- Melbourne was set to hold about half of all the auctions nationally this weekend
- Domain's Senior Research Analyst expects many auctions to clear despite the disruptions
- CoreLogic data also suggested it was going to be the second-biggest week of auctions so far this year
Auction previews conducted by both Domain and CoreLogic predicted that this Saturday was set to be one of the busiest for auctions across the major capital cities this year.
However, due to Melbourne’s hard lockdown, whereby auctions can only be held online, it is now unlikely to be the case.
Nationally, volumes were set to be higher with 7.6% more auctions this Saturday compared to last week with 51% of them happening in Melbourne and 39% in Sydney.
Speaking to The Property Tribune, Domain’s Senior Research Analyst Dr Nicola Powell said while many auctions are likely to be postponed, agents are nonetheless able to hold auctions effectively online, which should minimise the impact of the lockdown.
“Many homes are already likely to have a pool of buyers known to the agent given the auction was to be held in two days’ time. It is likely that buyer negotiations are swiftly underway,” said Dr Powell.
“Clearance rates are likely to be impacted by the ban on onsite auctions as any withdrawn auction is counted as an unsuccessful auction outcome and therefore will pull down the overall clearance rate.
“However, it is likely to be less severe compared to the bounce in withdrawn auctions seen in late-March. Agents are now well-versed in conducting virtual auctions and some of the scheduled auctions have already been sold prior to auction day. “
Dr Nicola Powell, Domain Senior Research Analayst
Melbourne was set for the second-busiest Saturday this year with 1,269 auctions anticipated. Sydney is scheduled to hold 962 with 101 in Adelaide and 91 in Brisbane – relatively high for these cities.
Of the smaller capitals, Canberra has been leading the auction surge after returning a clearance rate of 92% last week.
CoreLogic’s data agrees with that of Domain’s, showing an 11% increase on last week’s auctions, and also predicting that it would likely be the second busiest week of the year with around half of the activity will be in Melbourne.
