NationalReal Estate Industry News

Clearance rate rises in busiest week of auctions since 2018

The busiest week of auctions since 2018 proved a major success, with the preliminary clearance rate sitting at 84.4 per cent after 3791 properties were taken to auction at the weekend.

CoreLogic noted this is the highest volume of auctions since March 25, 2018 when 3990 capital city homes went under the hammer.

It’s also a significant increase on last week when 2710 auctions were held across the capitals, and a rise on the same time last year when the 3289 properties were listed for auction, but many were later withdrawn due to COVID lockdown.

“The higher volumes saw the preliminary clearance rate strengthen, with 84.4 per cent of auctions recording a successful result – up from last week’s preliminary clearance rate of 82.0 per cent, which revised down to 80.9 per cent at final figures,” CoreLogic said.

“Over the same week last year, a final clearance rate of just 37.3 per cent was recorded across the combined capitals as withdrawal rates surged amidst COVID related restrictions.

“This week last year, 50.2 per cent of auctions were reported as withdrawn, while just 4.1 per cent of auctions have been reported as withdrawn so far this week.”

Melbourne

There were 1899 auctions held in Melbourne over the week, and of the 1663 results reported so far, 83.8 per cent have been successful.

Last week saw 1322 homes taken to auction across the city, returning a final clearance rate of 78.8 per cent.

This time last year, 1565 auctions were held across the city.

Sydney

Sydney was host to 1392 auctions this week, increasing from 1025 over the previous week, and 1279 this time last year.

The preliminary clearance rate came in at 89.1 per cent this week, increasing on the previous week’s preliminary clearance rate of 87.5 per cent, which revised down to 85 per cent at final figures.

“Sydney’s final auction clearance rate continues to maintain strength, holding above 80 per cent for the past seven weeks and once again this week is likely to be no different once final results are collected,” CoreLogic said.

The smaller capitals

Across the smaller auction markets, Canberra recorded the highest preliminary clearance rate at 86.3 per cent, followed by Adelaide at 73.9 per cent.

Auction volumes are set to fall next week due to the Easter long weekend, with CoreLogic currently tracking around 880 auctions across the combined capital cities, while the Easter period last year saw 634 homes taken to auction.

Domain results

Domain’s data also indicates the busiest auction week to date for 2021 has returned outstanding results, with 3118 auctions conducted in the major markets, resulting in a preliminary clearance rate of 84 per cent.

So far, results are in for 2294 of those auctions, with 1926 properties successfully selling (to the value of $1748.1 million), while 153 properties were withdrawn.

That volume is significantly higher than last week when 2197 properties went to auction, and the final clearance rate came in at 80.6 per cent.

Results were provided for 1996 of those auctions, with 1609 properties successfully selling (to the value of $1474.2 million), while 104 properties were withdrawn.

This week’s results also illustrate the stark contrast in market conditions compared to this time last year when 2820 properties were listed for auction but 1568 were withdrawn due to lockdown, with the clearance rate sitting at 34.8 per cent.

In the same week last year, results were provided for 2623 auctions, with only 914 properties selling (to the value of $1015.8 million).

Sydney

Sydney proved the standout achiever this week, with 1227 properties taken to auction, resulting in a preliminary clearance rate of 88.3 per cent.

So far, results are in for 865 of those auctions, with 764 properties successfully selling (to the value of $849.7 million), while 59 properties were withdrawn.

Last week, Sydney’s final clearance rate settled at 84.2 per cent after 857 properties went to auction.

Results were provided for 804 of those auctions, with 677 properties successfully selling (to the value of $771 million), while 41 properties were withdrawn.

In the same week last year, just 37.4 per cent of properties successfully sold after 1067 properties were taken to auction and 577 were withdrawn due to lockdown.

Results were provided for 1010 of those auctions, with only 378 successfully selling (to the value of $581 million).

Melbourne

Melbourne’s preliminary clearance rate is currently 81.2 per cent after a bump in volume saw 1593 properties taken to auction this weekend.

So far results are in for 1247 of those auctions, with 1013 properties successfully selling (to the value of $804.6 million), while 90 properties were withdrawn.

Last week, Melbourne’s final clearance rate settled at 77.3 per cent after 1123 properties went to auction. Results were provided for 1018 of those auctions, with 787 properties successfully selling (to the value of $603 million), while 55 properties were withdrawn.

This time last year, Melbourne’s clearance rate was 34.5 per cent after 1489 properties were listed for auction but 841 were withdrawn due to lockdown.

Results were provided for 1365 of those auctions, with only 471 properties successfully selling (to the value of $392.9 million)

Ray White results

The Ray White Group notes Super Saturday did not disappoint property sellers, with buyers out in force and pushing the national clearance rate to Ray White’s highest ever on record at 86 per cent across Australia.

The long awaited peak week of pre-Easter auctions saw the property group book 1050 auctions across Australasia this week, with 750 of those scheduled in Australia alone.

This was a record breaker by way of volume for the group and under the hammer clearance.

Ray White Group Managing Director Dan White said records tumbled, both in terms of auctions scheduled and also for the number sold.

“There have been incredible scenes right around the country today but we don’t think these records will last long,” he said.

New South Wales

Ray White New South Wales Chief Auctioneer Alex Pattaro said Super Saturday certainly lived up to the hype.

The network’s Sydney members cleared a whopping 96 per cent of their 153 auctions across the harbour city.

The preliminary data shows there were nine registered bidders per auction in the NSW capital too.

“We saw huge numbers of buyers at our auctions and open for inspections. There were strong registered bidders at auction competitions today. Auctions reinforce that our sellers are obtaining the best price and outcome for their properties on auction day,” Mr Pattaro said.

“Sellers obtain a far better price at auction, than during the auction campaign. The strength in competition on the auction day is there. We expect to see more stock come to market after Easter so sellers need to be aware that the market and prices we are seeing now is the best in decades.

“Buying and selling within the same market, always seems to be the sweet spot.”

Victoria

Markets across Melbourne continue to outperform week after week, with a preliminary clearance rate of 85 per cent, leading to hundreds of homes exchanging hands across the city.

This week produced the largest number of auctions across Victoria that Ray White Group have ever conducted, with more than 250 scheduled.

Despite the increase in auction numbers and changeable Melbourne weather, buyers remained well and truly out in force.

Ray White Victoria CEO Stephen Dullens said preliminary results showed the average Ray White auction had more than three active bidders, similar to previous weeks, despite the significant increase in auction numbers.

“We’ve seen well and truly smashed reserve prices as buyer demand continues to surge.”

Queensland

In the aptly named Sunshine State, hammers dropped all over Brisbane with prices soaring above their reserves.

Ray White Queensland Chief Auctioneer Mitch Peereboom said the week had seen an incredible number of registered bidders.

“The market is not slowing down, in fact it is speeding up. Right now the sale prices that we are achieving through competition are massive,” Mr Peereboom said.

“Our main advice to vendors is to not sell to the first buyer that comes along; hold it out to auction, get buyers in competition with each other and get the best price.”

South Australia

In Adelaide, John Morris said the clearance rate in Adelaide was sitting at 94 per cent for last week and it was looking to be much the same this weekend.

“I feel like a broken record at the moment, constantly talking about breaking records in South Australia!” Mr Morris said.

“There are fantastic numbers out there on the streets, and I think it is just a taste of what’s to come for the rest of the financial year.”

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