Despite the announcement of a snap lockdown in Victoria, this week proved the third busiest auction week of the year, with 2930 properties going to auction across the combined capitals, resulting in a preliminary clearance rate of 75.7 per cent.
CoreLogic notes prior to the announcement of a snap lockdown in the Garden State on Thursday, this week was actually on track to be the second busiest of the year, but volume took a slight hit as restrictions were re-introduced.
Also taking a minor dip was the preliminary clearance rate. Last week, a higher preliminary success rate of 78.2 per cent was recorded, which later revised down to 75.6 per cent at final figures.
With Melbourne currently in lockdown, 1264 homes were taken to auction this week, compared to 1291 over the previous week and 261 this time last year.
“It is also worth noting that due to the current circumstances in Melbourne, the volume of auctions this week has revised down, with 1451 auctions predicted for this week last Wednesday,” CoreLogic said.
Preliminary figures show 72.8 per cent of the 1101 results collected so far were successful, down from the previous week, when a preliminary clearance rate of 77.6 per cent was recorded. This later revised down to 74.9 per cent at final figures.
“Looking at what has been collected so far, 20.6 per cent of auctions were reported as withdrawn, while 48.4 per cent of successful auctions were sold prior to auction,” CoreLogic said.
“Over the year to date and excluding the temporary lock down period in February, the average proportion of auctions sold prior to the auction event was about 26 per cent and only around 4.5 per cent of auctions are withdrawn.”
There were 1177 homes taken to auction across Sydney this week, compared to 1103 last week and 452 this time last year.
There have been 969 auction results collected so far, returning a preliminary auction clearance rate of 81.0 per cent.
Last week’s preliminary clearance rate was a lower 80 per cent, which revised down to 76.9 per cent at final figures.
The smaller capitals
Across the smaller capital cities, Canberra recorded a preliminary auction clearance rate of 84.7 per cent, followed by Brisbane where preliminary results show 71.9 per cent of auctions were successful.
Adelaide recorded a preliminary auction clearance rate of 69.3 per cent, while in Perth, 34.8 per cent of reported auctions were successful.
Domain’s data also indicates the snap lockdown in Victoria has slightly impacted this week’s auction figures, but not as much as many had feared.
This week, they recorded a preliminary clearance rate of 74.9 per cent after 2505 properties were listed for auction.
So far, results are in for 1768 of those auctions, with 1325 properties selling (to the value of $1087.3 million), while 313 properties were withdrawn.
To add a little context, the withdrawal rate is higher than last week, as might be expected in response to Victoria’s lockdowns. However, a comparison with last week puts things in perspective.
Last week ,the final clearance rate settled at 72.3 per cent after 2342 properties were taken to auction.
Results were provided for 2156 of those auctions, with 1558 properties selling (to the value of $1374.7 million), while 187 properties were withdrawn.
This time last year, national lockdowns saw just 568 properties go to auction, resulting in a final clearance rate pf 57.4 per cent.
Results were provided for 526 of those auctions, with just 302 properties selling (to the value of $366.8 million), while 78 properties were withdrawn.
Sydney’s preliminary clearance rate dipped marginally this week, coming in at 77.4 per cent after 981 properties were listed for auction.
So far, results have been provided for 720 of those auctions, with 557 properties selling (to the value of $587.8 million), while 95 properties were withdrawn.
Last week, the Harbour City clocked a final clearance rate of 72.6 per cent after 952 properties were taken to auction.
Results were provided for 876 of those auctions, with 646 properties selling (to the value of $668.4 million), while 93 properties were withdrawn.
This time last year, just 358 properties were listed for auction, and the final clearance rate was 57.4 per cent.
Results were provided for 324 of those auctions, with 186 properties selling (to the value of $263.9 million), while 61 properties were withdrawn.
Despite snap lockdowns in Victoria, the property market rallied to record an auction preliminary clearance rate of 71.4 per cent after 1272 properties were slated for auction.
So far, results are in for 878 of those auctions, with 627 properties selling (to the value of $404.2 million), while 207 properties were withdrawn.
Granted, the withdrawal rate is higher than last week, however both the volume and initial clearance rate are also up on last week’s final statistics.
