Auction markets remained subdued this week, with just 1610 properties going under the hammer across the combined capitals, resulting in a preliminary clearance rate of 58.6 per cent.
While volumes were down 14.4 per cent on last week and 23.3 per cent lower than the 2104 auctions that took place this time last year, the initial success rate inched higher.
Last week saw the lowest preliminary clearance rate since April 2020 at 55 per cent, but this week 58.6 per cent of the 1264 results collected so far have been successful.
CoreLogic noted last week’s preliminary rate was revised down to a final rate of 53.2 per cent while this time last year 73.7 per cent of auctions reported a successful result.
Sydney
Flooding in Sydney’s west and south east saw auction activity in the harbour city down 19.3 per cent compared to the previous week, and also 8.4 per cent lower than this week’s initial estimate of 666 auctions.
Of the 610 homes that were auctioned this week, 487 results have been collected so far, returning a preliminary clearance rate of 57.5 per cent.
“Compared to last week’s preliminary rate of 52.5 per cent, which was revised to 49.9 per cent at final figures, this week’s rate is up five percentage points,” CoreLogic said.
“Over the same week last year, 74.3 per cent of the 650 auctions held were successful.”
Melbourne
Melbourne hosted 603 auctions this week, down 7.8 per cent on the previous week and 44 per cent below the number of auctions recorded this time last year when 1076 auctions took place.
With 500 results collected so far, 59.4 per cent reported a successful result. This is 2.6 percentage points higher than the week prior (56.8 per cent).
Last week’s preliminary rate revised to a final rate of 55.8 per cent while this time last year 71.2 per cent of auctions reported a successful result.
The smaller capitals
Across the smaller capitals, Adelaide had the busiest auction week, hosting 159 auctions, followed by Brisbane (143) and Canberra (88).
Both Adelaide and Canberra recorded a preliminary clearance rate of 68.6 per cent, while Brisbane recorded the lowest preliminary clearance rate since mid-November 2020 at 43.6 per cent.
None of the three results collected so far across Perth were successful, while one of the two auctions held in Tasmania recorded a successful result.
Domain results
Domain has reported a preliminary clearance rate pf 55.1 per cent after tracking 1355 auctions across the major capitals.
So far, results are in for 881 of those auctions, with 485 properties selling (to the value of $413.1 million), while 193 auctions were withdrawn.
Last week, the national clearance rate settled at 52.3 per cent after 1427 auctions took place.
Results were provided for 1190 of those auctions, with 622 properties selling (to the value of $457.3 million), while 192 properties were withdrawn.
This time last year, the clearance rate was 71.7 per cent after 1924 properties went to auction.
Results were provided for 1714 of those auctions, with 1229 properties selling (to the value of $1529.9 million), while 242 properties were withdrawn.
Sydney
Sydney’s preliminary clearance rate is 54.5 per cent this week after 562 properties went to auction.
So far, results are in for 341 of those auctions, with 186 properties selling (to the value of $178.3 million), while 115 properties were withdrawn.
Last week, Sydney’s final clearance rate was 48.6 per cent after 620 properties went to auction.
Results were provided for 518 of those auctions, with 252 properties selling (to the value of $202.6 million), while 133 properties were withdrawn.
This time last year, Sydney’s clearance rate was 72.6 per cent after 738 properties went to auction.
Results were provided for 565 of those auctions, with 410 properties selling (to the value of $732.2 million), while 123 properties were withdrawn.
Melbourne
Melbourne’s preliminary clearance rate is 54.5 per cent after 552 properties went to auction this week.
So far, results are in for 393 of those auctions, with 214 properties selling (to the value of $177.3 million), while 59 properties were withdrawn.
Last week, Melbourne’s final clearance rate was 52.6 per cent after 536 properties went to auction.
Results were provided for 458 of those auctions, with 241 properties selling (to the value of $172.9 million), while 47 properties were withdrawn.
This time last year, Melbourne’s clearance rate was 68.8 per cent after 941 properties went to auction.
