As the weekend results continue to come in, the resumption of lockdowns in Melbourne appears to have had a mixed impact on the auction market. The Victorian capital recorded higher volumes than last year, but an increased number of properties were withdrawn resulting in a preliminary clearance rate of 63.7 per cent.
This was slightly above the national clearance rate that came in at 62.2 per cent.
CoreLogic noted these results were subject to change as just over half of the results for the 1202 homes that went to auction nationally have so far been reported,
CoreLogic further stated the national volume was similar to the previous week (1224), but significantly higher than this time last year (847).
“Of the 672 results that have been reported so far, 62.2 per cent were successful, up from last week’s final clearance rate of 60.2 per cent, and lower than this time last year (65.4 per cent),” they said.
“The number of results collected at a preliminary stage are lower than usual as we seek to confirm the status of scheduled auctions.”
In Sydney, 538 homes were scheduled for auction this week, down from 580 over the previous week, although higher than one year ago when 316 homes were taken to auction across the city.
Of the 294 auction results collected so far, 62.6 per cent were successful. In comparison, the previous week reported a final clearance rate of 61.5 per cent, while a clearance rate of 72.8 per cent was recorded this time last year.
There were 475 auctions scheduled in Melbourne this week, up from 456 over the previous week and 348 over the same week last year.
Preliminary results show that of the 256 results collected so far, 63.7 per cent were successful, while 24.6 per cent were reported as withdrawn (compared with only 12.2 per cent of Sydney auctions).
CoreLogic reflected the high withdrawal rate was not surprising given the announcement earlier in the week that Melbourne would enter a six-week lockdown at midnight on 8 July.
The previous week saw a final clearance rate of 60.6 per cent, while this time last year, 70.6 per cent of Melbourne auctions reported a successful result.
The smaller capitals
Across the smaller capitals, Adelaide (65.5 per cent) and Canberra (64.5 per cent) were the only capitals to record a clearance rate above 60 per cent, with Brisbane reporting a preliminary clearance rate of 52.8 cent and Perth, on a low volume, at 37.5 per cent.
Domain’s results paint a different picture of what was happening in Victoria, with the state’s preliminary clearance rate of 46.4 per cent dragging down the national average to 54.8 per cent.
This week their data indicated 976 properties were scheduled for auction nationally, with 498 results reported, 398 properties sold at a collective value of $274.1 million, and 228 properties withdrawn.
Last week 940 properties were listed for sale, 739 results were reported, 506 properties sold for a collective value of $368.1 million and 116 properties were withdrawn. The final clearance rate subsequently came in at 59.2 per cent.
The recent volume is well above the same time in 2019 when 746 properties were listed, 576 results were reported, 418 properties sold for $405. 8 million and only 48 properties were withdrawn, resulting in a clearance rate of 67 per cent.
Victoria was of course the major focus for the industry this weekend and results reflected the challenging conditions.
This week 417 properties were listed for auction, 168 results were reported, 147 properties sold for $81.7 million, and 149 properties were withdrawn.
Last week 373 properties were listed for auction, 308 results were reported, 201 properties sold for $130.4 million and just 41 were withdrawn.
To put this into context, withdrawals might be up but so too is volume compared to 2019. In the same week last year, 336 properties were listed for auction in Melbourne, 257 results were reported, 188 properties sold for a collective value of $149.5 million, and just 23 were withdrawn.
Sydney clocked up a preliminary clearance rate of 64.3 per cent on the back of 452 properties listed for auction. Of those, 255 results were reported, 207 properties sold for $169.4 million and 67 were withdrawn.
Last week, final figures indicated 470 properties were listed for auction, 353 results were reported, 260 properties sold for a collective value of $211.9 million and 66 were withdrawn. This resulted in a final clearance rate of 62.1 per cent.
Meanwhile, this time last year, 284 properties were listed for auction, 227 results were reported, 177 properties sold at a combined value of $219.6 million and 20 properties were withdrawn for a clearance rate of 71.7 per cent.
Ray White results
Ray White remained upbeat, noting the mid-winter auction market continues to power on, “defying all the predictions of many pundits”.
They saw an increase in active registered bidders again this week, with the auction house scheduling just shy of 300 auctions and booking a preliminary national clearance of 58 per cent with 4.7 average registered bidders per lot.
Despite all Melbourne auctions shifting online due to lockdowns, Ray White booked a preliminary clearance of 58 per cent with a lot of sold priors.
Ray White Managing Director Dan White said the group’s members were very well prepared for the re-imposition of the Victorian restrictions given their extensive experience in active trading in April and May.
“Regardless of the auction environment, Ray White offices continue to deliver exceptional results while providing their customers with a safe environment,” Mr White said.
“Today shows you that buyers still have confidence in Victoria’s real estate market and they have embraced our purpose-built technology.”
Ray White Victoria CEO Stephen Dullens said there had been some fierce online bidding.
“Our members are experienced in trading through a contact conscious environment and holding online auctions plus private inspections. Our preliminary clearance is still a robust 59 per cent over the week.”
New South Wales
Ray White NSW Chief Auctioneer Alex Pattaro said competition remains rampant at auctions across New South Wales.
“Premium prices within close proximity to the city CBD continue to outperform the greater parts of Sydney,” Mr Pattaro said.
“A low of eight per cent of auctions across New South Wales had no active bidding which is a clear indication that buyers are out in force.”
Ray White Queensland Chief Auctioneer Mitch Peereboom said he saw some outstanding results across Ray White Queensland this week with a number of parties registering to bid.
“Our average number of bidders has remained strong over the course of the month,” Mr Peereboom said.
“If you’re in the marketplace and looking at coming on to the market over the next few weeks and months ahead, do think about your timing.
“We know that right now we can see strong results at auctions because of a little bit of lack of supply in the marketplace which is giving our buyers not the choice that they might usually see and is resulting in some great sale prices.
“So certainly if we are looking at auctions and the results that we’re getting through creating competition, we’re so confident about recommending to come to the market.”
Elsewhere, Ray White South Australia Chief Auctioneer John Morris said it had been a cracking start to the new financial year for the network with every metric on the rise year on year.
“Auction day clearance is up, campaign clearance is up, average registered bidders is much higher than previous years. Two thirds of auctions have sold under the hammer today,” Mr Morris said.
“The rain may be pouring but the sun is shining on those agents who embrace the auction process.”