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Melbourne overtakes Sydney as busiest auction market

The preliminary clearance rate has held firm, keeping pace with a rise in auction volumes this weekend as Melbourne overtook Sydney to become the busiest capital.

This week CoreLogic reports 2155 homes were scheduled for auction across the combined capital cities, up from 1803 the week prior.

Of the 1763 results collected so far, 73.9 per cent have reported a successful result, which is slightly higher than last week’s preliminary auction clearance rate of 73.6 per cent, that later revised down to 69.1 per cent at final figures.

In the same week last year, 3206 homes were taken to auction and 73.6 per cent of reported results were successful.

Melbourne

Melbourne was host to 894 auctions this week, overtaking Sydney as the busiest capital city for auctions.

The previous week saw 646 auctions held across the city, while this time last year a higher 1533 homes were taken to auction.

Of the 756 results collected so far, 71.7 per cent were successful, down from last week’s preliminary clearance rate of 77.1 per cent, which revised down to 70.0 per cent at final figures.

One year ago, 74.8 per cent of reported auctions were successful.

Sydney

In Sydney, 887 homes were taken to auction this week, compared to 805 over the previous week and 1221 this time last year.

The preliminary clearance rate came in at 76.9 per cent this week, increasing from the previous week’s preliminary clearance rate of 76.2 per cent, which revised down to 71.6 per cent at final figures.

This time last year, 78.1 per cent of reported auctions were successful.

The smaller capitals

Across the smaller cities, Canberra recorded the highest preliminary clearance rate at 78.4 per cent, followed by Adelaide (75.0 per cent).

Domain results

Domain’s figures also reflect a surge in volume nationally and a steady preliminary clearance rate.

This week they report 1740 properties were slated for auction, with the clearance rate coming in at 75.2 per cent. So far, results are in for 1268 of those auctions, with 953 properties successfully selling (to the value of $809.5 million), while 167 were withdrawn.

This is a significant increase on last week when 1474 properties were scheduled for auction and the final clearance rate settled at 69.7 per cent.

Breaking that down, results were provided for 1312 auctions, with 915 properties successfully selling (to the value of $741.7 million), while 187 properties were withdrawn.

In the same week last year, volume was far higher, with 2546 properties listed for auction and the clearance rate sitting at 68.7 per cent. Results were provided on 2326 of those auctions, with 1598 properties successfully selling (to the value of $1904.6 million) while 147 properties were withdrawn.

Sydney

This week 781 properties in Sydney were listed for auction, with preliminary figures indicating a 78.1 per cent success rate.

So far, results are in for 556 of those auctions, with 434 successfully selling (to the value of $417.2 million), while 73 properties were withdrawn.

According to Domain’s data, Sydney’s auction volume is only slightly up on last week when 729 properties were slated for auction and the final clearance rate came in at 71.7 per cent.

Last week, results were provided for 664 auctions, with 476 properties successfully selling (to the value of $426.7 million), while 91 properties were withdrawn.

This time last year, Sydney’s volume and value were much higher, with 916 properties slated for auction and a clearance rate of 73.4 per cent. Results were provided for 831 of those auctions, with 610 properties successfully selling (to the value of $866.8 million), while 75 properties were withdrawn.

Melbourne

Melbourne enjoyed a significant increase in volume this week, with Domain’s data also reflecting the Victorian capital overtook Sydney as the busiest auction market.

This week, 736 properties were listed for auction and the preliminary clearance came in at 72.6 per cent. So far results have been provided for 552 of those auctions, with 401 properties successfully selling (to the value of $312.6 million), while 83 properties were withdrawn.

Last week, Melbourne saw 532 properties listed for auction and a final clearance rate of 69.5 per cent. Results were provided for 476 of those auctions, with 331 properties successfully selling (to the value of $255 million), while 67 properties were withdrawn.

This time last year, Melbourne’s volume was almost double the current figures. In the same week last year, 1395 properties were slated for auction and the clearance rate was 68.9 per cent.

Breaking that down, results were provided for 1275 of those auctions, with 879 properties successfully selling (to the value of $949.1 million), while 53 properties were withdrawn.

Ray White results

Ray White has reported 82 per cent of all their auctions across Australia sold under the hammer this weekend as competition continues to heat up as 2020 draws to a close.

