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Auction popularity rising in WA

Auction popularity rising in WA

by Steven Cross 0 comments

Australia's east coast isn't the only area to record solid auction clearance rates in recent days, with agents in Perth reporting robust demand for auctions of late.

According to Australian Property Monitors (APM) data, Sydney recorded a strong clearance rate of 71.6 per cent, with 161 of 204 properties selling under the hammer.

Melbourne saw a slight fall in clearance rates, dropping around eight per cent to 60.5 per cent.

But while APM doesn’t publish auction results from Western Australia, reports from both agents and auctioneers are pointing towards a surge in popularity for selling under the hammer.

Perth group ACTON claims that even in WA, auctions significantly reduce time on market.

“Auction advocates will tell you that on average properties sold by auction sell faster than properties sold using other methods, and they're right,” said Graeme Baxter, managing director at ACTON, in his company's most recent newsletter.

“According to the latest statistics from REIWA the average time on market for auctions is 36 days, while private treaty is 62. Days on market for both auctions and private treaty sales have fallen over the last six months, but auctions still lead the way by a significant margin.

“Interestingly we have already sold four properties prior to auction this month, highlighting the success of the auction process,” Mr Baxter said.

Perth auctioneer Tom Esze told Real Estate Business that the demand for auctions is alive in Western Australia's capital city.

‘”Everything I’ve had this year has sold under the hammer, except for one in mid-January. The auctions this past weekend went pretty quickly because the bidding was so furious that it was over and done with very fast.

“Everything was above reserve as well so it was a great weekend,” Mr Esze said.

“In mid-January we had a property with over 120 people come through for the inspection, so there is definitely demand there, especially for the under $500,000 mark.”

Mr Esze's comments come shortly after a number of agents told Real Estate Business that auctions can work in most parts of Australia, with Perth singled out as a city where more should be taking place.

Auction popularity rising in WA
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