With one-on-one inspections now permitted in Melbourne, auction volumes have increased slightly this week while the combined capital preliminary clearance rate also edged higher to 74.6 per cent.
CoreLogic reported 1835 properties were taken to auction nationally this week, up from 1453 over the previous week and 915 this time last year.
Of the 1419 results collected so far, they noted 74.6 per cent were successful.
The previous week saw a preliminary auction clearance rate of 72.3 per cent, which revised up to 73.7 per cent at final figures. This time last year, 67.6 per cent of auctions were successful.
The resumption of one-on-one property inspections saw Melbourne’s withdrawal rate fall to its lowest level since the week ending August 15, and the clearance rate has risen marginally as well.
This week, 565 homes were taken to auction in Melbourne, resulting in a preliminary clearance rate of 56.4 per cent.
The volume was down 10.2 per cent from the 629 originally scheduled. Of the 383 results collected so far, 39.9 per cent were withdrawn, and of the 216 sold results, 59.7 per cent were sold prior to the scheduled auction date.
Last week, 386 auctions were held across the city, resulting in a preliminary clearance rate of 54.4 per cent, which revised up to 55 per cent at final figures.
In the same week last year just 11 auctions were held.
“It’s likely the Melbourne withdrawal rate will continue to fall as vendor confidence improves in line with the eased restrictions,” CoreLogic said.
Sydney enjoyed its busiest auction week since Late June, with 796 auctions held in in the harbour city, compared to 661 the previous week and 677 over the same week last year.
Of the 693 results collected so far, 82.3 per cent were successful.
Last week, Sydney’s preliminary auction clearance rate was slightly higher (83.8 per cent), revising down to 82.8 per cent at final figures, while this time last year, 67.5 per cent of reported auctions were successful.
The smaller capitals
Across the smaller auction markets, Perth was the best performing this week with a preliminary auction clearance rate of 90 per cent, based on 10 results.
Adelaide recorded a preliminary auction clearance rate of 85 per cent, followed by Brisbane (82.6 per cent) and Canberra (78.6 per cent).
In Tasmania, two of the three auctions reported so far were successful.
Domain has reported a preliminary clearance rate of 80 per cent after 1272 properties were taken to auction.
So far, results are in for 766 of those auctions, with 613 properties selling (to the value of $568.5 million), while 117 properties were withdrawn.
Last week the clearance rate settled at 78.3 per cent after 1152 properties were taken to auction.
Results were provided for 805 of those auctions, with 630 properties selling (to the value of $611.4 million), while 97 properties were withdrawn.
This time last year, the clearance rate was 65.4 per cent after only 718 properties were taken to auction.
Results were provided for 682 of those auctions, with 446 properties selling (to the value of $627.3 million), while 79 properties were withdrawn.
Sydney’s preliminary clearance rate is sitting at 83.7 per cent this week after 569 auctions were held.
So far, results have been provided for 423 of those auctions, with 354 properties selling (to the value of $409.4 million), while 51 properties were withdrawn.
Last week, the final clearance rate was 79.5 per cent after 510 properties were taken to auction. Results were provided for 453 of those auctions, with 360 properties selling (to the value of $404.3 million), while 46 properties were withdrawn.
This time last year, Sydney’s clearance rate was a lower 65.4 per cent after 580 properties were taken to auction.
Results were provided for 546 of those auctions, with 357 properties selling (to the value of $553.1 million), while 71 properties were withdrawn.
Melbourne’s preliminary clearance rate this week is 66.7 per cent after 434 properties were taken to auction.
Results have so far been provided for only 195 of those auctions, with 130 properties selling (to the value of $85.4 million), while 56 properties were withdrawn.
Last week, Melbourne’s final clearance rate was 76.1 per cent after 417 properties were taken to auction.
Results were provided for 184 of those auctions, with 140 properties selling (to the value of $109.7 million), while 34 properties were withdrawn.
This time last year Melbourne’s clearance rate was sitting at zero after only seven properties were taken to auction. Four of those sold (to the collective value of $2.3 million).
