Auction numbers soften in South East Qld

Auction numbers were down last week in South East Queensland (SEQ), although Brisbane’s inner city market continues to attract strong buyer interest, an independent auctioneer has reported.

“The optimism and energy that’s been so tangible from buyers since January was just missing in action last week – arms were crossed and hands were largely kept in pockets,” said Jason Andrew, director of Jason Andrew Auctioneers.

The independent auctioneering firm, which handles just under 20 per cent of the auction market in SEQ, said the number of registered bidders per auction fell from 1.43 to 1.2 last week.

The company conducted 20 auctions last week, and reported a 45 per cent clearance rate. This compared to Australian Property Monitor’s (APM) Brisbane clearance rate for last weekend of 32.1 per cent, which was based on 50 reported auctions.

According to Mr Andrew, the percentage of those registered actually making a bid remained “flat” at 63 per cent, although the average crowd number was up by a third, from 14 to 19 per auction.

“The average shift required to achieve a sale from the vendor’s reserve price consequently rose slightly to 4.88 per cent,” Mr Andrew said.

“We are continuing to see a distinct two-speed market, with conditions in the inner ring (within five to ten km of the CBD) far stronger due to a lack of saleable stock, although vendors are still requiring a shift from original price expectations by an average of between five-ten per cent.”

“The outer ring is still characterised by a glut of stock where vendors need to adjust their original expectations by up to 20 per cent.

“It’s unclear why there has been a sudden change in sentiment, but no doubt it will become clearer this week if last week was a temporary aberration or indicative of something more serious.”

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