Industry NewsNationalReal Estate Industry News

Higher auction volumes again weighed down by withdrawals

Scheduled auction volumes increased this week, almost trebling in numbers after the Easter weekend, but as seen in previous weeks the results were weighed down by withdrawals, with the clearance rate coming in at 39.1 per cent.

Across the capitals 1848 properties were listed for auction compared to 634 the week prior, according to CoreLogic’s figures.

Of the 356 properties that did report a sold result, 64 per cent sold prior to the auction date while initial results indicate 50 per cent of all results were recorded as being withdrawn.

“It’s important to note however, the number of auction results collected at a preliminary stage are lower than usual as we seek to confirm the status of scheduled auctions,” CoreLogic stated.

“Despite the increase in volumes over the week, the existing challenges around new policies banning onsite auctions and inspections are still impeding on activity across the auction market.

“As confidence remains low and circumstances uncertain, it’s expected that fewer vendors will elect auction as their preferred method of sale and either convert to private treaty method or hold off on selling all together and scheduled volumes will likely decrease over the coming weeks.”

Across the capitals, Melbourne saw the highest volume with 975 homes scheduled to go under the hammer this week, returning a preliminary success rate of 39.7 per cent.

“The clearance rate was heavily impacted by 53 per cent of auctions withdrawn from the market, while 73.2 per cent of the successful Melbourne auctions were actually sold prior to the scheduled auction date,” CoreLogic noted.

In Sydney, there were 709 auctions scheduled this week, returning a preliminary clearance rate of 39.8 per cent.

“Similar to Melbourne, the clearance rate was skewed lower by a large proportion of withdrawn auctions with half of the results collected this week reported as being withdrawn. Of those auctions that were successful, 60.2 per cent were sold prior to the scheduled auction event,” CoreLogic said.

In the smaller cities, Canberra continued to outperform the remaining capital cities with a 66.7 per cent preliminary success rate and the lowest rate of withdrawn auctions (25 per cent).

Domain’s results

Initial results from Domain also painted a sobering picture of the weekend auction results.

Of the 1639 properties listed for auction, 546 reportedly proceeded to auction, 852 were withdrawn and 452 sold. Domain reported a national preliminary clearance rate of 32.8 per cent totalling $237.3 million nationally.

This was up on the weekend prior when a clearance rate of 26.7 per cent was recorded nationally and $13.9 million worth of property was sold under the hammer.

Like CoreLogic, Domain’s figures indicated Sydney had the higher clearance rate while Melbourne had the better volume.

Sydney saw 692 properties listed for auction, 255 auctions were reported, and 205 properties sold, while 305 were withdrawn, resulting in a clearance rate of 36 per cent.

The most expensive auction price went to McGrath Coogee where a three-bedroom house at 59 Roscoe Street, Bondi Beach sold for $3.42 million.

In Melbourne, there were 834 properties listed for auction, 242 auctions were reported, 221 were sold and 500 were withdrawn, resulting in a clearance rate of 29.8 per cent.

The most expensive property there was 22 Waldemar Road, Eaglemont which was sold by Miles Real Estate Ivanhoe for $2 million.

Ray White Results

Over at Ray White things took a more optimistic turn, with the brand reporting a 45 per cent clearance rate nationally including a suburb townhouse record at Mulgrave in Victoria.

They noted the record townhouse result headlined a day where bidders and buyers showed real confidence in the ‘new normal’ of online auctions.

Overall they enjoyed a preliminary under the hammer clearance rate of 45 per cent across the country but the campaign clearance number climbed to a healthy 54.2 per cent once all the sold priors were accounted for in this week’s tally.

Ray White Group Managing Director Dan White said auction numbers compared to last year were down but there were plenty of reasons to be positive.

“What is well up on last year, is the number of average registered bidders per auction, increasing from 2.5 to 3.9 for each auction today,” Mr White said.

“There has been a tremendous consistency in genuine buyer interest right across the Australian metropolitan markets both before and during the pandemic.

“The key message from our auctioneers is, those registering, are genuine and are actively bidding.

“We’re already seeing bidding activity and confidence increase as agents and the community become more familiar with online auctions.”

New South Wales

Ray White NSW Chief Auctioneer Alex Pattaro said this weekend saw some excellent results and there was a sense of growing positivity around online auctions.

“There has been a real shift in sentiment this week as buyers and vendors get accustomed to the ‘new world’ of online auctions – and it’s pleasing to see our clients feeling more comfortable than ever with the platforms we use,” Mr Pattaro said.

“Agents, auctioneers, vendors and buyers have adapted to this new way of buying property and the feedback we’re seeing is overwhelmingly positive. Some are genuinely enjoying the ability to be able to bid and buy from the comfort of home.

“The really important thing is agents are still following the same process as if it was an on-site auction – and they’re keeping that emotional connection with their clients throughout the auction with constant communication.

“Registered bidder numbers are strong, sitting at an average of nearly four per auction and just over two are participating in an auction on average. That highlights the competitive nature of auctions is just as strong as ever before.”

Victoria

In Victoria, Ray White Victoria and Tasmania Chief Auctioneer Matt Condon also noted it had been a successful week when it came to online auctions.

“It’s great to see confidence in the Victorian property market remains but it’s even more pleasing to see the newfound confidence of purchasing properties via online auction,” Mr Condon said.

“Our preliminary data is showing us an increase in both the number of registered bidders and number of active bidders on average this week, which is really great to see.

“Buyers are now bringing their bidding strategies online. We’re seeing auctions starting nice and high, with buyers bidding back and forth against their competition.”

And that competition was one of many factors as 65B Lebanon Crescent in Mulgrave, managed by Ray White Glen Waverley Partner Marc Lum and Area Manager Ryan Zhu, smashed the suburb townhouse record after selling for $1,146,000.

“The previous record price for a townhouse in Mulgrave was $1,000,000 at the height of the market back in 2017 – so to beat that by $146,000 in a market that is said to be uncertain during this health pandemic – is quite remarkable,” Mr Lum said.

“We love the online auction platform and our office actually sold six out of nine properties under the hammer today – we can clearly see emotional bidding is still there online.

“The eventual winning bidder didn’t actually bid until the property was declared on the market and then it was a real tug of war between her and the under-bidder.

“Our marketing for the property was also well-received as we created a 10-minute long in-depth video that made you feel like you were there actually inspecting the property.”

Queensland

Ray White QLD Chief Auctioneer Mitch Peereboom said agents, buyers and sellers were adapting to, and embracing the online auction system.

“We’re seeing a number of properties that are transacting through the platform and buyers are certainly willing to compete unconditionally,” Mr Peereboom said.

“That great thing is sellers get to watch the auction and that allows them to make informed decisions and as agents we can continue to conduct the process as we always have.

“What’s really encouraging is that a number of properties that are coming to market are still choosing auction as the method of sale and these are poised to produce some great results.”

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