Qld auction clearance rates rebound to annual high ahead of winter lull

Auction clearance rates have rebounded to hit an annual high, with Brisbane recording the nation’s strongest result of more than 72 per cent of homes sold under the hammer last month.

The lastest Apollo Auctions monthly report shows clearance rates across the country grew steadily over recent months, after falling below 50 per cent in June last year.

The River City’s May clearance rate of 72.4 per cent was the highest of the surveyed regions, including Sydney, Melbourne, Perth and the Gold Coast and Northern Rivers, and above the national average of 66.93 per cent.

Clearance rates on the Gold Coast were 57.14 per cent, while the Glitter Strip city recorded the strongest level of active bidding among those in attendance on auction day, at 64.12 per cent.

Apollo Auctions director Justin Nickerson said clearance rates dipped to their lowest level as the Reserve Bank of Australia began its cycle of raising interest rates mid-2022, but had continued to strengthen since February.

“A lack of stock for sale is continuing to underpin auction market conditions with buyers generally competing strongly for the available properties,” Mr Nickerson said.

An average of 4.5 registered bidders per auction was recorded in Brisbane, and 3.3 on the Gold Coast.

“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,” Mr Nickerson said.

On the Gold Coast, auctioneer Rob Doorey said: “the only stock not selling are ones where owners are not willing to meet the market, even though there are plenty of buyers on the ground keen to transact.”

PropTrack director of economic research Cameron Kusher said the traditional winter lull would see less homes going to auction over the coming weeks, creating brisk competition for the small pool of available properties.

Across Brisbane, 103 properties were scheduled to go under the hammer this week — down about 10 per cent from the previous 7 days.

Statewide, 197 auctions were scheduled, which was down 26 per cent from the same time last year.

“With an ongoing low volume of auctions, we expect strong auction clearance rates to persist,” Mr Kusher said.

The state’s most viewed home on realestate.com.au going to auction this weekend was a five-bedroom, three-bathroom renovated Queenslander at 39 Ellerslie Cres, Taringa.

Marketing agent Vern Gilbert, of Plum Property, said the home’s blend of classic architecture with contemporary style had attracted a wide demographic, with larger families particularly drawn to the home’s generous living spaces and al fresco entertaining areas over two levels.

Mr Gilbert said about 5 registered bidders were expected at Saturday’s auction, including 4 local families and another family flying up from Melbourne.

“Demand is extremely high for property in the Paddington to Indooroopilly areas where I am focused, and the amount of properties on the market is very limited,” Mr Gilbert said.

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He said strong international and interstate migration was tempering softer market conditions in the wake of 12 interest rate rises since last year, with many families honing their property search to Brisbane’s leafy inner west suburbs.

“I reckon we’re going to power on until the Olympics,” Mr Gilbert said.

On the Gold Coast, the most popular listing of the weekend’s auction was a four-bedroom, two-bathroom home at 14 Eileen Ave, Southport.

Marketing agent Michael Peters, of Black and White Estate Agents, said the single-level home on a 506sq m lot within the popular TSS school precinct would go under the hammer just two weeks after listing.

“It’s been a relatively short campaign, and in that period of time we’ve probably received the same volume of buyer interest that we might have had in a 4 week campaign,” Mr Peters said.

He also attributed strong auction results to an influx of new families settling in southeast Queensland.

“We are not really feeling the impact of any of the interest rate increases. The Gold Coast market seems to be bucking the system and that is largely due to the fact that we are still getting a fairly high level of southern migration.”

Of Black and White Estate Agents’ recent auctions, 19 bidders registered for a deceased estate at 10 Burdock St, Elanora which sold for $975,000 — $195,000 over the reserve price.

And a beachfront unit at 2/11 Jefferson Lne, Palm Beach sold for $1.75m, with 7 registered bidders pushing the price $250,000 over the reserve.

QLD’S MOST VIEWED HOMES GOING TO AUCTION THIS WEEKEND (realestate.com.au)

1. 39 Ellerslie Cres, Taringa

2. 32 Orania Cres, Calamvale

3. 14 Eileen Ave, Southport

4. 13 Frost St, Mount Gravatt East

5. 49 Kennedy Tce, Paddington