, revising down to a final clearance rate of 75.7 per cent.
Withdrawal rates were lower week-on-week, with preliminary results showing a withdrawal rate of 6.2 per cent so far, down from last week’s final withdrawal rate of 17.2 per cent.
Of the 591 successful results collected so far, 27.2 per cent were sold prior to auction.
Sydney was host to 753 auctions this week, compared to 829 over the previous week and 430 this time last year.
“Volumes this week are likely impacted by the Labour Day long weekend,” CoreLogic noted.
There have been 672 results collected so far, returning a preliminary auction clearance rate of 82.4 per cent.
The previous week saw a higher preliminary clearance rate of 84.3 per cent, which revised down to 81.7 per cent at final figures.
“Sydney’s withdrawal rate increased slightly over the week, with 12.2 per cent of results reported as withdrawn, compared to a final withdrawal rate of 9.5 per cent over the previous week, which again may have been impacted by the long weekend,” CoreLogic said.
Of the 554 successful results collected so far, 51.4 per cent were sold prior to auction.
The smaller capitals
Across the smaller auction markets, Canberra recorded a preliminary auction clearance rate of 89.6 per cent this week, followed by Adelaide (85.6 per cent), and Brisbane (79.5 per cent).
In Perth, nine results have been reported so far, with five returning a successful result. There were only two auctions in Tasmania last week, and one was reported as successful.
Domain has reported a national preliminary clearance rate of 82.3 per cent after 1254 properties were taken to auction over what was a long weekend in many states.
Results are so far in for 862 of those auctions, with 709 properties selling (to the value of $630.6 million), while 91 properties were withdrawn.
Last week the clearance rate settled at 77.9 per cent after 1160 properties were taken to auction.
Results were provided for 951 of those auctions, with 741 properties selling (to the value of $707.5 million) while 109 properties were withdrawn.
This time last year, the clearance rate was 64.5 per cent after 446 properties were taken to auction.
Results were provided for 386 of those auctions, with 249 properties selling (to the value of $332.6 million), while 54 properties were withdrawn.
Sydney’s preliminary clearance rate is sitting at 83.7 per cent after 455 properties were taken to auction this week.
So far, results are in for 326 of those auctions, with 273 properties selling (to the value of $306.8 million), while 35 properties were withdrawn.
Last week, Sydney’s clearance rate settled at 78.8 per cent after 642 properties were taken to auction.
Results were provided for 579 of those auctions, with 456 properties selling (to the value of $515.9 million), while 63 properties were withdrawn.
This time last year, Sydney’s clearance rate was 66.9 per cent after 343 properties were taken to auction.
Results were provided for 302 of those auctions, with 202 properties selling (to the value of $294.2 million), while 43 properties were withdrawn.
Melbourne’s preliminary clearance rate this week is 79.3 per cent after 571 properties were taken to auction.
Results are so far in for 376 of those auctions, with 298 properties selling (to the value of $226.2 million), while 47 properties were withdrawn.
Last week, Melbourne’s final clearance rate was 76.4 per cent after only 271 properties were taken to auction.
Results were provided for 165 of those auctions, with 126 properties selling (to the value of $94.3 million), while 28 properties were withdrawn.
This time last year, Melbourne’s clearance rate was 65 per cent after only 36 properties were taken to auction.
Results were provided for 20 of those auctions, with 13 properties selling (to the value of $10.6 million), while seven properties were withdrawn.
Ray White results
The Ray White group recorded a preliminary auction day clearance rate of 78 per cent across the country this weekend, with subdued numbers due to the long weekend in many markets.
The standout city was Brisbane again which recorded a 100 per cent clearance rate, all 15 out of 15 Ray White auctions sold under the hammer, closely followed by Melbourne sitting at an 87 per cent clearance, and Sydney on 72 per cent.
Of the 258 scheduled auctions for Saturday, 147 proceeded to auction day, with 56 selling prior.
Average registered bidders sat at 8.3 nationally. Notably, an auction in Melbourne had 39 registered bidders online which demonstrates the intense buyer demand.
New South Wales
Ray White New South Wales Chief Economist Alex Pattaro said there’s been plenty of talk in the market this week about the Australian Prudential Regulation Authority stepping in to help slow lending growth.
“We don’t expect to see any negative impact on property prices as there is so much confidence due to record low interest rates and with the Reserve Bank suggesting they aren’t going up anytime soon,” he said.
“We expect to see moderate price growth over the next little while. The APRA talk certainly didn’t impact the decision of buyers purchasing this weekend, as we continue to see mass registration numbers and competitive bidding across all Sydney auctions.
“As restrictions start to ease, we are noticing more properties come to market, making it an exceptional time to buy and sell simultaneously.”
The real estate market in Victoria continues to gather momentum with the return of private inspections in Melbourne.
Ray White Victoria and Tasmania CEO Stephen Dullens discussed the strong results that were being achieved.
“Despite Melbourne and much of regional Victoria being under strict lockdown conditions for more than half the month, across Victoria Ray White sold over 950 sales during September,” Mr Dullens said.
“Transacting over $750 million of property is not only a sharp increase on last year, but more than 20 per cent above our best ever September back in 2017.
“With confidence of customers returning now that inspections are once again allowed, more and more listings are coming to market with huge demand from buyers still being seen.
“Customers continue to embrace the online auction format, with scheduled auctions increasing every week during October.”
Ray White Queensland Chief Auctioneer Gavin Croft said the local auction market continued to see high clearance rates.
“Queensland, for the first time in such a long time, is the standout performer right across the country, who would have thought? Brisbane is the standout performer. The strength of the market is what’s underpinning the fuel again – particularly those southern buyers and investors.
“I’ve just sold a property in Ipswich to a Sydney investor. We’re certainly seeing parts of the market with lots of interstate buyers.
“This weekend is probably a little bit quieter than normal given the long weekend as a lot of people are going away ahead of an imminent lockdown, with the COVID-19 cases that are slowly starting to trickle up. I think a lot of people saw this opportunity to just to get away for a few days if they will soon be stuck at home.
“October is shaping up to be a really strong auction month for Queensland. It’s coming with much anticipation and we see a lot more as supply starts to hit the market.
“It will be really interesting times ahead for Queensland as the clearance has been hovering around 90 plus per cent. Will we start to see it cut back? We don’t have a crystal ball but right now it’s a strong time to sell.”
Ray White South Australia Chief Auctioneer John Morris said it’s been another very strong week in Adelaide which is now “the auction capital of Australia”.
“There was a strong clearance last week if you go by CoreLogic’s data. They had an 87.5 per cent clearance rate for Adelaide, while Ray White’s was 91.4 per cent with more than nine registered bidders per auction with 3.9 of those participating,” Mr Morris said.
“This week it is still looking pretty much the same with eight registered bidders so far and the preliminary clearance rates of above 80 per cent.
“A lot of auctions have bidding above 94 per cent. Today, everything seems to be selling with bidders out in force.
“I’ve just come from an auction with 17 registered bidders in a traditionally non-auction area. I don’t think there are any non-auction areas in Adelaide at the moment and any agent who is not taking their property to auction is making a big mistake and possibly leaving money on the table.”