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CoreLogic has revealed auction clearance rates across the combined capital cities for the March quarter.
According to the group, the March quarter returned a 62.5 per cent clearance rate across the combined capital cities.
“Over the three months to March 2020, the clearance rate across the combined capital cities came in at 62.5 per cent across 18,902 auctions, down from 70.3 per cent across 26,923 auctions over the previous quarter. However, this was higher than the March quarter last year when 49.9 per cent of 14,647 auctions were successful,” CoreLogic noted.
“It is clear that the uncertainties around COVID-19, along with tightened restrictions and the banning of onsite and in-room auctions, have seen clearance rates take a hit over the past month, with the final week of March seeing the clearance rate fall to just 37.3 per cent across the combined capitals.
“Looking back to February, weekly clearance rates were in the low 70 per cent range for the last three weeks of the month, before revising lower on a weekly basis for the remainder of the quarter.”
Sydney
Clearance rate: 66.2 per cent
Volumes: 7,135 auctions
Melbourne
Clearance rate: 63.8 per cent
Volumes: 8,882 auctions
Brisbane
Clearance rate: 41.7 per cent
Volumes: 1,066 auctions
Adelaide
Clearance rate: 52.3 per cent
Volumes: 827 auctions
Perth
Clearance rate: 35.1 per cent
Volumes: 287 auctions
Tasmania
Clearance rate: 51.3 per cent
Volumes: 66 auctions
Canberra
Clearance rate: 65.1 per cent
Volumes: 639 auctions
Looking ahead
CoreLogic has predicted there to be substantially fewer auctions than normal as a result of the ongoing pandemic.
“Some vendors will choose to convert their listing to a private treaty method, while others will likely pull their property from the market all together until confidence and selling conditions improve,” it noted.
“The auctions that proceed will likely utilise digital platforms such as Gavl or AuctionNow as well as proprietary platforms from the major real estate groups — so watch this space.”
Commenting further on the results, Eliza Owen, head of Research Australia, said: “There are various pressures that have led to a decline in the March quarter auction result.
“The banning of onsite auctions and open homes has physically prevented some auctions from going ahead or prompted vendors to pull out of the market. Withdrawal rates surged from an average of around 6 per cent to 50.2 per cent in the week ending 29th of March.
“More broadly, the ANZ-Roy Morgan consumer sentiment index plummeted 9.8 per cent over the same week, signifying that rising job losses and uncertainty has dampened property demand.”
Ms Owen noted: “Before the onset of the coronavirus, affordability constraints had already started to slow momentum in the property market, and this is reaffirmed by a decline in the combined capital city dwelling growth to 0.7 [of a percentage point] in the month.
“Looking ahead, the next few months will present an unprecedented challenge to the auction market and the housing market more broadly.
“However, once the virus is contained, property is looking increasingly better placed for a recovery because of the high levels of monetary and fiscal stimulus available.”
ABOUT THE AUTHOR
Emma Ryan
Emma Ryan is the deputy head of editorial at Momentum Media.
Emma has worked for Momentum Media since 2015, and has since been responsible for breaking some of the biggest stories in corporate Australia, including across the legal, mortgages, real estate and wealth industries. In addition, Emma has launched several additional sub-brands and events, driven by a passion to deliver quality and timely content to audiences through multiple platforms.
Email Emma on: Emma.Ryan@momentummedia.
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