Another auction record has been smashed, with almost 5000 properties taken to auction in a week where volumes far exceeded all previous highs across almost every capital.
This week’s unprecedented volume of 4970 property auctions comes just two weeks after the all-time auction volume record was previously smashed, and confirms expert predictions there little slowdown of the auction market in the lead-up to Christmas.
This week’s volume is also almost twice that of last year when 2580 properties went to auction and up on last week when 4153 homes went under the hammer.
However, as seen in previous weeks, that continued high volume is putting downwards pressure on the clearance rate, which this week is sitting at 66.6 per cent based on the 4036 results collected so far.
This makes it the lowest preliminary clearance rate since late August.
In comparison, last week saw a preliminary auction clearance rate of 69.9 per cent, revising down to a final clearance rate of 66.3 per cent, while this time last year, 71.1 per cent of reported auctions were successful.
There were 2309 homes taken to auction across Melbourne this week, overtaking the week ending 25 March, 2018 (2071) as the busiest week on record.
The previous week saw 1912 homes taken to auction across the city, while this week last year, 1167 auctions were held.
Of the 1922 results collected so far, 65.3 per cent were successful, in line with the previous week’s final clearance rate, which had revised down from a preliminary clearance rate of 69.4 per cent.
This time last year, 69.7 per cent of reported auctions were successful.
Sydney also saw record breaking auction volumes this week, with 1797 homes taken to auction across the city, overtaking the week ending 30 November, 2014 as the busiest week on record (1631).
Last week, 1466 auctions were held, while this time last year, 1009 Sydney homes were taken to auction.
Of the 1496 results collected so far, 63.6 per cent were successful, down from last week’s preliminary auction clearance rate of 67.3 per cent, which revised down to 63.8 per cent at final figures – the lowest final clearance rate the city has seen all year.
“It is possible that the final clearance rate may fall below 60 per cent for the first time since August 2020 as the remaining results are collected,” CoreLogic noted.
This time last year, 73.1 per cent of reported auctions were successful.
The smaller capitals
Across the smaller auction markets, Adelaide (309), Brisbane (305) and Canberra (217) all had their busiest auction week since records commenced in 2008.
Adelaide recorded the highest preliminary clearance rate at 83.7 per cent, followed by Canberra (75.7 per cent) and Brisbane (72.6 per cent).
Perth recorded a preliminary clearance rate of 27.3 per cent, noting only 26 auctions were scheduled this week and 22 results have been collected so far.
In Tasmania, three of the seven auctions have been reported so far, with all reporting a successful result.
The national preliminary clearance rate has slipped to 65.6 per cent after Domain tracked 3632 auctions across the major capitals this weekend.
So far, results are in for 2363 of those auctions, with 1550 properties selling (to the value of $1434.4 million), while 442 properties were withdrawn.
Last week, the final clearance rate settled at 64.3 per cent after 3099 properties were taken to auction.
Results were provided for 2651 of those auctions, with 1704 properties selling (to the value of $1477.4 million), while 385 properties were withdrawn.
This time last year, the clearance rate was 70.3 per cent after 2054 properties were taken to auction.
Results were provided for 1981 of those auctions, with 1393 properties selling (to the value of $1695.1 million), while 184 properties were withdrawn.
Sydney’s preliminary clearance rate has dropped to 62.7 per cent after 1371 properties were taken to auction in the harbour city.
So far, results are in for 868 of those auctions, with 544 properties selling (to the value $605.6 million), while 236 properties were withdrawn.
Last week, Sydney’s final clearance rate was 65.8 per cent after 1190 properties were taken to auction.
Results were provided for 1005 of those auctions, with 661 properties selling (to the value of $704.2 million), while 175 properties were withdrawn.
This time last year, Sydney’s clearance rate was a higher 73.6 per cent after 855 properties were taken to auction.
Results were provided for 815 of those auctions, with 600 properties selling (to the value of $872.3 million), while 94 properties were withdrawn.
Melbourne returned a preliminary clearance rate of 65.2 per cent after 1765 properties went to auction this week.
