With Melbourne still out of the picture, the remaining capitals have clocked up their highest combined preliminary clearance rate since March, coming in at 72.4 per cent.
This is well above last week’s preliminary success rate of 67.3 per cent, which later revised down to 63.0 per cent at final figures, while CoreLogic notes this time last year, a final clearance rate of 70.7 per cent was recorded across the combined capitals.
“There were 918 homes taken to auction over the week, up from 816 over the previous week, although significantly lower than this time last year (1983),” CoreLogic said.
The reduced national volume is due to continued restrictions in Melbourne where just 11 homes were taken to auction over the week.
“Of the results collected so far, all seven were successful, with five reported as selling prior to auction and two selling on the day,” CoreLogic said.
“Over the previous week, 13 auctions were held across the city, while this time last year, 1020 Melbourne homes were taken to auction.”
CoreLogic said auction numbers are expected to rise off their record lows next week, with 60 auctions currently scheduled to be held.
Sydney was host to 679 auctions this week, up from last week when 600 auctions were held, and higher than this time last year when 646 homes were taken to auction.
Of the 562 auction results collected so far, 72.4 per cent were successful, up from last week’s preliminary result of 70.4 per cent which revised down to 65.9 per cent at final results.
This time last year, Sydney recorded a final auction clearance rate of 72.7 per cent.
The smaller capitals
Across the smaller markets, Canberra recorded the highest preliminary clearance rate of 89.2 per cent, across 65 auction results, followed by Adelaide with a preliminary clearance rate of 64.0 per cent across 50 results.
Domain also recorded a solid national clearance rate of 72.7 per cent.
This week they tracked 748 properties listed for auction, with results in for 545 so far. Of those, 396 properties sold (to the value of $278.8 million) and 73 were withdrawn.
This was higher in both volume and clearance than last week when 665 properties were listed for auction. Of those, 611 results were provided, 366 sales were made (to the value of $297.9 million) and 87 properties were withdrawn for a clearance rate of 59.9 per cent.
Of course, last year the numbers looked very different.
In the same week in 2019, Domain reported a clearance rate of 68.6 per cent on the back of 1718 properties listed for auction, 1577 results provided, 1087 properties sold (for a combined value of $1273.4 million) and 108 properties withdrawn.
With Melbourne pretty much out of action, Sydney determined much of this week’s national results, and recorded a preliminary clearance rate of 72.2 per cent.
This came off the back of 601 properties listed for auction, 435 results provided, 314 sales (to the value of $220.5 million) and 67 withdrawals.
Last week the harbour city returned a clearance rate of 60.8 per cent after 540 properties were listed, 502 results were provided, 305 sales were made (to the value of $254.6 million), and 75 properties were withdrawn.
While the volume of properties taken to auction this week was higher than 2019, the collective value was less than half of last year’s total.
In the same week last year 547 properties were listed for auction, 501 results were provided, 353 properties were sold (to the value of $534.9 million) and 60 properties were withdrawn for a clearance rate of 70.5 per cent.
Melbourne’s results continue to reflect the stagnation of the property market due to continuing COVID lockdowns.
This week, Melbourne returned a zero per cent clearance rate, according to Domain’s tally. They note 12 properties were listed for auction, six results were provided, four properties sold (to the value of $2.3 million), and two properties were withdrawn.
Last week also saw a clearance rate of zero per cent after 10 properties were listed for auction, seven results were provided, two properties sold (to the value of $0), and five properties were withdrawn.
In the same week last year, Melbourne was riding high with a clearance rate of 72.7 per cent, with 975 properties listed, 893 results provided, 649 sales (to the value of $677.4 million) and 32 withdrawals.
Ray White results
Ray White reported a solid week of auction results, with all markets bar Melbourne firing.
The group booked a preliminary national clearance rate of 72 per cent for its 160 auctions, with Sydney the standout performer.
In Sydney, Ray White reported a healthy preliminary clearance rate of 78 per cent of its 101 auctions, with 5.5 registered bidders per lot and 2.7 active bidders per property on average.
New South Wales
Ray White New South Wales Chief Auctioneer Alex Pattaro said there was no shortage of buyers in the Sydney market, especially families upsizing or upgrading.
“Buyers are prepared to pay a premium price when they see competition. Our auction day clearance rate suggests the market is still in fine form and we don’t see this slowing down anytime soon,” Mr Pattaro said.
“Auction volume for Ray White New South Wales is up 20 per cent compared to September 2019.
“Property prices within 15km of the CBD are certainly not in decline, and we continue to see prices higher than previously recorded years.”
Meanwhile in Melbourne, the traditional auction capital of Australia, it was a case of another beautiful spring day, but the property market remained on ice due to its government-imposed restrictions.
Ray White Victoria CEO Stephen Dullens said the one solitary auction on the books produced a cracker result for its owners.
Ray White Carnegie Sales Consultant Gerry Setiyadi and Auctioneer Tom Grieve sold 84 Rae Avenue in Edithvale under the hammer for a whopping $963,500, well over the reserve price at a virtual auction.
The online auction saw five registered bidders and three active bidders, all fighting it out from the comfort of their own living rooms.
Ray White Queensland Chief Auctioneer Mitch Peereboom said it had been an outstanding week of auction results in the sunshine state, with many properties seeing competitive bidding and the clearance rate reflecting that.
“We had a number of situations this week where the reserve price has been exceeded through natural bidding,” Mr Peereboom said.
“If you look at the market segments, we are seeing early $300,000 to late $400,000 units in the inner city of Brisbane performing well. We haven’t seen that sort of activity in the market in a number of years.
“Of course, our traditional markets of $600,000 right through to $1,000,000 in that 15km ring of the CBD is absolutely red hot.
“What is interesting also is the high-end stock is moving beautifully. We have had some excellent results for the Gold Coast, particularly that southern end with our Tugun office and their auction event on Thursday night.
“Our rural and lifestyle properties have had a great few weeks. Paul White, Chairman of Ray White Rural, was commenting on how the first six months of this year has seen more trading than all of 2019 combined.
“Why wait until later in the year when conditions may change?”
In South Australia, Chief Auctioneer John Morris said this week’s clearance rate was a relatively low 50 per cent but the Ray White Group had enjoyed the second highest number of auctions that they have called this year.
“We are coming off a month where the clearance rate was 60 per cent. Bidding is still strong, with registered 5.5 bidders,” Mr Morris said.
“Coincidentally we had 111 auctions in August and we have 111 scheduled in September. We are looking forward to continuing to wave the yellow flag in South Australia for the rest of the year.”