A tale of two cities; Sydney and Melbourne - Market Wrap

Written on the 20 October 2020

This week CoreLogic reports that 70.5% of homes listed sold as volumes increased across the capital cities. There were 1,107 capital city homes taken to auction this week, of the 841 results collected so far, 70.5% were successful results.

The performance across the two largest capital cities remains mixed. While volumes remained extremely low across Melbourne, there was a slight rise in the number of homes scheduled to go under the hammer this week.

There were 815 Sydney homes taken to auction this week, returning a preliminary auction clearance rate of 74.8%. This was an improvement on last week's preliminary figure of 72.4% which later revised down to 67.5% at final collection.

In contrast to Melbourne, the number of auctions across Sydney has been consistently trending higher, with this week's volumes the highest recorded since April. One year ago, a higher 950 Sydney homes were taken to auction returning a higher final success rate (74.5%).

Last week's clearance rate was the highest final clearance rate since early March. This time last year, a higher 1,278 capital city homes were auctioned with a final clearance rate of 71%.

NSW

The number of auctions across Sydney has been consistently trending higher, with this week's volumes the highest recorded since April. But it's not just the cities in NSW that are clearing expectations, regional NSW is also seeing plenty of interest.

The rural property market is in incredible shape. "Growth in rural property would have to have outstripped all other asset classes and judging by buyer enquiry and sentiment, we are only in for further growth particularly in well-located property that is a reasonable commute from metropolitan centres."

A rural property recently sold in Dunedoo for $3.3 million following four offers.

Purchased by a Sydney-based family with rural interests, the historic property attracted buyers from across Australia with substantial enquiries from both regional and metropolitan-based buyers.

The historic sandstone homestead with its beautiful valley views is 827 square metres with a watch tower, seven bedrooms, formal living rooms with fireplaces, billiards room (formerly the ballroom with podium) a smoking room, library, sewing room and an iconic, Australian wraparound verandah.

Victoria

The big news of course, is Melbourne's doors are now officially open with inspections now allowed for properties listed for sale or for lease.

Meanwhile last week, volumes remained extremely low across Melbourne, there was a slight rise in the number of homes scheduled to go under the hammer this week.

There were 60 auctions scheduled across the city, returning a preliminary auction clearance rate of only 28.6%. Of the 49 results collected so far, 31 were withdrawn from the market or 63%. Of the 14 properties that did sell, 93% sold prior to auction. While volumes did increase over the week, the high withdrawal rate, and high proportion of properties selling prior to the auction, suggest vendors remain reluctant to test the market through the lockdown period.

While volumes remained extremely low across Melbourne, there was a slight rise in the number of homes scheduled to go under the hammer this week. There were 60 auctions scheduled across the city, returning a preliminary auction clearance rate of only 28.6%. Of the 49 results collected so far, 31 were withdrawn from the market or 63%. Of the 14 properties that did sell, 93% sold prior to auction. While volumes did increase over the week, the high withdrawal rate, and high proportion of properties selling prior to the auction, suggest vendors remain reluctant to test the market through the lockdown period.