There were 1,344 capital city homes taken to auction this week, with preliminary collection showing a success rate of 59.2%. This week’s clearance rate was the exact same as last week’s preliminary figure which later revised down to 53.1% at final collection, although last week there were a lower 1,176 auctions held. It’s likely this week’s final clearance rate will come in around the same early 50% seen last week as we continue to see large numbers of Melbourne auctions withdrawn from the market. Over the same week last year a lower number of auctions were held (1,124) with a higher rate of success (68.6%).
Comparing the results across Australia’s two largest auction markets highlights the impact of Melbourne’s lockdown. The preliminary numbers show 41% of Melbourne auctions were withdrawn from the market this week compared with only 16% in Sydney. The larger number of withdrawn auctions in Melbourne, which are counted as unsuccessful auctions, has seen the clearance rate drop from the early-to-mid-60% range through late May and June to the low 40% range over the past two weeks, while Sydney clearance rates are holding above 60%. Removing withdrawn auctions from the clearance rate calculation shows the two markets are returning a similar ‘adjusted’ reading in the low 80% range, highlight that those properties which aren’t withdrawn from the market are still finding buyers.
There were 545 Melbourne homes scheduled for auction this week. Of the 450 results collected so far, 186 were withdrawn results and 224 were successful, equating to a 41% withdrawal rate and a preliminary clearance rate of 49.8%. Of the sold results collected more the 50% reportedly sold prior to the scheduled auction date. One year ago, a similar 544 Melbourne homes were auctioned returning a final clearance rate of 71.7%.
In Sydney, 602 homes were taken to auction this week returning a preliminary auction clearance rate of 68.3%. While last week a final clearance rate of 61.4% was achieved across a lower 515 auctions. Over the same week last year, volumes were a lower 394 with a success rate of 75.7%.
Across the smaller cities Canberra returned the highest preliminary clearance rate with an 80.5% success rate. Followed by Adelaide (60.7%), Brisbane (43.9%) and Perth (28.6%).