There were 921 properties taken to auction across the combined capital cities this weekend, considerably more than last weekend when 749 auctions were held, and much the same as the 925 auctions conducted this time last year.
The combined capital city preliminary auction clearance rate was recorded at 67.8% across 686 auction results reported so far, a bit weaker than last week’s preliminary result (72.7%) which later revised down to 65.5%.
Only seven of the thirtytwo properties listed for auction in Melbourne sold this weekend and there is no reason to expect a better result at least until the end of November.
This time last year saw a final national clearance rate of 70.5%.
Sydney:
The harbour city was host to 732 auctions this week, up from 601 auctions conducted over the previous weekend and much the same as the 744 Sydney properties put to auction this time last year.
Of the 545 Sydney auction results collected so far, 380 have returned a successful result, a sign of the firm Sydney auction market.
The preliminary auction clearance rate of 69.7% will be revised lower to around the mid 60%’s as the remaining auction results are collected.
Last week, a final clearance rate of 65.2% was recorded for Sydney, while one year ago, a very strong success rate of 74% was achieved across Sydney.
As you can see from the following chart provided by Dr. Andrew Wilson’s Auction Insider, Sydney’s inner west was the strongest performing region in terms of number of auctions held and the end results.
Realestate.com.au reported that there were also 1615 private sales in New South Wales this week, much the same as the number sold last week (1,609) and the 1,541 properties sold by private treaty the week before.
Melbourne:
In Melbourne, only 32 homes were scheduled for auction this week, obviously very different to the number of properties that would normally be taken to auction.
I’m surprised that any Melbourne auctions were conducted because of the lockdown. In fact, Melbourne auctions are likely to peter out over the next few months.
Not surprisingly 17 properties listed for auction were withdrawn this weekend.
Of the 28 Melbourne auctions reported so far, 7 were successful.
Last week only 4 of the 12 Melbourne auctions were successful.
Realestate.com.au reported that there were also 666 private sales in Victoria this week – an impressive number considering the lockdown, but fewer than than the number sold last week (711) and the 691 properties sold by private treaty the week before in the earlier stages of Melbourne’s lockdown.
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.
Obviously in this time of market flux these figures are really not a useful indicator of market trends as they once were.
Sydney real estate auction trends
The following chart from Dr Andrew Wilson shows Sydney’s auction market trend over this year.
Melbourne real estate auction trend
The following chart from Dr Andrew Wilson shows Melbourne’s auction market trend over this year.
Comments by Dr. Andrew Wilson
Dr. Wilson’s Auction Insider similarly reports a strong result for Sydney auctions..
Weekend home auction markets continue to provide positive results for most sellers with solid clearance rates from healthy listings.
And Sydney continues to strengthen with strong results from high listings
Even the Melbourne market reported a lift in listings this weekend despite continued tight restrictions – a glimmer of light at the end of the tunnel?
Now is the time to take action and set yourself for the opportunities that will present themselves as the market moves on
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'This weekend’s auction results Saturday September 26th – The end of auctions in Melbourne?' 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