Auctions increasingly embraced by smaller capital city markets: CoreLogic

Auctions have been growing in popularity in the smaller Australian capital cities, according to CoreLogic’s Quarterly Auction Market Review for the three months to September 2021.

It shows 23,184 properties were taken to auction across the combined capital cities, down from 31,605 during the June quarter 2021.

But CoreLogic’s head of research Eliza Owen said the quarter had shown auctions as a sales method was no longer exclusive to Sydney and Melbourne, growing in popularity in other Australian capital cities.

There were 2,107 auctions scheduled in Brisbane in the September quarter, 28% above the 10-year quarterly average. 

In Adelaide 1,732 auctions were scheduled for the three months to September, 48% above the 10-year average.

Despite being in lockdown, Canberra had 1,073 auctions scheduled in the September quarter, a 44% increase above the previous 10-year average.

“Not only have volumes been higher across Brisbane and Adelaide, but clearance rates have been well above historic averages through the September quarter, which may cement auctions as a more popular sales method across these cities through future housing market upswings,” Ms Owen said.

“One of the most powerful insights through the September quarter was the difference in market outcomes between Melbourne and Sydney. 

"It highlights the importance of physical inspection in instilling buyer confidence and supporting transaction activity. 

"Since physical inspections were reintroduced across Melbourne, the average final clearance rate has bounced back over 80%, which compares to an average of 48.3% in the four weeks prior.”

She said while Australia’s current housing market upswing has been broad-based, consistent growth in housing values through the September quarter in Brisbane (5.9%), Adelaide (5.5%) and the ACT (6.9%) may have contributed to more auctions being held in these cities.

Sydney's Mosman saw the weekend's top apartment result when a three bedroom townhouse fetched $3,205,000 through Galetto Real Estate.

Built in 2004, it had been held in the same family for 16 years in a boutique complex of six. It last sold at $1,155,000 in 2005.

The three bedroom townhouse came with an 18 sqm courtyard.

The dual level townhouse spans 191 sqm space.

CoreLogic calculated a 72 percent success rate for the 590 apartments and townhouses listed for weekend auctions across the capital cities.

Sydney had the strongest weekend apartment auction market at 77 percent followed by Melbourne on 70 percent and Brisbane at 63 percent and Canberra at 62 percent.