A sharp drop in the number of withdrawn auctions in Melbourne and Canberra has resulted in the highest auction clearance rate since March this year.
CoreLogic reported there were 1631 properties taken to auction across the combined capitals this week, resulting in a clearance rate of 82.4 per cent, based on the 1330 results collected so far.
Last week there were 1672 properties taken to auction, with the final clearance rate settling at 75.1 per cent, while this time last year there were 1082 auctions, and 64.2 per cent successful
In Melbourne, 343 homes were taken to auction this week, down 5.8 per cent from the 364 originally scheduled.
Of the 254 results collected so far, just 16.1 per cent were withdrawn, pushing the preliminary auction clearance rate up to 77.2 per cent.
This was the highest preliminary clearance rate the city has seen since the week ending 23 May. Of the 196 sold results, 37.8 per cent were sold prior to the scheduled auction date.
Last week, 431 auctions were held across the city, but 35.9 per cent were reported as withdrawn, and 59 per cent of successful auctions were sold prior, resulting in a preliminary auction clearance rate of 56.4 per cent. This later revised up to 58.5 per cent at final figures.
This time last year just 40 auctions were held in Melbourne.
“Vendor confidence is improving with the return of one-on-one property inspections in Melbourne, and this can be seen in the lower withdrawal rates, leading to higher clearance rates,” CoreLogic noted.
There were 841 auctions held in Sydney this week, making this weekend the busiest auction week for the harbour city since late June.
Of the 747 results collected so far, 84.3 per cent were successful, which is the highest preliminary clearance rate Sydney has seen since the week ending 18 April.
Last week, 786 auctions were held in Sydney and the preliminary auction clearance rate was a lower 82.3 per cent, revising down to 80.5 per cent at final figures,
In the same week last year, 812 auctions were held and 65.4 per cent of reported auctions were successful.
The smaller capitals
Across the smaller auction markets, Adelaide was the best performing this week with a preliminary auction clearance rate of 87.7 per cent, followed by Canberra (85.9 per cent) and Brisbane (79.7 per cent).
In Perth, nine of the 12 auction results have been reported so far, with four successful results, while in Tasmania, one of the two auctions has been reported as sold.
Domain has reported a preliminary clearance rate of 83.3 per cent after 1155 properties were taken to auction nationally.
So far, results are in for 755 of those auctions, with 629 properties selling (to the value of $607.6 million), while 82 properties were withdrawn.
Last week, the clearance rate settled at 77.5 per cent after 1276 properties were taken to auction.
Results were provided for 974 of those auctions with 755 properties selling (to the value of $700 million) while 124 properties were withdrawn.
This time last year, the clearance rate was 63.9 per cent after 897 properties were taken to auction.
Results were provided for 854 of those auctions, with 546 properties selling (to the value of $777.9 million), while 135 properties were withdrawn.
Sydney’s preliminary clearance rate this week is 85 per cent after 641 properties were taken to auction.
So far, results have been provided for 467 of those auctions, with 397 properties selling (to the value of $440.8 million), while 43 properties were withdrawn.
Last week, Sydney’s final clearance rate was 80.5 per cent after 570 properties were taken to auction.
Results were provided for 517 of those auctions, with 416 properties selling (to the value of $479.3 million), while 55 properties were withdrawn.
This time last year, Sydney’s clearance rate was 65.9 per cent after 718 properties were taken to auction.
Results were provided for 674 of those auctions, with 444 properties selling (to the value of $700.3 million), while 101 properties were withdrawn.
Melbourne’s preliminary clearance rate has risen to 75.9 per cent after 269 properties were taken to auction.
Results were provided for 137 of those auctions, with 104 properties selling (to the value of $83.3 million), while 28 properties were withdrawn.
Last week, Melbourne’s clearance rate was 67.1 per cent after 435 properties were taken to auction.
Results were provided for 225 of those auctions, with 151 properties selling (to the value of $104.7 million), while 59 properties were withdrawn.
This time last year, Melbourne’s clearance rate was just 22.6 per cent after 26 properties were taken to auction. Seven of those sold (to the vale of $2.7 million), while 17 were withdrawn.
Ray White results
After an unseasonably hot winter, the auction market continues to sizzle across the country throughout the spring selling season in September, according to the Ray White Group.
