South-east Queensland auction season ends on a high

Almost one in two south-east Queensland properties sold at auction in the final official week of the season, boding well for the market in 2012, according Jason Andrew Auctioneers.

The clearance rate for the week ending December 12 climbed to 48%, matching a result achieved in the previous week and up from a November clearance rate of 39%.

The auction house put $50 million worth of real estate under the hammer across the seven days, with $23.6 million successfully sold.

“Of particular note was the Brisbane commercial clearance rate of 100%, and the residential clearance rate across Brisbane and Gold Coast also strong at 60%,” says director Jason Andrew.

Buyer activity also picked up significantly, with the average number of buyer registrations per auction at 2.67%, two and a half times the year-to-date result and six and a half times the rate for 2010.

The percentage of forced sales was also high at 63%, with the total number including 28% mortgagee in possession sales and a further 14% of vendors who cited financial stress as their selling motivation.

Andrew says the week was unusually busy, with a high number of auctions and overwhelmingly willing buyers and sellers.

“This has been the best week of the year – while there will still be a smaller volume of properties go to auction this week, the official auction market has ended on a high.”

“Buyers have seen good opportunity at current prices and sellers have accepted the challenging market conditions.”

“Traditionally December is a month where the tug-of-war between buyers and sellers is lessened, with both parties more motivated to finalise a sale.”

“This year, with uncertain terrain ahead in 2012, that sentiment has been stronger than ever.”