melbourne auction
Auctions remain strong in both Sydney and Melbourne. Image – Canva.
  • CoreLogic recorded 2,920 auctions across the capital cities last week
  • Preliminary clearance rate is currently at 81.8%
  • SQM has recorded increased volumes too

With Australia further along its reopening path, auctions have continued their rise, with last week being the busiest week of auctions since late June, according to CoreLogic.

Across the combined capital cities 2,920 homes were taken to auction – the fourth busiest week this year. Despite the rise in volumes, they were down 5.7% compared to the originally scheduled figure of 3,095.

The previous week saw 2,708 auctions take place – significantly higher than the 1,131 taken to auction during the same week last year.

Due to the higher volumes, the preliminary clearance rate is slightly lower at 81.8% compared to 83.3% the previous week.

Melbourne

Melbourne, where auctions collapsed during the lockdown in part due to the virtual ban of private inspections, has continued its recovery.

According to CoreLogic, 1,478 auctions were held in the Victorian capital last week – the highest since late March. So far, a 79.4% clearance rate has been recorded.

SQM’s data has correlated strongly with that of Corelogic’s. Volumes and clearances have both risen since late August, with 1,590 auctions held last week – above the 1,423 held the previous week. The clearance rate declined last week to 59.2%, from 60.4% the previous week, but well above where it has been in August and September.

Sydney

Sydney’s auction market continues to perform strongly. 911 auctions were held last week according to Corelogic, more than the 825 auctioned the week before.

Of the 808 results reported so far, 85% have been cleared – the highest rate since early April. This is a strong result given that during the same time last year only 69.1% of auctions were successful.

According to SQM, 1,065 properties were taken to auction last week, above the 971 recorded last week. The clearance rate increased slightly from 65.9% to 66.2%. Apart from the downturn in July, Sydney’s auctions have cleared at relatively high levels all year.

Real Estate Institute of New South Wales (REINSW) CEO, Tim McKibbin, said given the easing restrictions, a surge in listings is expected.

“Now comes the next test for the market. Eased restrictions, open homes and onsite auctions represent a return to a more normal operating environment,” he said.

“Notwithstanding the delayed return to regional travel, we expect a surge in new listings to characterise both metropolitan and regional markets over the next six to eight weeks.

“Demand has proven robust enough for this supply to be comfortably absorbed and for prices to remain resilient.”

Other markets…

Outside of the two 5-million plus cities, Canberra recorded an impressive 90.7% clearance rate with Perth and Adelaide recording a clearance rate of 86.7% and 82.3% respectively.

Tasmania saw just one auction – and it was successful.

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