Results were provided for 921 of those auctions, with 634 properties selling (to the value of $629.9 million), while 97 properties were withdrawn.
Ray White results
The Ray White Group remained positive about the auction method of sale this week, noting their data indicated it continued to defy the headlines and produce outstanding results for sellers.
“Exclusive Ray White data shows that today’s auction sellers across Australia received on average more than 10 per cent more for their property under the hammer, than by accepting the highest prior offer,” the group reported.
“The owners of a Darlinghurst renovator took their property to auction today in inner city Sydney and it sold for 30.8 per cent more than the highest offer prior at $1.365 million.”
Ray White Touma Group principal Charles Touma said there were still cracking auctions taking place in the market, but he sensed buyers were fearful of overpaying.
The group reported a 63 per cent preliminary national clearance rate based on 207 properties that went under the hammer on Saturday, with an average of 3.6 registered bidders per auction, and 2.4 actively bidding.
The same Saturday last year had a 75 per cent clearance rate.
Taking out the top spot for the capital cities today was Melbourne, which achieved a 75 per cent clearance rate.
The highest sale of the day was a beautifully renovated Queenslander home at 14 Inverness Street in Ascot, which sold under the hammer for $3,650,000 through Ray White New Farm’s Matt Lancashire and Annette Richards.
The group noted feedback from agents and auctioneers across the country indicated the auction method was far and away the best format to sell a property to a somewhat apprehensive marketplace.
“There is no better way to get a bearing of a property value than taking it to auction. In a slowing market, private sales often sit stagnant for a longer period of time,” Ashley Weston from Ray White Frankston said.
In the latest Ray White economic update, William Clark said the luxury home market was still riding high.
“Sydney has taken up the lion’s share of luxury sales in the last 12 months, with Mosman the most frequent suburb amongst these sales with 222 sales in the last year,” he said.
“Units, while recording more subdued numbers, have seen extraordinary growth in this price bracket, with frequent sales from Gold Coast, Sydney, Melbourne and Brisbane.”
Sydney
Ray White New South Wales chief auctioneer Alex Pattaro said despite the winter school holidays, buyers were still turning up looking to secure their home.
“The Sydney market is currently reflective of the mid-winter time of year that we are in,” Mr Pattaro said.
“Despite the predictions of doom and gloom, we are finding that buyers have already factored in current and future interest rate rises, which is reflected in the prices they are offering.
“The good news is that sellers in the market want to sell, and are listening closely to how the market is performing,” he said.
Melbourne
Despite the chill in Melbourne on Saturday, buyers and crowds alike still turned up in force for another solid week of auction volume for the Ray White.
Ray White Victoria Chief Auctioneer Matthew Condon said the preliminary data from the Ray White group revealed an average of over three confirmed bidders per auction across Victoria.
“Sellers that choose to meet the market during their campaign are being rewarded with more inspections, bidders and ultimately a good result on auction day,” he said.
“Although it was noticeable that buyers were hesitant to proactively start and engage immediately at auction, it is evident that the more bidders and competition a property has, the more confidence buyers have to purchase. This social proof is a key element to achieving a premium price at auction.
“Also, during the auction when properties are announced ‘on the market’ we are continuing to see competition and momentum past that point the majority of the time.”
Brisbane
Ray White Queensland chief auctioneer Gavin Croft said nervous sellers were taking offers prior to auction.
“Buyers are still putting their best food forward but are practising caution” Mr Croft said.
“We are also seeing strong participation from bidders at auction. I am particularly noticing a lot of strength in Brisbane’s market on the southside,” he said.
Adelaide
Ray White South Australia and Northern Territory chief auctioneer John Morris said while there may be a lot of talk of doom and gloom, South Australia is faring somewhat better than interstate counterparts.
“We have had an average of approximately five registered bidders per auction. One metric that I have found very interesting is the auction day clearance rate in South Australia,” he said.
“Of the 180 auctions in South Australia last week, 54 of them were Ray White auctions with a collective clearance rate of 69 per cent but, the Ray White clearance rate was 74 per cent.”
