Auction volumes have dropped this week, but the clearance rate has risen, with 1535 properties taken to auction nationally, resulting in an initial success rate of 67.3 per cent.
CoreLogic notes the volume was down only slightly from the 1567 auctions originally scheduled, but is significantly lower than last week when there were 1960 auctions held across the combined capitals.
So far, 1183 results have been collected this week, returning a preliminary auction clearance rate of 67.3 per cent.
Last week saw a preliminary auction clearance rate of 55.4 per cent, which revised up to 58 per cent at final figures.
Meanwhile this time last year, 60.5 per cent of the 866 scheduled auctions were successful.
In Melbourne, 531 homes were taken to auction this week, compared to 928 over the previous week and just 28 this time last year.
Of the 371 results collected so far, 53.6 per cent were withdrawn, resulting in a preliminary auction clearance rate of 44.5 per cent.
Of the 165 sold results, 57.6 per cent were sold prior to the scheduled auction date.
In comparison, 61.6 per cent of reported auctions were withdrawn over the previous week and a final auction clearance rate of 35.9 per cent was recorded, which was the lowest clearance rate since mid-September 2020.
There were 609 auctions held in Sydney this week, compared to 592 over the previous week and 608 over the same week last year.
Of the 519 results collected so far, 84 per cent were successful, which was the highest preliminary clearance rate the city has seen since mid-April.
Of the 436 sold results, 55.5 per cent were sold prior to the scheduled auction date.
Last week, Sydney’s preliminary auction clearance rate was lower (82.7 per cent) and revised down to 80.2 per cent at final figures.
CoreLogic notes Sydney’s final clearance rate has held above 80 per cent for two of the last three weeks, with this week likely to be no different as the remaining results are collected.
The smaller capitals
Across the smaller auction markets, Brisbane was the best performing this week with a preliminary auction clearance rate of 78.8 per cent, followed by Adelaide (75.7 per cent), Canberra (57.4 per cent), and Perth (50 per cent).
There was only one auction recorded in Tasmania this week which was unsuccessful.
Domain has reported a preliminary clearance rate of 77.9 per cent after 1392 properties were taken to auction at the weekend.
So far, results are in for 718 of those auctions, with 559 properties selling (to the value of $510 million), while 116 properties were withdrawn.
This week’s initial success rate is higher than last week, but the volume of properties taken to auction is lower. Last week Domain’s data indicated 2209 properties were slated for auction resulting in a final clearance rate of 57.4 per cent.
Results were provided for 1353 of those auctions, with 776 properties selling (to the value of $634.7 million (while 472 properties were withdrawn.
This time last year, only 555 properties were taken to auction, resulting in a success rate of 57.7 per cent.
Results were provided for 551 of those auctions, with 318 properties selling (to the value of $388.3 million), while 90 properties were withdrawn.
Sydney continues to post strong results despite a prolonged lockdown. This week Domain noted 493 properties were taken to auction, resulting in a preliminary clearance rate of 85.9 per cent.
So far, results are in for 361 of those auctions, with 310 properties selling (to the value of $341. 3 million) while 30 properties were withdrawn.
Last week, Sydney’s clearance rate settled at 78.4 per cent after 491 properties were taken to auction. Results were provided for 449 of those auctions, with 352 properties selling (to the value of $382.1 million), while 58 properties were withdrawn.
This time last year, Sydney had a clearance rate of 56.8 per cent after 422 properties were taken to auction.
Results were provided for 419 of those auctions, with 238 properties selling (to the value of $322.1 million), while 76 properties were withdrawn.
Melbourne’s preliminary clearance rate improved this week, although the volume of properties taken to auction was less than half of what was seen the week prior.
This week, 624 properties were taken to auction, resulting in a preliminary clearance rate of 64.5 per cent.
So far, results are in for 200 of those auctions, with 129 properties selling (to the value of $94.4 million), while 65 properties were withdrawn.
Last week, Melbourne’s clearance rate was 38.1 per cent after 1430 properties were slated for auction.
Results were provided for 658 of those auctions, with 251 properties selling (to the value of $137 million), while 394 properties were withdrawn.
This time last year, Melbourne’s clearance rate was 33.3 per cent after only 12 properties were taken to auction, four of which sold (to the value of $1.8 million).
