- Busiest on record for Sydney, Melbourne, Canberra, Brisbane and Adelaide
- Median auction price for Canberra and Adelaide houses, along with Sydney units, hit records
- Volumes are down due to multiple lockdowns
June was the busiest on record for auctions in Sydney, Melbourne, Canberra, Brisbane and Adelaide, according to Domain’s latest Auction Report.
The milestone meant that roughly double the number of auctions occurred in Sydney, Canberra and Adelaide compared to June’s average over the past decade. Domain suggests market conditions are so fierce that sellers are eager to sell by auction – rather than private treaty.
The median auction price for Canberra and Adelaide houses, along with Sydney units, hit a record high, with Canberra’s median auction price breaching the $1 million mark for the first time.
Domain’s has counted up to 1,795 scheduled auctions across Sydney, Melbourne, Brisbane, Adelaide and Canberra tomorrow. Volumes are significantly lower compared to last week due to postponements fuelled by community transmission of Covid-19 in several capital cities.
“Sellers are likely to postpone auctions given the escalating community transmission of Covid across Sydney from late-June,” said Dr Nicola Powell, Domain Senior Research Analyst.
“The longer restrictions are in place the more likely sellers are to withdraw or delay listing until greater certainty is provided. This will impact the volume of auctions occurring in July.”
Dr Nicola Powell, Domain
The report has revealed the trend of more buyers securing homes prior to auction continues with about a third of sellers accepting an offer in Sydney. This is well above the decade average of 26%. In Melbourne this 27.2% – 13% higher than the decade average.
“Buyers are clearly under pressure and opting to place an offer before auction day, this could be a combination of concern they might not be able to secure another home or that property prices will continue to escalate.”
Melbourne’s auction rate dipped by 36% in June due to the lockdown. However, there were still 3,933 auctions scheduled during the last month – the largest since Domain records began in 1997 – 57% higher than the June decade average.
“Buyers should still be finding a greater choice of homes being sent to auction for the time of year,” said Dr Powell.
“While clearance rates have softened from the March high, they remain strong on unusually high volumes. It suggests while competition has eased, buyer demand remains elevated, and this may be a clear sign that strong market conditions are here to stay for the time being.”
