The nation’s auction market slowed a little this weekend, but overall is still holding strong.
Total auctions were down by more than 200 compared to last weekend, with an average national auction clearance rate only a little lower at 83 per cent.
Victoria continues to see the highest turnover with 726 auctions held on the weekend, and a clearance rate matching the national average.
While the ACT didn’t hold nearly as many auctions, it saw the greatest success, with 94 per cent of the territory’s 48 auctions clearing on the weekend.
Ray White New South Wales chief auctioneer Alex Pattaro says the results reflect increased buyer confidence.
“Buyers are suggesting they are seeing more stock within the market and feel at ease if they miss out on auction day,” he says. “But you can see the real cautiousness within the market where buyers really need to see competition to engage in the auction.
“Properties that are desirable and in great locations continue to shine, the upper end of the market between $3 million to $5 million, and $5 million-plus remains the strongest it has been.”
Some auction sites saw crowds of up to 40, although the average number of registered bidders sat at just over five.
Bidders were especially active in New South Wales, which continued its strong showing with a 92 per cent clearance rate across more than 500 auctions.
Ray White Surrey Hills director Ercan Ersan says the growth in house prices can be attributed to increased buyer and bidder activity. He oversaw six bidders competing for 20-22 Surrey Street, Marrickville, which eventually sold for $3.41 million.
A bold $3.1 million bid at the start of the auction knocked out two bidders but left the remaining bidders undeterred, with the property eventually going to a Sydney local who plans to sell one title and live on the other.
“It just goes to show the strength of the market,” Ercan says. “Houses of this calibre very rarely hit the market which drove demand even higher.”
“Compared to this time last year there are more active bidders and even bidders themselves aren’t focused on owner expectations and price guides – it’s more about what they’ll pay against the competition.”
Queensland experienced a low clearance rate of 71 per cent for its 120 weekend auctions, but those successful events saw some high sales results.
A home in Bulimba saw one of the best auction results of the weekend, selling for $4,010,000 on Saturday.
Ray White New Farm principal Matt Lancashire says the result reflects the hunger people have for property at the moment.
“No one knows where the market will end, Brisbane has so much infrastructure coming and with the Olympic bid as well that’s a really encouraging factor,” he explains. “The prestige market is performing particularly well. The demand from people looking for high end properties is incredible.
“I used to say that prestige was $2 million but now it’s $5 million-plus. The amount of sales we’re transacting now that are above that $5 million range is just unheard of.”