By Nicola McDougall, Editor, The Female Investor
After a disconnect between buyers and sellers last month, it appears that both parties have made peace with the market with the auction clearance rate improving over August, according to the latest Apollo Auctions Auction Report.
During August, the average clearance rate across the four capital cities in this update increased to 54.5% – from 52% per cent in July – predominantly due to improved results on the Gold Coast as well as increases in registered and active bidders across the board.
“Over the past month, perhaps as buyers become more accustomed to the new market conditions as well as interest rate environment, we have seen an uptick in genuine buyers and sellers at auction,” Apollo Auctions Director Justin Nickerson said.
“This is evidenced by the rise in the average number of attendees from 24.9 per cent in July to 32.3 per cent in August.
“Likewise, registered bidders have increased from 2.7 per auction last month to 3.4 per cent this month.
“Even the percentage of active bidders is on the rise, with 59.45 per cent raising their paddle at auctions, versus 55 per cent last month.
“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.”
According to the Apollo Auction team of auctioneers, there has been a shift in buyer and seller behaviour over the past month with both parties being much more genuine on auction day.
“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,” Mr Nickerson 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.”
The Gold Coast market continues to defy the odds, with clearance rates hovering at around 67 per cent, according to the August update.
The unit segment of the marketplace is displaying incredible demand amongst buyers – both investors and homebuyers, Mr Nickerson said.
“Some of the auctions in this category during August resulted in sale prices with results between 15 to 30 per cent above reserve expectations,” he said.
Canberra recorded steady auction clearance rate across the month, which shows it’s not all doom and gloom like the media might make people believe.
“In Sydney, auction conditions have definitely improved, with August seeing an increase in crowds, registrations, and active bidding,” Mr Nickerson said.
“With a solid start to spring on the cards, stock levels are increasing with the risk of days on market also expanding in the Harbour City.”
Perth’s auction market has been at the mercy of low stock levels, but it appears that this situation may be changing at long last.
“According to our Perth auctioneers, rising sales are soaking up current stock, which is applying pressure to buyers,” Mr Nickerson said.
