Property runs hot despite lockdown

Lockdowns have failed to dampen auction clearance rates, with nearly two thirds of properties put to market selling at the weekend.

Despite outbreaks of Covid-19 sending many parts of the country into lockdown, auction numbers are up. Picture: Annette Dew

Covid lockdowns have failed to dampen auction clearance rates, with nearly two thirds of properties put to market selling at the weekend.

However, sellers appear more willing to accept offers prior to the scheduled auction date as Covid lockdowns force some vendors to cancel and others to postpone sales.

Figures released by Core­Logic on Sunday showed nat­ional clearance rates were 72.3 per cent at the weekend compared with 74 per cent the previous weekend. This time last year 58.4 per cent of reported auctions were successful.

Restrictions also failed to dampen an increase in stock, with 1918 homes being taken to market across all capital cities compared with 1606 the previous week.

In Melbourne 954 properties went to auction, down from the 1131 originally scheduled as the extension of Melbourne’s lockdown forced some postponements.

Of the 727 auction for which results were available 63 per cent sold, with the large number of withdrawn auctions dragging down the clearance rate.

In Sydney 562 properties were taken to auction, similar to the 564 auctioned the previous week. Of the 496 results collected 82.9 per cent cleared, suggesting further strength in the market.

CoreLogic said more properties were being sold prior to the scheduled auction. Of 411 sold ­results in Sydney last week, 61.6 per cent were sold prior to the scheduled auction date.

Adelaide was the best performing capital city auction market last week with a preliminary auction clearance rate of 84.8 per cent.

Canberra, which has regularly recorded high clearance rates this year, had a preliminary clearance rate of 81.9 per cent, with 45.8 per cent of homes selling before the event as vendors chose to accept offers during the lockdown.

In Brisbane, almost 75 per cent reported auctions were ­successful. Perth recorded a preliminary clearance rate of 70 per cent, ­although noting volumes were low.

Recent CoreLogic data suggests Australian house prices have been rising at their fastest rate in 17 years. National prices increased 1.6 per cent in July, making the annual increase 16.1 per cent.