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As Australia heads into the first weekend of spring, capital city auction markets are continuing to see unseasonably subdued activity.
Latest figures from CoreLogic revealed that auction volumes are set to drop to 1,567 capital city homes in the week ending 5 September, down from last week’s 1,960.
Of the capital cities, Sydney bidders can expect the highest number of scheduled auctions at 618, up from last week’s 592.
It’s the first time the New South Wales capital has overtaken Melbourne in several weeks. This could be attributed to the stricter restrictions on the housing sector in Victoria, where private inspections are banned until around 23 September.
Melbourne is expecting 551 homes to be taken to the hammer, a 40.6 per cent decline from last week’s 928.
Across the smaller capital cities, Brisbane is set to be the busiest auction market, with 158 auctions scheduled for the week.
Adelaide follows with 145, Canberra with 81, with 13, and Tasmania with just one.
In the week ending 29 August, combined capital cities saw 1,960 auctions – down from the originally scheduled 2,367 – and only 58 per cent returned a successful result. This was the lowest clearance rate seen since late September 2020.
In comparison, the previous week saw a final clearance rate of 64.3 per cent out of 1,764 homes taken to auction.
Looking closer into the capital cities, Adelaide has once again emerged as the most successful capital city auction market, recording a final clearance rate of 82.9 per cent out of 171 auctions.
Despite an extended lockdown, Sydney landed in second place, with 80.2 per cent of 592 auctions returning a successful result.
In third place is Brisbane with a final clearance rate of 70.9 per cent out of 159 auctions, followed by Perth with 69.2 per cent out of 13 auctions and Canberra with 68.4 per cent out of 95 auctions.
Melbourne was the least successful auction market, with a success rate of only 35.9 per cent out of 928 auctions held across the capital city - the lowest it has been since late September 2020.
According to CoreLogic’s research analyst Caitlin Fono, Melbourne’s success rate was ultimately dragged by the 61.6 per cent withdrawal rate, even higher than the previous week’s 48 per cent of withdrawal.
“Many vendors choose to postpone amid the ongoing lockdown [because] unlike Sydney, Melbourne’s lockdown prevents physical property inspections,” she said.
Of the capital cities, only Sydney saw clearance rates increase week-on-week.
An auction is a public event for the sale of assets and property to the highest bidder among a group of buyers.