Healthy property prices in Perth are contributing to an increase in auctions in the region, according to Raine&Horne.
Raine&Horne’s state manager for Western Australia, Phil Hayes, said the auction process was becoming increasingly popular due to recent auction clearance rates approaching 54 per cent - above mainland capitals Brisbane and Canberra - as shown by RP Data.
“Our offices are reporting a surge in auctions in recent months, as WA homeowners turn to auctions as a tried and true method of achieving the best price for their homes,” said Mr Hayes.
According to the latest RP Data-Rismark figures, Perth and Hobart were the only capital cities to record positive growth of 1.02 per cent and 2.25 per cent respectively.
LJ Hooker network development manager for WA Ken Preston agreed with the observation telling Real Estate Business there was no doubt that there was a rise in the number of auctions in Perth.
“The fact that stock is tightening in Western Australia and demand is the same means that it is the perfect market to run property to auction,” he said.
“Auctions are becoming a more acceptable practice in Western Australia, as we increase our exposure to it and we place more learning and culture around it.”
Mr Hayes said he wanted to encourage auctions to be the selling method of choice for Raine&Horne customers.
“This is because auctions create a sense of urgency around a home sale, potentially reducing the time a property is on the market," he explained.
“Also, an auction’s focused marketing campaign can be effective in attracting serious investors and buyers, which can be especially important if you are seeking a quick sale.”
Mr Hayes added that Raine&Horne would be significantly increasing its investment in auction training, to meet the growing demand from homeowners.
“Between now and the end of the year, we will be up-skilling our salespeople in all facets of the auction process, as it is a great way for our offices to offer a wide choice of selling methodologies to prospective sellers," he said.
“This means we will be well positioned to serve the growing number of WA real estate customers seeking an auction professional, and it will consolidate our efforts to grow the WA arm of the Raine&Horne business.”
Only recently, WA-based franchise group ACTON also reported a significant rise in vendor interest in using auctions.