Recent data has provided insight into the impact of Melbourne’s lockdown, with preliminary figures showing 41 per cent of the city’s auctions were withdrawn from the market this week, compared with only 16 per cent in Sydney.
According to CoreLogic, there were 1,344 capital city homes taken to auction this week, with preliminary collection showing a success rate of 59.2 per cent. The result is the same as last week’s preliminary figures, which, as CoreLogic noted, later revised down to 53.1 per cent at final collection.
“It’s likely this week’s final clearance rate will come in around the same early 50 per cent seen last week as we continue to see large numbers of Melbourne auctions withdrawn from the market. Over the same week last year, a lower number of auctions were held (1,124) with a higher rate of success (68.6 per cent),” CoreLogic said.
“Comparing the results across Australia’s two largest auction markets highlights the impact of Melbourne’s lockdown … The larger number of withdrawn auctions in Melbourne, which are counted as unsuccessful auctions, have seen the clearance rate drop from the early-to-mid 60 per cent range through late May and June to the low 40 per cent range over the past two weeks, while Sydney clearance rates are holding above 60 per cent.
“Removing withdrawn auctions from the clearance rate calculation shows the two markets are returning a similar ‘adjusted’ reading in the low 80 per cent range, highlighting that those properties which aren’t withdrawn from the market are still finding buyers.”
CoreLogic found that across the smaller cities, Canberra once again returned the highest preliminary clearance rate with an 80.5 per cent success rate. The capital was followed by Adelaide (60.7 per cent), Brisbane (43.9 per cent) and (28.6 per cent).