There are 3,065 capital city properties scheduled to go under the hammer this week, however the release of new policy on Tuesday has quickly changed how the Real estate industry will operate, with on-site auctions and open homes now being added to the list of social restrictions.
The announcement handed down came amidst rising COVID-19 cases as the government bids to ramp up social distancing measures and restrictions become more widespread.
This week was expected to be the busiest week for auctions for 2020. However, given usual auction methods are temporarily banned, agents may be looking to move to online solutions, or accept bids over the phone, with the aim to carry on with a ‘business as usual’ approach in these unprecedented times. There is also likely to be a number of vendors who withdraw their property from the market completely or postpone until circumstances improve. After the weekend, we should have a better idea on how this is going to impact the auction market going forward.
Across each of the individual auction markets, scheduled volumes are higher week-on-week in Melbourne (9%), Sydney (28.2%), Brisbane (52.2%), Adelaide (44.3%) and Canberra (2.5%), while Perth and Tasmania have fewer scheduled auctions over the week.
Summary of last week’s results
Last week, auction volumes across the combined capital cities reached their second highest level this year with 2,599 homes taken to market. The higher volumes combined with uncertainty around COVID-19 saw the final auction clearance rate fall to the lowest level since June last year returning a 56.9% success rate. Last week’s final clearance rate was lower than the week prior when 65.3% of the 2,274 auctions held returned a successful result.
Melbourne was the busiest city in terms of auction activity with 1,343 homes taken to auction last week, returning a final clearance rate of 58.4%. Over the previous week, 1,201 auctions were held and the clearance rate was recorded at 65.6%. This time last year, 814 homes were taken to auction across the city when 55.1% were successful.
There were 946 homes taken to auction in Sydney last week returning a clearance rate of 58.8%, while over the previous week, 767 homes were taken to auction and a higher clearance rate of 68.1% was recorded. This time last year 506 auctions were held returning a 52.1% success rate.
Across the smaller auction markets, Canberra was the best performing auction market last week in terms of the clearance rate with 63.2% of homes auctioned reporting a sold result.