Last week, 1122 properties were taken to auction, resulting in a final clearance rate of 70.8 per cent.
Results were provided for 1047 of those auctions, with 741 properties selling (to the value of $576.6 million), while 83 properties were withdrawn.
This time last year, Melbourne (like the rest of Australia) was also grappling with COVID lockdowns. In the same week in 2020, just 162 properties were taken to auction, with the clearance rate sitting at 60 per cent.
Results were provided for 155 of those auctions, with 93 properties selling (to the value of $88.1 million), while 16 properties were withdrawn.
Ray White results
The Ray White Group said they capped off a stellar month of auctions with an ‘a-May-zing’ day in the field as the group set suburb records and defied the negative speculation around COVID-19 lockdowns to achieve multiple outstanding results for sellers.
Internal data from the family-owned and led company showed auctions in May were up over 216 per cent on last year with more than eight in every 10 properties selling via an auction campaign – that coupled with 91 per cent of all auctions having active bidders.
The Ray White Group booked a preliminary auction day clearance rate of 86.8 per cent on Saturday, with locked-down Melbourne coming in strong at 89.3 per cent, Sydney at 87.5 per cent, Brisbane at 86.7 per cent, and Adelaide at 83.3 per cent.
On the last Saturday of autumn, the streets of Melbourne would normally be a sea of real estate activity, particularly with market conditions as strong as they are.
With the announcement of Victoria’s fourth lockdown earlier this week, and a pause to physical auctions and inspections for seven days, the “Super Saturday” status across the market was at risk.
Ray White Victoria and Tasmania CEO Stephen Dullens said it was pleasing to see that, once again, the Victorian property market remained resilient and strong.
“Our members are well prepared and well versed at online auctions and today saw a strong level of activity,” Mr Dullens said.
“After a week with so much change across Victoria, it’s been tremendous to see such fantastic results achieved across all property segments in Melbourne. Despite these challenges, it’s been wonderful to see so much activity to assist our customers and keep the real estate market active.
“While some auctions were pulled forward to beat the lockdown, a mountain of work from our agents saw the majority of auctions continue online – and that resulted in some spectacular outcomes with more than 100 online auctions conducted.
“Our auctioneers once again took to their lounge rooms and bedrooms to call auctions from their homes. Despite the challenges, we feel our valued clients have complete confidence in our ability to successfully auction online.
“Our preliminary clearance rate is well into the 80 per cent, a sign once again that the real estate market can combat anything that’s thrown at it.”
New South wales
Ray White NSW Chief Auctioneer Alex Pattaro said strong registered bidder numbers at auctions were fuelling competition and ensured sellers were achieving the market’s best price.
“On certain campaigns, there’s a disparity between buyer feedback and the end sale price, as we’re noticing more buyers are keeping their cards close to their chest,” Mr Pattaro said.
“If you’re looking to buy, the question is, what are you waiting for? If you’re looking to sell, now is a great time to cash in and take advantage of what is a very strong selling market.”
Ray White QLD Chief Auctioneer Mitch Peereboom said it had been another exceptional week of auctions in the Sunshine State with some superb sale prices due to fierce competition.
“We know right now we have so many buyers that want to purchase a property and are willing to get themselves into a position to bid on a completely unconditional basis,” Mr Peereboom said.
“We’ve had many situations where we’ve had offers prior to auction which the seller would have said yes to, but we’ve followed through with the process by getting a number of buyers in a position to bid on the day, and that’s resulted in sale prices exceeding the highest offer by a significant margin.
“If you’re looking at bringing your property to the market, please come with confidence knowing that we have more buyers than properties, we’re seeing great competition, and that’s resulting in excellent sale prices.”
Ray White SA Chief Auctioneer John Morris said latest data showed that Australasia’s leading property group called 41 per cent of all auctions in South Australia throughout April.
“This week, there were 148 auctions scheduled across the state which gives us a 29 per cent share, with 43 of those 148 being under the Ray White banner,” Mr Morris said.
“Next week that does rise again to 36.5 per cent with the market share remaining pretty consistent for Ray White, sitting between the 30-35 per cent range.
“Clearance rates at the moment are very, very strong. Everything I’ve auctioned off today has sold – with an average of 12 registered bidders per auction.”