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Clearance rate lifts as on-site auctions ready for return

As auctions prepare to welcome back the public on-site, the clearance rate has enjoyed a boost. CoreLogic notes this week’s preliminary clearance bounced back to 64.5 per cent, marking the first time it has exceeded 60 per cent since late March.

Volumes on the other hand, remain subdued. The past weekend saw 473 auctions scheduled, which was down on the 612 auctions over the week prior when a preliminary clearance rate of 59.6 per cent was recorded and later revised down to 47.5 per cent.

“Of the 333 results collected this week, 22 per cent returned a withdrawn result, well below the withdrawal rate of 56 per cent recorded a few weeks ago when a much larger number of auctions were scheduled to proceed,” CoreLogic said.

The lower withdrawal rate is the main factor driving an improvement in clearance rates, however CoreLogic reflects they are also seeing a recent trend towards a higher proportion of homes selling ‘at’ auction, rather than prior to the event, implying vendors are becoming more willing to test the market under auction conditions.

“With news over the week that the ban on on-site auctions and inspections as a result of COVID-19 would now be lifted in NSW, WA and more recently announced in SA and Qld, along with a broader relaxation of social distancing policies, there’s likely to be a lift in confidence and volumes over the coming weeks,” they said.

Melbourne

There were 160 Melbourne auctions this week, returning a preliminary clearance rate of 60.3 per cent. This was an increase on the 57.7 per cent final clearance rate last week when a higher 217 auctions were scheduled.

Of the 116 results collected this week, 19 per cent were withdrawn and of the 70 sold results, 50 per cent sold prior to the scheduled auction date.

Sydney

Sydney returned a preliminary auction clearance rate above 70 per cent this week; the highest preliminary result since mid- March.

There were 209 auctions scheduled across the city, and of the 144 results collected, 21 per cent were withdrawn, while of the 102 sold results, 45.1 per cent sold prior to auction.

Across the smaller capital cities Adelaide returned the highest preliminary clearance rate of 61.9 per cent, followed closely by Canberra (61.8 per cent).

Domain results

Domain reported a similar lift in the clearance rate this week, with 58 per cent of properties sold. They noted 308 properties were listed for auction, 153 were reported, 123 properties were recorded as sold for a collective value of $75.6 million. Meanwhile, 29 properties were withdrawn.

Although the volume was down significantly on last year when 1,028 were listed for auction, the clearance rate this week was actually higher.

Of the 847 results reported in the same week last year, 466 were recorded as sold at a collective value of $444.9 million and 79 properties were withdrawn.

Meanwhile Domain also flagged Sydney as the standout performer in the most recent results. This week the Sydney clearance rate was 68.1 per cent, compared to 47 per cent last week and 54.3 per cent last year.

Domain said 143 auctions were listed, 73 results were reported with 64 properties selling for a combined value of $45.5 million. Twenty-one properties were withdrawn. Last year 373 auctions were listed, 279 results were reported, 49 properties were withdrawn, and 178 sold for a combined value of  $213.8 million.

In Melbourne this week, 115 auctions were listed, 53 results were provided and 39 properties sold for a combined value of $20.3 million and a clearance rate of 47.6 per cent. Twenty-nine properties were withdrawn. This time last year 510 auctions were listed, 443 results were reported, 20 properties were withdrawn and 233 sold for a combined value of $195.6 million.

Ray White results

Ray White is also reporting renewed confidence in the market as bidders and vendors welcomed the return of on-site auctions in New South Wales with physically-distanced open arms.

They reported energy surrounding the property market re-ignited with incredible deals and ferocious bidding.

This week Ray White booked a preliminary auction day clearance rate of 74.1 per cent as Sydney stole the show with a 100 per cent of properties sold.

Ray White Group Managing Director Dan White said the strong number of registered bidders was a sign of confidence flowing back into the market.

“The feedback I’ve received is both bidders and buyers have overwhelmingly embraced the return of on-site auctions and some outstanding results have been achieved today,” Mr White said.

“You could feel the rise in confidence on the ground – and although physically distanced – there was a real togetherness during the auctions today.

“The success of online auctions were clear too as some agents opted to run a ‘best of both worlds’ day with auctions running both online and on-site with parallel success.

“We can look forward to more restrictions being lifted and on-site auctions returning around the country in the near future – but as of right now – the on-site auction market is very much re-ignited in Sydney.”

New South Wales

Ray White NSW Chief Auctioneer Alex Pattaro said the return of open for inspections and on-site auctions had started off with a bang.

“Some agents are reporting a higher level of inquiry and buyer activity with open for inspection attendances strong,” Mr Pattaro said.

“Auctions across Sydney have also seen wonderful results with our preliminary data showing average registrations per auctions move north to five.

“The number of active bidders on average has also climbed to four – these are the highest sets of numbers we’ve seen since pre-COVID.”

Victoria

Ray White Victoria and Tasmania Chief Auctioneer Matt Condon said the online auction space hit yet another level at the weekend.

“Our preliminary data shows a significant increase in the number of registered bidders per auction and a spike in online crowd size,” Mr Condon said.

“Of the properties auctioned today, we’ve certainly seen a lot more competition and competitive bidding in comparison to normal, with buyers doing everything they could to win.

“Of the few properties that didn’t sell under the hammer, it was encouraging to see the gap between the highest bid and the reserve price was a lot closer than recent weeks.”

Queensland

In the Sunshine State, Ray White QLD Chief Auctioneer Mitch Peereboom said the easing of restrictions from the State and Federal Government this week had been welcomed.

“This has injected more positivity and more energy into the marketplace and we averaged four registered bidders per auction over the course of the last seven days,” Mr Peereboom said.

“With auction volumes down over the last few weeks, we’re very excited and energised around the building of that volume into the end of May, through to June.”

South Australia

Ray White SA Chief Auctioneer John Morris said although restrictions were being lifted from Monday, there could still be some restraints with the 10-person limit.

“Our average registered bidders per auction are sitting at 7.2 so we’re just pushing that boundary there,” Mr Morris said.

“My first auction for the day had nine registered bidders, so that will increase the average as a whole, so I think online auctions may still be with us for some time yet.”

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Cassandra Charlesworth

Cassandra Charlesworth is a features writer for Elite Agent Magazine with over 15 years’ journalism experience in metropolitan and regional newsrooms. She has a specialist interest in real estate, tech disruption and a good old-fashioned “yarn”.