Third busiest week of auctions despite Victorian lockdown

But despite this contraction in numbers, this week still recorded the third highest number of auctions seen thus far, this year.

Melbourne continued to see the highest number of auctions among the capital cities at 1,264, although it’s down from the 1,451 auctions predicted for the capital city last week. The current volume was also slightly below the previous week’s 1,291 but significantly higher than last year’s 261.

Following Melbourne was Sydney with 1,177 auctions, then Brisbane with 192, Adelaide with 163, Canberra with 94, Perth with 38 and Tasmania with only two.

Of the 2,460 results collected across the combined capitals, 75.7 per cent returned a successful result – lower than last week’s 78.2 per cent, which was later revised down to a final figure of 75.6 per cent.

Canberra emerged on top with a preliminary clearance rate of 84.7 per cent, followed by Sydney with 81 per cent, Melbourne with 72.8 per cent, Brisbane with 71.9 per cent, Adelaide with 69.3 per cent and Perth with 34.8 per cent.

According to Ray White Victoria and Tasmania CEO Stephen Dullens, Melbourne continues to be strong amid recent changes.

“After a week with so much change across Victoria, it’s been tremendous to see such fantastic results achieved across all property segments in Melbourne.

“Despite these challenges, it’s been wonderful to see so much activity to assist our customers and keep the real estate market active,” the CEO highlighted.

Based on results collected so far, Melbourne has already seen 20.6 per cent of auctions withdrawn over the week – significantly higher than the average proportion of auctions withdrawn over the year to date (excluding the temporary lockdown in February) at 4.5 per cent.

“While some auctions were pulled forward to beat the lockdown, a mountain of work from our agents saw the majority of auctions continue online,” Mr Dullens added.

Looking ahead, Archistar’s chief economist, Dr Andrew Wilson, forecasted an easing in activity come June.

“Following unprecedented autumn auction market results, activity will ease over June as the quieter mid-year selling season emerges.

“June buyer and seller engagement will, however, follow the record levels reported over May, with relatively high early winter numbers and rising prices set to continue over coming weeks – notwithstanding a continuation of the current lockdown restrictions on the Melbourne market,” Dr Wilson said.

Home values

Looking at the weekly change in home values, CoreLogic pointed to a 0.5 per cent growth in combined capital city values over the week ending 30 May 2021, with Sydney leading the charge with a 0.7 per cent per cent rise, followed by Adelaide with 0.6 per cent, Brisbane with 0.5 per cent and Perth and Melbourne with 0.3 per cent.

Month-on-month, the data saw Sydney maintain its lead with a 2.8 per cent increase, followed by Brisbane with 1.8 per cent, Adelaide with 1.7 per cent, Melbourne with 1.6 per cent and Perth with 1.0 per cent.

Meanwhile, year-to-date changes pointed to Sydney still winning the race, further widening its gap from other capital cities with a lift of 12.4 per cent – making it the only capital city with double-digit growth. Brisbane followed with 8.6 per cent, then Melbourne with 8.1 per cent, Adelaide with 7.1 per cent and Perth with 7.0 per cent.

Over the most recent four-week period, Sydney and Canberra clocked the highest capital city private treaty median price for houses at $901,750 and $820,000, respectively. Sydney also held the pole position for units, with a private treaty median of $649,950, while Melbourne followed with an average figure of $574,000.

On the other hand, Adelaide was the most affordable capital city for houses and units, with the private treaty median prices sitting at $493,250 and $372,500, respectively.

Private treaty sales represented around 85 per cent of all dwelling sales across the country, according to CoreLogic.

Average time on market for houses was shortest in Hobart at 24 days, followed by Sydney with 26 days, Melbourne and Adelaide with 31 days, Canberra with 34 days, Brisbane with 36 days, Perth with 38 days and Darwin with 48 days.

For units, Hobart recorded the lowest number at 27 days, while Brisbane was the highest at 51 days, followed by Melbourne (41), Perth (38), Canberra (37), Sydney (37) Adelaide (37) and Darwin (31).