Auction clearance rate at 51.4 per cent nationally
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Mar 30, 2020
Auction clearance rate at 51.4 per cent nationally
It was the first Saturday where real estate agents worked hard to adapt to the new regulations set by the Government of no open homes or on-site auctions.
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Bickmore-Hutt Realty34/8 Macleay St, Potts Point sold for $1.208 million, $408,000 above reserve through agents Ben Bickmore-Hutt and Donna Burke of Bickmore-Hutt Realty.
It felt like a new world order for real estate agents and auctioneers on Saturday, as the latest regulations by the Government took force.
No on-site auctions were held, despite 3,203 properties registered to go under the hammer.
Of these 716 were withdrawn from auction and of those that went ahead with the auction, 1,813 were sold via online auctioning giving a preliminary clearance rate of 51.38 per cent.
Kevin Brogan, Residential Market Commentator of CoreLogic said it was to be expected to see an impact on the clearance rates due to the restrictions on auctions and open houses.
"We saw a significant number of withdrawals with an escalating rate of properties sold prior to auction," said Mr Brogan.
"One of the things we've noticed is the resilience of of the agents to adjust so quickly.
"With the preliminary rate still in the 50 per cent range, it shows the real estate agents were working hard to adapt."
Source: CoreLogic
Sydney
Clearance rate for Sydney so far was 47.3 per cent, down from the same time last year of 54.3 per cent.
McGrath Estate Agents reported that many of the online auctions and virtual inspections using the latest technology were proving to be successful for them.
“We have painstakingly worked with our agents to ensure that we exceed the safety requirements around COVID-19 of social distancing of between more than 4 square meters, and we’re delighted to continue to service clients and keep the wheels of commerce moving for our country," said McGrath CEO Geoff Lucas.
“Today is a great litmus test of how the business of real estate can continue, where the livestreaming of auctions have seen multiple bidders participate from the safety of their own home, as the auctioneer conducts the auction from either the property or from another location.
“We’ve been pleased to see many examples of live-streamed auctions today across our network that have proven to be popular with our clients, with multiple bidding activity through the platform.
"We’re also seeing large numbers of digital onlookers, with over 130 viewing the activity online for the successful Alexandra Street Hunters Hill auction."
Founder John McGrath said they were simply shifting the way real estate is being conducted whether it be open homes to private appointments and how they transact real estate.
"We are fully supportive of the Government’s efforts to slow the spread of Coronavirus and we will continue to make whatever shifts required to comply with the legislation and of course maintain safety for our staff and customers," said Mr McGrath.
Read John McGrath's article on the new changes in real estate here.
Ray White Group today successfully launched its innovative new private auction platform as bidders flocked to the virtual world to bid and buy in the ‘new normal’ way.
The brand-new facility, that allowed bidders to still see each-other as well as the auctioneer, provided the competitive forum that was synonymous with previous on-site public auctions.
The leading auction house which spends $30 million a year on its technology today reported a healthy 60 per cent auction day preliminary clearance rate from its 383 auctions booked nationally with four registered bidders on every lot. Ray White sells 25 per cent of all the auction stock in Australia or one in four properties.
Ray White Group Managing Director Dan White said Saturday was a day for the true believers of the auction method.
“It proved that those agents and auctioneers that are adaptable and technologically talented can continue to thrive in the new environment,” said Mr Lucas.
“Don’t be swayed by people that say auctions don’t work anymore. Instead talk to those agents that have already adjusted and have found new solutions, and most importantly fought hard to deliver for their customers."
Read about Ray White's new private auction platform here
Damien Cooley of Cooley Auctions said Saturday was a resounding success for his auctioneers and their online auctions.
"Team Cooley has been actively using AuctionNow by Realtair for the past few years so for us we were very well prepared for our online auctions on Saturday," said Mr Cooley.
"Buyers responded favourably and sellers embraced the new way of transacting at auction."
Mr Cooley said said one successful auction was that for 34/8 Macleay Street, Potts Point.
"142 people watched online as 15 online bidders competed for the keys," said Mr Cooley.
"After 103 bids the property sold for $1.208 million, a whopping $408,000 above its written reserve.
"Agent Ben Bickmore-Hutt was absolutely thrilled with the result and had nothing but praise for AuctionNow."
Brisbane
The preliminary clearance rate for Brisbane was 32.5 per cent, slightly down from last year at the same time of 33.5 per cent.
Justin Nickerson of Apollo Auctions said South East Queensland saw an understandable cooling on the hot start to 2020.
"Despite this – many transactions still occurred prior to and during the remote auction process resulting in a respectable overall clearance rate," said Mr Nickerson.
"Although bidder numbers and those participating were down this week, once agents and buyers become more familiar with the new system we expect the market to maintain some momentum."
Melbourne
With the highest number of auctions registered at 1,517, the preliminary clearance rate was 58.6 per cent, still up from last year which was 52.1 per cent.
Canberra
There was still plenty of interest in the capital where a clearance rate of 64.7 per cent was achieved from 90 auctions up from last year's 39.6 per cent.
Perth
With 30 auctions Perth achieved a 30 per cent clearance rate down from last year at 40.9 per cent.
Adelaide
There were 111 auctions that saw a clearance rate of 28.1 per cent down from 53.9 per cent same time last year.
WILLIAMS MEDIA uses CoreLogic figures where Auction Clearance Rates are calculated for auctions scheduled during the week ending Sunday and are based on available data using total known number of sold properties before, at or after auction against the total known number of auction results, including passed in and withdrawn auctions. Auction Clearance rates for Tasmania are reported at the State level only. Where there is less than 10 collected auction results, Auction Clearance Rates should be considered statically unreliable. Not all auction results are available or known to CoreLogic at the time of calculation and reporting of auction clearance rates and auction property details.
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