The Australian auction market remained busy in the midst of the COVID-19 epidemic, with capitals hosting 2,539 auctions, according to the latest CoreLogic figures.
Caitlin Fono, analyst at CoreLogic, said it was the second busiest weekend of the auction so far in the year despite growing concerns over COVID-19.
However, the liquidation rates began to slow down, reaching a preliminary level of 61.3%. Still, it's significantly higher than a year ago when the values ??went down, Fono said.
"The liquidation rate of the preliminary auctions of 61.3% is likely to drop to less than 60% for the first time since mid-2019 as the remaining results are collected," Fono said. "Although the customs clearance rate has dropped, it remains stronger than at the same time last year, when 1,667 homes were put up for auction, and a clearance rate of 50.9% has been saved. "
Melbourne had the highest auction volume at 1,317, which gave a preliminary auction rate of 62.7%. Sydney, on the other hand, had the highest success rate with 64.4% for 923 auctions.
However, the coronavirus epidemic has also resulted in many cases of withdrawal. In fact, the withdrawal rate has reached 8% in all capital cities combined, compared to an average of 5% in the last weekends.
The largest share of withdrawals was recorded in Sydney, where around 13.5% of the auctions were withdrawn from the market. In Melbourne, only 3.9% was withdrawn.
"This week's preliminary auction results mark a turning point in the sentiment of buyers and sellers, with withdrawal rates increasing as sellers think twice before testing the market and buyers lose confidence or choose avoid public gatherings, "said Fono. "In all likelihood, we will see more suppliers choosing to withdraw from the market until confidence and conditions of sale improve.
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