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Market conditions and buyer sentiment across the nation widely softened over the September quarter, with new industry research attributing this downturn to the current interest rate climate.
Apollo Auctions’ latest Auction Report has revealed national auction clearance rate moderated to 57 per cent over the September quarter, representing a decline from 64 per cent in the previous June quarter, and the 66.1 per cent recorded this time last year.
The group linked the reduced activity to the current high interest rate environment, noting that these conditions are increasingly impacting borrowing capacities and buyer demand across major markets.
Even with these conditions, Apollo Auctions director Justin Nickerson expressed optimism and voiced his belief that “inflation is trending down with rate cuts on the horizon”.
“Many commentators are forecasting interest rate cuts to begin either at the end of this year or the start of next, so the smartest buyers are making their moves now,” he said.
Across the September quarter, the report detailed that an average of 25.4 people and 3.1 registered bidders were present at each event. The percentage of active bidders hit nearly 60 per cent, with Queensland’s auction market recording strong levels of auction participation. On the Sunshine Coast, active bidders hit the highest in the nation at 64 per cent, followed by Logan City and Brisbane at 62 per cent and 61.8 per cent, respectively.
Speaking on Brisbane’s solid results, Apollo auctioneer Ross Cannell attributed the capital city’s strong performance this quarter to “rising clearance rates, steady attendance and competitive bidding across key suburbs”.
Cannell stated that competition was “particularly fierce” in Brisbane’s more affordable suburbs such as Chermside and Everton Park, which saw increased auction activity particularly in the unit market among buyers seeking out budget-friendly options.
Across the Northern Rivers and Tweed in NSW, Apollo auctioneer Dave Eller said that the areas are beginning to see slight movement in property prices, helping to revive the market’s prospects after prices previously dropped by roughly 30 per cent in some parts of the region.
Over in Melbourne, Apollo auctioneer Andy Reid stated that market conditions continue to be “sombre”, but emphasised that “solid auction results are still happening”.
While Reid acknowledged that Melbourne has lost favourability among investors, he detailed that the city’s median price drop below Perth, and Adelaide has led to the market’s renewed appeal as a viable option for owner-occupiers.
Even with Perth’s record low levels of stock throughout winter, the capital city reported an auction clearance rate of above 60 per cent over the past three months, with local auctioneer Richard Kerr relaying that 58.7 per cent of houses sold over the last quarter and 83.3 per cent of homes selling within 10 days of their auction date.
“For an extraordinarily long time period, there was no meaningful change whatsoever. Now as spring has shown its welcome face there is noticeable, albeit gradual change in that equation,” said Kerr.
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