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Auction volumes and preliminary clearance rates have taken a hit as Sydney, Melbourne and Adelaide remain in lockdown.
Latest figures from CoreLogic revealed that there were 1,849 homes taken to auction across the combined capital cities over the week ended 25 July — down from the originally expected 2,153 auctions.
Of the 1,509 results collected so far, 74.8 per cent were successful — slightly higher than last week’s final clearance rate of 73.7 per cent when a much larger 2,097 auctions were held.
Sydney continued its trend of decline this week, as the city stepped into its fifth week of lockdown. As a result, only 597 homes were taken to auction, which ultimately resulted in a preliminary clearance rate of 74.8 — down from last week’s final results of 76.6 per cent out of 769 homes.
In Melbourne, auction volumes also declined to 858 from last week’s 967, resulting in a 71.9 per cent success rate — slightly higher than last week’s final results of 71.5 per cent.
Both Sydney and Melbourne saw withdrawal rates increase week-on-week to 22.4 per cent and 24.1 per cent, respectively, likely owing to the COVID-19 restrictions.
But the lacklustre results in these major capitals could actually be a blessing in disguise for sellers, according to Ray White TRG agent Gavin Rubinstein.
“A majority of people want to wait until lockdown is over to sell, which would suggest there will be increased choice, potentially flattening the curve on increasing prices,” Mr Rubinstein said.
“My view is to sell now rather than in competition when lockdown is over.
“The right professional approach and strategy can navigate through the COVID restrictions and can create a successful sale outcome.”
Looking ahead, economist Nerida Conisbee opined a stronger spring is before us, based on the number of properties due to come on the market.
Meanwhile, looking into the smaller capital cities, Canberra was back on top after being overtaken by Adelaide last week, with a preliminary auction clearance rate of 94.9 per cent from 96 auctions.
Adelaide followed with an 82.3 per cent clearance rate from 100 auctions, then Brisbane with 75.2 per cent out of 169 auctions and Perth with 66.7 per cent out of 27 auctions.
All capital cities, with the exception of Sydney and Melbourne, exceeded their final results from last week.
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