The preliminary clearance rate has topped the 60 per cent mark for the first time in 10 weeks after auction activity rose this week.
CoreLogic reported 1603 properties went to auction across the combined capitals, resulting in an initial success rate of 61.5 per cent.
This week’s volume is 9 per cent higher than the previous week when 1471 auctions took place.
“With 1176 results collected so far, the combined capitals preliminary clearance rate rose for the third consecutive week, reaching 60 per cent for the first time since early June,” CoreLogic said.
“With 61.5 per cent of auctions returning a successful result, this week’s preliminary clearance rate is 2 percentage points higher than the week prior, when a preliminary rate of 59.5 per cent (later revised to 56.6 per cent) was recorded.
Compared to this time last year, when 1822 auctions took place, this week’s volumes are down 12 per cent.
Meanwhile, 70 per cent of auctions held this week last year were successful.
Melbourne
In Melbourne, 622 homes went under the hammer this week, in line with the volume of auctions recorded the previous week (619) but 29.6 per cent below the level of auction activity seen this time last year (884).
With 65.5 per cent of the 478 results collected so far retuning a positive result, this week’s preliminary clearance rate is the highest Melbourne has recorded since the week ending 1 May (68.4 per cent), which was just prior to the RBA’s first cash rate hike.
A preliminary clearance rate of 61.7 per cent was recorded last week and later revised to 58.4 per cent at final figures.
This time last year 59.9 per cent of auctions recorded a successful result.
Sydney
Across Sydney, this week’s auction activity was up both week-on-week (29.2 per cent) and year-on-year (12.5 per cent), with 620 homes auctioned across the city.
The previous week saw 480 homes go under the hammer, while 551 auctions were held across Sydney this time last year.
After recording a preliminary clearance rate of 60.6 per cent last week, which revised to 56.4 per cent at final figures, a 90-basis point fall saw Sydney’s preliminary clearance rate slip back below the 60 per cent mark this week, with 59.7 per cent of the 467 results collected so far reporting a successful result.
CoreLogic noted a 25.5 per cent withdrawal rate was a key factor in dragging the Sydney clearance rate lower.
This time last year 81.3 per cent of Sydney’s auctions were successful.
The smaller capitals
Across the smaller capitals, auction activity fell across Brisbane (-12.1 per cent) and Adelaide (-11.7 per cent) but rose in Canberra (+23.2 per cent).
Brisbane (131) hosted the most auctions amongst the smaller capitals for the fifth consecutive week, followed by Adelaide (128), Canberra (85) and Perth (16).
Across Adelaide, 71.6 per cent of auction result collected so far returned a successful result, while Canberra and Brisbane recorded preliminary clearance rates of 63.9 per cent and 40.7 per cent respectively.
Five of the 11 auction results collected across Perth were successful, while the single auction held across Tasmania was also successful.
Domain results
Domain has reported a preliminary clearance rate of 61.2 per cent after tracking 1355 auctions across the major capitals.
So far, results are in for 917 of those auctions, with 561 properties returning a successful result (to the value of $466.4 million), while 155 auctions were withdrawn.
Last week the final clearance rate settled at 55.1 per cent after 1243 properties went to auction.
Results were provided for 1079 of those auctions, with 595 proving successful (to the value $446.6 million), while 150 auctions were withdrawn.
This time last year, the clearance rate was 65.8 per cent after 1551 auctions took place.
Results were provided for 1386 of those auctions, with 912 properties selling (to the value of $1214 million), while 356 auctions were withdrawn.
Sydney
Sydney’s preliminary clearance rate is sitting at 61.1 per cent this week after 553 auctions took place.
So far, results are in for 365 of those auctions, with 223 properties selling (to the value of $220.9 million), while 96 properties were withdrawn.
Last week, Sydney’s final clearance rate was 54.8 per cent after 462 properties went to auction.
Results were provided for 374 of those auctions, with 205 properties selling (to the value of $169.1 million), while 81 properties were withdrawn.
This time last year, Sydney’s clearance rate was 80.2 per cent after 432 properties went to auction.
Results were provided for 415 of those auctions, with 333 properties selling (to the value of $591.3 million), while 56 properties were withdrawn.
Melbourne
Melbourne has returned a preliminary clearance rate of 62.4 per cent after Domain tracked 558 auctions across the Victorian capital.
