ADELAIDE’S auction market continues to perform strongly on the national stage, and the city now has the highest clearance rate in the country.
According to CoreLogic data, Adelaide’s clearance rate sits at 66 per cent – 5 per cent higher than Sydney, 12 per cent higher than Melbourne and 33 per cent higher than Brisbane.
CoreLogic figures show 56 properties went to auction last weekend. Thirty-one of these sold under the hammer and six sold prior to auction day. CoreLogic auction analyst Kevin Brogan said Adelaide has led the charge in recent months when it comes to clearance rates. “Adelaide got up to speed quicker than some of the other markets – that’s recognising that it’s a smaller auction market – and we have seen in other measures of the Adelaide market that it is performing more strongly than some of the eastern states.
“In Adelaide, we’re at about a 5 per cent increase in stock since last year, so the market is performing steadily.”
Mr Brogan said sellers would have to wait and see what effect tougher lending conditions as a result of the banking royal commission would have on bidders at auctions. “I’ve certainly attended auctions recently where the eventual purchaser was present and was quite happy to agree terms under private treaty but wasn’t able to bid at the auction because they didn’t have finance,” Mr Brogan said.
“We are seeing that impact in the eastern states … it is possible that might occur in the Adelaide market process, however, the use of auctions in Adelaide is a lot more considered and it’s not as common here.”
According to CoreLogic data, there are 464 South Australian homes on the market scheduled to be auctioned in the coming months. Homes launched with an auction campaign sell 40 days faster on average than those that are sold via private treaty – just 28 days for auction properties as opposed to 68 for private treaty.
LJ Hooker Kensington/Unley principal and auctioneer Nick Ploubidis said Adelaide’s auction market was performing well. “Our market is strong and solid, and these stats reflect that,” Mr Ploubidis said.
He said there was, however, a level of uncertainty in the market as a result of the banking royal commission and an upcoming federal election.
“When there is uncertainty, time on market blows out,” he said. “The longer the time on market, the lower the perceived value of the property.
Caroline Plant and her husband Sam Lagana sold their 3 Wall St, Norwood home at auction last week and Mrs Plant said they were happy with the result. “We know it was a good price for a small property,” Mrs Plant said. “The type of property it was, was obviously best suited to auction, and if we were to sell in the future and the property suited auction we’d do it again.”
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