Auction clearance rates surged 70 per cent in Sydney following the end of a ban on public on-site auctions, raising hopes that the worst of the pandemic’s impact has passed.

Melbourne also recorded a strong result despite the ongoing ban on public on-site auctions and open homes. Clearance rate jumped to 60.3 per cent, up from 57.7 per cent from the previous week.
I think it’s fair to say that the worst of the pandemic is potentially behind us so it’s looking more likely that our forecast of a V-shaped recovery would play out.
Louis Christopher, SQM managing director
Across capital cities, 64.5 per cent of the 433 homes taken to auction were sold the first time the clearance rate broke above the 60 per cent mark since late March, when the federal government imposed a ban on public on-site auctions and open home inspections.
While the higher auction clearance rate was across a lower number of listings, the number of properties sold under the hammer had been rising steadily as the falling number of COVID-19 cases boosted market confidence, said SQM managing director Louis Christopher.
“Our auction numbers last Tuesday showed that clearance rates have risen for the third week in a row, so this would be the fourth week of rising clearance rates,” he said.
“I think it’s fair to say that the worst of the pandemic is potentially behind us so it’s looking more likely that our forecast of a V-shaped recovery would play out.
“However, the risk is still on the table. If we see a second wave and if stricter restrictions were put in place, then the darker scenario of around 30 per cent drop in prices could become a reality.”
With South Australia and Queensland expected to lift the ban over the coming weeks, volumes were set to rise, said Mr Christopher.
“I think with the lifting of on-site auction ban, we’re going to see a bit of a pick up in confidence in both buyers and sellers. I believe the volumes would rise as well, but it will take four weeks for it to show in the listings due to the nature of auction campaigns.”
Back in Sydney, Ray White selling agent Shaun Stoker said the lifting of the auction was timely for one of the properties he sold under the hammer on Saturday.
The three-bedroom, two-bathroom home in Newtown in Sydney’s inner west was sold for $1.585 million $85,000 over the reserve price.
“Its absolutely brilliant to be back to on-site auctions as soon as we heard the news from the NSW Government we switched from online to on-site straight away,” Mr Stoker said.
“This is a real marker that shows confidence is still high in the property market, and with stock levels lower than usual, the competition at auction is fierce.”
Bresic Whitney director Shannan Whitney said the agency also plans to start running on-site auctions again.
“We’ll start to do more auctions now that the ban is lifted. We feel that vendors are now more comfortable with the market conditions compared to the volatility we’ve seen over the past two months,” he said.
“The level of engagement from buyers has also improved over the recent weeks.”