This week, the group had 861 properties slated for auction – the highest number of the year – which is 22 per cent higher year-on-year, while intense buyer demand helped propel the preliminary auction day clearance nationally to 82 per cent by late Saturday.

There were 6.5 average registered bidders per lot which is also a record high number for the group (+3.5 year on year).

“Across Australia the group’s live listings are only up one per cent on the last year, and yet online inquiries are up 25 per cent, sales are up 16 per cent which shows sellers that now is a good time to sell as there’s less competition and plenty of demand,” Ray White reflected.

The preliminary auction clearance rate in Sydney alone was 86 per cent, with strong demand being reported from the inner-city suburbs to out west.

In Sydney, the group’s data shows 6.8 average registered bidders were recorded per lot – almost double the same time last year.

“There was a been a renewed focus on ‘The Great Australian Dream’ at the federal level this week when the important retirement income review, chaired by Treasury veteran Mike Callaghan found that while compulsory superannuation played an important role in retirement, owning your own home was perhaps the most critical plank of retirement income,” Ray White stated.

Treasurer Josh Frydenberg said the report pointed out how important home ownership was to people’s security in retirement.

“Around 76 per cent of people over the age of 65 own their own home and this allows them to have more discretionary income. It also provides an opportunity for them to draw down on the equity in their home in retirement,” Mr Frydenberg said.

New South Wales

Ray White NSW chief auctioneer Alex Pattaro said December was shaping up to be huge around Sydney.

“The rush to buy continues to heat up in 2020,” he noted.

“With strong competition at auction we are seeing property prices exceed initial buyer expectations giving sellers the confidence that they are receiving the market’s best price.

“December is shaping up to be huge with a higher than expected number of Sydney sellers deciding to sell this side of Christmas.”

Victoria

Ray White Victoria and Tasmania CEO Stephen Dullens said buyers wasted no time hitting the streets to take advantage of the smaller number of listings currently available as property conditions continue to improve.

“The Victorian government announced temporary changes to stamp duty in this week’s state budget – discounts of 50 per cent (newly built homes) or 25 per cent (established homes) are available on all homes purchased for up to $1 million between now and June 30, 2021,” Mr Dullens said.

“This equates to savings of up to $27,500 on new homes or $13,750 on established homes. With every sale providing so much benefit to the wider Victorian economy, we welcome this measure.

“This week the Ray White Group conducted over 125 auctions – the highest number since March, as restrictions continue to ease. These are also some of the strongest results this year, with our preliminary clearance rate sitting at 88 per cent and average active bidders showing a significant increase, sitting at 6.5 per auction.

“What is clear is that buyer demand remains strong with several properties selling hundreds of thousands over vendor’s expectations. The Victorian property market continues to perform extremely well – buyers and sellers are making up for lost time post Victorian restrictions.”

Queensland

It was a scorcher of a day in Brisbane but that didn’t stop a crowd gathering at the auction of 62 Stafford St, East Brisbane.

After a starting bid of $750,000 for the two-bedroom cottage, the property sold for $856,000 by Ray White Brisbane City Principal Dean Yesberg.

The auction attracted a massive 15 registered bidders, ranging from older downsizers to young couples. The reserve was reached after only the second bid as five buyers competed for the keys to the East Brisbane home.

Listing agent, Karen Pierce said she knew the auction would be one to remember after buyers flocked to open homes over the course of the campaign.

“Looking at all the people here today and the popularity during the campaign, you can see that the Brisbane market is going from strength to strength,” Ms Pierce said.

“There are plenty of young buyers wanting to get into the market while interest rates are low and money is cheap. Downsizers and families have also been extremely active during the spring selling season.

South Australia

Ray White South Australia Chief Auctioneer John Morris said that while the mercury may have tipped 40 degrees in Adelaide, the auction market was “hotter than the sun”.

“If this week is anything to go by, so far it looks like we will be breaking records all over the place. After last week’s uncertainty in the auction market, it looks as though we’re ready and raring to go from here on in,” Mr Morris said.

“Of the auctions I’ve called this week, the record amount of bidders was 47 and many of the others have had 10 plus. The clearance rates are looking really good so far and it only looks to be getting stronger in these last couple of weeks prior to Christmas.

“Incredible numbers are coming through doors, there’s an incredible number of eyes on the internet portals and it looks like it’s going to be a fantastic end to a weird year.”

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