Auction clearance rates are ending the year solidly despite significantly more properties being taken to auction and looming concerns about Covid 19 resurfacing.
They are a sign of the strength and depth of our property markets.
This weekend 1,602 properties were put to auction nationally compared to 2084 last weekend – but that’s not unexpected being less than one week out from Christmas.
All our capital cities delivered strong auction clearance rates with Canberra being the stand out performer with a preliminary auction clearance rate of 85%.
At the same time Sydney is also setting itself up for a property boom in 2021 with back to back strong results.
Today’s combined capital city preliminary auction clearance rate was recorded at 75.3% across 1230 auction results reported so far, much the same as last week’s preliminary result (74.5%) which was later revised down to 69.7%.
This time last year saw a final national clearance rate of 59.6% when only 617 properties were taken to auction.
Sydney:
The harbour city was host to 566 auctions this weekend, significantly less than last week (872.)
This time last year only 163 Sydney properties were put to auction the weekend before Christmas.
Of the 431 Sydney auction results collected so far, 323 have returned a successful result, a sign of the firm Sydney auction market.
The preliminary auction clearance rate of 74.9% will be revised lower to around the low 70%’s as the remaining auction results are collected.
Last week, a final clearance rate of 72.5% was recorded for Sydney, while one year ago, a lower success rate of 66.9% was achieved across Sydney.
Realestate.com.au reported that there were also 1,928 private sales in New South Wales this week, significantly more than the number sold last week (1,838) and the 1,728 properties sold by private treaty the week before. Again a sign of the strength of the Sydney property market.
The following chart from Dr Andrew Wilson shows Sydney’s auction market trend over the last 2 years.
The following chart from Dr Andrew Wilson shows that the number of Sydney property transactions are almost back to pre Covid levels.
Melbourne:
In Melbourne, 864 properties were scheduled for auction this week, significantly less than last week (981.)
This time last year only 363 Melbourne properties were put to auction the weekend before Christmas.
Of the 675 Melbourne auctions reported so far, 511 were successful sold.
The preliminary auction clearance rate of 75.7% will be revised lower to around the low 70%’s as the remaining auction results are collected.
Last week, a final clearance rate of 67.7% was recorded for Melbourne, while one year ago, a strong success rate of 61.7% was achieved across Melbourne.
Realestate.com.au reported that there were also 1579 private sales in Victoria this week, many more than the number of properties sold in Melbourne in the previous week (1414)
The following chart from Dr Andrew Wilson shows Melbourne’s auction market trend over this year.
The following chart from Dr Andrew Wilson shows that the number of Melbourne property transactions are steadily increasing but still below pre Covid levels.
Here are the preliminary auction clearance rates as reported by Domain
As always these will be lower by mid week when the auction results that are not yet reported are taken into account.
Clearly all the auction markets around Australia were strong this weekend
Now is the time to take action and set yourself for the opportunities that will present themselves as the market moves on
If you’re wondering what will happen to property in 2021 you are not alone.
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NOW READ:
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'This weekend’s auction results Saturday December 19th – Auction clearance rates end year strongly' have 18 comments
July 21, 2020 Michael
Do you know where the final auction results are published. I can only find the totally misleading preliminary results.
July 21, 2020 Michael Yardney
The final results are published on both Domain’s and realestate.com.au websites on a Thurday
May 31, 2020 James
Hi Michael, can you help explain the preliminary auction clearance rates that get reported by Domain each week?
Using Sydney’s figures as an example.
Total 367
Confirmed: 219
Sold: 166
Withdrawn: 49
Passed In: 53
65% from (166/[166+49+53]) or 166/268 = 61.9%
I understand how the % has been calculated but what happened to the other 99 properties? It’s almost 30% of the results not being reported?
Then looking back at Domains previous weeks they are the same
23rd May – The results say 67% but missing 60 (24%) of the results
16th May – 75% but missing 58 (38%) of the results
09th May – 68% but missing 49 (34%) of the results
When do the figures catch up and are no longer ‘preliminary’ results?
If 30-40% of the results are never included, whats the point of tracking it?
June 1, 2020 Michael Yardney
You are right James and that’s why these are marked as preliminary auction results and final auction results are released on Thursday each week when many of the unreported sales are taken into account.
That’s why I have suggested in my commentary that auction clearances will end up significantly lower than those initially reported
March 1, 2020 Steve
Hi Michael,
I have a Sydney investment property on the Northern Beaches worth approx $2M, with $1M in equity. Am i better off to sell it and use the $1M of equity to buy multiple properties in other states / locations to diversify, spread risk and increase the chances of capital growth and cash flow?
I already have another Sydney investment property worth similar, so pay a hefty land tax bill every year.
Regards
Steve
March 1, 2020 Michael Yardney
I understand your concern, no one likes paying land tax, it is a wealth tax but it is also necessary part of becoming wealthy through Real Estate. You should see my land tax bill:-)
I can’t answer your question without a lot more information, but this is exactly what we do as part of our modelling when we build a Strategic Property Portfolio plan for our clients. It takes into account your time frames, the capital growth of your current property, the potential capital growth of other properties, the costs involved in buying and selling and over what time period you would make a bigger profit. You can read more about our service here. Why not book in for a time delivers build a Strategic plan for you plan for you
December 16, 2019 Cheshire Fili
Hi Michael, what are your thoughts on Dualdwelling properties and the rental guarantees that some agencies offer. pros and cons pls.
Thanks in advance
December 16, 2019 Michael Yardney
Steer clear of them they must be terrible investments for the developer to nee dto offer you this type of incentive.
There is SO much written about this on the internet – I’ll do an article on this as well – but I’m glad you asked – don’t even consider either
November 24, 2019 Raj
Hi Michael, would you help people from NZ to invest in the residential property or your services are only limited to Australians?
Thanks Raj.
November 24, 2019 Michael Yardney
Raj
Yes we help New Zealanders and we understand the special regulations that pertain to them – we’d love to help you – please leave your details here
October 7, 2019 Shirley Lee
Hi Michael
Thank you very much for your insight!
I am looking for an apartment in Clayton for investment with a budget of $550,000. I plan to rent it to the students in Monash University. Do you consider it as a good investment?
Please give me some comments!
Shirley
October 7, 2019 Michael Yardney
Shirley – Clayton is not on my radar and students are not the best tenants – that’s a good budget – you could do a lot better
September 29, 2019 Trish Walls
Are there any statistics collected or reported for the Gold Coast anywhere?
September 29, 2019 Michael Yardney
Trish – sorry not that I know of
September 2, 2019 Jeff Wright
Thank you for this regular information re Auctions and auction clearance rates.
But why do you continually leave Perth out !?
September 2, 2019 Michael Yardney
Jeff becuase of the very few auctions occuring in perth – the main providers of statistics don’t report Perth auctions
February 2, 2020 Jason
HI Michael,
With a total purchase of $3 million in Sydney, how many properties would you recommend with this budget and purchase for each (ie $1 million each for 3) and would you stick to apartments only?
Thank you
February 2, 2020 Michael Yardney
Jason. It really depends on your circumstances, your investment goals etc. At that budget you couldmeither buy a block of apartments or 2 houses