The preliminary clearance rate has held above 60 per cent for the fourth consecutive week, despite a drop in auction volumes due to the Queen’s memorial public holiday and the AFL Grand Final in Melbourne.
This week, just 1323 homes were auctioned across the combined capitals, with CoreLogic reporting the decline was particularly evident in Melbourne where volumes dropped 86.9 per cent.
Nationally, the number of auctions held was down 39.9 per cent from the 2203 auctions held last week, and 18.6 per cent below the auction volumes recorded this time last year (1626).
Meanwhile, the preliminary clearance rate for the combined capitals held above the 60 per cent mark for the fourth consecutive week, with 60.6 per cent of the 1028 results collected so far recording a successful result.
Last week’s preliminary clearance rate of 62.5 per cent revised to a final clearance rate of 60.1 per cent, which was the highest since mid-May (61.3 per cent).
This time last year 80.6 per cent of capital city auctions recorded a successful result.
Sydney proved the busiest auction market this week, with 808 homes auctioned across the city.
An increase of 4.7 per cent on the 772 auctions held the previous week, it was Sydney’s busiest auction week since late July when 890 homes were auctioned.
Following the trend set by the combined capitals, Sydney’s preliminary clearance rate of 60.6 per cent also held above the 60 per cent mark for the fourth consecutive week, with 672 result collected so far.
“This week’s preliminary clearance rate was up 40 basis points from the previous week’s preliminary rate of 60.2 per cent, which was later revised to 57.1 per cent at final figures,” CoreLogic noted.
Despite the small uptick in the clearance rate, Sydney’s withdrawal rate rose 1.7 percentage points, with 22.6 per cent of homes withdrawn from auction.
This time last year, 81.7 per cent of the 829 homes auctioned across the city were successful.
Melbourne had its quietest auction week since mid-January with just 132 auctions held across the city due to the Queen’s memorial public holiday and the AFL Grand Final.
Last week, 1008 homes were auctioned across the city, while this time last year 352 auctions were held.
With 106 results collected so far, Melbourne’s preliminary clearance rate rose 1.7 percentage points to 66 per cent, which is the highest rate preliminary rate since early May.
Last week’s preliminary clearance rate (64.4 per cent) revised to a final clearance rate of 62.4 per cent, while this time last year 75.7 per cent of auctions were successful.
The smaller capitals
Across the smaller capitals, auction activity fell 9.5 per cent this week, with auction volumes falling in Brisbane (-18.1 per cent), Adelaide (-9.4 per cent) and Perth (-60 per cent) but rising in Canberra (13.6 per cent).
Brisbane hosted the busiest auction week of the smaller capitals, with 140 auctions held across the city, followed by Canberra (117) and Adelaide (116).
Adelaide recorded the highest preliminary clearance rate, with 70.3 per cent of auctions returning a successful result, while Canberra and Brisbane recorded preliminary clearance rates of 57 per cent and 52.6 per cent respectively.
In Perth, results for three of the eight auctions held have been collected so far. One was successful, while one of the two auctions held in Tasmania this week recorded a successful result.
Domain’s data indicates 1026 properties went to auction across the major capitals this week, resulting in a preliminary clearance rate of 62.4 per cent.
So far, results are in for 649 of those auctions, with 405 properties selling (to the value of $360.5 million), while 136 properties were withdrawn.
Last week, the final clearance rate settled at 57.5 per cent after 1801 properties went to auction.
Results were provided for 1605 of those auctions, with 923 properties selling (to the value of $765.9 million), while 196 properties were withdrawn.
This time last year, the clearance rate was 77.7 per cent after 1025 properties went to auction.
Results were provided for 980 of those auctions, with 761 properties selling (to the value of $1187.4 million), while 107 properties were withdrawn.
Sydney’s preliminary clearance rate is sitting at 63.6 per cent after 716 properties went to auction this week.
So far, results are in for 448 of those auctions, with 285 properties selling (to the value of $280.8 million), while 114 properties were withdrawn.
Last week, Sydney’s final clearance rate was 55.3 per cent after 664 properties went to auction.
Results were provided for 562 of those auctions, with 311 properties selling (to the value of $336.3 million), while 113 properties were withdrawn.
This time last year, Sydney’s clearance rate was 78.8 per cent after 600 properties went to auction.
