The market fallout of the banning of on-site auctions has continued, with 45 per cent of auctions withdrawn from sale last week, according to CoreLogic.
The week ending 5 April, as well as the week prior to the Easter long weekend, is often one of the busiest weeks of the year for auction activity, property research group CoreLogic has stated.
However, data has shown that 45 per cent of the 3,092 capital city homes set to go under the hammer throughout the week had been withdrawn from sale prior to auction.
This is the second week of record-breaking withdrawal rates, with the previous week seeing 40 per cent of auctions withdrawn from sale.
According to CoreLogic, the common auction withdrawal rate sits at around 6 per cent for a regular week, with results from the last two weeks showcasing a strong response to nationwide bans on public gatherings, on-site auctions and open homes in light of the COVID-19 outbreak.
The results show that, of the homes that made it to virtual auction over the week, a preliminary clearance rate of 48 per cent was recorded. However, this figure is likely to be revised lower as full results are collected.
This follows on from the previous weeks’ final clearance of just 37.3 per cent – the lowest final clearance rate on record since CoreLogic commenced auction reporting in 2008.
Melbourne saw the strongest preliminary results over the week ending 5 April, with 1,248 homes sent under the virtual hammer, returning a preliminary clearance rate of 54.7 per cent.
Meanwhile in Sydney, 1,437 properties were sent to auction, with 46.9 per cent returning a positive result.
Brisbane recorded a preliminary clearance of just 27.9 per cent on its 154 auctions, while Adelaide had a slightly stronger preliminary result of 32.2 per cent on its 98 auctions.
In light of current conditions, CoreLogic noted that scheduled auction volumes are likely to fall over the next number of weeks.
Instead, vendors will likely choose to either sell via private treaty method or hold off on selling their property until market confidence and selling conditions improve, CoreLogic stated.