Four in five properties sell nationally in auction blitz

CoreLogic’s preliminary auction clearance rates rose to 83.8 per cent last week on the back of heightened demand from buyers.

Auctioneer Clarence White auctioning a house in Sydney’s inner west on Saturday. The property was one of the city’s 80.8 per cent of successful auctions last week. Picture: David Swift.

Nine in 10 properties taken to auction in Sydney last week sold after intense demand from buyers and low stock levels drove strong competition across the country.

While the market is facing a near record low in total listings, the number of properties auctioned last week (1,287 properties) was slightly higher than the same time last year (1,167 properties). CoreLogic’s preliminary auction clearance rate preliminary figures showed four in five properties (83.8 per cent) placed under the hammer sold.

Both Sydney and Melbourne recorded higher clearance rates and total number of properties auctioned year-on-year.

Traditionally strong Melbourne came out swinging in February, with 80.8 per cent of the 592 properties offered to market selling. In Sydney, 89.1 per cent of the 447 properties auctioned found buyers.

CoreLogic’s research executive Tim Lawless the market has continued to surge higher following the festive period slowdown.

“Such strong auction results signal further upwards pressure on housing prices amidst extremely tight advertised supply levels and above average buyer demand,” Mr Lawless said.

Properties advertised by real estate network Ray White averaged 6.5 registered bidders across the country, the highest level since July 2018. These figures carry over from last week where properties sold at auction achieved prices five per cent above reserve and more than 11 per cent over the highest offer prior.

In the smaller markets, Canberra achieved the strongest result of the week, with 92.7 per cent of the 59 available properties selling. Adelaide followed with a result 82.8 per cent from 85 properties, then Brisbane, which sold 74.6 properties from 84 dwellings. Three quarters of the 17 properties auctioned in Perth sold.

Ray White Queensland chief auctioneer Mitch Peereboom said all signs at the start of February point towards the market not slowing down whatsoever.

“It’s been an excellent week of auctions across the Group, we’re seeing that average number of registered bidders are certainly consistent with the end of last year, if not improving throughout the month of January, into February,” Mr Peereboom said

“If you look at the sale prices, we are seeing them get to levels that have exceeded the expectations of owners. Certainly, buyer demand has not wavered, it’s continued from what it was at the end of last year.

CoreLogic’s preliminary figure is likely to be revised down over the coming days as the remaining 20 per cent of auction results are declared.