The group recorded a preliminary auction day clearance rate of 84 per cent across the country on Saturday, with the standout city being Brisbane recording a 92 per cent clearance rate, closely followed by Melbourne sitting at a 91 per cent clearance after a tumultuous week.
Of the 246 scheduled auctions for Saturday, 136 proceeded to auction day, with 43 selling prior and 40 postponed to a later date.
The number of bidders was the hot topic of the day, with record crowds showing up onsite and online.
Average registered bidders sat at 8.2 nationally. Notably, an auction in Melbourne had 40 registered bidders online.
In this week’s economic update, Ray White Chief Economist Nerida Conisbee noted that the latest ABS data shows household wealth rose 5.8 per cent to a record $13,433.7 billion – the largest quarterly growth since December 2009.
This equates to wealth per person of just over $520,000.
“The data shows that on average, we are wealthier than we were prior to the pandemic, however your level of wealth is heavily impacted by whether you own property,” Ms Conisbee said.
In a trend that continues to become more evident week by week, sellers who took their property right through to auction day instead of selling prior, achieved a significant premium on the sale price.
New South Wales
As Sydney continues to endure tight restrictions, auctioneers carried on with their online auction method.
Ray White New South Wales Chief Auctioneer Alex Pattaro said he was still seeing high registered bidder numbers.
“There are more opportunities starting to come to market now, which is helping sellers alleviate their concerns around buying and selling in the same strong market,” Mr Pattaro said.
“Confidence is still high, and the prices we are seeing are still extremely strong. While seller expectation is growing, buyers are ensuring that these expectations are being met,” he said.
The top sale of the day was of 28 Oxley Ave, St Ives, which sold for $3,720,000 after six registered bidders tuned in online, vying for the architecturally designed oasis in Sydney’s leafy upper north shore.
The property sold significantly above reserve, and the winning bidders were a young local family.
After what has been a very dramatic week in Melbourne – including an earthquake – buyers and sellers carried on and still enjoyed a successful weekend under the hammer.
Ray White Victoria and Tasmania Chief Auctioneer Matt Condon said there was an unusually high number of auctions for a Grand Final weekend.
“We had an average of over seven registered bidders per auction, with plenty more onlookers tuning in to all of our online auctions this weekend,” Mr Condon said.
Ray White Victoria and Tasmania CEO Stephen Dullens said buyers, sellers and renters have wasted no time getting the market moving again.
“There’s no doubt that customers in Melbourne have eagerly awaited the return to physical inspections and with confirmation this week from the government that property marketing can once again recommence, this is great news for everyone that we can again operate,” Mr Dullens said.
“While the way the industry operates is slightly different, we certainly expect the strong spring conditions to continue right up to Christmas as buyers and sellers make up for lost time,” Mr Dullens said.
The heat of the Brisbane market was palpable this weekend, with Ray White Queensland Chief Auctioneer Gavin Croft saying Saturday was an amazing end to a very successful week of auctions.
“We are not seeing a change in the strong bidder behaviour that we have seen through this whole year, with incredible numbers of buyers still showing up and bidding strongly,” Mr Croft said.
In an epic result for Ray White Holland Park agent Sim Gill, a three-bedroom home at 28 Landor St, Tarragindi sold for $1,510,000, smashing the reserve by $210,000.
The hot auction drew in 30 registered bidders after an extremely successful campaign that saw 182 groups view the property.
“The winning bidders were a young couple. They have been looking for six months, and have been missing out constantly. They didn’t bid at all until the final call, which was an interesting strategy, but ultimately paid off for them,” Mr Gill said.
“I sold this home to a gentleman only two years ago for $765,000 and he has done a beautiful job renovating it, which is evident in the fact he almost doubled his money,” Mr Gill said.
“The original owners of the property lived here for around 50 years and they also came along today, and were absolutely in awe of the great renovation job.”
South Australians hit the streets of Adelaide in force on Saturday, with record bidder numbers for yet another week.
Ray White South Australia Chief Auctioneer John Morris said although the Grand Final might be held in Perth tonight, the real sport was happening on the ground in the Adelaide auction arena.
“Incredible numbers are coming out of the state, with a preliminary clearance rate of 86 per cent and average registered bidders at over nine,” Mr Morris said.
“We can’t see this changing anytime soon, with hungry buyers who are turning up in their drones, week after week” he said.