Sydney Auction Clearance Rates Remain High During COVID-19 Spike

DG Institute
DG Institute

Published 6:46 am 20 Jul 2021

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Not even fears of COVID-19 seem to be capable of slowing down the thriving property market in Sydney. 

Sydney’s latest cluster of COVID-19 cases have done little to dissuade those keen on buying property, as recent data highlights the persistent strength of Sydney’s auction clearance rates.  

According to CoreLogic’s preliminary clearance rate statistics for capital cities, Sydney remains the most in-demand spot for auctions with an 82.6% clearance rate, up from 61.6% at the same time last year. 

There were a total of 1,174 properties on auction across Sydney over the week, reflecting nearly half of all auctions (2,418) in capital cities throughout Australia. Of Sydney’s auctions, 48.5% were sold prior to the auction, and just 7.7% were withdrawn. 

The report goes on to state that this “relatively low withdrawal rate and high preliminary clearance rate” illustrates that “the recent outbreak hasn’t had a material impact on Sydney auction markets.”

The high demand for Sydney properties seems to be insatiable, and continues to persist despite the recent COVID-19 cases as well as rising property values, with the average house in NSW now surpassing $1 million. Sydney’s median dwelling values have climbed 11.2 percent in the past year alone. 

The sub-region with the highest clearance rate was Sydney’s inner west, which hit a 94.4% clearance rate over the week. A rundown property in Strathfield, for example, recently went for $5.5 million in an auction – $1.1 million over the reserve price set prior to bidding.

5.5 Million Strathfield propertySource:

Brisbane came in at a close second in auction clearance rates with a 79.1% preliminary clearance rate out of 121 cleared auctions, followed by Canberra who cleared 75 auctions at a clearance rate of 78.1%.

Melbourne, however, did experience a bit of a dip in expectations – likely due to a spike in COVID-19 cases. 

786 auctions occurred over the past week in Melbourne, which was a reduction from the 935 that was originally anticipated. CoreLogic’s preliminary data demonstrated a 71.5% clearance rate in Melbourne, which was a decrease from 73% in the week prior.

Clearance rates at auctionsSource: Core logic

Clearance rates at auctions can be helpful in determining the strength of the property market in each region of Australia, and a high clearance rate shows that the property market is either: high in demand, low in supply or expected to grow. At the moment, Australia’s property market is all of the above. 

As such, it should come as no surprise that Australia’s clearance rates remain strong, showing that the demand for property isn’t going anywhere soon. 

Good Debt Vs Bad Debt With Dominique Grubisa - DG Institute

Lawyer, Asset Protection Specialist and Property Educator

Dominique Grubisa is a practicing lawyer with over 25 years experience. She is a property investor and developer, an entrepreneur with businesses in Australia and Southeast Asia, a speaker, educator, writer and published author.

This column has been written for general information purposes only. It is not intended as legal, financial or investment advice and should not be construed or relied on as such.

About DG Institute

Founded in 2009, DG Institute strives to empower everyday Australians to grow and protect their wealth. Our goal is to provide direction, motivation and inspiration to our clients and help them perform at their very best. We do that through our professional services, in addition to teaching them how to grow their wealth through property and business education.

This column has been written for general information purposes only. It is not intended as legal, financial or investment advice and should not be construed or relied on as such.

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