- Post-lockdown supply surge stimulated auction figures
- 42,918 properties were taken to auction across the combined capital cities in Q4
- These figures more than double those from the same quater in 2020
The post lockdown supply surges amplified auction figures for the last three months of 2021, with an 85.1% increase in properties taken to auction from the previous quarter according to CoreLogic’s Quarterly Auction Market Review.
Close to 43,000 properties were auctioned across the combined capital cities in the final quarter of 2021, a figure more than double the same time 2020.
CoreLogic Research Director Tim Lawless explains that both warmer weather and a post lockdown recovery contributed to the record figures.
“The large number of auctions held through the December quarter also reflects the strong selling conditions that were present, which motivated vendors to capitalise on strong buyer demand and the significant rise in values seen through the pandemic,” he said.
“Auctions as a way of selling tend to be more popular during a sellers’ market.”
CoreLogic Research Director Tim Lawless
Mr Lawless explains that the nature of auctions means buyers are highly competitive and incentivised to outbid rival purchasers.
“During cooler market conditions an auction may not attract as many registered bidders or as much competitive bidding,” he said.
Auction clearance rates
The clearance rate across the combined capital cities reached 71.3% during the December quarter, a figure down on par with the previous quarter (71.7%).
This clearance rate was not maintained, rather as the quarter progressed and the volume of auctions increased, the clearance rate trended downward reaching 61.1% in the week ending 19 December 2021.
Mr Lawless said that this trend is not uncommon.
“The surge in the number of auctions through the final quarter of 2021 was accompanied by a consistent trend towards lower clearance rates, with this trend evident across each of the capital cities,” he said.
“The drop in clearance rates implies demand didn’t quite keep pace with the level of auction supply during the quarter.”
CoreLogic’s auction figures across the capitals
|
Capital City |
Auctions Held |
Clearance Rate |
|
Melbourne |
19,788 | 69.7% |
|
Sydney |
14,906 |
69.9% |
|
Brisbane |
3027 | 74.9% |
| Adelaide | 2902 |
80.5% |
| Canberra | 1949 |
82.4% |
