Auction demand still high

By Gerv Tacadena | 08 Sep 2020

Australia's auction markets continued to report strong demand from home buyers even with the relatively lower number of listings, figures from CoreLogic shows.

There were 882 auctions across capital cities in Australia over the weekend — this was lower than the 1,128 in the preceding weekend and the 1,533 during the same time last year. Still, the success rate remained solid at 67.5%. 

The drop in auction listings was due to the weak turnout in Victoria, which currently bans onsite auctions and private inspections amid the stage four lockdown.

Canberra reported the highest take-up among all capital cities. Hosting 78 auctions over the weekend, the city hit a clearance rate of 78.6%.

Sydney came second in terms of success rate, with 69.5% of the 625 auctions turning into a sale.

Outside Sydney, Southern Highlands is one of the most in-demand spots in New South Wales, said McGrath Bowral selling agent Dianna Reiche.

"We have a lot of buyers and not enough listings. I'm 30% down on listings and 50% up on buyers. All our buyers are from Sydney. They want a mix of weekenders and permanent homes," she said in a report in The Real Estate Conversation.

Adelaide and Brisbane also reported strong take-ups despite hosting fewer auctions.

The auction markets in Perth and Melbourne, on the other hand, were the worst-performers. Perth hosted 20 auctions, of which only five turned to a sale.

In Melbourne, only a third of the 28 auctions pushed through a sale. This is primarily due to the ban on auctions and private inspections in Victoria amid the stage four restrictions.

The Real Estate Institute of Victoria (REIV) criticised the state government for keeping the "property market shut down" for an uncertain period. In a statement, REIV President Leah Calnan said the government appears to be "turning a blind eye" to the importance of a property decision in people's lives.

"We are talking about shelter and making the biggest financial commitment for your lifetime. The delay in allowing private inspections means that many people will be unable to make the move they so desperately have to make or commit to a property without seeing it first. That is unacceptable," she said.

The table below shows the performance of each capital-city auction market over the weekend.

Auction demand remains strong despite the drop in listings

Top Suburbs : midland , rooty hill , west wodonga , chermside , albion

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