- According to CoreLogic data, auction clearance rates are 70%+ to 80%
- Buyer demand is strong, even in cities with sustained lockdowns such as Sydney
- Melbourne clearance rate was down last week, probably due to its snap lockdown
Despite half the country now under some form of lockdown, and lower auction volumes, clearance rates look like they are holding up, according to last week’s data from CoreLogic.
1,672 auctions were held across the various capital cities, and a preliminary analysis of results show a 76.4% success rate. Last week’s CoreLogic preliminary clearance rate was 79.2% (later revised down to 77.2%).
Around 10% of the originally scheduled auctions were postponed, and will most likely go to market a later date.
A year ago, amid sustained lockdowns in Victoria, 1,150 properties went to auction, and 58% cleared.
Around the capitals
Sydney’s continuing lockdown yielded an 80%+ preliminary clearance rate for the second successive week, an incredible resilience considering what the harbour city is going through.
Melbourne had more auction activity, with 73.% clearance, and even Perth (not a traditional auction capital) hit 70% rate. It looks like online auctions do not hamper whether the property sells or not, as buyers are comfortable with the technology.
Auction clearance rates, week ending 8 August 2021
Canberra was the best performer with 86.7%, with Adelaide at 78%.
Sydney up, Melbourne down: SQM
SQM Research – who calculate auction clearance rates in a different manner* to CoreLogic – will usually display lower rates. SQM counts anything removed from an auction prior as having not cleared (rather than removing it from the calculation altogether, which is what CoreLogic does).
However, whichever way you cut it, Sydney’s auction clearance rate has clearly improved recently, and seems to be holding up relatively well, whereas Melbourne’s was down, probably due to their sixth lockdown being announced last week:
Up to Week of 8 August 2021
‘Differing’ Clearance Rate calculations
* SQM Research’s auction clearance rate = the total number of properties, number of properties that sold on the day and sold prior, divided into the total number of properties originally scheduled to Auction on that day.
Note: anything that was scheduled, and later removed from auction, will count as having not cleared, according to SQM, but not according to CoreLogic.
Also Note: CoreLogic’s clearance rate is based on their own “auction results” (usually 80% of the total auctions they have identified). Many of the missing results would be passed in, rescheduled or withdrawn.