Australia’s auction markets fired up in April as the rate-hike pause supported the sentiment of potential borrowers.
According to Apollo Auctions, the market witnessed growth in the number of people attending, registering, and actively bidding at auctions.
In fact, the number of auction attendees increased to 37.2 in April, while the average number of registered bidders increased to 4.06.
Apollo Auctions director Justin Nickerson said even clearance rates improved, rising to 65.67% in April.
“The improving market conditions and buyer confidence levels are also evidenced by increasing numbers of people attending, registering, and actively bidding at auctions,” he said.
Mr Nickerson said one of the drivers of the growth in auction indicators over the month was the rate-hike pause in April.
“The news of an interest rate hold seemingly gave buyers a new lease on life as they competed strongly across all price segments and locations with most auctions holding requisite buyer interest to achieving a sale,” he said.
Best auction performers in April 2023
The Northern Rivers region in New South Wales is one of the strongest markets for auction during the month. The region recorded a clearance rate of 75% in the month.
“A very high percentage of listed auctions in April sold before the auction date in the Northern Rivers, which means the process is working with premium buyers being attracted to the right property in the right timeframe as well as FOMO being still alive and well in that region,” MR Nickerson said.
Melbourne also posted a strong clearance rate over the month at 75%.
Mr Nickerson said that the shortage of properties in the Melbourne market seems to be getting to a point where buyers are becoming conflicted between what the media is saying and the reality.
“This means that attendances at auctions are higher, and the number of bidders has also risen – especially for those family homes that need nothing to do,” he said.
Brisbane is also one of the strongest auction performers, achieving a clearance rate of 68.25%.
“The Brisbane market continued its strong run throughout April despite the Easter and public holiday disruption,” Mr Nickerson said.
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