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  • brisbane-auction-clearance-rates-well-down

    Brisbane auction clearance rates well down

    BRISBANE property sellers aren't hearing the strike of the auctioneers hammer as often as they did this time last year as auction clearance rates take a dive.

    While fewer properties are taken to auction in Brisbane than in other capital cities, clearance rates at this time last year were at 46.2 per cent compared with 18.5 per cent last week.
    According to property research group RP Data, generally in Brisbane the success rate of selling at auction is less than 50 per cent.
    Between the beginning of last year and October 10 this year Brisbane had, on average, about 109 auctions per week.
    Melbourne typically has more than 580 auctions a week and Sydney has about 445.
    Since the beginning of last year, the average weekly clearance rate for Brisbane has been 38.1 per cent.
    In response to the slowing down of sales by auction, LJ Hooker New Farm agent Brett Greensill has changed his method of selling to private treaty.
    He believes there are a variety of reasons why auction clearance rates are currently low.
    "The main reason I think is because sellers are continuing to live in hope, and the four-week auction campaign is often not enough time for the seller to come to the realisation (of the difference between) what they were hoping to achieve and what they can actually achieve," he said.
    Mr Greensill said that in some cases the difference could be 20 to 30 per cent.
    He said many sellers wrongly thought a property had to be unusual or unique to sell at auction, but he believed it was the more "normal" properties that did well.
    "The more common the better – you can get broad-based interest and create excitement," he said.
    The unconditional nature of buying at auction was putting off buyers who needed to sell their property and were concerned they would not do so in time in a slow market.
    Mr Greensill said banks were also being more stringent in terms of their lending, so bidders were not always confident they could obtain finance.
    "Real estate is at its most uncertain, ever," Mr Greensill said.
    "There's one way to find out if a man is honest-ask him. If he says 'yes,' you know he is a crook." Groucho Marx