Buyers and sellers seemed to have become more accustomed to the new market conditions, with auction activity posting a strong month in August.
According to the latest report from Apollo Auctions, the average clearance rates across the major auction markets of Sydney, Brisbane, Gold Coast, and Perth increased to 54.5% in August.
Apollo Auctions director Justin Nickerson said there was an uptick in genuine buyers and sellers at auction over the month and this could mean that buyers seemed to have adjusted to the rising rate environment.
“All of these metrics, together with the spring selling season upon us, forecasts a stable and successful auction market during the final quarter of this year,” he said.
In fact, the average number of attendees across the four markets analysed increased from 24.9% in July to 32.3% in August.
Meanwhile, registered bidders have increased from 2.7 per auction to 3.4. Even the share of active bidders increased, which hit 59.45% in August.
Mr Nickerson said Brisbane and the Gold Coast reported a solid month for auctions, driving the overall uptick in the average clearance rates.
“In Brisbane, the auction market held firm in August, which was largely driven by a strong number of average registered bidders per auction coupled with good participation rates,” he said.
“Whilst not at the frenzied levels of 2021, the current market performance seems stable and sustainable and gives homeowners and purchasers confidence about what lies ahead.”
One interesting trend in Gold Coast is the revitalisation of the unit market — the strong demand in this category resulted in some auctions to post prices that are 15% to 30% above reserve expectations.
Article source: www.yourinvestmentpropertymag.com.au