Auctions Skyrocket on Back of Nation’s Property Boom

The number of auctions held in Brisbane has tripled and Canberra has overtaken Melbourne as the auction capital as demand continues to transform the market.

Across the country, auctions have resulted in higher selling prices in the past year with the volume doubling overall over the past decade, according to research by Domain.

The report showed there was a significant upswing in auction numbers during 2021, particularly in the emerging auction markets of Canberra, Adelaide and Brisbane.

Houses sold at higher prices during the weekend than other days across all markets except Sydney, where midweek auctions were more successful, although nationally units sold better during the week.

Median price by sale method, 2021

Sold by auction House auction House private treaty Unit auction Unit private treaty
Sydney 24% $1.79m $1.1m $1.07m $760k
Melbourne 25.8% $1.14m $812k $720k $575k
Brisbane 6.4% $1.04m $622k $586k $440k
Adelaide 15.6% $759k $540k $523k $369k
Canberra 27.6% $1m $840k $670k $528k
Perth $930k $517k $368k
Hobart $630k $541k
Darwin $678k $575k $370

^Source: Domain In-focus Auctions report
During 2021 every capital city achieved a higher median price at auction compared to private treaty.

In particular, Brisbane had a price differential of 66 per cent for houses and 42 per cent for units, followed by Sydney with 63 per cent for houses and 41 per cent for units.

Domain chief of research and economics Nicola Powell said we could expect to see a growing number of auctions in the coming years.

“And this trend is not isolated to just one city, we’re seeing it across Australia and spreading from the higher-priced suburbs into the middle and outer suburbs,” she said.

“Buyers and sellers are embracing the transparency and efficiency that auctions can often provide, and the fact that all cities have a higher median price at auction compared to private treaty.”

 

Article Source: www.theurbandeveloper.com