Ray white results
The Ray White Group noted all eyes were on Melbourne this weekend as private inspections returned after weeks of strict lockdown.
“The flurry of activity from both buyers and sellers only points to one thing, a bumper spring selling season delayed but firmly on the way,” they said.
Throughout the rest of the country, auction metrics were similarly encouraging and have continued to be strong.
Nationally, the Ray White Group recorded an 87 per cent clearance rate while average registered bidders sat at 10.4 and active bidders came in at 4.5.
“Perhaps one of the most telling numbers of the day was the price gap between those auctions that sold prior and those that made it to game day,” the Ray White Group reported.
“On average, Ray White properties that sold under the hammer achieved 13.43 per cent more than the auction listings that were sold prior. In many cases that represented more than $100,000 on top of the final sale price.”
The real estate market once again sprung to life in Melbourne with physical inspections permitted from Saturday.
Ray White Victoria and Tasmania CEO Stephen Dullens explained how this would once again get Melbourne’s spring market going.
“With physical inspections only permitted in Melbourne for nine days since the middle of July, the news that private inspections would once again be allowed has certainly been welcomed by customers and agents alike,” Mr Dullens said.
“While we have adapted to the online world, there is no replacement for physically walking through the home before making the major decision to purchase or bid at auction.
“This news will once again ignite the real estate market for spring and we are very excited to assist our customers again, even if it will be in a different format to traditional open homes for the near future.”
Despite physical auctions not being able to take place, Mr Dullens said he doesn’t expect this to slow down the market revival.
“In the last 18 months we’ve seen many changes within the real estate sector. Across Victoria, Ray White has called well in excess of 4000 online auctions – in fact, our clearance rate of online auctions is higher than those called on-street,” he said.
“We’re expecting one of our strongest ever spring markets with online auctions being a huge part of this, while minimising movement and guaranteeing community safety.
“We certainly appreciate the engagement with government in recent weeks and allowing us to work through what we believe were the right settings to once again assist our customers, while most importantly ensuring the right public health protections are in place.”
Ray White Victoria and Tasmania chief auctioneer Matthew Condon said this weekend has seen a significant increase in auction volumes since the announcement that private inspections could once again be conducted in Melbourne.
“It was a busy morning on the ground with today being the very first day that interested buyers and bidders could inspect their desired property before returning home to bid at the online auction,” Mr Condon said.
“Preliminary data from the Ray White Group has revealed an increase in both registered and active bidders today. This was evident with all online auctions experiencing high levels of competition.”
New South Wales
Ray White New South Wales chief auctioneer Alex Pattaro said the high number of registered bidders on Saturday resulted in strong property prices under the hammer.
“Competition at auctions continues to be the key in order to obtain the best price. We’re obtaining roughly 12 per cent more under the hammer versus pre-auction offers. I believe we will continue to see this trend throughout the remainder of spring.,” Mr Pattaro said.
“There are plenty of opportunities for both sides of the transaction to buy and sell and those who are active in the market are reaping the rewards.”
Ray White Queensland chief auctioneer Gavin Croft said following a Brisbane clearance rate last week of 95.5 per cent for Ray White, he is again expecting similar results.
“On a personal note, I again recorded 100 per cent clearance rate and average registration personally per auction of 7.5 registered bidders and all properties selling well in excess of the reserve prices for another weekend,” Mr Croft said.
“The energy and the momentum that is in the current market here in Brisbane at the moment is as good as what we’ve ever seen.
“But again, based on the numbers of auctions still coming through, while we are seeing some increases, it’s certainly still not enough to keep up with demand.”
Ray White South Australia chief auctioneer John Morris said yet again the auction market was a sea of yellow in Adelaide.
“We hold a 35 per cent share of all auctions for the week and it is a record breaking week as well in South Australia,” Mr Morris said.
“Last week we had some great numbers, 97.4 per cent of all auctions had bidding. Bidder registrations were above 10 on average per auction and we had a clearance rate of 88.4 per cent.
“It’s looking pretty much the same again this week.”