This weekend’s auction clearance results Saturday July 24th – Lockdowns begin to impact results

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Auction clearance rates remained surprisingly strong this weekend despite the fact that over 13 million Australians are in lockdown.

But the strain is starting to show with only 566 properties being taken to auction in Sydney this weekend and fewer properties will be going to auction moving forward as lockdowns and inspection limitations persist.

Dr Andrew Wilson of My Housing Market was tracking 1,944 auctions in the major capitals this weekend, which was understandably less than last weekend’s 2,178 properties auctioned.

Despite the challenges all our capital cities delivered solid auction clearance rates with Canberra being the stand-out performer with a preliminary auction clearance rate of 87.3% from the 69 auctions conducted.

Other preliminary clearance rates (as reported by Dr. Andrew Wilson’s Auction Insider) were:-

  • Sydney – 75.1%
  • Melbourne – 73.
  • Brisbane – 76.8%
  • Adelaide – 74.5%

Remember withdrawn auctions and, not surprisingly there were 97 auction withdrawals in Sydney and 185 withdrawals in Melbourne this weekend, are recorded as not sold and therefore bring down auction clearance rates.

Today’s combined capital city preliminary auction clearance rate was recorded at 69.5% across 1,181 auction results reported so far.

Sydney:

Sydney has been in lockdown 4 weeks now yet auction clearance rates are still in the mid 70%’s showing the significant buyer depth.

Clearly online auctions are now an accepted selling method in Sydney, but auction clearance rates are likely to drop further if lockdown conditions are tightened and property inspections are limited.

The Harbour City was host to only 566 auctions this weekend and the preliminary auction clearance rate was a solid 75.1%, but will be revised lower to around the low 70%’s as the remaining auction results are collected.

Last week, a final clearance rate for Sydney as reported by Domain was 73.8%.

Not surprisingly 97 properties that were planned to be auctioned this weekend were withdrawn from sale.

Realestate.com.au reported that there were also 1,454 private sales in New South Wales over the last week, much the same as the 1,554 private sales the week before, a great result considering Sydney’s lockdown.

The following chart from Dr. Andrew Wilson of My Housing markets shows the Sydney auction clearance trend:

Sydney Auction Clearance Trends

Dr. Andrew Wilson commented:

Sydney auction numbers well down and clearance rates lower as restrictions bite.

Auction numbers were sharply down in Sydney at the weekend with lengthening Covid lockdown now impacting market activity.

566 homes will reported as auctioned on Saturday, which was well below the 872 July record said last weekend and similar to the 546 listed over the same weekend last year.

This weekend’s auction numbers were also the lowest number reported on a non-holiday weekend since February 13th.

High lockdown related withdrawals continue to influence the clearance rate with 24% of reported auctions withdrawn –higher than the 21% reported the previous weekend.

 

Sydney Regional Auction Results

 

Melbourne:

In Melbourne 1120 properties were scheduled for auction this week – even more than the 1061 auctions conducted last weekend.

Of course these were planned before the sudden lockdown, and prospective purchases had a chance to inspect these properties prior to the lockdown.

The preliminary auction clearance rate for Melbourne was a solid 73.0% but will be revised lower to the high 60%’s once the remaining auction results are collected.

Last week a final clearance rate for Melbourne as reported by Domain was 66.8%.

187 properties were withdrawn from sale this weekend and these are counted as “passed in” meaning this will bring down the auction clearance rate.

Realestate.com.au reported that there were also 1,247 private sales in Victoria in the last week; much the same as the previous week’s 1,256 – a surprising result due to the limitation of inspections due to lockdown

The following chart from Dr. Andrew Wilson of My Housing markets shows the long term trend of Melbourne’s auction clearance rate:

Melbourne Auction Clearance Trends

 

Dr. Andrew Wilson commented:

Melbourne’s weekend auction market held the line on Saturday producing more strong results for sellers generally, despite another record day of July auctions and the restrictions of Covid lockdown.

Melbourne reported a robust 73% clearance rate which was similar to the previous weekend 73.2%.

The clearance rate was again impacted by high numbers of lockdown related withdrawals with 30.6% of listed auctions reported withdrawn.

Yet another July record  -1120 homes were listed to go into the hammer on Saturday which was well ahead of last weekend’s previous record of 1061.

Melbourne Auction Regional Results

 

Here are the preliminary auction clearance rates as reported by Dr. Andrew WIlson

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

Auction Clearance Rates Melbourne Sydney Brisbane Adelaide Canberra

 

Despite around 13 million Australians being locked down, the national number of auctions held over the weekend remains high for July, although lower than the previous weekend’s number.

If lockdown and difficulty inspecting properties persist we can expect a number of properties going to auction to be lower moving forward.

National Auction Listing Trends

National Auction Clearance Trends

 

Auction 6

 

The following charts from NAB and Corelogic also shows the long-term auction clearance rate trend for our combined capital cities.

Weekly Auction ClearanceWeekly Auction Total



NOW READ: 
This week’s Australian Property Market Update

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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 one of Australia's 50 most influential Thought Leaders. His opinions are regularly featured in the media. Visit Metropole.com.au


'This weekend’s auction clearance results Saturday July 24th – Lockdowns begin to impact results' have 18 comments

    Avatar for Michael Yardney

    July 21, 2020 Michael

    Do you know where the final auction results are published. I can only find the totally misleading preliminary results.

    Reply

      July 21, 2020 Michael Yardney

      The final results are published on both Domain’s and realestate.com.au websites on a Thurday

      Reply

    Avatar for Michael Yardney

    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

      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 for Michael Yardney

    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

      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 for Michael Yardney

    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

      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 for Michael Yardney

    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

    Avatar for Michael Yardney

    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

      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 for Michael Yardney

    September 29, 2019 Trish Walls

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

    Reply

    Avatar for Michael Yardney

    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

      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 for Michael Yardney

        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

          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


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