Capital city auction volumes fell 4 per cent this week, with 1742 homes going under the hammer to return a preliminary clearance rate of 61.4 per cent.
CoreLogic indicated 1398 results have been collected so far, with this week’s initial success rate the lowest this month.
Last week’s preliminary clearance rate, for 1815 scheduled auctions, was 2 percentage points higher at 63.4 per cent and revised down to 60.6 per cent at final figures.
This time last year, 2940 auctions took place, resulting in a final clearance rate of 78.3 per cent.
Auction activity trended lower across Melbourne this week, with 683 homes going under the hammer across the city.
Compared to the week prior when 743 auctions took place, this week’s auction numbers were down 8.1 per cent, and were less than half the number of auctions held this time last year (1493).
“This cooling in auction activity was accompanied by Melbourne’s lowest preliminary clearance rate in five weeks, with 63.8 per cent of the 572 results collected so far returning a successful result,” CoreLogic noted.
This week’s preliminary clearance rate is 2.3 percentage points below last week’s preliminary clearance rate of 66.1, which revised to 62.2 per cent at final numbers.
The initial success rate is also down 11.1 percentage points compared to this time last year, when 74.9 per cent of auctions held were successful.
In Sydney, 667 homes went under the hammer this week, down from 681 the week prior and 27.2 per cent below the 916 auctions held this time last year.
Of the 562 results collected so far, 61.7 per cent returned a successful result, up 50 basis points from the previous week.
“This week marks the seventh consecutive week that Sydney’s preliminary clearance rate has held above 60 per cent and overtakes the week prior as the highest preliminary clearance rate since mid-August (63.4 per cent),” CoreLogic said.
“Despite the rise in the preliminary clearance rate, Sydney’s withdrawal rate rose to 18.3 per cent this week (up from 16.5 per cent last week), while the portion of properties passed in at auction (19.9 per cent) fell to its lowest since late April (19.7 per cent).”
Last week a preliminary clearance rate of 61.3 per cent was recorded and later revised down to 59.4 per cent, while this time last year 81.5 per cent of auctions held recorded a successful result.
The smaller capitals
Across the smaller capitals, Brisbane hosted the busiest auction market this week, (up 27.2 per cent) with 159 homes auctioned across the city.
This was followed by Adelaide (122) and Canberra (90) which both recorded a decline in weekly auction activity, down 14.7 per cent and 20.4 per cent respectively.
Adelaide had the most successful week amongst the smaller capitals, with the preliminary clearance rate holding steady at 69.7 per cent, while preliminary rates across Canberra (56.1 per cent) and Brisbane (49 per cent) declined 14.8 percentage points and 40 basis points respectively.
In Perth, six of the 13 results collected so far returned a successful result, while the one auction held in Tasmania this week was unsuccessful.
Domain has reported a preliminary clearance rate of 64.2 per cent after tracking 1428 auctions across the major capitals.
So far, results are in for 995 of those auctions, with 639 properties selling (to the value of $558.3 million) while 147 properties were withdrawn.
Last week the final clearance rate settled at 61.1 per cent after 1544 auctions took place.
Results were provided for 1327 of those auctions, with 811 properties selling (to the value of $697.1 million), while 150 properties were withdrawn.
This time last year, the clearance rate was at a higher 73.7 per cent after 1827 auctions took place.
Results were provided for 1751 of those auctions, with 1290 properties selling (to the value of $1870.2 million), while 221 properties were withdrawn.
Sydney’s clearance rate is sitting at 65.7 per cent after 574 auctions took place this week.
So far, results are in for 353 of those auctions, with 232 properties selling (to the value of $249.1 million) while 71 properties were withdrawn.
Last week, Sydney’s clearance rate was 61.7 per cent after 633 auctions took place.
Results were provided for 501 of those auctions, with 309 properties selling (to the value of $326.1 million), while 100 properties were withdrawn.
This time last year, Sydney’s clearance rate was 79.1 per cent after 619 properties went to auction.
Results were provided for 584 of those auctions, with 462 properties selling (to the value of $921.7 million) while 59 properties were withdrawn.
Melbourne’s preliminary clearance rate is currently 63.6 per cent after 623 properties went to auction this week.
So far, results are in for 494 of those auctions, with 314 properties selling (to the value of $244.5 million), while 63 properties were withdrawn.
Last week, Melbourne’s final clearance rate was 61.2 per cent after 655 properties went to auction.
Results were provided for 600 of those auctions, with 367 properties selling (to the value of $280.6 million), while 37 properties were withdrawn.
