Melbourne has enjoyed its second busiest auction week of the year, but all eyes were on Sydney this weekend after the announcement of snap lockdowns in four local government areas.
Despite restrictions being re-introduced across a large swathe of the harbour city, auction volumes fell only 5 per cent on what was initially predicted.
Meanwhile, almost half of all properties in Sydney sold prior to auction and the withdrawal rate was only 9 per cent.
As a result, the combined capital city preliminary auction clearance rate weakened marginally this week to 77.5 per cent on the back of high volume.
CoreLogic reported 2976 properties were taken to auction, which was 2 per cent less than previously predicted nationally.
Last week, a lower 2400 auctions were held across the combined capitals with a preliminary auction clearance rate of 77.8 per cent that later revised down to a final auction clearance rate of 74.1 per cent.
Melbourne enjoyed its second busiest auction week of the year, with 1414 homes taken to auction this week.
The higher volumes returned a preliminary auction clearance rate of 75.9 per cent, which is higher than last week’s preliminary figure of 71.5 per cent.
By Wednesday’s final collection, last week’s final clearance rate came in at 69 per cent across a lower 788 auctions.
In Sydney, 1101 homes were taken to auction which was down 5 per cent from the initial predicted count.
Of the 920 results collected so far, a preliminary auction clearance rate of 81.8 per cent has been recorded, while the withdrawal rate is sitting at 9 per cent.
“This is only slightly higher than the 7 per cent withdrawal rate recorded last week,” CoreLogic noted.
“Of the 753 homes that did sell, 45.4 per cent reportedly sold prior to auction, which is higher than the number of sold priors recorded last week at final figures (42.9 per cent).
The smaller capitals
Canberra was the best performing in terms of clearance rate last week with 87.8 per cent of the 109 homes selling at auction.
However, it was Brisbane that was the busiest of the smaller auction markets with 177 homes taken to auction, recording a preliminary clearance rate of 57.2 per cent.
Domain has clocked a national preliminary clearance rate of 78 per cent after 2553 properties were taken to auction across the major capitals this week.
So far, results are in for 1781 of those auctions, with 1390 properties selling (to the value of $1282.3 million) while 167 properties were withdrawn.
Last week, the clearance rate settled at 71.6 per cent after a higher volume of 2895 properties were taken to auctions.
Results were provided for 1830 of those auctions, with 1310 properties selling (to the value of $1207.6 million), while 207 properties were withdrawn.
This time last year the clearance rat was 59.3 per cent after 1124 properties were taken to auction. Results were provided for 1062 auctions, with 630 properties selling (to the value of $754.2 million), while 150 properties were withdrawn.
Melbourne’s preliminary clearance rate came in at 75.8 per cent after 1320 properties were taken to auction.
So far, results are in for 895 of those auctions, with 678 properties selling (to the value of $544.9 million), while 64 properties were withdrawn.
Last week’s clearance rate settled at 67.9 per cent after 1569 properties were taken to auction. Results were provided for 636 of those auctions, with 432 properties selling (to the value of $332.2 million), while 80 properties were withdrawn.
This time last year, Melbourne’s clearance rate was 56.9 per cent after 518 properties were taken to auction. Results were provided for 497 of those auctions, with 283 properties selling (to the value of $280 million), while 50 properties were withdrawn.
Lockdowns might have been announced for many parts of Sydney, but that did little to impact the weekend’s auctions, with 958 properties going to auction, resulting in a preliminary clearance rate of 80.9 per cent.
So far, results are in for 680 of those auctions, with 550 properties selling (to the value of $617.6 million), while 87 properties were withdrawn.
Last week, the clearance rate settled at 72.6 per cent after 1038 properties were taken to auction. Results were provided for 943 of those auctions, with 685 properties selling (to the value of $747.2 million) while 107 properties were withdrawn.
This time last year, Sydney’s clearance was 61.3 per cent after 513 properties were taken to auction. Results were provided for 476 of those auctions, with 292 properties selling (to the value of $432 million), while 89 properties were withdrawn.
Ray White results
In a typically cooler month for auctions, the Ray White Group has recorded another substantial Saturday under the hammer.
The group recorded 444 auctions scheduled for the day nationally, resulting in a preliminary clearance rate of 88 per cent.
They note sellers who took their property to auction at the weekend achieved on average 14 per cent more than the highest offers prior.
Buyers across the country were determined to purchase their dream home, and many made it their mission to bid, whether that was in person or not.
The standout capital city of the day was Adelaide who recorded a 100 per cent clearance rate.
New South Wales
The talk of the day was the increased restrictions in Sydney, which seemingly had little effect on the preliminary clearance rate, which came in at 88 per cent.
As further restrictions were announced on Friday for the local government areas of Woollahra, Waverley, City of Sydney and Randwick, vendors and agents had to consider the options in front of them; bring the auction forward to Friday, postpone, or move the auction to a COVID-safe environment or online.
Ray White New South Wales Chief Auctioneer Alex Pattaro said that the priority across the city was to ensure a safe environment for those auctions going ahead.
“All of our agents acted quickly and nimbly, and we actually haven’t had to postpone any auctions,” Mr Pattaro said.
“We have the tools in place to adapt quickly at Ray White, particularly after the experience of snap lockdowns in Victoria over the last year,” he said.
“We are still in the best market conditions we have ever seen, and auctioning continues to be the best method of sale for buyers and sellers in a transparent environment.
“Despite seeing a lower attendance rate in Sydney today, the attendees that we are seeing are cashed up and ready to go,” he finished.
Away from the restricted areas, those in the Upper North Shore and outer western and southern suburbs enjoyed the ability to participate in auctions onsite, albeit with strict COVID-safe measures in place.
In a pleasing turn of events for Melbournites, auctions across Victoria got underway in a relatively normal fashion.
Ray White Victoria and Tasmania Chief Auctioneer Matt Condon said there was a sense of urgency amongst bidders, leading to excellent results across the board for sellers.
“Despite the increase in auction volume, it is still very clear that demand continues to exceed supply,” Mr Condon said.
“We have had a higher than normal level of active bidders. Buyers are rushing to get in before June 30 to take advantage of the stamp duty concessions,” he said.
“We also have a high number of auctions next week until July 1, with sellers wanting to capitalise on this.”
A drizzly day in Brisbane couldn’t put a dampener on the atmosphere, with the standout sale of the day was the highly anticipated auction for 101 Philip Street, Hawthorne, which sold for $2.005 million, smashing the reserve price.
The uninhabitable heritage Queenslander home on a 810 sqm block drew in 22 registered bidders.
Nearly 300 people flocked to the street to watch the spectacle unfold and enjoy a barista-made coffee from the coffee cart.
Bidding started at $1.4 million and rapidly rose past the $2 million mark, before finally selling under the hammer.
“It is one of those properties that my mum would point at every time we drove past and say that she wishes she had bought it back in the day,” Auctioneer Haesley Cush said.
Ray White Bulimba Principal Brandon Wortley said that the seller, who was a beneficiary of the deceased estate, was visibly emotional at the amazing result.
“The buyers ended up being a local couple, who only viewed the property for the first time two days ago and knew that they needed to get their hands on it to renovate,” Mr Wortley said.
“Since COVID there is this huge demand in our area for houses on a big block.”
South Australia enjoyed another Saturday of outstanding results, with Ray White SA/NT Chief Auctioneer John Morris saying that he sold every auction under the hammer.
“We have had an average of 14 registered bidders at my auctions today, and we are seeing a phenomenal increase in interstate buyers trying to get into the Adelaide market,” Mr Morris said.
“We are the third most livable city in the world, and I cannot see this slowing down anytime soon,” he said.