The combined capital city preliminary auction clearance rate increased to 71.5 per cent across a higher volume of auctions this week.
CoreLogic reports there were 1090 homes taken to auction over the week, up from 648 over the previous week although significantly lower than this time last year (2,022).
“Of the 822 results collected so far, 71.5 per cent were successful, up from last week’s preliminary figure of 69.3 per cent which later revised down to 64.4 per cent at final collection,” CoreLogic stated.
“Over the same week last year, a final clearance rate of 73.5 per cent was reported across the combined capitals.”
Sydney was host to 754 auctions this week, up from both last week when 430 auctions were held, and this time last year when 733 homes were taken to auction.
Of the 587 auction results collected so far, 73.1 per cent were successful, similar to last week’s preliminary result of 73.2 per cent which revised down to 65.8 per cent at final results.
This time last year, Sydney recorded a final auction clearance rate of 76.9 per cent.
CoreLogic notes auction activity remained low across Melbourne this week with 60 homes taken to auction.
Of the 52 results collected so far, 59.6 per cent were successful while just under one third of reported auctions were withdrawn.
Over the previous week, 55 auctions were held across the city, while this time last year, 974 Melbourne homes were taken to auction.
The smaller capitals
Across the smaller markets, Canberra recorded the highest preliminary clearance rate of 79.5 per cent, across 78 auction results, followed by Adelaide with a preliminary clearance rate of 70.7 per cent across 41 results.
Domain’s data indicates the national preliminary clearance rate continues to hover just below 70 per cent, with this week’s official figure coming in at 69.8 per cent after 948 properties were listed for auction nationally.
So far, results for 689 of those listed auctions are in, with 481 properties sold (to the value of $430 million), while 103 properties were withdrawn.
This week’s volume is almost double that of last week which reflected the public holiday in NSW, but volume is still well down compared to 2019.
Last week the final clearance rate was 65.5 per cent after 472 properties were listed for auction. Results for 377 properties were provided, with 247 selling (to the value of $223.6 million) and 54 properties were withdrawn.
This time last year the clearance rate was 68.4 per cent on the back of strong volume, with 1746 properties listed for auction. Of those, 1593 results were reported, 1090 properties sold (to the value of $1208.2 million), and just 78 properties were withdrawn.
Sydney continues to account for the majority of the auction market, with 719 of the 948 properties listed nationally located in the Harbour city.
The city’s preliminary success rate also continues to hold firm. This week initial figures see the Sydney clearance rate at 70 per cent, with results now in for 540 of the properties listed. Of those 378 sold (to the value of $357.8 million), and 93 were withdrawn.
Last week Sydney’s volume was significantly lower due to the Labour Day public holiday. Only 349 properties were listed, results were provided for 297, with 201 successfully selling (to the value of $196.9 million), while 43 were withdrawn. This equated to a final clearance rate of 67.7 per cent.
In the same week last year, Sydney achieved a success rate of 73.1 per cent after 632 properties were listed for auction, results were provided on 576 and 421 successfully sold (to the value of $577.7 million), while 32 were withdrawn.
Melbourne’s volume is inching higher as lockdown restrictions continue to lift. This week, Melbourne had 57 properties listed for auction, with results in for 28 so far. Of those, 16 successfully sold (to the value of $8.1 million) while five were withdrawn. This resulted in a preliminary clearance rate of 57.1 per cent.
Last week the final clearance rate was slightly higher at 65 per cent, but the volume was marginally lower, with 54 properties listed for auction.
Results for 20 of those properties were provided, with 13 successfully selling (to the value of $4.4 million), and seven were withdrawn.
Last year’s data paints a picture of what could have been and what the industry hopes we will soon see a return to.
In the same week last year, Melbourne’s clearance rate was 68.5 per cent, with 883 properties listed for auction. Results for 800 of those properties were provided, with 548 successfully selling (to the value of $542 million). Only 33 properties were withdrawn.
Ray White results
Ray White clocked up a strong clearance rate of 81 per cent, hosting 209 auctions nationally at the weekend.
The group noted spring selling “continues to surge” with average registered bidders soaring to an all-time high of 6.9 bidders per lot.
At the same time last year the Ray White Group reported 2.5 average registered bidders per lot. Active bidding is now 3.8 per auction, up 1.0 on a year ago.
The Ray White Group stated there were more cashed up buyers than ever before, while the latest data from the national statistician on Friday showed home buyers’ borrowings jumped 12.6 per cent on the previous month.
“New loan commitments for housing reached $21.29 billion in August, according to Australian Bureau of Statistics. Data shows owner occupiers had the record increase,” the Ray White Group said.
“They borrowed 13.6 per cent more ($16.28 billion total) – the largest month-to-month rise in the history of the statistic. So the appetite for housing credit has never been stronger. The previous record was the 10.7 per cent gain set in July.”
New South Wales
Ray White NSW Chief Auctioneer Alex Pattaro said competition among buyers was “exciting and very competitive across Sydney auctions”.
“We’re seeing larger than average crowd attendance and strong registrations for our auctions. The positivity and confidence in the market is at a high with sellers obtaining premium prices across the board,” Mr Pattaro said.
“Buyers are doing everything they possibly can to try and snap up properties prior to auction to eliminate competition, although agents who are running campaigns right through to auction day are seeing better auction day offers then pre-auction offers.
“We expect to see this positivity continue throughout the remainder of 2020.”
Ray White Victoria and Tasmania Chief Auctioneer Matt Condon said with auction volume increasing, it was evident that the last couple of months had created pent-up demand.
“Preliminary data has revealed one of Ray White Victoria’s strongest weeks of activity when looking at the average registered and active bidders per auction,” Mr Condon said.
“This was evident at our online auctions with large crowds logging in to watch our online auction platform, competitive bidding, and properties selling well in excess of reserve price.
“It’s clear the low supply of properties available and the high level of buyer demand are creating conditions that are conducive to sellers achieving exceptional results.”
Ray White Queensland Chief Auctioneer Mitch Peereboom said it was yet another fantastic week of under the hammer results across the Sunshine State.
“…we’ve seen some great competition across all price points with excellent results from apartments in Auchenflower to multi-million-dollar rural properties,” Mr Peereboom said.
“If you look at the different market segments performing, we know that buyers are active in the market and are taking advantage of low interest rates and favourable market conditions.
“Our owners are seeing a high number of average registered bidders per auction and that’s resulting in some outstanding sale prices.”
Ray White SA Chief Auctioneer John Morris said the sun was high in South Australia on Saturday and so were the bidder numbers across the state.
“From the number of auctions I’ve already called this weekend – the average number of registered bidders per auction is a whopping 10,” Mr Morris said.
“These are incredible statistics. I’ve personally so far sold all of my properties under the hammer and I still have a few more to go.
“For Ray White Group as a whole in South Australia we’ve had 25 auctions in total.”