Healthy demand heats up traditionally slow auction months: report

The average number of registered bidders at auctions across Sydney, Brisbane, Perth and the Gold Coast increased from 2.8 to 3.3 per cent, according to Apollo Auction’s December 2022/January 2023 report. 

The average percentage of active bidders also rose from 54 per cent to 57 per cent over the same period. 

Mr Nickerson highlighted that while fewer auctions are traditionally held over the holidays, solid activity was still recorded across the markets. 

Perth and Brisbane emerged as the top-performing regions, recording auction clearance rates of about 66 per cent and 64 per cent respectively, bucking a trend of steep declines in cleared sales during the season. 

Compared to November, clearance rates in the two cities are down from 70 per cent in Perth and up from 58.8 per cent in Brisbane. 

The Gold Coast saw a 44.57 per cent clearance rate during the December to January period, down from the 64 per cent seen in November. 

While Sydney saw a steep 40 per cent slump in clearance rates from November — with only 20.90 per cent of auctions held ending in a sale during the period — Mr Nickerson mostly attributed the drop to southerners being on holiday in the Sunshine State over the holidays. 

“According to our team of auctioneers, the property year is well and truly off and running with solid attendance and bidding numbers at auctions across the nation,” Mr Nickerson stated. 

In Brisbane, local auctioneer Mark McCabe stated agents are once again capitalising on solid pre-auction offers, and are closing the sale before auction day if possible. 

“[This is] why the sold prior percentages in Brisbane continue to grow,” he said. 

Providing more insights, Mr McCabe said local agents are working with the auctioneer in a “more proactive fashion” in the lead-up to auction day, such as by allowing an objective third party to influence the reserve price expectations as early as possible.

On the Gold Coast, auctioneer Rob Doorey acknowledged that the volume slowed a little at the very end of December. However, he claimed that it was still a “bumper month” for the region’s auction market, thanks to the solid number of average bidders and auctions still delivering “great results in a timely manner”. 

“Across December and January, the Gold Coast recorded a very healthy 3.1 average of registered bidders with 55 per cent participating,” he stated. 

In Melbourne, auctioneer Andy Reid acknowledged that market conditions remain challenging but noted that there are “signs of optimism” emerging. 

“Volumes dropped as expected over the holiday period, but more private sale campaigns were launched in Melbourne to run over that time, which indicates that motivation to sell is definitely in the air,” he stated. 

On the west coast, Perth auctioneer Richard Kerr reported that market conditions remain “overwhelmingly positive”. 

But he also divulged that vendors in the Western Australian capital are hesitant to put their homes on the market. “Anecdotally, it seems that vendors in Perth are wary of listing their homes, despite the odds of a sale being very high, due to the perceived problem of not having the next property to move to,” he stated. 

Mr Nickerson gave his insight into what lies ahead for the country’s auction markets. 

“With the rising interest rate cycle appearing [to] be nearing its peak and with hundreds of thousands of overseas migrants expected this year, it certainly appears that this year is looking like a more positive one for property buyers, sellers, agents and auctioneers,” Mr Nickerson said.