Australian auction market June 2022 update

• Auctions continue to perform well in the Brisbane and Gold Coast markets
• The market has weakened for the rest of the country
• Comes as interest rates have risen for three consecutive months

While changing market conditions have impacted auction results nationally, a new report has revealed this hasn’t been the case in Brisbane with the clearance rate increasing in the Queensland capital over June.

This has happened despite successive cash rate rises by the Reserve Bank of Australia (RBA) as well as softening market conditions, such as in Sydney and Canberra.

“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,” said Apollo Auctions Director, Justin Nickerson, who published the report.

“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.”

The average percentage of active bidders reduced from 63.83% in May to 60.22% in June across the reported capital cities over the month.

The average clearance rate also fell, from 65.48% in May to 49.48% 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,” noted Mr Nickerson.

According to Apollo’s auctioneers, auctions appear to be the best sales method when detemring market price in a changing market.

“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.

June 2022 auction results

Source: Apollo Auctions

Other markets

In terms of the other auction markets, the Gold Coast like Brisbane, remains strong with over half of the auctions resulting in a sale. However, the remaining markets aren’t quite as strong.

“On the Gold Coast, while the market frenzy has diminished, the results are still strong, despite the normal winter slowing,” explained Mr Nickerson.

“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.”

Justin Nickerson, Apollo Auctions

The report noted that in June, Sydney has witnessed a “sense of reality dawning” on both sellers and buyers following changed market conditions.

“Perth’s auction market remains very healthy with strong attendance and bidder numbers as well as lower than usual stock levels,” he added.

“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.”

While the report doesn’t show auction results for Melbourne, SQM Research data highlights a declining clearance rate.

Melbourne