Auction activity still subdued amid lockdowns

By Gerv Tacadena | 16 Aug 2021

Auction markets across capital cities remained restrained over the past weekend due to the lockdowns, particularly in Melbourne according to the latest market update from CoreLogic.

More than 1,900 homes went under the hammer, higher than the previous weekend.

The share of homes that went through a sale, however, declined slightly to 72.3%.

 The strong take-up in Sydney and Adelaide was able to slightly offset the slump in Melbourne's clearance rate.

While the number of homes that went to auction in Melbourne went up, the preliminary clearance rate stood at only 63%, driven by the extended lockdown.

More than 50% of sold homes in the city were purchased before the auction date.

CoreLogic analyst Caitlin Fono said Melbourne was close to recording a below 60% clearance rate last week.

"Melbourne’s final clearance rate hasn’t dipped below 60.0% since October last year so it will be interesting to see how this week holds up as final results are collected," Ms Fono said.

In Sydney, auction volumes remained muted at 562.

Compared to Melbourne, a larger share of buyers in the NSW capital secured a home, with the city's clearance rate hitting 82.9%.

Across smaller markets, Adelaide had the best performance in terms of auction volume and clearance rates. It hosted 139 auctions, 84.8% of which turned into a successful sale.

During the period, the share of buyers that successfully purchased an auctioned unit went down to 61.8%.

On the other hand, the clearance rate for established homes remained steady at 75.2%.

Auctions remained subdued across capital cities due to the lockdown.

Top Suburbs : keperra , millner , spearwood , st peters , mt gravatt

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