Auction volumes have continued to strengthen this week as the capital city clearance rate remains a heartening 65.9 per cent.
Although the volume is still tracking at just over half that recorded during the same time in 2019, this week 867 capital city homes were scheduled for auction.
The previous week saw 612 homes scheduled for auction and a final clearance rate of 62.7 per cent, while one year ago, there were 1661 homes taken to auction and a 58.0 per cent clearance rate.
“Although the number of auctions held remains low, since restrictive policies around open homes and onsite auctions were lifted, the trend has been towards more auctions held and a substantial reduction in the proportion of auctions withdrawn prior to the event,” CoreLogic said.
“The number of auctions held this week was the highest since the week ending April 19. As mentioned over the previous few weeks, with restrictions easing across many states and territories, we will likely see the number of homes taken to auction continue to increase.”
In Melbourne, 259 homes were scheduled to go under the hammer this week. So far 192 auctions have been reported, returning a preliminary success rate of 71.9 per cent. The previous week saw a final clearance rate of 68.0 per cent across 168 auctions.
In Sydney, 469 homes were scheduled for auction this week, returning a preliminary clearance rate of 68.1 per cent across 320 results. In comparison, last week saw 309 homes taken to auction with a success rate of 65.0 per cent.
Domain also reported an increase in volume this week, but the clearance rate took a slight dip from the previous week’s high of 63.1 per cent to a still healthy 61.6 per cent. This weekend, Domain noted 593 properties were scheduled for auction, 370 results were reported, 268 sold and just 65 were withdrawn. A total of $206.4 million worth of property was sold.
Last week, 222 properties sold for a total value of $177.3 million.
During the same week last year, Domain results indicated 1377 properties were listed for auction, results on 1089 properties were reported, 678 properties sold for a combined value of $763.7 million, and 113 properties were withdrawn.
Sydney again proved the higher performer in terms of volume and value, with 367 properties listed, 219 results recorded, 166 properties sold for a value of $141.5 million, and just 49 withdrawals for a clearance rate of 61.9 per cent.
However, Melbourne pipped the harbour city at the post when it came to the clearance rate, despite lower volumes. This week, Melbourne had 175 properties listed for auction, 110 results were reported, 81 sold for a collective value of $54.4 million while just 15 properties were withdrawn for a clearance rate of 65.9 per cent.
The highest auction sale price for the week was in Sydney where McGrath Balmain sold a three-bedroom townhouse in Drummoyne for $4.19 million.
Ray White Results
Ray White has indicated savvy sellers are capitalising on the current market, with the brand clearing 71.6 per cent of all stock under the hammer on Saturday.
The group booked a preliminary clearance rate of 85.3 per cent in Sydney, and 66 per cent in Victoria with five registered bidders on average across every lot nationally.
Ray White Group Managing Director Dan White said the results built on the momentum of the past few months.
“It was another week of consistent and very strong buyer activity, coupled with increased auction numbers,” he said.
“Congratulations to all our vendors who took advantage of these conditions and chose to market and sell their properties now.”
New South Wales
Ray White New South Wales Chief Auctioneer Alex Pattaro noted it had been yet another exciting week for the Sydney real estate market, defying all speculation of a plummet in the property market.
“Ray White New South Wales auction day clearance rate is on par with levels pre-virus at circa 85 per cent,” Mr Pattaro said.
“Competition within the market remains red hot with an average of five bidders across Ray White auctions.
“Crowd attendance is electrifying, seeing approximately 50 attendees keeping to the social distancing requirements.
“Today’s results are true examples of how the Sydney property market continues to defy all negative speculation and reports.”
Ray White Victoria | Tasmania Chief Auctioneer Matthew Condon said the shortage of properties available for sale across the state continued to create an environment that is conducive towards sellers getting a great price for their home.
“Based on preliminary data from the Ray White Group, although we did see a slight increase in the amount of auctions scheduled, we have seen a spike in the average amount of registered bidders per auction to six,” Mr Condon said.
“It was also great to see that once a property was announced on the market and selling, we continued to see active bidding and competition past that point.
“Today Ray White Victoria had a mixture of onsite and online auctions. Regardless of the auction day environment it was great to see Ray White offices continue to deliver exceptional results while providing their customers with a safe environment.
“Overall, Ray White Victoria is expecting a strong auction day clearance rate this week.”
In the Sunshine State, where restrictions are soon to relax further, Ray White Queensland Chief Auctioneer Mitch Peereboom said competition created great activity.
“What a week, so much activity across our auctions in Ray White Queensland,” Mr Peereboom said.
“We had 3.4 bidders on average register to attend our auctions and that translated through to a number of results.
“We saw outstanding sale prices that came from creating competition, buyers seeing what other buyers are willing to pay, they’re competing and they are making those offers on an unconditional basis.
“These results do nothing but underpin our confidence for sellers that are looking to come to the market right now to recommend that you do.
“We’re seeing fewer properties, less supply, buyer demand is still strong…we’re certainly so excited about the activity.”
Ray White South Australia Chief Auctioneer John Morris noted as of Saturday afternoon, the brand was enjoying a 100 per cent auction clearance for the day.
“We have an 80 per cent auction day clearance rate for the week and an 88 per cent auction campaign clearance rate,” Mr Morris said.
“We’re having a pretty good week. We are continuing with online auctions at the moment until restrictions are lifted further but they are proving to be very successful.
“I’m looking forward to the coming weeks with some growth in the auction market share so it should be very good and there should be a sea of yellow gavels coming down very soon. “