Melbourne withdrawals continue to impact auction clearance rates

by Duffie Osental31 Aug 2021

Melbourne withdrawals continued to impact the combined auction clearance rates of Australia’s capital cities, according to recent figures from CoreLogic.

Data from CoreLogic showed that auction volumes in capital cities rose week-on-week with 2,245 homes taken to auction for the week ending August 29, up from 1,764 over the previous week and 1,128 this time last year.

However, of the 1,683 results collected so far, only 55.4% were successful making it the lowest preliminary clearance rate recorded across the combined capital cities since late April 2020. In comparison, the previous week’s final clearance rate came in at 64.3%, while this time last year, 59.8% of reported auctions were successful.

According to CoreLogic, the combined city clearance rate continued to be impacted primarily by Melbourne withdrawals.

There were 1,185 auctions held across Melbourne this week, down from the 1,284 originally scheduled with this number likely to revise lower again over the next few days as CoreLogic finalises collection.

Over the previous week, 876 homes were taken to auction, while there were 162 auctions held this time last year. Of the 819 results collected so far, 64.3% were withdrawn, once again weighing heavily on the preliminary clearance rate which came in at just 34.7%. In comparison, 48.0% of auctions were withdrawn over the previous week and a final auction clearance rate of 49.1% was recorded.

Meanwhile in Sydney, 598 properties were taken to auction this week, up from the previous week (514), although lower than this time last year (706). Of the 509 results collected so far, 82.7% were successful, and of the 421 sold results, 57.2% were sold prior to the scheduled auction date.

Last week, Sydney’s preliminary auction clearance rate was slightly lower (81.7 per cent), revising down to 78.5 per cent at final figures.

Finally, across the smaller auction markets, CoreLogic figures revealed that Adelaide was the best performing again this week with a preliminary auction clearance rate of 81.3 %. Brisbane recorded a preliminary auction clearance rate of 71.8%, while Canberra, where lockdown restrictions are still in place, saw 63.2% of reported auctions record a successful result. And in Perth, 72.7% of auctions were successful, although noting this was across just 11 results.