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HomeNewsActive bidders reduce but clearance rates hold up during May

Active bidders reduce but clearance rates hold up during May

Clearance rates hold up

By Nicola McDougall, Editor, The Female Investor

The average number of active bidders at auction reduced by about five per cent during May, partly due to the Federal Election but also the interest rate increase at the start of the month, according to the new Apollo Auctions May Auction Report.

The new monthly report features insights and statistics on recent auction results from across Australia and New Zealand as well as the most interesting auctions from the previous few weeks.

Apollo Auctions Director Justin Nickerson said although active bidders did retreat, the number of registered bidders as well as attendance figures remained stable compared to April.

“Considering the headwinds that were in play in May, recording an average auction clearance rate of 65.48 per cent is a sign that property markets continued to be robust,” he said.

“The auction clearance rate was down about five per cent compared to April, but it’s important to understand that a clearance rate above 60 per cent is classed as a sign of a healthy property market.

“With the election now behind us, it will be interesting to see how auction markets will perform over coming weeks, however, there is no question that the smaller cities of Brisbane, the Gold Coast, and Perth are continuing to show strong market metrics for sellers.

May 2022 auction results

According to Apollo’s team of auctioneers in Australia and New Zealand, sellers are continuing to record solid results with buyer demand remaining robust.

“The auction market in Brisbane remained strong in early 2022, whilst not being at the frenzied levels experienced last year,” Mr Nickerson said.

“This adjustment has largely been noticed in a reduction in the quantity of bidders – although the quality has in most cases remained.

“The Gold Coast market is still in great shape. A rise in interest rates does not seem to have dampened the spirits of buyers or reduced interest, and our team are certainly seeing increased activity from investors.”

The Canberra auction market has remained strong with its clearance rates and attendance across the past month, according to the report, with the Sydney auction market experiencing varying changes across the first quarter of 2022.

“Demand remains strong in the Perth metropolitan area, the most significant factor around the market is supply, which has been tight,” Mr Nickerson said.

“Auckland saw a slight reduction in booking volumes in April, typically due to school holidays, Easter, and the start of the new financial year.

“However, our team’s success rate under the hammer, prior to auction or soon thereafter, came in at a respectable 53 per cent for April – above most other market quoted figures.”

Nicola McDougall


The Female Investor

Main image: Freepik

Nicola McDougall The Female Investor