auctions mask
As expected, auction clearance rates are low in Sydney due to the lockdown. Image – Canva.
  • CoreLogic and SQM clearance rates differ in both Melbourne and Sydney
  • Sydney recorded an increase according to CoreLogic
  • However, SQM data shows the rate actually fell in Sydney

While CoreLogic’s preliminary auction clearance rate showed an improvement as volumes remained relatively steady week-on-week across Australia’s capital cities, SQM Research data revealed a clearance rate that has fallen in Sydney and Melbourne.

According to CoreLogic, 2,121 capital city homes were taken to auction over the week, resulting in a preliminary rate of 76.4% – higher than the previous week’s initial figure of 73.6% which was revised down to 72.1%.

Melbourne saw 1,077 homes auctioned with a preliminary rate of 75.3%, similar to the previous week. By contrast, one year ago just 506 homes were auctioned in the Victorian capital with a clearance rate of 51.2%.

corelogic
Source: CoreLogic

In locked-down Sydney, 661 properties were taken to auction, down 17% from what was expected initially due to the rescheduling of many auctions. Of the results collected so far, 76.5% had been sold – higher than the 71.6% preliminary figure recorded last week. 19% were withdrawn with 70.7% of those sold prior to the scheduled auction date.

CoreLogic argues the above-average withdrawal rate and proportion of auctions ‘sold prior’ suggests vendors are pivoting their selling strategies – something that Real Estate Institute of New South Wales (REINSW) CEO, Tim McKibbin, also spoke about recently.

Canberra recorded a rate of 90% with Brisbane achieving a preliminary clearance rate of 75.8%, albeit with only 162 auctions were held.

It’s a different story: SQM

SQM Research applies a different methodology to CoreLogic, and their results tell a different story.

[Select part of the chart to zoom in on various years, and ‘reset zoom’ button to return]

In Sydney, the clearance rate continued to decline; the week ending 4 July saw a 49.5% clearance rate which then declined to 46% last week from 955 scheduled auctions, of which 281 were rescheduled. 112 sold at auction with 327 sold before auction, correlating with CoreLogic’s argument vendors are pivoting selling strategies effectively.

[Select part of the chart to zoom in on various years, and ‘reset zoom’ button to return]

In Melbourne, the clearance rate fell from 58.5% to 56.6%. 1,141 auctions were scheduled with 256 sold prior and 390 sold at auction. Unlike Sydney, a higher proportion of auctions in Melbourne were readvertised via private treaty at 33% compared to 20% in Sydney.

[Select part of the chart to zoom in on various years, and ‘reset zoom’ button to return]

Brisbane saw its clearance rate rise from just 14.8% to 23.4% from 184 scheduled articles. The overwhelming majority of scheduled auctions – 60% – were readvertised via private treaty.



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