This time last year, Melbourne’s clearance rate was 69.6 per cent after 909 properties went to auction.
Results were provided for 879 of those auctions, with 612 properties selling (to the value of $746.3 million) while 134 properties were withdrawn.
Ray White results
Ray White reported their auction day clearance rate is continuing to trend upwards as buyer activity lifts.
On Saturday, the group recorded a 73 per cent clearance rate with 4.2 registered bidders and 2.7 active bidders on average attending a Ray White auction.
Those who sold under the hammer, on average, achieved just over 11 per cent more on their sale than if they had decided to take a prior offer.
The top sale of Saturday belonged in Brisbane where Ray White New Farm agent Annette Richards sold 39 Glenrosa Road, Red Hill for $3.53 million at the office’s monthly Calile Hotel auction event.
Marcus Cengarle of Ray White Norwood in Adelaide had the most bidders per auction on Saturday. His auction at 1-4/3 Birdwood Ave, Frewville attracted 18 registered bidders and sold for $2.06 million.
However, the top auction sale of the week happened on Thursday in Sydney. Ray White Upper North Shore director David Walker sold 397 Bobbin Head Rd, Turramurra for $11,025,000 to a young family from North Turramurra.
The property had been held by the owners for the past 35 years.
There were eight registered bidders and three active bidders who began the bidding below the $10.5 million reserve at $8 million.
The bidding then soared past the reserve ending in an auction record for Turramurra and North Turramurra.
In Brisbane, Ray White New Farm | Bulimba held their Calile Hotel auction event, with 16 properties going under the hammer.
Ray White data indicates there were 43 bidders in attendance, with eight properties selling on auction day for a total value of $11.8 million.
Ray White auctioneer Haesley Cush said the event had proved exciting.
“The highlight was 39 Glenrosa Road, Red Hill, which was sold for the first time in 30 years, through agent Annette Richards,” Mr Cush said.
“It was a wonderful exchange between bidders resulting in a $3.53 million sale. The buyers jumped out of their seats with hands in the air when they bought it.
“An art deco property at 6/38 Elystan Road, New Farm sold through Tom Lyne for $1.475 million to a regional Queensland buyer.
“We’re really seeing a new injection of enthusiasm in units with the sale of 1084/9 Edmonstone Street, South Brisbane for $695,000 through selling agent Simon Petrie.
“Bidding for 51 Ellington Street, Tarragindi launched straight off the bat with great interest and sold it under the hammer for $1.28 million through marketing agents Brandon Wortley and Amanda MacDougall.
“Agent Meaghan Bakker sold a 10,000sqm property at 59 O’Brien Road, Pullenvale for $1.95 million and Scott Darwon and Harry Bennett sold 60/82 Welsby Street, New Farm for $820,000 – this was Harry’s first sale under the hammer.
“There was great negotiation and spirited bidding between all parties for 2310/30 Johnston Street, Bulimba, marketed by Emilene Edwards, which went for $1.1 million.”
Ray White New South Wales Chief Auctioneer Alex Pattaro said there were plenty of buyers out on Saturday looking to secure a home.
“The buyer sentiment is better than what it was months ago as buyers are now aware of what to expect with interest rates,” Mr Pattaro said.
“Top tier, new and luxury homes continue to be the top choice for buyers.
“Auction and stock levels are down compared to last year but we anticipate these numbers will rise over the coming weeks into the back end of 2022, potentially spurring a late spring selling rush.”
Ray White Victoria Chief Auctioneer Matthew Condon said this week has seen a decline in auction volume across the state with 120 auctions scheduled for Ray White Victoria.
“Although we are seeing a slight increase in the days on market for residential property, it is very clear that there are fewer properties launching to market this spring than expected,” Mr Condon said.
“This is creating a very high level of demand for quality properties that are currently launching to market.
“Based on preliminary data from the Ray White group, today, we saw on average 3.6 confirmed bidders per auction. We also experienced active bidding on over 90 per cent of all auctions.
“Despite the patchy weather, large crowds also gathered at today’s auctions creating an exciting auction day atmosphere.
“It was also great to see that once properties were announced “on the market” we continued to see momentum and competition past that point.”
Ray White South Australia Chief Auctioneer John Morris said Ray White sails best in light winds but it also seems that the group weathers the storms pretty well.
“If the last few weeks are anything to go by, the momentum certainly doesn’t seem to have dropped out of the sails of the auction market in Adelaide and South Australia,” Mr Morris said.
“The clearance rate last week was reported by CoreLogic at 65 per cent yet Ray White Adelaide reported a 78 per cent clearance last week. We also called a third of all auctions throughout the state.”