Melbourne’s auction market continues to boom

06 OCT 2021 By Noemi Pamintuan-jara 11 min read Hotspots

The upward trend in the Australian property market seems unstoppable even with the Labour Day long weekend and lockdowns that were predicted to prevent sellers from participating in the week’s auctions.

Melbourne sky aerial spi

On the contrary, it became the busiest auction week since mid-July, according to CoreLogic’s Property Market Indicator Summary ending 3 October 2021. A total of 1,986 homes went under the hammer. This is up from last week’s 1,626 and 648 this time last year.

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The successful result can be attributed to a higher preliminary auction clearance rate of 84.4 per cent of the 1,704 results. It is 3.8 per cent higher than the previous week’s final collection of 80.6 per cent, and 20 per cent higher than the reported auctions same time last year.

Unstoppable Melbourne

Melbourne had the busiest auction market, with 800 homes sold across the city, a significant increase from 352 the previous week and 55 same time last year.

During the first week of September, Victoria’s capital was still trying to catch up with other capital cities due to stricter lockdown restrictions that were in effect until the 23rd of that month, which caused auctions to be rescheduled.

Melbourne is clearly recovering from these rescheduled auctions with 87 per cent preliminary clearance rate of the 679 auctioned homes, recording the city’s second highest preliminary auction clearance rate for year 2021. This is a double-digit improvement from last week’s preliminary auction clearance rate of 77.2 per cent and final clearance rate of 75.7 per cent.

It also recorded more than 10 per cent decrease in withdrawal rate at 6.2 per cent of the preliminary results compared to last week’s 17.2 per cent.

Sydney slows down

The Labour Day long weekend definitely had an impact on Sydney’s volumes this week with 753 auctions, lower than last week’s 829, but still higher than the same time last year, when 430 homes went under the hammer.

It had a slightly lower preliminary clearance rate of 82.4 per cent out of 672 results collected, compared to the previous week’s 84.3 per cent, which was further revised to a final figure of 81.7 per cent.

The holiday may also have had an impact on Sydney’s withdrawal rate that increased to 12.2 per cent from last week’s final withdrawal rate of 9.5 per cent.

New South Wales’ capital city had 554 successful results collected, with 51.4 per cent sold prior to going under the hammer.

Preliminary clearance rate of smaller auction markets

The smaller cities are catching up with their preliminary clearance rate showing better results than this time last year. Canberra is leading the pack with 89.6 per cent, followed by Adelaide (85.6 per cent) and Brisbane (79.6 per cent).

Perth reported five successful out of nine results, while Tasmania reported one successful out of two auctions the previous week.

 

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