Industry NewsNationalReal Estate Industry News

Clearance rate down slightly as volume decreases due to long weekend

Auction volumes were lower this weekend, as much of Australia enjoyed a public holiday, and that saw the clearance rate also slip marginally to just under 70 per cent

CoreLogic reports 657 homes were taken to auction, down from the 1082 auctions held last week.

Of the 530 results collected so far, 69.3 per cent were successful, only slightly lower than last week’s preliminary figure of 70.5 per cent, which by final collection on Wednesday revised down to 64.2 per cent.

Over the same week last year, a final clearance rate of 67.6 per cent was reported across a higher 1324 auctions. At that stage Melbourne carried much of the market as Sydney enjoyed a long weekend.

Melbourne

This year, activity remains close to record lows in Melbourne with 57 scheduled auctions this week. This was a slight increase on the 40 auctions last week and only 11 auctions held two weeks ago.

Of the 49 results collected so far, 31 were successful and one third of auctions (16), were withdrawn, equating to a preliminary clearance rate of 63.3 per cent.

Almost two thirds (61.3 per cent of sold results), reportedly sold prior to the scheduled auction event.

One year ago, 775 Melbourne homes were auctioned with 70.5 per cent selling.

“As restrictions ease across Melbourne we are expecting auction numbers to rise substantially,” CoreLogic stated.

Sydney

Sydney accounted for 66 per cent of all auction activity this week with 435 auctions held across the city.

Volumes were lower over the week after last week recorded the busiest week this city has seen since April (812).

Of the 354 results collected so far, 259 were sold, providing a preliminary clearance rate of 73.2 per cent.

This time last year, Sydney recorded a final auction clearance rate of 74.75 per cent, across a lower 317 auctions.

The smaller capitals

Across the smaller markets, Canberra recorded the highest preliminary clearance rate of 75.6 per cent, followed by Perth (62.5 per cent), Adelaide (62.1 per cent), and Brisbane (48.8 per cent).

Domain results

Domain also reported a preliminary clearance rate of 70 per cent, on the back of decreased volume due to the long weekend in many states.

This week their figures indicate 470 properties were listed for auction across the capitals, with results for 330 of those auctions provided. So far, 231 properties have sold (to the value of $212.1 million), and 52 were withdrawn.

Last week, Domain’s final clearance rate revised to 62.2 per cent, after 922 properties were listed for auction. Results were provided for 845, with 526 properties selling (to the value of $443.7 million), and 145 were withdrawn.

In the same week last year, the volume was significantly higher with 1067 properties listed for auction, and a clearance rate of 64.9 per cent. Breaking that down, results for 939 auctions were provided, 609 properties sold (to the value of $539.5 million) and 49 properties were withdrawn

Sydney

Sydney again drove much of the market action this weekend, as Melbourne continues to return after recent inspection restrictions lifted.

This week Sydney clocked up a preliminary clearance rate of 72.1 per cent on the back of 348 properties listed for auction.

Results for 262 of those properties have so far been provided with 189 selling (to the value of $187.1 million), and 42 were withdrawn.

Last week, Sydney’s final clearance rate came in at 64 per cent, with 732 properties listed for auction. Results for 672 were provided, 430 sold (to the value of $386.6 million), and 111 were withdrawn.

In the same week last year, Sydney returned a clearance rate of 72.4 per cent off the lowered volume of the long weekend, with only 201 properties listed for auction. Results for 174 were provided, 126 sales were made (to the value of $174.1 million), and 13 properties were withdrawn.

Melbourne

Melbourne is just beginning to gear up and resume auctions after a prolonged lockdown which saw in-person auctions and inspections off the table.

This week, they notched up a clearance rate of 61.1 per cent after 54 properties were listed for auction.

So far 18 results have been provided, with 11 sales made (to the value of $3.9 million), while seven properties were withdrawn.

This is an improvement on last week when just 33 properties were taken to auction, and the clearance rate came in at 23.3 per cent. Results for 30 of those auctions were provided, with seven selling (to the value of $2.2 million), and 17 were withdrawn.

In the same week last year, Melbourne was responsible for much of the market’s heavy lifting, with Sydney seeing lowered volume over their Labour Day long weekend.

At that stage, Melbourne notched up a clearance rate of 67.2 per cent from 759 properties listed for auction. Results for 668 were provided, 449 sales were made (to the value of $388.3 million), and just 29 properties were withdrawn.

Ray White results

Ray White noted the first Saturday of October appeared to have set the tone for another outstanding month ahead.

They recorded a 67.4 per cent national auction day clearance rate with 127 auctions booked for the first Saturday of the month. Average registered bidders were 5.2, while active bidding reached a healthy 3.1 per auction.

These numbers forecast another strong month after a record July through to September result for the real estate group.

New South Wales

In the country’s biggest auction market, Ray White New South Wales Chief Auctioneer Alex Pattaro said auction volume across the state was slightly down due to the long weekend but buyer activity continued to remain red hot.

“Registered bidders are holding firm at five, with three being active and we are seeing large Open for Inspection attendance on new stock,” Mr Pattaro said.

“Agents in the North Shore have reported 20-30 attendees turning up on sellers’ door steps.

“An abundance of competition, positivity and confidence are leading to stronger house prices and incredible clearance rates. We see no reason why sellers would hesitate to come to the market now.”

Victoria

Ray White Victoria | Tasmania CEO Stephen Dullens said last Sunday’s announcement from the Victorian government was welcome news for thousands of Victorians who have an urgent need to buy, sell or lease property.

“The return of private inspections in metropolitan Melbourne, with strict safety protocols, provides an opportunity for those with the greatest need to once again transact,” Mr Dullens said.

“In response to the announcements, market activity has been strong with our Ray White agents across Victoria launching close to 300 new listings to market since last Sunday.

“Thousands of private inspections have been conducted with buyers keen to recommence their property searches.

“While auction activity across Melbourne this week was low, those vendors who did choose to auction were certainly rewarded as evidenced by our preliminary clearance rate of 66.7 percent.

“We expect auction numbers to increase over the coming weeks as campaigns launch and confidence in the market builds.”

Still in the middle of the city’s lockdown, a handful of Melbourne auctions on Saturday made for some very happy buyers and sellers, Ray White reported.

Queensland

Ray White indicated a beautiful spring day in the Sunshine State saw great success for buyers and sellers, with some phenomenal results this long weekend.

Ray White Queensland Chief Auctioneer Mitch Peereboom said it had been another strong week of clearance for Ray White Queensland, with the number of average registered bidders holding just below four.

“We have had great results across multiple market segments; the sales from inner Brisbane apartments right through to prestige property,” he said.

“The standout auction for the week was in Palm Beach by Dion and Daniel from Ray White Tugun selling with 12 registered bidders, and again confirming the strength of the real estate market.

“If you are looking at selling, talk to your preferred Ray White agent and if you are looking at what time is appropriate, we are so confident to come to the market now with the activity we are seeing at our auctions.”

South Australia

Ray White South Australia Chief Auctioneer John Morris said auction numbers were low across South Australia this week but the network still had almost 50 per cent share of all auctions throughout the state.

“While preliminary clearance rates are just shy of 45 per cent, every other metric is in the positive,” he stated.

“Average bidder registrations are up, active bidders are up, auctions with no bidding have dropped quite significantly below 20 per cent and of the 222 auctions scheduled across the state for October, we are conducting 73 of them,” Mr Morris said.

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