Residential auction activity around Australia is picking up, highlighting the strength of residential property as an asset.
According to Domain, Sydney’s auction clearance rate held steady over August with the clearance rate reaching its highest result since pre-pandemic levels at 59.7% [1].
This figure is 23.6% points higher than the 15 year low which hit in April, shortly after nation-wide lockdowns were implemented.
Recent Auction Activity - Saturday 12th September
Source: Domain.com.au
As we emerge from the slower winter sales period, the market on the whole; is showing positive signs coming out of the autumn season and heading into spring.
This is reflected in the auction results from Sydney on Saturday 12th September which saw 540 properties listed for auction with preliminary results noting the clearance rate as 61% [2].
Solid home auction results have also been experienced across the smaller markets on Saturday 12th September.
Canberra recorded a clearance rate of 79% which is a solid second week running as the city recorded the highest clearance rate of 81.2% the previous Saturday.
Adelaide also experienced a positive clearance rate of 68% across 37 auction results.
Conversely, Melbourne recorded an auction clearance rate of 0%. While this result may come as a shock, it is not entirely unexpected given that the state of Victoria is in the midst of stage 4 restrictions.
While these measures have significantly dampened selling conditions there is light at the end of the tunnel. Under the state government's current road map, restrictions could be partially eased on 28th September if the 14-day average of cases remains between 30 and 50.
If the easing of restrictions continues to take place in the coming weeks, the expectation would be a positive boost of confidence for the Melbourne property market moving forward.
Key Takeaways
Overall, the performance of the auction market in recent months demonstrates the reliance on the residential property market as sales volumes and auction clearance rates hold steady despite the current period of economic uncertainty.
This is promising overall for the property market as buyer demand continues to pick up moving into the spring selling season.
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Jarryd Gauci – Property Investment Consultant
P: (02) 9939 3249
References:
[1] Domain - Auction Results
[2] Domain - Sydney Auction Report Card August 2020
Disclaimer: When considering purchasing a property, it's always prudent to seek the advice of an appropriately qualified professional to determine which strategy is most appropriate for your individual circumstance.
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