EYS auctions director Fabian Sanelli selling a Skye house digitally. Picture: EYS Auctions
Clearance rates tumbled as public sales volumes fell sharply in Melbourne during the June quarter, with coronavirus turning the property market on its head.
Australia’s auction capital recorded an overall clearance rate of 45.9 per cent between April and June, according to CoreLogic’s quarterly auction market review.
The rate fell from the 63.8 per cent recorded for the first three months of the year, and was also well below the 59.5 per cent clearance rate from a year ago.
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Nick Johnstone conducts a socially distant auction before lockdown 2.0. Picture: Alex Coppel
The property at 1 Kyarra St, Hampton sold for more than $2 million. Picture: Alex Coppel
Auction volumes also took a hit, dropping from 8882 between January and March to 5369 from April to June.
Glen Waverley and Reservoir were the only suburbs with more than 100 auctions reported, at 109 and 104 respectively, although both suburbs only recorded clearance rates in the low 40s.
Caulfield South recorded the highest clearance rate for the city, notching a sale in 76.2 per cent of auctions.
Eltham and Toorak also had clearance rates above 70 per cent.
Hocking Stuart Bentleigh director Sophorn En said a stock shortage was “fuelling” high clearance rates in Caulfield South.
“It’s an area that has always been pretty hot,” Mr En said.
New home owner Andrew Righe puts the SOLD sticker on the real estate board outside his new property in Glen Huntly, which he purchased in an online auction. Picture: Ian Currie
He added pent-up demand was creating crucial competition and driving properties to hit and often exceed reserve prices in the suburb.
CoreLogic head of research Eliza Owen said the coronavirus pandemic caused a “severe drop in sales and listings across both auction and private treaty sales methods”.
“Many vendors who did not have to sell were initially unwilling to take their property to market in a time of high uncertainty,” Ms Owen said.
She said consumer confidence had recovered strongly in May and June, following the initial shock.
COVID-19 has made us reasses how and where we live. Jan and Gilles Bachet have just sold their home in Caulfield South, swapping the city for sea with a move to Mt Martha. They work from home and are ready for a lifestyle change. Picture: Tim Carrafa
Wakelin Property Advisory director Jarrod McCabe noted more than 100 auctions were withdrawn last week as a response to the second lockdown
Last week’s preliminary clearance rate was 63.7 per cent despite the renewed restrictions, according to CoreLogic.
Mr McCabe said July had been shaping up for a healthy number of auctions before the second coronavirus wave hit.
“We’ll learn in coming days whether the weekend’s poor (auction) numbers represent an understandable knee-jerk reaction to the surprise metropolitan lockdown or whether a large chunk of prospective winter vendors have taken fright,” he said.
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Top-10 clearance rates by suburb*
Caulfield South, 76.2%
Eltham, 72.7%
Toorak, 70%
Balwyn North, 68%
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Pascoe Vale, 65.9%
Burwood East, 65%
Kew, 64%
Ascot Vale, 61.3%
Thomastown, 60.9%
Caulfield North, Prahran, 59.4%
Bottom-10 clearance rates by suburb*
Point Cook, 11.1%
Braybrook, 20%
Altona, 22.7%
Sunshine West, 23.8%
Mickleham, 28%
Maribyrnong, 29.2%
Maidstone, Footscray, Albert Park, Altona North 30%
*Minimum 20 auctions for quarter
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jack.boronovskis@news.com.au
