Diminutive auction activity cannot generate clearance rate

CoreLogic hasn’t declared a preliminary auction clearance rate for Melbourne after less than a dozen homes went to auction.

Auctioneer Fabian Sanelli, who has converted both his garage and a study into auction studios during Melbourne's lockdowns. Picture: Jay Town

Property researcher CoreLogic has not declared a preliminary auction clearance rate for Melbourne after less than a dozen homes were placed under the hammer last week.

The extremely low levels of auction activity in the locked-down city comes at what would usually be the busiest time of year for sales. Instead, only two of the 11 properties marketed last week sold at auction, with five selling prior and four yet to be reported.

Nationally, the preliminary auction rate sat at 72.4 per cent from 918 properties. By Sunday morning, the results of 735 campaigns had been reported.

CoreLogic said a minimum of 10 auctions must be reported in order to generate a clearance rate. Perth and Tasmania also failed to produce a preliminary percentage of sales. Sydney continued its trend of strong auction sales, reporting a preliminary clearance rate of 72.4 per cent from 679 properties. The result was on par with the same time last year.

Across the smaller markets, Canberra recorded the highest preliminary clearance rate of 89.2 per cent from 74 properties. Adelaide followed with an initial result of 64 per cent from 73 auctions, while Brisbane trailing close behind with a rate of 61.9 per cent from 65 possible sales.

National real estate network Ray White held one virtual auction in Melbourne on Saturday.

The company’s Victorian CEO Stephen Dullens joined calls for the industry’s reopening, arguing agents can effectively and safely operate while social distancing.

CoreLogic anticipates a rise in numbers next week, with 60 auctions booked.

The preliminary auctions clearance rate is likely to fall over the coming days as more results are reported to the data firm.