So far, results are in for 420 of those auctions, with 262 properties selling (to the value of $196.9 million), while 43 properties were withdrawn.
Last week, Melbourne’s clearance rate was 55.6 per cent after 550 auctions took place.
Results were provided for 500 of those auctions, with 278 properties selling (to the value of $201.5 million), while 51 properties were withdrawn.
This time last year, Melbourne’s clearance rate was 55.1 per cent after 864 properties went to auction.
Results were provided for 735 of those auctions, with 405 properties selling (to the value of $473.2 million), while 281 properties were withdrawn.
Ray White results
Conceding there was a clear cooling of the market, the Ray White Group said there were still hundreds of satisfied vendors popping champagne bottles on Saturday after achieving sale prices higher than reserve.
The group reported a preliminary clearance rate of 58 per cent nationally, and the standout city was Adelaide, coming in with an 80 per cent clearance.
Saturday saw four registered bidders at auctions on average nationally, along with huge crowds of onlookers.
The highest auction sale of the day was on the Gold Coast, where Mitch Palmer from Ray White Broadbeach Waters knocked down the hammer on 46 Garden Grove, Carrara for $6,680,000.
“The prestige end of the market is holding firm and seeing stable numbers.
“There is a particularly strong appetite for completed luxury homes which don’t need a dollar spent on them, given the cost and frustrations of building at the moment,” Mr Palmer said.
The resounding feedback from agents and auctioneers across the country was to utilise the most fair and effective form of sale; the auction method.
Ray White Chief Economist Nerida Conisbee said since the start of the year, properties were staying on the market longer.
“Overall, the increase has been minor, increasing from 22 days to 24 days, however some cities are seeing bigger increases. Sydney has seen the biggest increase, from 19 days to 24 days,” Ms Conisbee said.
“Our latest analysis of Ray White auction results has shown that right now, if you want to sell in a slowing market, auction is the best way to go to market.”
Jin Ling from Ray White Carnegie said the ‘Competition Creators’ term recently trademarked by the Ray White group was something he lives and breathes every day in his work.
“It is rare that I don’t use the auction method. It pays off for the vendor and creates visible competition, no matter how tempting it is to accept a good offer prior,” he said
“It is up to the agent to hone their buyer work, and make sure their buyers come and bid at auction.”
Melbourne
Ray White Victoria and Tasmania chief auctioneer Matt Condon said it was a quieter than normal week of auctions, with just over 130 auctions scheduled across the state.
“The amazing weather saw crowds and bidders out in force creating a great atmosphere at all on-site auctions,” he said.
“Our preliminary data also revealed a slight increase in the average number of bidders per auction resulting in strong competitive bidding. The more bidders and competition a property has, the more confidence buyers have to purchase. This social proof is a key element to achieving a premium price at auction,” Mr Condon said.
Sydney
Ray White New South Wales Chief Auctioneer Alex Pattaro said there was plenty of positivity within the Sydney market.
“We are starting to see a higher number of registered bidders and confidence appears to be making its way into the market,” Mr Pattaro said.
“Sellers have a great opportunity to capitalise on the buyer activity, but we urge sellers to listen to feedback and offers, to align closer to what the market is willing to pay or be prepared to sit for a long time.
“Buyers may be cautious but they are still active and ready to transact if the price is right,” he concluded.
Brisbane and South East Queensland
Ray White Queensland chief auctioneer Gavin Croft said there were mixed results for the south east Queensland market this week.
“Ray White Burleigh Group auctioned 21 properties on Thursday, none of which met reserve but 60 per cent were sold under the hammer, and there was bidding on 80 per cent of properties,” Mr Croft said.
“This just shows that we have the buyers and we are able to showcase the market and help sellers make accurate decisions in relation to the market,”
“Some properties are still really bucking the trend, and are being hotly contested. A beautifully presented family home in a good position will garner plenty of interest,” he said.
Adelaide
Ray White South Australia chief auctioneer John Morris said while scheduled auction numbers were down, the leading group continued to dominate, calling 40 per cent of auctions across the state.
“Bidder numbers remain strong and steady, with an average of 5.6 registered bidders and three of those are partaking in the action,”
“Agents who are recommending the auction process to clients are rewarding them with fewer days on market and the certainty that the unconditional auction contract brings,”
“Auction should definitely be a strong consideration when taking your property to market, and no other company understands the auction process quite like Ray White,” he said.