Results were provided for 580 of those auctions, with 457 properties selling (to the value of $894 million), while 62 properties were withdrawn.
The AFL Grand Final had a clear impact on Melbourne’s auction volumes this weekend, with only 97 properties going to auction, resulting in a preliminary clearance rate of 61.3 per cent.
So far, results are in for 62 of those auctions, with 38 properties selling (to the value of $27.1 million) while 11 properties were withdrawn.
Last week 870 Melbourne properties went to auction, resulting in a final clearance rate of 58.9 per cent.
Results were provided for 795 of those auctions, with 468 properties selling (to the value of $325.4 million), while 68 properties were withdrawn.
This time last year, Melbourne’s clearance rate was 76.8 per cent after 190 properties went to auction.
Results were provided for 168 of those auctions, with 129 properties selling (to the value of $123.2 million), while 26 properties were withdrawn.
Ray White results
The Ray White Group noted buyers embraced the spirit of competition over the AFL Grand Final weekend, with fierce bidding taking place at auctions across the country.
This week the Ray White Group scheduled 437 auctions, with 190 auctions taking place nationally on Saturday.
With the AFL Grand Final in Melbourne, auction volumes were down across the country compared to last week, but Ray White agents and auctioneers noted this attracted more competition and higher bidder numbers at the auctions which did take place.
The group recorded an average of 4.7 registered bidders and 2.7 active bidders, and a preliminary clearance rate of 65 per cent.
Properties which went to auction this week achieved sale prices 12.2 per cent higher than the highest offer prior, the group noted.
Ray White New South Wales chief auctioneer Alex Pattaro said there was ample buyer activity in the Sydney market.
“There’s plenty of buyer activity with more buyers circulating the market compared to three months ago, however this doesn’t mean property prices are moving up,” Mr Pattaro said.
“Buyers remain cautious and are mindful of further rate rises. Sellers are encouraged to consider their on the day auction prices as further rate rises may soften buyer confidence.
“Sellers can take confidence that there are buyers willing to transact as long as they are willing to meet the market.”
Ray White Queensland chief auctioneer Gavin Croft said the AFL Grand Final had impacted auction volumes in Brisbane.
“While auction volumes were up last week, they’ve come back a little bit, which is perhaps a response to what’s happening across the country today with the football final,” Mr Croft said.
“Across Brisbane we’re seeing plenty of depth across the $2 million plus market with good energy and a depth of buyers in that particular realm.
“We’re also seeing consistency in the registration of bidders in the sub-$1 million market, it’s still very strong. Although we’re seeing those gaps between buyers and sellers.
“Average registrations across Brisbane today were between three and five bidders on the sub-$1 million market.
“It gives sellers an impressive snapshot of the marketplace, but the gaps are still very much there.
“So sellers will either accept the market, or will hold onto prices from three or four months ago.
“I think the concern is they’re not going to see the price they see today, with competitive bidding, in another month or two months if we see another one or two interest rate rises.”
Ray White Victoria chief auctioneer Matthew Condon said buyers were still out in force despite the AFL grand final.
“Almost all of today’s auctions were scheduled prior to noon to ensure they did not conflict with the highly anticipated AFL grand final,” Mr Condon said.
“We also saw a significant decline in auction volume with 71 auctions scheduled for Ray White Victoria.
“The amazing weather combined with the decline in auction volume today produced healthy crowd sizes and strong competition between bidders.
“Based on preliminary data from the Ray White group, we saw an average of 3.6 confirmed bidders at auction.
“Sellers that chose to auction their property today were rewarded with bidding, competition, and ultimately a good result.
“With a large percentage of sellers choosing to push their auction date back a week to avoid the grand final weekend, all eyes will be on the auction market next week to see how it handles the significant increase in auction volume and supply.”
Ray White South Australia chief auctioneer John Morris said there was plenty of bidding action across the state’s auctions on Saturday.
“The winners this weekend in South Australia are those vendors choosing to take their property to auction on grand final weekend.
“The average registered bidders was above six, while the average active bidders sat above three.
“Maybe it’s the lack of competition due to grand final day, but every single property is getting bidding action.
“It looks like spring is certainly here, and if you’re not taking your property to auction you’re missing out.”