The national preliminary clearance rate has risen to 67.7 per cent after a higher volume of auctions across the capitals this weekend.
Sydney led the charge with a preliminary clearance rate of 74 per cent, while Melbourne returned a success rate of 49.6 per cent on the back of high withdrawal numbers.
CoreLogic reports 1163 homes were taken to auction over the weekend, up on the 1064 the week prior.
“Of the 837 results collected so far, 67.7 per cent were reportedly successful, which was higher than last week’s preliminary figure of 64.7 per cent (later revising down to 60 per cent at final collection),” CoreLogic said.
“This time last year a higher 1615 capital city homes were auctioned with a final clearance rate of 70 per cent.
“The performance across the two largest capital cities remains mixed as Melbourne saw the lowest number of auctions held since May this week, while Sydney recorded the busiest week for auctions since April,” they noted.
Melbourne
Preliminary results across Melbourne show just under half of the homes taken to auction this week were successful (49.6 per cent), while the other half were reportedly withdrawn.
“This was down slightly on last week’s preliminary figure (50.3 per cent),” CoreLogic stated.
There were 167 auctions scheduled across the city, down on the 222 over the week prior. Of the sold results collected, 88.3 per cent sold prior to the scheduled auction date.
“One year ago, a much higher 768 Melbourne homes were auctioned, recording final clearance rate of 74.4 per cent,” CoreLogic said.
“The high withdrawal rate against an already low number of scheduled auctions, together with such a high proportion of properties selling prior to the auction event rather than under the hammer, implies vendors have become increasingly reluctant to test the market through the lockdown period.”
Sydney
In Sydney, 730 homes were taken to auction this week, returning a preliminary auction clearance rate of 74 per cent.
This was an improvement on last week’s preliminary figure of 71.9 per cent which later revised down to 66.1 per cent at final collection.
“In stark contrast to Melbourne, the number of auctions across Sydney has been consistently trending higher, with this week’s auction volume, at 730, the highest the city has held since April,” CoreLogic noted.
“One year ago, a lower 590 Sydney homes were taken to auction returning a higher final success rate (74.5 per cent).”
The smaller capitals
Across the small markets, Adelaide recorded a preliminary clearance rate of 83.9 per cent – the highest of the smaller cities.
Canberra followed with 75.9 per cent of homes selling at auction over the week.
Domain results
Domain’s results also indicate a rising clearance rate on the back of higher volumes. This week their preliminary figures indicate 64.8 per cent of auctions were successful after 737 properties were listed for auction.
Of those, results for 394 auctions were reported, resulting in 331 sales (to the combined value of $287.8 million) and 117 properties were withdrawn.
Last week, Domain’s final clearance rate came in at 61.5 per cent from 715 properties listed for auction. Of those, 516 results were reported, 388 sales were made (to the value of $301.7 million) and 115 properties were withdrawn.
This time last year, 1401 properties were listed for auction resulting in a clearance rate of 68.4 per cent.
Of the 1216 results reported, 889 sales were made (to the value of $1002.8 million) and 83 properties were withdrawn.
Melbourne
Melbourne’s figures were significantly lower than the week prior both in terms of clearance and volume.
This week, 106 properties were listed for auction, 30 results were reported, 29 sales were made (to the value of $21 million) and 45 properties were withdrawn. This resulted in a preliminary clearance rate of 38.7 per cent.
Last week, 141 properties were listed for auction, 68 results were reported, 60 sales were made (to the value of $27.8 million) and 47 properties were withdrawn for a clearance rate of 52.2 per cent.
This time last year was a far different story. During the same week in 2019, 743 properties were listed for auction, 664 results were reported, 485 sales were made (to the value of $474.8 million) and just 23 properties were withdrawn, for a clearance rate of 70.6 per cent.
Sydney
Sydney’s clearance rate continues to climb, this week hitting 68 per cent on the back of the higher volume of 488 properties listed for auction.
Of those, 274 results were reported, 230 sales were made (to the value of $228.5 million) while 64 properties were withdrawn.
