{"id":2303,"date":"2022-04-07T07:18:41","date_gmt":"2022-04-07T07:18:41","guid":{"rendered":"https:\/\/royabhishek.in\/urbanbuyer\/heres-why-property-auction-popularity-is-surging\/"},"modified":"2022-04-07T07:18:41","modified_gmt":"2022-04-07T07:18:41","slug":"heres-why-property-auction-popularity-is-surging","status":"publish","type":"post","link":"https:\/\/royabhishek.in\/urbanbuyer\/heres-why-property-auction-popularity-is-surging\/","title":{"rendered":"Here\u2019s why property auction popularity is surging"},"content":{"rendered":"

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Property auctions<\/a><\/u> have historically garnered the best sales results for sellers, and their popularity is growing further, particularly in some particular areas or dwelling types.<\/strong><\/p>\n

\"Auction10\"A recent Domain auction report shows <\/a>that over the past 10 years the proportion of property sales by auction has almost doubled across Australia.<\/p>\n

Although this uptake does vary between and within cities and is more prevalent for houses than units.<\/p>\n

The data shows that the biggest shift across the capital cities was in Canberra and Adelaide which saw the proportion of property sales by auction jump 5 and 4 times higher respectively, compared to 10 years ago.<\/p>\n

In Brisbane, the proportion of sales by auction has tripled during this time, while in Sydney and Melbourne it has almost doubled.<\/p>\n

Canberra, Melbourne<\/a><\/u>, Sydney<\/a><\/u> and Adelaide have consistently recorded the highest proportion of homes sold by auction among the major Australian cities.<\/p>\n

\"Auction3\"In fact, Canberra\u2019s swelling love of auctions has now made it Australia\u2019s most auction-centric market<\/a><\/u>, recording the highest proportion of sales by auction over 2021, just surpassing Melbourne.<\/p>\n

The proportion of sales by auction varies not only by city and property type, but it also fluctuates depending upon market conditions, as competition deepens in an upswing there\u2019s a tendency for more homes to sell by auction and the opposite during a downturn.<\/p>\n

Although, this was disrupted during the height of pandemic lockdowns in 2020.<\/p>\n

Irrespective of this, sales by auction are tracking higher over time.<\/p>\n

The proportion of homes sold by sale method, 2021<\/span><\/h2>\n

\"001\"<\/a><\/p>\n

7 reasons why are auction sales rising<\/span><\/h2>\n

Domain found\u2026<\/p>\n

    \n
  1. Auctions give more transparency to both buyers and sellers, meaning competition is clear and the market price is fully disclosed.<\/li>\n
  2. Putting a property under the hammer is an efficiently fast method of sale, supported by an intense marketing strategy that typically lasts 3-4 weeks.<\/li>\n
  3. The seller\u2019s nerves are protected by a reserve price.<\/li>\n
  4. It gives an unconditional sale, once the hammer falls the property is legally sold.<\/li>\n
  5. If the property passes in, it provides an easy opportunity for negotiation with interested parties.<\/li>\n
  6. There can often be a pre-auction sale, the change of which can increase during an upswing and downturn for differing reasons.<\/li>\n
  7. For buyers, auction negotiations are open for everyone to see.<\/li>\n<\/ol>\n

    The best day <\/em>of the week to auction a property<\/span><\/h2>\n

    \"Auction\"The data shows, unsurprisingly, that all cities had a higher clearance rate on a Saturday.<\/p>\n

    But interestingly there are other days that come in a close second \u2013 Thursday in Sydney<\/a><\/u> and Canberra, Sunday in Melbourne<\/a><\/u> and Brisbane, and a Friday in Adelaide.<\/p>\n

    Monday produced the poorest result across Sydney, Melbourne, Adelaide and Canberra, with Tuesday being the weakest performance, by far, in Brisbane<\/a><\/u>.<\/p>\n

    Overall, Monday provides the weakest clearance rate for vendors, with less than 40% of properties being successful at auction.<\/p>\n

    The higher the price, the more chance of an auction<\/span><\/h2>\n

    \"PropertyThe transaction method, the day an auction is held and the rate of selling success are not the only things to consider when selling or buying a property.<\/p>\n

    Higher-priced homes generally tend to sell at auction compared to private treaties.<\/p>\n

    Over 2021, Sydney had a price differential of 63% for houses and 41% for units when comparing the median sold price at auction to the private treaty.<\/p>\n

    This holds up across every capital city, with all having a higher median price at auction compared to the private treaties.<\/p>\n

    Even in Australia\u2019s less auction-centric markets, higher median prices are consistently achieved at auction compared to those sold by private treaties.<\/p>\n

    Median price by sale method, 2021<\/span><\/h2>\n

    \"002\"<\/a><\/p>\n<\/div>\n

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A recent Domain auction report shows that over the past 10 years the proportion of property sales by […]<\/p>\n","protected":false},"author":1,"featured_media":2304,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[79,37,38],"tags":[],"class_list":["post-2303","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-home-buying-and-selling","category-latest","category-property-investment"],"yoast_head":"\nHere\u2019s why property auction popularity is surging | Urban Buyer: Buyers Agent & Advocates | Best Property Buyers For You<\/title>\n<meta name=\"description\" content=\"Please use the menu below to navigate to any article section: Property auctions have historically garnered the best sales results for sellers, and their\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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