So far, results are in for 1210 of those auctions, with 789 properties selling (to the value of $669.5 million), while 187 properties were withdrawn.
Last week, Melbourne’s final clearance rate was 59.7 per cent after 1493 properties were taken to auction.
Results were provided for 1332 of those auctions, with 795 properties selling (to the value of $605.9 million), while 187 properties were withdrawn.
This time last year, Melbourne’s clearance rate was 67.2 per cent after 971 properties were taken to auction.
Results were provided for 942 of those auctions, with 633 properties selling (to the value of $684 million), while 82 properties were withdrawn.
Ray White results
One of the last auction Saturdays of the year delivered record-breaking auction volumes for the Ray White Group, as the late summer surge runs right up to Christmas.
The group recorded a national preliminary clearance rate of 75 per cent on Saturday with buyers rushing to secure properties before Christmas.
The standout city of the day was Melbourne, recording a preliminary auction day clearance rate of 80 per cent.
More than 40 per cent of the group’s record 1062 auctions booked this week had sold prior to their booked date, which has been a fixture of the year.
Some 367 properties proceeded to go under the hammer on Saturday, and the competition was fierce with an average of 4.7 average registered bidders, and three of them active.
Once again, Queensland led the way with 20 per cent of all its auctions selling to interstate buyers.
Ray White Victoria and Tasmania CEO Stephen Dullens said the increasing number of listings are giving buyers more choice.
“In Victoria this week we have well over 200 auctions taking place, and no matter the time or format, buyers are out in force looking to secure a purchase prior to Christmas,” Mr Dullens said.
A combination of Melbourne lockdowns, market strength and sheer number of buyers has resulted in a large influx of new listings across November, resulting in a busy December auction period.
Ray White Victoria has more than 1000 auctions scheduled for December, a higher number than any other month this year and essentially taking place over only three weekends.
“It is quite an amazing statistic given the slowdown for Christmas next week. After a challenging winter in Melbourne, it is wonderful to see many buyers and sellers getting on with their real estate journey,” Mr Dullens said.
New South Wales
Ray White New South Wales Chief Auctioneer Alex Pattaro said the softened clearance rate in Sydney of 63 per cent was a reflection of vendor expectations.
“We are seeing a large number of buyers flocking to properties, looking to secure their home before the end of the year.
“However, sellers’ expectations are far greater than what the market is prepared to pay.
“Sellers need to be reminded that we are still seeing exceptional prices. With more stock tipped to come to market next year, we see now as a great time to capitalise on these results.”
Ray White Queensland Chief Auctioneer Gavin Croft said it was certainly shaping up to be a big fortnight leading into Christmas.
“The results from the New Farm auction event today really give you an indication of where the inner city market sits at the moment,” Mr Croft said.
“We are seeing a touch of buyer fatigue in some areas, but in other areas the strength remains.
“Bidders were on the front foot today with trying to secure their property before Christmas.
“We are looking forward to next week, with significant auction volume meaning bidders will have a chance to lock it down,” he said.
Principal and Auctioneer Haesley Cush said the market was definitely not slowing going into Christmas.
“People can see that Brisbane offers such exceptional value and it is hard to argue with the current infrastructure, the prices and the interest rates here,” Mr Cush said
“We sold just under $24 million worth of property at our auction event today. We had some incredible sales, as well as bidding reaching $17.7 million for 65 Moray St, New Farm with three active parties right up until the end,” Mr Cush said.
“We expect a result in the coming days after receiving interest on this property from local, interstate and international buyers.
“This has been described as one of the best waterfront blocks remaining in Brisbane. It was so lovely to see smiles all around when these properties sold, really showing the great spirit of the day”
In South Australia, Ray White Chief Auctioneer John Morris said the group had an average of seven registered bidders, with 50 per cent of those bidders throwing their hand up to participate on Saturday.
“The numbers have been incredible this year, but next week it takes a further step with 101 auctions scheduled for the final week before Christmas,” he said.
“This is the biggest auction week for the year, if not on record, that South Australia has ever seen. We exit 2021 with incredible, exciting numbers for our state and our group”