Southern capital emerges as clearance rate frontrunner

The combined capital city preliminary auction clearance rate improved across a higher volume of auctions overall, CoreLogic found. For the week concluding 30 August, there were 1,163 homes taken to auction over the week, up on the 1,064 the week prior. 

“Of the 837 results collected so far, 67.7 per cent were reportedly successful, which was higher than last week’s preliminary figure of 64.7 per cent, later revising down to 60 per cent at final collection,” the researcher found.

“This time last year a higher 1,615 capital city homes were auctioned with a final clearance rate of 70 per cent.”

Melbourne’s preliminary figures show just under half of the homes taken to auction over the week were successful (49.6 per cent), while the other half were reportedly withdrawn. 

“This was down slightly on last week’s preliminary figure (50.3 per cent),” CoreLogic noted. 

“There were 167 auctions scheduled across the city, down on the 222 over the week prior. Of the sold results collected, 88.3 per cent sold prior to the scheduled auction date. One year ago, a much higher 768 Melbourne homes were auctioned, recording final clearance rate of 74.4 per cent.  

“The high withdrawal rate against an already low number of scheduled auctions, together with such a high proportion of properties selling prior to the auction event, rather than under the hammer, implies vendors have become increasingly reluctant to test the market through the lockdown period.”

Meanwhile, the figures show there were 730 Sydney homes taken to auction for the week, returning a preliminary auction clearance rate of 74 per cent. 

“This was an improvement on last week’s preliminary figure of 71.9 per cent, which later revised down to 66.1 per cent at final collection,” CoreLogic found.

“In stark contrast to Melbourne, the number of auctions across Sydney has been consistently trending higher, with this week’s auction volume, at 730, the highest the city has held since April. One year ago, a lower 590 Sydney homes were taken to auction, returning a higher final success rate (74.5 per cent).”