auction preview melbourne
Image – Canva.
  • The average clearance rate increased to 54.5% in August from 52% in July
  • Gold Coast market is performing exceptionally well
  • Market remained firm in Brisbane, with average registered bidders higher

Although there was a disconnect between buyers and sellers in July, it appears buyers and sellers have made peace with the auction clearance rate improving.

The latest Apollo Auctions Auction Report found the average clearance rate increased to 54.5%, from 52% in July. This is predominantly due to improved results on the Gold Coast, along with an increase in registered and active bidders.

“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.”

August 2022 auction results

Region Avg. Attended Avg. Registered Active Bidding  Sold
Brisbane 28.9 3.1 52.50% 62.70%
Gold Coast 31.7 4.2 55.90% 66.70%
Sydney 28.1 2.6 49.40% 38.60%
Perth 40.5 3.8 80% 50%
Average 32.3 3.42 59.45% 54.5%

Source – Apollo Auctions

According to the team of auctioneers at Apollo, there has been a shift in buyer and seller behaviour over the past month, with both parties 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.”

According to the August data, Gold Coast has clearance rates around 67%, defying the odds.

Notably, the unit segment of the market is witnessing strong demand among buyers and investors.

“Some of the auctions in this category during August resulted in sale prices with results between 15 to 30 per cent above reserve expectations,” Mr Nickerson added.

“In Sydney, auction conditions have definitely improved, with August seeing an increase in crowds, registrations, and active bidding.

“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.”

In Canberra, steady auction conditions are in place, showing that it is not as doom and gloom.

Lastly, Mr Nickerson noted the Perth auction market, which has been at the mercy at low stock levels, is now seeing changes.

“According to our Perth auctioneers, rising sales are soaking up current stock, which is applying pressure to buyers,” Mr Nickerson said.



You May Also Like

Australian building costs have continued to soar, but has your insurance cover kept pace?

MCG Quantity Surveyors analysis found underinsurance could cost homeowners over $100K to replace a property, with the issue even more profound in the commercial property sector.

When will Australian property prices fall? One major challenge continues to prop prices up

Property prices are up by over 35% across the country since Covid, and while not the same story in each city, that’s little solace to prospective buyers pulling their hair out.

A window of opportunity could be open for savvy Australian property investors, but time is ticking

One expert has noticed investors are on the move while there’s less competition and fewer buyers in the marketplace.

Why Aussie property buyers aren’t waiting for rate cuts anymore

A surge in home loans shows buyers aren’t waiting for interest rates to drop before taking the plunge.