Australians are becoming more interested in participating in auctions, with the number of people attending ramping up as property listings fall.
According to Apollo Auctions, there was an average of 62% of active bidders at auction around the nation in June. Meanwhile, clearance rates were steady at 66%, significantly stronger than the 49.5% level recorded exactly a year ago.
Apollo Auctions director Justin Nickerson said the days of solo auctions are already well behind Australia.
“Overall, we saw an average of nearly 36 people attending auctions nationwide, with a healthy average of 3.76 registered bidders recorded as well,” he said.
Brisbane and Perth continue to dominate the best auction clearance results, recording 70.40% and 75%, respectively.
In terms of the highest share of active bidding, the Northern Rivers region of New South Wales was the standout, reporting an average of 75% in June.
Mr Nickerson said the limited options in the market and the surge of new demand coming from some half a million new overseas migrants are positive indicators for anyone considering selling through auction.
Here’s a summary of the performance of the markets being monitored by Apollo Auctions:
|
Region |
Average |
Share (%) |
||
|
Attended |
Registered |
Active Bidding |
Clearance Rates |
|
|
Brisbane |
25.9 |
3.7 |
58.2 |
70.4 |
|
Gold Coast |
35.7 |
3.6 |
58.5 |
57.1 |
|
Sydney |
40.1 |
5.0 |
55.2 |
65.4 |
|
Victoria |
42.3 |
n/a |
n/a |
66.7 |
|
Northern Rivers |
31.7 |
1.5 |
71.4 |
62.5 |
|
Perth |
38.8 |
5.0 |
65.00 |
75.0 |
|
Average |
35.75 |
3.76 |
61.6 |
66.18 |
In Brisbane, Mr Nickerson said low stock levels and the current surge in buyer interest continues to drive high clearance rates.
“This trend has resulted in some strong prices for properties on the market in Brisbane,” he said.
Tight listings can also explain the strong results in the Gold Coast.
“A high percentage of auctions are also pausing mid-call to negotiate off the floor, but this is where the magic is happening,” Mr Nickerson said.
“Sellers are more attuned to meet the market when they hear buyers strongly bidding before a pause as it sends a message that people love their property but just not at the level they do.”
Across Northern New South Wales, Mr Nickerson said auctions in the $1.5m range are gaining more interest.
“Purchasers are still favouring turn-key options with building costs and potential waiting times steering interest towards more now-ready options.”
In Perth, supply has declined to a new low over the last week of June.
“Auctions continue to attract good crowds, and good numbers of bidders, and best of all our auction agents are securing listings after most of our auctions last month — an absolute bonus given the lack of listing stock,” Mr Nickerson said.
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