The Sydney and Melbourne auction markets have taken different directions since the recent closures began, with the latest figures showing further evidence of the divergence.
Over the past weekend, 609 homes were auctioned in Sydney and 531 in Melbourne, according to CoreLogic.
While the difference in auction volume in the two cities was not that great, the disparity was more apparent in liquidation rates.
During the period, Sydney recorded an 84% pass rate while Melbourne achieved a much lower clearance level of 44.5%.
The reason for Melbourne's low clearance rate was the high levels of clearance.
More than 50% of the scheduled Melbourne auctions were withdrawn during the week, resulting in a drop in the preliminary clearance rate.
Additionally, more than half of the results obtained were sold before the scheduled auction date.
Melbourne reported its lowest customs clearance rate since mid-September 2020 over the previous weekend, when it achieved a final pass rate of 35.9%.
Eliza Owen, head of research at CoreLogic, said recent auction results show how busy Sydney has remained under lockdown conditions.
"Since the week beginning June 28, when a city-wide foreclosure was in place, the auction close-out rate has averaged 75.9% through to at the end of August, "Ms. Owen said.
In fact, the volume of property auctions in the city averaged 474 per week, the highest since 2015.
On the other hand, Melbourne's final clearance rate has averaged 59.4% since the lockdown began.
"The low liquidation rate in Melbourne is largely due to the portion of properties being pulled from the auction, amid a relatively high volume of auctions expected before the closings," Ms. Owen said .
From August 5 to 22, about a third of the properties slated to fall under the hammer in Melbourne were withdrawn.
"It is important not to view the part of the auction withdrawn as a mere 'distortion' of the liquidation rate, as it reflects a loss of demand and supplier confidence," Ms. Owen said.
This significant share of the properties withdrawn could be attributed to the ban on private inspections, which the city plans to lift once its vaccination target is reached.
Divergence within Sydney
Despite the higher success rates in Sydney, not all of the city's markets performed equally well during shutdowns.
In fact, the strongest auction markets were recorded in the Inner South, Ryde, North Sydney and Hornsby regions.
On the other hand, the Central Coast, Southwest and Parramatta regions were at the bottom of the scale after reporting poor success rates.
These three worst performing regions came from high levels of auctions before the closings.
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