Auction rates dip
Auction rates dipped among rising lockdowns. Image Canva/CoreLogic
  • Lower volume of auctions due to multiple state lockdowns
  • CoreLogic and SQM results differ due to differences in methdology
  • However, short-term trends look to be the same across both research groups

As a result of multiple state lockdowns, there was a lower volume of capital city homes that went to auction last week.

According to CoreLogic, 2,177 homes went to auction across the nation’s capital cities, down (26%) from the 2,960 held the week prior.

SQM Research recorded a scheduled 2,523 auctions, recording lower auction clearance rates than CoreLogic.

As Melbourne seems to be recovering recording a lower number of Covid cases, their auctions were the least affected. They held 1,067 auctions last week with preliminary results showing an impressive clearance rate of 75.9%.

Comparison of Auction Clearance Rates, week ending 4 July 2021

City CoreLogic Auctions CoreLogic Clearance Rate SQM Scheduled Auctions SQM Clearance Rate
Sydney 765 71.6% 1,001 49.5%
Melbourne 1,067 75.9% 1,127 58.5%
Brisbane 133 64.4% 162 14.8%
Adelaide 129 73.7% 150 34.7%
Perth 15 28.6% 16 0.00%
Tasmania 2 n.a. 1 100%
Canberra 66 86.8% 66 80.3%

Source: Adapted and compiled from CoreLogic and SQM Research.

It is important to emphasise the difference in methodology between the two research houses. Unlike CoreLogic, SQM accounts for all scheduled auctions published to take place, as opposed to just those confirmed by agents on the day (which is what CoreLogic uses).

For example, if there were the following auction statistics for a particular week:

  • Total auctions scheduled = 1,570
  • Auctions sold = 385
  • Auctions confirmed/reported = 531

Property research groups such as Domain and CoreLogic would calculate the auction clearance rate as the number of auctions sold divided by the number of auctions confirmed (385/531 x 100), which is 73%.

However, not included in their calculations are the 1,039 auctions that were rescheduled for another time, which SQM does include in their auction clearance rate calculations. SQM have taken this approach as they believe there is an underlying practice of under-reporting results that should be brought to light.

As expected, the auction clearance rate declined as measured by both research groups for Sydney due to a surge in Covid cases.

As SQM’s trend data shows, the clearance rate remained relatively stable until last week when it sharply fell from 61.7% to 49.5%.

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

The least difference in auction clearance rate between CoreLogic and SQM was found in Canberra. CoreLogic recorded 86.8%, while SQM recorded a clearance rate of 80.3%, and overall this looks to be holding steady.

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

Although a large difference when comparing percentages, the short-term trend remains similar between CoreLogic and SQM for Melbourne.

CoreLogic reported an improved result of 75.9% this week, up from 71.5%. SQM also recorded an improved result of 58.5% this week, up from 54.5%.

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

In the opposite direction, both research groups recorded a decline in auction clearance rates for Brisbane. CoreLogic recorded 64.4% this week, down from 79.1% the week prior. SQM recorded 14.8% this week, down from 19.5% last week.

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

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