- Auctions are expected to fall due to various lockdowns
- Sydney remains resilient despite the extended lockdown
- Unlikely auctions will decline in Canberra, says Domain
Auction numbers are set to fall 11% this weekend, according to Domain’s weekly auction preview.
Canberra has now joined Melbourne and Sydney in lockdown after recording several community cases. Domain’s auction count was made prior this latest lockdown announcement.
For Saturday, Sydney, Melbourne, Brisbane, Adelaide and Canberra have 1,731 auctions scheduled with numbers plummeting in Sydney (-10%) and Melbourne (-12%).
However, as sellers have become used to virtual auctions in Sydney and Melbourne, the number of scheduled auctions are tracking higher compared to the same time in previous years, according to Domain.
“[The] Sydney clearance rate was the strongest July performance since July 2016 according to Domain’s July auction card report,” Domain’s chief of Research and Economics, Nicola Powell, told The Property Tribune.
“The property market has displayed resilience last month despite strict lockdowns and bans on onsite auctions.
“We expect Sydney to keep up clearance rates as vendors and buyers are adapting to digitised property transaction processes to tackle ongoing Covid impacts.”
Nicola Powell, Domain
However, Dr Powell expects the extended lockdowns to reduce auction numbers in Melbourne.
“Melbourne’s scheduled auctions are already down by 12% this weekend compared to last.
“However, compared to the same time in the previous years, Melbourne’s scheduled auctions numbers are higher demonstrating that property transactions are paramount for Melburnians.”
Despite Canberra being plunged into a snap week-long lockdown, Dr Powell doesn’t expect clearance rates to fall.
“Canberra recorded 80 per cent clearance rate last weekend for the first time in 2021 but with the start of 7-day lockdown today, properties are expected to sell prior as the buyer pool is largely known.
“We’ve also received feedback from agents that they are rapidly adjusting to lockdown by moving to virtual auctions.”
Despite all the disruption, auctions are 64% higher than the Saturday average recorded in August 2019, pre-Covid.
Adelaide – which isn’t in lockdown – is scheduled to record an 8% rise in auctions while in Brisbane they are set to be down -12%.
Last Saturday, the four cities all recorded clearance rates above 80% for the first time this year.