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Sydney and Melbourne have returned strong clearance rates (excluding withdrawn properties), indicating homes are still finding buyers, according to CoreLogic.
CoreLogic compared the results across Australia’s two largest auction markets to illustrate the impact of Melbourne’s lockdown due to the second wave surge in coronavirus cases in the city.
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The preliminary numbers have revealed that 41 per cent of Melbourne auctions were withdrawn from the market last week compared with only 16 per cent in Sydney.
The larger number of withdrawn auctions in Melbourne, which are counted as unsuccessful auctions, resulted in the clearance rate plunging from the early-to-mid 60 per cent range through late May and June to the low 40 per cent range over the past two weeks.
In contrast, Sydney clearance rates have held above 60 per cent.
However, when removing withdrawn auctions from the clearance rate calculation, the data shows that the two markets are returning a similar “adjusted” reading in the low 80 per cent range, highlighting that those properties which aren’t withdrawn from the market are still finding buyers, CoreLogic outlined in its weekly property market indicator summary.
Recent CoreLogic figures have also shown that withdrawal rates in Melbourne during the first round of lockdown peaked at a much higher level than the current second round of lockdown (64.7 per cent), largely due to a ban on physical attendances at auctions. This time around, more properties are being sold via online auctions.
There were 1,344 capital city homes taken to auction during the week ending 26 July, with preliminary collection showing a success rate of 59.2 per cent, CoreLogic data has shown.
Last week’s clearance rate was the same as the previous week’s preliminary figure, which later revised down to 53.1 per cent at final collection.
CoreLogic is expecting last week’s final clearance rate to hover around the same early 50 per cent seen in the week prior, when there were 1,176 auctions held. Over the same week last year, there were a lower 1,124 auctions held with a higher rate of success of 68.6 per cent.
In Melbourne, there were 545 auctions with a preliminary clearance rate of 49.8 per cent.
Of the 450 results collected so far, 186 were withdrawn results and 224 were successful. Of the sold results collected, more than 50 per cent reportedly sold prior to the scheduled auction rate.
One year ago, a similar 544 Melbourne homes were auctioned, returning a final clearance rate of 71.7 per cent.
Sydney returned a preliminary clearance rate of 68.3 per cent across 602 total auctions held during the week ending 26 July.
Brisbane held 69 auctions with a success rate of 43.9 per cent, while in Adelaide there were 62 auctions and a success rate of 60.7 per cent.
Canberra returned the highest preliminary clearance rate of 80.5 per cent across a lower volume of 51 auctions, while Perth held only 14 auctions and returned a clearance rate of 28.6 per cent.
[Related: Melbourne lockdown to drag clearance rates]