Ray White results
The Ray White Group reported property sellers who made it to auction on Saturday were richly rewarded with sale prices under the hammer on average 11.5 per cent more than their highest offer prior across Australia.
Ray White had 261 auctions booked on Saturday, yet 55 per cent did not proceed.
Only one actually withdrew from the market, while most were sold prior, postponed or converted to private treaty. The group’s data recorded nine registered bidders on each lot at the weekend, which shows buyer demand remains extremely strong and well above long term averages.
Melbourne, with the tightest restrictions of any market, sold 12 out of 12 properties on Saturday with most members selling sight unseen and well over expectations and reserves.
Ray White Chief Economist Nerida Conisbee said the latest lockdowns appear to be providing a boost to pricing, even though economic growth is pulling back.
“It is difficult to see at an aggregate level what is happening to prices given there are so few transactions taking place,” she said.
“Our own analysis of weekly auction data however continues to show far fewer properties going to auction, far more people actively bidding at auction and a bigger gap between highest prior offer and the price properties are selling at auction.”
New South Wales
Ray White New South Wales Chief Auctioneer Alex Pattaro said spring selling season kicked off strongly.
“What a way to start the spring selling rush with a $1.9 billion record of sales value for August across Ray White New South Wales and ACT,” he said.
“There are still plenty of properties transacting, with the market providing future sellers with opportunities to sell and re-enter the market.
“Bidding activity remains strong and we have right now 11 bidders on average across the state’s auctions.
“Notably auctions are obtaining better prices under the hammer. Our data shows an 11 per cent uplift on pre-auction offers.
“We expect more properties to come to market as option volume ramps up towards the back end of the month, and into early October.”
Ray White Victoria and Tasmania Chief Executive Stephen Dullens discussed the work of the industry to support their customers.
“This week it was pleasing to meet with representatives of the Victorian government to discuss the challenges being faced in the real estate sector by our customers. We know of many Victorians with an urgent need to buy, sell or lease property and the opportunity to talk about their challenging circumstances was appreciated.
“This was a productive discussion and we look forward to further working with the State Government on the best way to assist our customers, with theirs and the safety of the community top of mind,” Mr Dullens said.
Despite the heavy restrictions, those auctions that did proceed performed extremely well, with the Ray White group recording a preliminary clearance rate of 100 per cent and selling all 12 properties listed for auction on Saturday.
Examples included Ray White Mount Waverley managing director Courtney Matthews, who launched 32 Wave Avenue just before the most recent lockdown and was able to take through a few buyers but since then has overseen a number of virtual inspections.
On Saturday, he sold the four-bedroom house for $1.631 million via an online auction that he conducted at home.
There were 17 registered bidders, all locals from the Mount Waverley area, but only a handful of people were actually able to view the property.
Ray White Queensland Chief Auctioneer Gavin Croft said the energy and momentum in the sunshine state’s auction market was real and, with no oversupply in sight, was a good feeling.
“This momentum should stay right until the end of the year. Online auction attendees are certainly continuing to grow despite the normality and availability for buyers to be able to attend in Queensland but we are seeing so many buyers bidding and buying from Melbourne in particular,” he said.
“We’re really noticing how comfortable buyers are online to not only to transact but also to inspect online.
“We continue to see that interstate trend, week in, week out continuing to grow, and Melbourne bidders were a very big part of our registrations throughout last week.
“Affordability has certainly been one of the key drivers, particularly in the sub $1 million market in Brisbane proving popular with a consistent high registered bidder numbers in that category.
“Affordability is going to continue to be one of the key drivers that drives Queensland forward. Last month we fell painstakingly close to 500 auctions state wide, we finished at 486 auctions for August but now as we settle into spring I anticipate we’ll punch right through that number in September as the spring selling season takes off.”
Despite the rain, Ray White South Australia Chief Auctioneer John Morris said the first weekend of spring was pretty much finishing off exactly where winter ended with incredible numbers coming through Ray White South Australia.
“Last week’s numbers were 10 registered bidders per auction on average at 91 per cent clearance rate. That’s pretty much the same detail this week except bidder numbers have dropped slightly, but I’ve just come from an auction where we had 17 registered bidders and I’m hearing on the ground there are still lots and lots of bidders out there, so I imagine that’s going to rise.
“We have 93.6 per cent of all auctions receiving bidding.”