By Nicola McDougall, Editor, The Female Investor
Changing market conditions impacted auction results in June, but not in Brisbane where the clearance rate increased over the month, according to the Apollo Auctions Auction Report.
During June, the impact of successive interest rate rises by the Reserve Bank of Australia – as well as softening market conditions in Sydney and Canberra – was starting to affect some of the capital cities analysed in this report, but not the Sunshine State capital.
“The strength of the Brisbane market continues to shine through with an increase in the average attendance numbers as well as registered bidders recorded in June,” Apollo Auctions Director Justin Nickerson said.
“While the number of active bidders declined slightly over the month, the Brisbane auction clearance rate actually rose from 64.60 per cent to 65.60 in June.”
Compared to the report’s May auction metrics, the average percentage of active bidders reduced from 63.83 per cent to 60.22 per cent across the reported capital cities over the month.
The average clearance rate also fell from 65.48 per cent in May to 49.48 per cent in June.
“However, it must be noted that the main reason for this fall was the impact of Canberra’s result, which may be partly due to the installation of a new Federal Government that requires a changing of the guard of sorts in local staffing requirements,” Mr Nickerson said.
According to our team of auctioneers, auctions are proving to be the best sales method to determine market price in changing market conditions, Mr Nickerson said.
“In Brisbane, as the latest data shows, there are still many good-quality buyers ready to make a deal and we have seen some great results for our vendors,” he said.
“On the Gold Coast, while the market frenzy has diminished, the results are still strong, despite the normal winter slowing.
“The reduction in bidders and auction attendees in Canberra is perhaps not surprising given the change in Federal Government, but we are still seeing some exceptional results for entry-level homes at the moment, including both houses and apartments.”
In Sydney, June has seen an interesting post second-rate rise response in Greater Sydney, as there seems to be a sense of reality dawning on both buyer and seller that market conditions have changed, the report said.
“Perth’s auction market remains very healthy with strong attendance and bidder numbers as well as lower than usual stock levels,” he said.
“Rising interest rates saw a slight reduction in auction volumes in Perth, but experienced agents are recognising auctions are the best process to navigate a changing market dynamic.”
