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Long weekend sees lower auction volumes yet solid clearance

With a number of states and territories enjoying a long weekend, auction volumes were significantly lower than last week, but the preliminary clearance rate remained a healthy 74.8 per cent.

That’s largely attributed to lowered interest rates yet flies in the face of bleak headlines about coronavirus and the global economy.

About the grounds, a total of 1,456 auctions were held across the combined capital cities this week, which was about half the number held last week, yet higher than the 1,197 auctions held one year ago.

CoreLogic notes the fall in auction volumes this week is likely due to the fact that four of the eight states and territories have a public holiday this Monday.

“The preliminary auction clearance rate across the combined capital cities rose to 74.8 per cent this week, up from the final 73.9 per cent last week,” CoreLogic said.

“Over the same week last year, the clearance rate was recorded at a much lower 47.8 per cent.”

As auction volumes fell across Melbourne this week, so too did the clearance rate with 68.6 per cent of the 404 auctions held reporting a successful result, down significantly from last week’s final result of 74.8 per cent across 1,612 auctions.

In Sydney, 811 homes were taken to auction, returning a preliminary auction clearance rate of 82.6 per cent, up on last week’s final clearance rate of 76.6 per cent across a higher 1,087 auctions.

Across the smaller auction markets, Canberra came in with a 66.7 per cent success rate, making it the highest preliminary result across the smaller cities, followed by Adelaide (63.8 per cent), Perth (58.3 per cent) and Brisbane (53.2 per cent).

Ray White results

Ray White reported a heady mix of record interest rate cuts, rising home prices, and escalating coronavirus tensions failed to deter determined buyers across all markets on Saturday, with general on the ground sentiment being one of ‘business as usual’.

The Ray White Group had high expectations for Saturday’s 200-plus scheduled auctions, following an outstanding February of 2,241 auctions which delivered significant year-on-year metric increases.

New South Wales

Ray White New South Wales chief auctioneer Alex Pattaro said the property market continued to surge in 2020.

“We are seeing an increased number of families transact within the same markets across parts of Sydney,” Mr Pattaro said.

“We are continuing to see an increased number of competition across all properties throughout all of Sydney.”

Mr Pattaro was thrilled to call the $2.7 million sale under the hammer of a huge cul-de-sac property at 15 Watson St, Putney.

Twenty-two registered bidders vied for the 1,012sq m block which sold $200,000 over reserve to a local family.

A prized roll of toilet paper was used to entice opening bids at the morning auction of a popular character brick home at 28 Western Crescent, Gladesville (above) which sold under the hammer for $2.175 million.

Around 150 people, including a whopping 22 registered bidders, attended the event with bidding opening at $1.650 million.

“The opening bidder scored one free roll of toilet paper, which is more valuable than a bottle of champagne at the moment,” Ray White Gladesville’s Neil Robson said.

Mr Robson said he’d had 150 groups through the 1920s home during the campaign so the large turnout wasn’t a surprise. A young couple from the inner-west were the successful bidders.

Victoria

Ray White Victoria & Tasmania chief auctioneer Matt Condon said the long weekend had resulted in a drop in auction volume across the state. Yet still the Ray White group recorded a preliminary clearance rate of 85 per cent in Melbourne which was well above the industry average.

“Based on preliminary data from the Ray White group, there has been an increase in the percentage of properties that sold prior to auction,” Mr Condon said.

“Of the auctions that did proceed through to auction day, it’s great to see the continued buyer confidence in Victoria’s real estate market which is reflected in the healthy amount of average active bidders per auction and the large auction day crowd sizes.”

Queensland

Ray White Queensland chief auctioneer Mitch Peereboom cited outstanding auction activity across the state this week.

“On Saturday, a key standout market was the $500,000 to $1 million range,” Mr Peereboom said.

“Plenty of active bidding from buyers willing to compete, ready to go unconditional. (There was) a standout sale for Martin Ma, from Ray White Sunnybank Hills, at Parkinson, Bufalino Street.”

The $1.420 million sale of a 1930s Brisbane family home was the top result across Queensland on Saturday.

South Australia

In South Australia, the sale of a deceased estate attracted the group’s highest number of registered bidders for the day.

Twenty-eight buyers were keen on the significant corner allotment with development potential.

Ray White Norwood’s Stefan Siciliano said the property sold to a local developer for $685,000, which was $135,000 over reserve.

“The auction was electric,” Mr Siciliano said. “It rocketed, starting at $350,000 and probably only took 10 minutes.”

Ray White South Australia chief auctioneer John Morris, who called Mr Siciliano’s hot auction, said there were also plenty of positives to take from the state’s in-room auction action of late.

“After last week’s whopping 31 auctions in South Australia, it’s a slightly slower week in Adelaide with just 13 auctions scheduled,” Mr Morris said.

“A mere five for the weekend which does mean that, on a positive note for the first time I’ve known, in-room auction stats outnumber on-site auctions this week. Norwood and Tea Tree Gully both held in-rooms and Sam Doman from Tea Tree Gully actually had an 80 per cent clearance through his monthly in-room event.”

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