Auction clearance rates double as Brisbane market revs up

This post was originally published on this site

Among homes sold prior to auction was 21 Halstead Street, Coorparoo, which was previously set to go to auction at 10am on Saturday Feb. 15.

Auction clearance rates have soared in Brisbane as the city gets its best start to the property market in years.

Brisbane had the highest volume of auctions over the weekend of the smaller markets – that is, not including Sydney and Melbourne, with 104 homes going under the hammer, according to CoreLogic’s weekend market summary. The preliminary clearance rate was 61.5 per cent, it said.

MORE: Patience pays off for buyer

Ten month reno turns cottage into masterpiece

The two larger markets, Sydney (80.3 per cent) and Melbourne (79.2 per cent), were also hitting stronger clearance rates than the same time last year (54.6 per cent and 52.5 per cent respectively).

CoreLogic said the strong results also came off higher volumes, with the number of properties taken to auction tracking well above levels from a year ago.

In Brisbane 104 homes went under the hammer, of which 65 have been reported in preliminary data. Of the auctions, 97 were houses.

Among homes sold prior to auction was 21 Halstead Street, Coorparoo – a three bed, one bath house that had previously been set to go to auction at 10am on Saturday Feb. 15. The price has been withheld.

Sales agent Peter Laoudikos of McGrath Bulimba, who sold the property with colleague Ben Cannon, said both owners and buyers were becoming more receptive to before auction sales.

“I’m definitely seeing offers before auction happen more often,” he said. “We find that buyers that are prepared to engage before auction are being received very well by our clients.”

“We had five auctions that were set for the next two weeks and three have already sold with multiple offers. I think that there is still less stock historically on market, and a lot of the older stock is just going to auction. I think the owners are seeing buyers are keen to compete.”

He said low interest rates and government grants were among factors spurring on activity, which was triggering sales off market as well.

“We’ve done three offmarket deals in the last few weeks, which will bring more buyers into the market naturally. I’ve done a few in the last few weeks that have been off market transactions and those sellers have already gone back into the market and bought within a week.”

Preliminary auction clearance rates:

Sydney 80.3% (last year 54.6%)

Melbourne 79.2% (last year 52.5%)

Brisbane 61.5% (last year 28.9%)

Adelaide 75% (last year 59.7%)

Perth 80.0% (last year 24.3%)

Tasmania n.a.

Canberra 90.3% (last year 45.5%)

Weighted Average 78.6% (last year 51.2%)

(Source: CoreLogic)

FOLLOW SOPHIE FOSTER ON TWITTER