Year ends strong with auction rates steady

The sound of jingle bells failed to have the usual effect of settling the property market into a new year slumber.

Preliminary data from property researcher CoreLogic shows 72.4 per cent of the 2331 properties taken to auction last week sold. Picture: NCA NewsWire / Jenny Evans

The sound of jingle bells failed to have the usual effect of settling the property market into a new year slumber, with auction numbers holding firm in the last weekend of sales in 2020.

After a turbulent year for the auction market as a result of lockdowns and social distancing restrictions to manage the spread of COVID-19, the year finished strong with more than 2000 properties stood up in the final week of the activity.

Preliminary data from property researcher CoreLogic shows 72.4 per cent of the 2331 properties taken to auction last week sold. It was a significantly higher number than the same time last year when less than 1000 homes were auctioned.

CoreLogic’s head of research Tim Lawless said Melbourne’s second wave lockdowns had a longer and more significant impact on the figures than the initial April restrictions.

“Looking back at auction markets through 2020, the trends have been volatile, reflecting periods of lockdown and changes in buyer and vendor sentiment,” Mr Lawless said.

“April saw more than half of auctions scheduled withdrawn from sale and more than 80 per cent of auctions sold prior to the event. As restrictions eased and home inspections and on-site auctions were once again allowed, the market sprang back into life with surprising speed.”

Melbourne was the busiest city of the week as it tried to make up for lost time. Just over 71 per cent of the 1192 auctions held were sold, a massive change on the same week last year when 470 properties were optioned.

Despite the new virus outbreak on Sydney’s northern beaches, property numbers held strong with only 7 per cent of auctions being withdrawn. The preliminary clearance rate sat at 76.6 per cent from 757 properties, which was consistent with previous weeks.

In the smaller markets, Canberra was proved the most successful market of the week with a preliminary rate of 87.5 per cent from 104 auctions, a title the city has held for most of the year. Adelaide followed with an early rate of 70.4 per cent from 133 properties, followed by Brisbane (52.9 per cent from 122 auctions) and Perth (228.6 per cent from 21 properties).

Preliminary figures are likely to be revised lower later in the week as more results are collected. The auction market usually returns in late January.