This weekend’s auction results Saturday June 27th- Another weekend of steady auction clearance rates

Almost two thirds of all properties put to auction sold on Saturday.

There were still a volume of properties sold before the scheduled auction time, suggestive of some hesitancy on the part of vendors thus seeking more certainty over getting sales done in the current market.Search House

Our experience on the ground and speaking to local agents is that vendors are selling for lifestyle reasons, rather than for financial reasons.

In other words they’re not panicking about the state of the market but choosing to move into a bigger or a smaller home, or move to a school catchment area, or they want a bigger backyard rather live in a small space recognising that life is going to be different moving forward. Some want room for a home gym or a Zoom Room.

At the same time buyers are being more selective, they’re not in a hurry and there is a flight to quality, especially since there are now  more properties being put to sale by auction than there were a few weeks ago.

Well located A Grade homes and investment grade properties are attracting strong competition, but buyers since being very selective (and so they should be, secondary properties are not selling unless there is a significant discount.

This weekend Sydney delivered a solid preliminary auction clearance rates of 64.4%, a bit higher than last week’s final clearance rate.

Considering the COVID-19 scare over the last week, Melbourne delivered a solid preliminary auction clearance rates of 59.4%

There are now more properties being put to sale by auction than there were a few weeks ago, with 1,150 capital city auctions scheduled this weekend, revealing a significant improvement from the lockdown lows and even a little higher than the same weekend of last year (1,099 auctions.)

In fact, Sydney’s scheduled auctions were significantly more than last year (529 compared to 434), as was the case in Melbourne – 527 this year compared with 499 last year.

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

It’s now been a few weeks since the ban on on-site auctions and inspections has been lifted, and more vendors are placing their properties for sale by auction and we’ll continue to see auction volumes slowly 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

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

Auction Results Weekly Trends

Sold At Auction

Clearance Rates

Melbourne real estate auction results

The preliminary auction clearance rate for Melbourne as reported by Domain was 59.4% with 527 properties put to auction, almost 20% more than the 480 properties put to auction last weekend (53.8% adjusted clearance rate) and the 410 properties listed for auction previous weekend

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

So far only 355 results have been reported and 42 properties were withdrawn from sale.

The unreported rate means the final clearance rate is likely to drop to around 55%.

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 much the same as last week’s once the balance of sales are reported.

Realestate.com.au reported that there were also 919 private sales in Melbourne this week – a few less than the 951 sold last week and but more than the 800 the week before.

A year ago in 2019 the Melbourne auction clearance rate was 69.4% and 499 properties were listed for sale by auction.

 

Melbourne Region Auction Results

Source: Dr Andrew Wilson, MyHousing Market

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

Melsapijune20

 

Sydney real estate auction results

The preliminary auction clearance rate for Sydney as reported by Domain was a solid 64.4% with 529 properties put to auction, considerably more than the 440 properties listed for auction last weekend (59.3% adjusted clearance rate.)

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

So far only 310 results have been reported and a reasonably high number of  properties (75) were withdrawn from sale.

The unreported rate means the final clearance rate is likely to drop to the mid to high 50%’s – a little lower than last week’s results.

According to Corelogic, Sydney houses were more likely to sell at auction than units last weekend (20th June) – we’ll have to wait until Monday to see their breakdown for this weekend.

Realestate.com.au reported that there were also 1300 private sales in Sydney this week, much the same as the 1360 last week and considerably more than 980 the week before.

A year ago in 2019 the Sydney auction clearance rate was 67.5% and 434 properties were listed for sale by auction.

Sydney Region Auction Results

Source: Dr Andrew Wilson, MyHousing Market

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

Sydsapijune20

 

Comments by Dr. Andrew Wilson

Andrew Wilson

There is no sign of a winter shutdown as auction markets rise

Home auction markets recorded another Saturday of solid activity with rising consumer confidence fuelling increased buyer and seller activity – particularly in Melbourne and Sydney.

Andrew Wilson Auction Results

 

 

 

Shane Oliver, Chief Economist from APM Capital tweeted these charts that also show the auction trends.

Shaneoliver Auction Results

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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NOW READ:

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

Brisbane property market – how will Coronavirus affect it?

 

 

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'This weekend’s auction results Saturday June 27th- Another weekend of steady auction clearance rates' have 16 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


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