Auction numbers at three-year high

Lockdowns did little to quell enthusiasm for property auctions in the June quarter, which was the busiest period since 2017’s boom.

Sydney auctioneer Charles Baynie brings the gavel down in an online auction. Picture: Julian Andrews.

Covid-19 lockdowns across the country did little to quell the recent enthusiasm for residential property auctions in the June quarter, with the market recording its busiest period since the 2017 boom.

Property researcher CoreLogic’s latest auction market review showed 31,605 homes went to auction across all capital cities markets in the three months to June 2021. Clearance rates averaged 75.7 per cent, well above the historic average clearance rate of 63.5 per cent.

The number of auctions held over this period nears the 32,408 campaigns held in the December quarter of 2017.

It was significantly higher than the 19,004 homes taken to auction over the three months to March, with its traditionally quieter new year period.

CoreLogic’s head of research Eliza Owen said the auction market results through the June quarter reflect strong housing market conditions.

“The strong result also coincided with a 6.2 per cent uplift in dwelling values across the combined capitals, well above the previous decade average quarterly growth rate of 1 per cent.”

“Despite the strong result, there has been an easing in the clearance rate from the March quarter, when 80 per cent of properties sold. This reflects a broader loss of momentum in the Australian housing market, as affordability constraints set in, and March looks to be a peak period of growth for the current cycle.”

In Sydney, most regions reported a fall in the clearance rate over the June quarter as more properties were offered to the auction market. A total of 78.4 per cent of the 12,780 properties sold under the hammer.

Ms Owen said the slight loss in momentum could be seen at the suburb level.

“This is particularly true of Sydney, where the clearance rate has dropped -6.1 percentage points in the quarter,” she said.

“The March quarter saw 100 per cent% of auctions cleared across higher-priced, popular suburbs such as Coogee, Glebe and Cherrybrook in Sydney, where clearance rates have eased through the June quarter. There were however, two Sydney suburbs that still achieved a clearance rate of 100 per cent.”

In Melbourne, auction numbers were bolstered, particularly across the inner-city. The hammer dropped on 73.3 per cent of the 13,692 properties offered.

Canberra was the strongest performing city, recording the strongest clearance rate for 21 of the 24 weeks analysed through 2021 so far with an average of 88.3 per cent sold over the June quarter from 1,194 properties.

The June 2020 quarter recorded just 13,783 auctions across combined capital cities, reflective of tightened Covid-19 social distancing and movement restrictions, including a temporary ban of on-site auctions and in-person property inspections.