- Auction clearance rates have risen to an annual high of 67%
- Buyers remain active despite increasing interest rates and low stock
- Brisbane, Gold Coast, and Perth show strong auction performance
Auction clearance rates are back up, with bidders still out in force despite rising interest rates.
According to Apollo Auctions’ latest report, over the past year, the auction clearance rate fell as low as 49% but has grown steadily over recent months to hit an annual high of nearly 67%.
Apollo Auctions Director Justin Nickerson said over the past month in particular, there was an increase in the average number of registered bidders, but a small decline in the average number of attendees and active bidders.
“With the course of interest rates still somewhat unclear, but with strong buyer demand and persistently low volumes of stock available, there continues to be positive auction market conditions across the nation,” said Nickerson.
He said in May last year, the auction clearance rate was 65.48% when the RBA started its hiking cycle.
“Over the course of the past year, we have seen the auction clearance rate hit a low of 49.48% in June last year and then steadily strengthen – albeit with a flat-lining period towards the end of last year – when the clearance rate hit 61.01% just before the Christmas holiday season”
“Since February this year, though, the auction clearance rate has risen month-on-month from 60.4% back then to 66.93% in May.”
Justin Nickerson, Apollo Auctions Director
According to Nickerson, a lack of stock for sale is continuing to underpin auction market conditions with buyers generally competing strongly for the properties available.
May Auction Results
| Average | Percentage | |||
| Region | Attended | Registered | Active Bidding | Sold |
| Brisbane | 38.7 | 4.5 | 62.23% | 72.41% |
| Gold Coast | 25.6 | 3.3 | 64.12% | 57.14% |
| Sydney | 34.0 | 5.0 | 49.76% | 65.63% |
| Melbourne | 25.9 | 3.2 | N/A | 82.61% |
| Northern Rivers | 36.7 | 4.6 | 36.67% | 57.14% |
| Perth | 70.7* | 7.7 | 39.13% | 66.67% |
| Average | 32.18 | 4.71 | 50.38% | 66.93% |
Source: Apollo Auctions.
Rising clearance rates in QLD
The Brisbane market continued to see increased clearance rates across the board throughout the month of May. The average number of registered bidders remained strong in the Sunshine State’s capital, recording an average of 4.5 bidders per auction.
“The lack of stock on the market helps to explain why the number of registered bidders remains high with many buyers showing clear signs of FOMO as well as a strong desire to purchase immediately in Brisbane,” said Nickerson.
On the Gold Coast, low stock is assisting in a very healthy clearance for the month, averaging 57.14%, over the course of May.
According to Nickerson, the only stock not selling on the Gold Coast are ones where owners are not willing to meet the market, even though there are plenty of buyers on the ground keen to transact.
“There has been strong auction attendance on the Gold Coast, with an average of 25.6, as well an average of 3.3 registered bidders and 64.12% of them actively bidding.”
Auction results for Queensland
NSW remains solid
In the Northern Rivers region of NSW, demand remains strong at the same time as supply appearing to be at an all-time low.
Nickerson said non-coastal homes are coming onto the market with more frequency – as buyers are recognising the value of property within 15 kilometres of their coastal neighbours – and this includes residential blocks as well as large land holdings.
In Canberra, there has been a noticeable upturn in clearance rates with every weekend recording a figure somewhere in the 60% range in May.
Nickerson said while clearance rates are still down year on year, this is a good sign for things to come as the national capital heads into the cooler winter months.
Auction results for New South Wales
Buzz in Victoria
In Melbourne, there is a real buzz right now for family homes, as well as properties at a first-home buyer level.
Nickerson said that given stock is low and buyer volumes are up, the opportunities to do well are certainly there.
However, the challenge is keeping vendors on an even keel because whenever the media talks the market up, vendors have a tendency to get carried away with their aspirations.
In Perth, stock levels have dropped to their lowest ever in recent times, with ultra-low days on the market of around 12 days currently, which is nothing short of a basic economics situation, with normal to high demand competing against persistently low supply.
“Plus, the perceived mortgage cliff, long rumoured to be “happening soon” simply has not eventuated,” added Nickerson.
Auction results for Victoria
