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The first weekend of new auction legislation in South Australia hasn't affected results, with clearance rates and auction numbers remaining strong nationwide.
According to the latest results from Australian Property Monitors (APM), listing numbers rose from 15 to 95 in Sydney and from 10 to 72 in Melbourne.
Adelaide also witnessed a rise in auction numbers from 18 to 51, as did Brisbane, which more than doubled from 21 to 54.
Residential clearance rates remained high over the weekend, with Sydney managing to reach 80.3 per cent – just three per cent lower than the previous week – and Melbourne achieving 73.6 per cent.
This weekend was also the first weekend of auctions with the new controversial legislation in South Australia, which requires selling agents to give price guides within 10 per cent of the eventual selling price.
Acting South Australian premier John Rau said that the new laws aim to stamp out the dodgy practice of bait pricing.
“Bait pricing, where agents hook in buyers with unrealistically low price indications for properties, must be stamped out for good,” Mr Rau said.
“From now, agents who engage in such practices can face penalties of up to $20,000 or one year prison.”
Speaking with Real Estate Business, top independent auctioneer Jonathon Moore from Moore Auctions said not much had changed over the weekend.
"The only thing I can say has definitely changed is that agents have chosen not to give a price guide anymore," he said.
"I had seven auctions over the weekend, and one property had 29 registered bidders which started at $350,000. The sellers wanted $440,000 and it sold for $565,000. So we're not seeing the auction market being affected too much from these changes."
According to Mr Moore, some agents have told him that the legislation has been a positive change for the industry.
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