Australian auction market records a strong September quarter as records are broken in Queensland

• Auction clearance rates are holding steady across the nation around the mid-sixties.
• The figure is a sizeable increase from last year's 50%.
• Brisbane and Victoria show the strongest auction performance.

Auction clearance rates have held steady at around 66% since March this year across the nation, according to Apollo Auctions‘ latest quarterly auction report. The spring selling season and steadying interest rates are at least a couple of factors underpinning buyer interest.

Back in August, Domain noted a combined capital clearance rate of 69.6% and 52.7% in the regions.

Apollo Auctions director, Justin Nickerson, said this latest figure is in stark contrast to market conditions last year, when auction clearance rates were hovering around 50% between June and August 2022.

“Overall, we saw an average of about 30 people attending auctions, with a solid average of 3.31 registered bidders recorded as well,” he said.

                  Apollo Auctions September quarter 2023 results

Source: Apollo Auctions.

Queensland and Victoria top the country’s clearance rates

Brisbane and Victoria both recorded the strongest clearance results for the quarter, at 71%.

In Brisbane, despite the increase in auction volumes and more choices for buyers, the clearance rate remained firm as buyers sought to compete for what was available.

“Interestingly the active bidding percentage – those registered bidders raising a paddle – was the highest number ever recorded, demonstrating a willingness for buyers to act and engage when they selected a property,” said Nickerson.

Auctioneer, Rob Doorey, added that Gold Coast’s tight listings have lent itself to competitive bidding, high registrations, and high attendance, averaging to a 61.50% clearance rate over September.

The Sunshine Coast also saw improved numbers, with auctioneer, Yianni Mooney, noting the September quarter saw increased auction clearance rates compared to the previous quarter, despite higher interest rates, rounding out to 57.1% over September.

“Many buyers and sellers have anchored expectations from the recent market momentum,” said Mooney.

“Sunshine Coast buyers are likely comforted by greater certainty around economic activity, continued low unemployment, and the general talk of interest rates having reached their peak.”

Mooney also noted a premium reserve placed on apartments and units, with owners reaping the benefit of increased prices and the recovery in seeking out that premium price through auctions.

“With more positive market conditions likely to continue, this will see potential bidders coming off the sidelines with the confidence to attend and bid at auction,” he said.

Melbourne auctioneer, Andy Reid, said the two pauses in interest rates across August and September saw an increase in confidence among first home buyers in Melbourne.

“As a result, the entry level stock priced between $600,000 and $850,000 has finally started to regain some momentum,” he said.

Perth’s shockingly low stock levels

As of the week ending 8 October, REIWA recorded 5,054 properties for sale in Perth, way down from the 8,117 recorded at the same time last year.

In a tight market, Perth auctioneer, Richard Kerr, said Perth auctions continue to attract good crowds.

“We have noticed some of our sellers believing the steadily rising prices will continue despite a reluctance from buyers already stretching their budgets to keep up with rising rates and inflation,” he said.

“As always, the top agents continue to use the process to obtain a premium for their sellers as opposed to the common narrative which has seen days on market reduced to an average 10 days in many instances.

“A clearance rate of 57% on the day has been lower than previously, as some of our sellers have chosen not to listen to the feedback provided to them during the campaigns.”