The combined capital city auction market is expected to see a slight increase in auction volumes this week, after last week saw a dip in numbers as the nation stopped to commemorate ANZAC day.
The lower volumes last week can also be attributed the continued challenges around social distancing with only 413 auctions held last week. While this week’s scheduled numbers are set to increase with 544 properties expected to go to auction, volumes are substantially lower than what we would usually see.
There are 184 Melbourne homes scheduled for auction this week, up on the 144 over the previous week.
Sydney is expected to be the busiest city for auctions for another week, with 254 properties scheduled to go under the hammer, up on the 192 held last week.
Adelaide, Brisbane and Perth are all expected to see a higher number of auctions held this week, while scheduled volumes are lower in Canberra. There are no auctions in Tasmania this week.
Going forward, it’s likely the number of scheduled auctions will remain substantially lower than normal, at least until social distancing policies are lifted and on-site auctions can resume. With a sharp reduction in scheduled auctions, we could see the withdrawn rate start to normalise which is likely to have a positive flow-on affect to the clearance rates, which has been dragged lower over the past month due to a surge in auction withdrawals which are counted as unsold in the clearance rate statistics.
Summary of last week’s results
Last week, 413 capital city homes were taken to auction, down on the 1,922 over the week prior. The lower volumes last week returned a final auction clearance rate of 41.1%; the highest clearance rate recorded since restrictions to on-site auctions and inspections set in. Of the 361 results collected, 32% reported as being withdrawn, which is much lower than the withdrawal rates we’ve seen over the last few weeks which have been above the 50% mark. A further reduction in withdrawn auctions is expected going forward, as the flow of ‘pre-restriction’ scheduled auctions continues to taper. The trend towards fewer auctions isn’t surprising, considering on-site auctions are banned. The smaller number of auctions that do proceed are likely to continue to see a larger than normal proportion being sold prior to the event as vendors become more willing to accept offers they may not have considered a few weeks ago and less willing to test selling conditions on auction day.
There were 144 Melbourne homes scheduled for auction last week, returning a final auction clearance rate of 27.9% and a withdrawal rate of 47%. Of the 36 homes that did sell across Melbourne, 44% sold prior to the auction date.
Sydney had 192 scheduled auctions last week, returning a final auction clearance rate of 50.9% and a rate of withdrawal of 29%. Of the 82 sold results collected, 57.3% sold prior to auction.
Canberra was the best performing capital city auction market for another week, with a final auction clearance rate of 57.1% and a withdrawal rate of only 4%.