There were 1,977 homes taken to auction across the combined capital cities this week, revising down from the 2,106 originally expected as a number of vendors reschedule to a later date. The previous week saw a lower 1,822 homes taken to auction across the combined capitals, while there were 1,064 auctions held this time last year. Of the 1,525 results collected so far, 63.3 per cent were successful making it the lowest preliminary clearance rate recorded across the combined capital cities since late July 2020. In comparison, the previous week’s preliminary clearance rate came in at 72.3 per cent, revising down to 70.0 per cent at final figures, while this time last year, 60.0 per cent of reported auctions were successful. With Sydney maintaining a preliminary clearance rate above 80.0 per cent for the 4th consecutive week, the drop in clearance rate is largely attributed to the surge in withdrawals in Melbourne over the week.
Capital City Auction Statistics (Preliminary)
There were 1,067 auctions held across Melbourne this week, revising down from the 1,179 originally scheduled, meaning around 9.5 per cent were rescheduled to a later date. Over the previous week, 884 homes were taken to auction, while there were 222 auctions held this time last year. Of the 792 results collected so far, 49.9 per cent were withdrawn, weighing heavily on the preliminary clearance rate which came in at 48.6 per cent. Of the 385 sold results collected so far, 69.4 per cent were sold prior to auction (highest ‘sold prior’ rate since last week of September 2020). In comparison, 32.6 per cent of auctions were withdrawn over the previous week and a final auction clearance rate of 59.9 per cent was recorded.
Weekly Clearance Rate, Combined Capital Cities
Sydney saw 529 properties taken to auction, down from the previous week (551), and this time last year (615). Of the 454 results collected so far, 81.7 per cent were successful, while 13.7 per cent were withdrawn. Just 1.1 per cent were postponed to a later date. Of the 371 sold results, 61.5 per cent were sold prior to the scheduled auction date. Last week, Sydney’s preliminary auction clearance rate was slightly higher (82.9 per cent), revising down to 81.3 per cent at final figures.
Clearly we are seeing a remarkably different outcome in auction results across Australia’s two largest auction markets which can be explained by the fact that properties can still be physically inspected in Sydney (although a private inspection is limited to one person at a time), but not in Melbourne.The divergence in the auction clearance rate tells the story about how important it is for prospective buyers to be able to physically inspect a property in order to make such ahigh commitment decision as buying a home.
Adelaide was the best performing capital city auction market this week with a preliminary auction clearance rate of 87.1 per cent. Canberra recorded a preliminary auction clearance rate of 78.9 per cent, while Brisbane saw 71.9 per cent of reported auctions record a successful result.