Login
iscover
A new report, the Apollo Auctions Auction Report, has provided insights into the environment that characterised auction markets in four Australian capital cities: Sydney, Brisbane, Melbourne, and Perth.
The report, which focused on October’s market conditions, revealed that after seven consecutive interest rate rises, buyer and seller sentiment has begun shifting, according to Apollo Auctions director Justin Nickerson.
He said that October saw the average clearance among the four capital cities in this update moderate slightly from 63.1 per cent to 59.5 per cent, which he noted “is still within a healthy range”.
“All four capital cities recorded similar average attendance figures and registered bidders over the month. This shows that there remains robust demand from buyers with, perhaps, sellers’ expectations still needing to moderate more to meet the market so more properties can sell under the hammer,” he said.
The report revealed that the average attendance across October was 28.25 people, while the average number of bidders sat at 3.1. At 89.47 per cent, Perth led the way regarding both active bidding and clearance rate, which was 75 per cent for the month.
Joining Perth as the standout city in the report is Brisbane, where 66 per cent of auctions returned a positive result, with Mr Nickerson acknowledging how “the affordability of both cities [continues] to assist with producing some stellar results for vendors”.
Demand for newly built or recently renovated homes remains strong in the Queensland capital, an understandable trend given the influx of tens of thousands of people flocking to Brisbane and south-west Queensland throughout the last two years.
While over in Perth, low supply and media sentiment have been key market drivers, though they were joined in October by rising inability to obtain finance for some buyers.
Perth auctioneer Richard Kerr explained how “sellers in the west are speaking of their preference for an auction campaign in the current climate, as whilst the volume of unconditional bidders may be slightly lower than their conditional rivals, they prefer the certainty of an unconditional bidder”.
Despite difficult market conditions, Melbourne is managing to produce “brilliant results”, according to local auctioneer Andy Reid, who detailed that a significant supply drop of 50 per cent compared to the same time last year has been a factor in such outcomes.
Moreover, Sydney’s auction market underwent further changes throughout October. Mr Nickerson outlined that “with the contraction of the gap between developer and owner-occupier spending in mid seven-figure to low eight-figure markets, campaign outlier offers slowing down, increased bidder registration, and activity across all markets, the ‘run to auction’ rate in Sydney has increased”.
Buyers in the harbour city yearn for “committed sellers, meaning off-markets are getting harder and harder deal on”, the report said.
Newsletter
