Ensure you never miss an issue of the
real estate business bulletin
Commercial space selling in weeks after auction

Commercial space selling in weeks after auction

by Matthew Sullivan 0 comments

Official clearance rates aren't reflecting the true state of Melbourne's commercial property market, with most sales taking place in the weeks after auction, an auctioneer has claimed.

Commercial property auctioneer and principal of O’Callaghan Commercial, David O’Callaghan, said while pass-in rates remain high on auction day, commercial property sales are being achieved by agents in the two to three week-period immediately following the auction.

In the first six months of 2011, Mr O’Callaghan took 29 properties to auction, selling only seven on the day, with a clearance rate of 25.9 per cent.

However, after including the number of properties sold immediately after auction, an adjusted clearance rate of 74 per cent was achieved, following the sale of an additional 13 properties.

“I believe the conclusion you can draw from this is that the adjusted clearance rate underscores the success of the auction system for commercial properties in spite of many auctions not receiving an acceptable bid on the day,” he said.

“The market conditions at the moment are judged by agencies as tough, and some may opt for softer tender or expressions of interest methods over auctions, but I don’t think many of those offered in that manner resulted in sales within an accepted timeframe and quite a lot of these offerings remain unsold.”

Mr O’Callaghan expects this year's auction clearance rates in Melbourne’s commercial property market to peak by the end of September, with an adjusted clearance rate of 70 per cent or higher.


Commercial space selling in weeks after auction
lawyersweekly logo
promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2017

The REB Top 100 Agents ranking is the foremost ranking of agents in Australia. It has set the bar for excellence in Australian real estate. To be ranked as an REB Top 100 Agent is the standard real estate professionals strive for. See the full 2018 ranking here!

featured podcast

featured podcast
An industry where the resilient succeeds

Tim Heavyside believes that a strong support team and good foundations are paramount to success in the real estate industry, and with regu...

View all podcasts

Would you consider working for Purplebricks or a similar 'DIY' model?

Yes (7.2%)
No (80.9%)
Perhaps - make me an offer (12%)

Total votes: 209
The voting for this poll has ended on: July 13, 2018
Do you have an industry update?