Auction activity upset expected once again

However, the actual number of auctions is likely to be revised downwards amid ongoing lockdowns and restrictions in Sydney, Melbourne and Canberra, according to researcher Caitlin Fono.

Melbourne continues to see the highest number of scheduled auctions at 1,284, but much like last week – when only 876 auctions went through out of 1,179 originally scheduled – this week can also expect to see a heavy downward revision in the actual number of homes taken to auction.

Ms Fono said many vendors are likely to choose to reschedule to a later date.

Meanwhile, Sydney has 600 homes set to go under the hammer, up slightly on last week’s 514, but lower than last year’s 706.

Across the smaller auction markets, Adelaide is expected to be the busiest with 172 scheduled auctions, followed by Brisbane with 164, Canberra with 128, Perth with 17 and Tasmania with two.

Last week’s results

When combined, capital cities recorded a final clearance rate of 64.3 per cent out of 1,764 auctions over the week ending 22 August. This was the lowest clearance rate seen since late September 2020.

In comparison, the week prior had recorded a final clearance rate of 70 per cent out of a slightly higher 1,822 auctions.

According to Ms Fono, the drop in clearance rate is largely attributed to a surge in withdrawn auctions in Melbourne over the week.

Looking closer into the capital cities, Adelaide has emerged as the most successful capital city auction market, putting a stop on the weeks-long reign of Canberra, which currently remains on lockdown. The South Australian capital recorded a final clearance rate of 90 per cent resulting from 131 auctions.

While Canberra did follow, there was a huge gap, with the Australian capital recording a success rate of 78.6 per cent across 98 auctions.

Despite its own extended lockdown, Sydney took the third spot, with a final clearance rate of 78.5 per cent out of 514 auctions. Of the sold results, 58.7 per cent were sold prior to the scheduled auction date.

Following Sydney was Brisbane with 72.7 per cent out of 130 auctions, Perth with 69.2 per cent out of 14 auctions and Melbourne with 49.1 per cent out of 876 auctions.

Speaking of Melbourne’s unusually low clearance rate, Ms Fono said the 48 per cent withdrawal rate ultimately dragged the Victorian capital’s success rate to the lowest it has been since late September 2020.

Of the capital cities, only Adelaide, Brisbane and Perth saw their clearance rates increase week-on-week.