Last week, 456 properties were listed for sale, resulting in a clearance rate of 64.9 per cent. Those figures were derived from 346 reported results, 262 successful sales (to the value of $233.4 million) and only 58 withdrawals.
In the same week last year, 483 properties were listed for auction, resulting in a clearance rate of 73.7 per cent. Of those, 404 results were reported, 333 sales were made (to the value of $480.4 million) and 48 properties were withdrawn.
Ray White results
Ray White reports the spring selling season kicked off strongly, with robust demand from buyers continuing across all markets on Saturday.
The group cleared 71.9 per cent of its auction stock at the weekend, with many auctions attracting huge numbers of bidders resulting in an average of 5.3 registered bidders across every lot in Australia.
Over the week the group booked 396 auctions (+9.4 per cent year on year) across Australia.
New South Wales
Ray White NSW Chief Auctioneer Alex Pattaro said the market showed no sign of slowing down.
“Today was a great way to launch into spring. On average, we had six registered bidders in Sydney, with three of them raising their hands to bid actively,” Mr Pattaro said.
“Just 13 per cent of this week’s scheduled auctions converted to private treaty which is a clear indication there is plenty of activity in the market.
“Some 95 per cent of conducted auctions had active bidding, which again suggests strong activity.
“It was an impressive week to round out the winter months. We saw consistent data across all metrics for NSW, laying a strong foundation for the spring and summer months to come.”
Victoria
As Victoria moves closer to what is expected to be the easing of restrictions in two weeks, Ray White noted buyers remain out in force.
A lack of listings and auctions mean those available are attracting virtual crowds, with buyers undeterred by Stage 4 and Stage 3 restrictions.
“With volume of auctions lower than what we would typically see at this time of year, vendors who chose to run their campaign to auction were on average well rewarded, with a 83 per cent clearance rate today, with five from six selling at online auctions,” Ray White stated.
Ray White Victoria CEO Stephen Dullens said auctioneers once again called auctions from their homes this week, and the online space continued to provide convenience for customers.
“This was evident for our two successful auctions in Warrnambool, with each of the Melbourne based vendors being able to tune in and watch the auction live from their home under Stage 4 restrictions,” Mr Dullens said.
“Outside the auction space, the market remains strong. In Stage 4 and Stage 3 restrictions, the Ray White group have once again transacted in excess of 100 properties in the last seven days – again proving the resilience of the market.
“Buyers remain out in force and prepared to bid and offer in excess of owners expectations to secure one of a lower number of listings available.
“With much activity behind the scenes and many listings expected to hit the market in the weeks after restrictions ease, sentiment in the market remains high.”
Queensland
Ray White QLD Chief Auctioneer Mitch Peereboom said there had been some stand-out sales across the course of the week in the Sunshine State.
“If you look at our average number of registered bidders, it has maintained in recent weeks. We’re very confident in our ability to create competition at the moment,” Mr Peereboom said.
“We are seeing more listings come to the market so we are more back to parity with where we were in 2019 – that hasn’t affected sales prices as of yet.
“We’re still seeing properties have multiple registrations with lots of buyers competing for the same stock, but that could change over the coming months as we see more come on, which is usually what happens traditionally in the spring selling season.
“If you look at our competition in terms of active bidding – again a stand-out – buyers are ready to bid, they’ve got their finance organised, and pre-approvals are an absolute high.
“So, take advantage of the conditions and come to the market at the end of September or earlier October for auctions during that period.
“We are so confident to recommend what we know is happening in the market now and certainly this is something we are discussing with so many of our customers who are considering coming to market now or later in the year, there really is no reason to wait.”
South Australia
Ray White South Australia Chief Auctioneer John Morris said Adelaide recorded a healthy clearance rate of 71.4 per cent for the day, and a campaign clearance rate of 80 per cent, with 7.6 average registered bidders this week.
“As the sun came out, so too did the yellow flags with 32 per cent of auctions this week being held by Ray White members across the state.
“Special mention goes to Jann Wilksch with 30 registered bidders in Enfield and Ray White Goolwa | Victor Harbor where Nathan Fry and Nici Godwin managed to get 10 registered bidders for a house in an area where there are normally no auctions.”
