Housing Market Hurt By Melbourne Lockdown
To prevent the further spread of COVID-19 throughout the country, the Australian government had to minimise the risk by imposing new lockdowns. This change has unfortunately affected the country’s housing market.
According to CoreLogic, on first week of June 2021, over 2,691 homes were displayed in auctions across combined capital cities. It is a bit lower compared to the expected 3,101 auctions the week before the auction date.
The downwards revision is mainly because of Melbourne's extended lockdown. If we compare the numbers during the same time last year, they have significant differences, such as:
- This 2021 auction week shows 2,905 homes went to auction
- Last 2020, only 711 home auctions were held
The results show that over 73.5 per cent have been successful compared to the previous week’s 75.7 per cent, landing a final clearance rate of 73.5 per cent.
The Preliminary Auction Statistics at Capital City
As Melbourne remains on lockdown, while 1,452 were originally scheduled, only 1,098 auctions were held across the city.
In the first week of June 2021, 1,246 auctions were held, whereas, in the first week of June 2020, only 195 home auctions took place. The lockdowns also took a toll on the clearance rate that week where:
- 3 per cent (preliminary figures) of the auctions were successful
- While 72.8 per cent (preliminary figures) was recorded the week prior
- The final figure from the revision is 71.7 per cent
With over 935 auctions collected during the first week of June 2021, 29.5 per cent were withdrawn. There were 629 sold homes which equate to 59 per cent before the auction.
Over the year to date, without including the temporary lockdowns in February, 26 per cent of the average proportion of auctions was sold while only 4.5 per cent of auctions were withdrawn.
The Weekly Clearance Rate in Combined Capital Cities in June 2021
In Sydney, there were 1,171 homes taken to auction on the second week of June, which was not too far from the previous week’s 1,174. However, this shows a great increase compared to the 398 during this time last year.
956 auction results were also gathered, with a preliminary auction clearance rate at 76.9 per cent. This was lower when compared to its previous week’s 81 per cent.
As to other capital cities, Canberra had a preliminary auction clearance rate of 78.5 per cent, putting it on top. Adelaide followed with 73.3 per cent of successful auctions. Brisbane followed them with 69 per cent of reported successful auctions and Perth with 61.5.
The Housing Market and Lockdowns
The lockdowns have impacted the numbers of successful auctions held from 2020-2021. But compared to last year's numbers, the number of auctioned homes and the successful ones have increased significantly this year.
In comparing the numbers, the market is still far from recovering, but it’s a good impression that they are rated by more than 50 per cent. However, some markets remain affected by the lockdowns, including Melbourne.
The continuous lockdown resulted in Melbourne being one the weakest housing markets during the first quarter of 2021, logging only 5 per cent in annual growth. But the significant growth of other capital cities, such as Sydney and Canberra, remains a great sign that if Melbourne will be able to free itself from restrictions, it may also be able to bounce back in the housing market in no time.
Know More About the Housing Market Through Makes Cents
Amid the situation of the economy, the numbers don’t lie. Many are flocking to auctions to invest in a new home or property. The demand and supply figures are undeniable.
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