This weekend’s auction results Saturday June 6th- Auctions clearance rates more subdued

Low volumes at weekend auctions remain the order of the day, but remember this is a long “Queen’s Birthday” weekend in many parts of Australia.

This was the fifth weekend for Sydney holding kerbside auctions and the fourth for Melbourne and this weekend the auction clearance rates were more subdued following a downward trend last week.

Sure there are more properties being put to sale by auction than there were a few weeks ago, and well located A Grade homes and investment grade properties are attracting strong competition, but buyers are being very selective (and so they should be) meaning secondary properties are not selling unless there is a significant discount.

The preliminary auction clearance rates are reported below, however at the moment in this time of market flux the exact figures are meaningless, and more important is the market trends.

Now that it’s been a few weeks since the ban on on-site auctions and inspections has been lifted, it is likely more vendors will slowly place their properties for sale by auction and we should start to see auction volumes gradually increasing week by week.

We’ll then have a better indication of the trends, however we’ll have to wait a few more months to see the real impact of the lockdowns, unemployment, lack of immigration and business closures on our property markets.

Auction Clearance rates Melbourne Sydney

 

Here are the preliminary auction clearance rates as reported by Domain 

Auction clearance rates, Melbourne Sydney Brisbane Adelaide Perth Canberra

As always these will be lower by mid week when all the auction results not yet reported will be taken into account

 

Weekly Auction Clearance Rates

Sold At AuctionWeekend Auction Totals

 

A9

Melbourne real estate auction results

The preliminary auction clearance rate for Melbourne as reported by Domain was 56.3% with 143 properties put to auction, down from the 175 properties listed for auction last weekend (58.6% adjusted clearance rate.)

But remember before Covid-19 Melbourne would have over 1,000 properties auctioned each weekend.

Melbourne seller who’s properties went to auction, would have scheduled these sales prior to loosening up restrictions and while there is sufficient buyer depth to soak up the properties put up for sale, This week’s auction clearance rate will end up lower than last week’s once the balance of sales are reported.

So far only 92 results have been reported and 11 properties were withdrawn from sale.

The unreported rate means the final clearance rate is likely to drop to the low 5o%’s.

Realestate.com.au reported that there were also 800 private sales in Melbourne this week – much the same as 810 last week and a few more than 725 the week before.

A year ago in 2019 the Melbourne auction clearance rate was 58.7% and 181 properties were listed for sale by auction. Remember this was a long weekend and just  after the Federal election and the market was still unsure of itself.

The following charts from Dr. Andrew Wilson of  My Housing Market clearly shows how things have changed in the Melbourne property market this year.

Auction Clearance Rates Melb May20

 

Sydney real estate auction results

The preliminary auction clearance rate for Sydney as reported by Domain was 56.7% with 313 properties put to auction, down a little from the 367 properties listed for auction last weekend (56.1% adjusted clearance rate.)

But remember before Covid-19 Sydney would easily have had 4 times that number of properties auctioned each weekend.

So far only 167 results have been reported and a reasonably high number of  properties (57) were withdrawn from sale.

The unreported rate means the final clearance rate is likely to drop to the low 50%’s.

Realestate.com.au reported that there were also 1,239 private sales in Sydney this week, up a little from 1 ,162  last week and 1,092 the week before

A year ago in 2019 the Sydney auction clearance rate was 50.5% and 214 properties were listed for sale by auction (being a long weekend – Queen’s Birthday).

The following chart from Dr. Andrew Wilson of  My Housing Market clearly shows how things have changed in the Sydney property market.

Auction Clearance Rates Sydmay20

 

Comments by Dr. Andrew Wilson

Andrew Wilson

Solid holiday auction numbers as gloom lifts
Andrew Wilson Auction Clearance Rates

Melbourne is known as the auction capital of the world, but the proportion of properties sold at auction has plummeted.

Mel Sales Index Auction Private I May30

 

Syd Sales Index Auction Private May30

The following chart from Dr Shane Oliver of AMP Capital shows the long term trends for auctions in our 2 big capital cities:-

So Auction Results

Now is the time to take action and set yourself for the opportunities that will present themselves as the market moves on

Metropole

If you’re wondering what will happen to property in 2020–2021 you are not alone.

You can trust the team at Metropole to provide you with direction, guidance and results.

In challenging times like we are currently experiencing you need an advisor who takes a holistic approach to your wealth creation and that’s what you exactly what you get from the multi award winning team at Metropole.

If you’re looking at buying your next home or investment property here’s 4 ways we can help you:

  1. Strategic property advice. – Allow us to build a Strategic Property Plan for you and your family.  Planning is bringing the future into the present so you can do something about it now!  This will give you direction, results and more certainty. Click here to learn more
  2. Buyer’s agency – As Australia’s most trusted buyers’ agents we’ve been involved in over $3Billion worth of transactions creating wealth for our clients and we can do the same for you. Our on the ground teams in Melbourne, Sydney and Brisbane bring you years of experience and perspective – that’s something money just can’t buy. We’ll help you find your next home or an investment grade property.  Click here to learn how we can help you.
  3. Wealth Advisory – We can provide you with strategic tailored financial planning and wealth advice. Click here to learn more about we can help you.
  4. Property Management – Our stress free property management services help you maximise your property returns. Click here to find out why our clients enjoy a vacancy rate considerably below the market average, our tenants stay an average of 3 years and our properties lease 10 days faster than the market average.

NOW READ:

Coronavirus crisis: I have no idea what will happen to property prices!

Brisbane property market – how will Coronavirus affect it?

investment property australia 2020

 

 

icon-podcast-large

Subscribe & don’t miss a single episode of Michael Yardney’s podcast

Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.

Need help listening to Michael Yardney’s podcast from your phone or tablet?

We have created easy to follow instructions for you whether you're on iPhone / iPad or an Android device.

icon-email-large

Prefer to subscribe via email?

Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.


Michael Yardney

About

Michael is a director of Metropole Property Strategists who help their clients grow, protect and pass on their wealth through independent, unbiased property advice and advocacy. He's once again been voted Australia's leading property investment adviser and his opinions are regularly featured in the media. Visit Metropole.com.au


'This weekend’s auction results Saturday June 6th- Auctions clearance rates more subdued' have 17 comments

    Avatar

    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?

    Reply

      Michael Yardney

      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

      Reply

    Avatar

    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

    Reply

      Michael Yardney

      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

      Reply

    Avatar

    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

    Reply

      Michael Yardney

      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

      Reply

    Avatar

    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.

    Reply

      Michael Yardney

      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

      Reply

    Avatar

    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

    Reply

      Michael Yardney

      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

      Reply

    Avatar

    September 29, 2019 Trish Walls

    Are there any statistics collected or reported for the Gold Coast anywhere?

    Reply

    Avatar

    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 !?

    Reply

      Michael Yardney

      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

      Reply

        Avatar

        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

        Reply

          Michael Yardney

          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

          Reply


Would you like to share your thoughts?

Your email address will not be published.
CAPTCHA Image

*