How to sell under the hammer as Qld’s auction clearance rate tanks - realestate.com.au

A luxurious riverfront penthouse in Brisbane, previously owned by the late Betty Byrne Henderson, was successfully sold at auction over the weekend, despite the city's ongoing struggles with low auction clearance rates. Recent data from realestate.com.au indicated that Brisbane's preliminary clearance rate plummeted to 22 percent, a notable decline from 30 percent the previous week. In regional Queensland, the situation was even less favorable, with the clearance rate falling to 18.9 percent from 24.8 percent.

Luc Redman, an economist at realestate.com.au, commented on the current market conditions, stating, "Brisbane and Queensland’s clearance rates remain subdued. As the Queensland housing market continues to soften due to interest rates and tax changes, the clearance rate is likely to stay at a constrained level." He also mentioned that the Reserve Bank of Australia (RBA) has more than a 50 percent chance of raising the cash rate again in November, which could keep clearance rates low until sellers adjust their price expectations or demand increases.

The standout auction in Brisbane featured a luxury unit that fetched an impressive $5.825 million. This property, located at 601/57B Newstead Terrace, was sold by Place's Sarah Hackett on behalf of Henderson's family. Two bidders registered for the auction, and the unit ultimately went to a local buyer who intends to renovate it. The penthouse occupies the top floor of the Arcadia building at Mariner’s Reach and boasts three bedrooms, a wraparound terrace, and breathtaking northeast river views.

In a separate auction south of Brisbane, a sprawling property in Daisy Hill sold for $2.3 million. A couple from Taiwan participated in the bidding via video link to secure their future home at 481 Springwood Rd. Sales agent Johnson Teo from Ray White Springwood revealed that the buyers are planning to relocate from Taiwan and will be joined by family from Sydney. The sellers, who had owned the home for 25 years, are downsizing to be closer to the central business district.

On a more positive note, the BMW Motorline auction event held on Thursday achieved an impressive clearance rate of 85.7 percent, with 18 out of 21 properties sold, totaling $15,223,786 in sales. Daniel Diamantopoulos, head of growth and chief auctioneer at Ray White Rochedale, noted that there was significant engagement, with 51 registered bidders participating in the event. One of the highlights was a block of nine units on a single title at 17 Foot St, Acacia Ridge, which drew competitive bids from 13 registered bidders and ultimately sold for $1.732 million, surpassing its $1.4 million reserve by a substantial $332,000.

Diamantopoulos emphasized that despite the challenging market conditions, these results demonstrate that buyers are still actively participating in the market and willing to compete for desirable properties. "We’re certainly seeing a more selective and considered buyer pool," he remarked. "Purchasers are doing their homework, taking their time, and being more cautious with their decisions. However, when a property is positioned correctly and the campaign is executed well, we’re still seeing exceptional results."

On the Gold Coast, online auctions are also showing that homes can still sell successfully, despite the declining clearance rates. Agents attribute this success to effective marketing campaigns. Ray White Malan + Co recently reported a perfect record of selling five out of five properties during an online auction, with a notable sale being an acreage property in Bonogin that went for $1.76 million, exceeding its reserve quickly. Agent Lisa Bourne expressed confidence in the auction's potential, noting that there were 71 groups who viewed the home, along with nine pre-auction offers and seven registered bidders.

Bourne highlighted the importance of engaging with buyers to ensure they are informed and ready to place competitive bids. "We sold five out of five on the day, so it can be done," she stated. "But the campaign is more important than ever in this market because it gives buyers a clear end date to prepare themselves to bid." She also pointed out that many expressions of interest (EOIs) are failing lately as buyers seek conditions that pose risks for vendors, such as long finance terms. The other properties sold during the auction included locations in Southport and Surfers Paradise, showcasing continued buyer interest in the market.

Michael Andrews, CEO of Ray White Malan + Co, reinforced the notion that successful auctions result from a collaborative effort among the vendor, agent, and auctioneer. "When you’ve got 70 odd people looking at a particular property, that tells you buyers are still very active in the market," he said, emphasizing the significance of effective marketing and trust between all parties involved.