Auction clearance rates

The premise i've been working with is; all properties sold prior to an auction campaign (for reporting purposes) is regarded the same as a successful auction and is included in the clearance rates. So my question is, why is the auction clearance rate still so low for Brisbane?

Or is it just my basic belief of "sales before auction are included" not true for all markets and all reporting?
Here's a definition from the "realestateview" website, it sounds like I'm correct with including sales before auction. Link

What is a clearance rate?
A clearance rate is a key property market indicator. It is generally used to establish if the market favours buyers or sellers. Clearance rates are expressed as a percentage and signify the number of properties sold, or cleared, at auction for the week or month
...........

How is it calculated?
Every week the REIV collects about 97 per cent of auction results in Victoria. This is the highest of any data provider in the state. The weekly auction clearance rate is then calculated by dividing the total number of properties sold at auction (including those sold before or after auction) from the total number of auctions reported.

The REIV only classifies properties as having ‘sold after auction’ if they sell on the day following the auction. This then allows for a period of post auction negotiation. Properties sold two days after a scheduled auction are recorded as private sales as they are generally not sold under auction conditions.

The REIV also report the number of withdrawn and postponed auctions but these are not included in the clearance rate calculation as they have yet to be held and have not been subject to a full auction campaign.

The number of passed-in auctions are also reported but not used to calculate the clearance rate. Of the number of passed-in properties, the REIV also reports how many were passed-in on a vendor bid. An auctioneer can use two ‘vendor bids’ – bids on behalf of the owner – during the auction.

And here's the most recent data from Corelogic
http://blog.corelogic.com.au/2017/0...sults-showing-69-1-per-cent-auctions-clearing

 

Qld historically is very resistant to auction and the auction process. Whether it's due to inherent conservatism (they've got no DST and it's Christmas year round) or time (cost) is not as great a force on driving sales.

 

But not even buying pre auction?

 

You cant buy "pre-auction" if an auction isn't planned.

Most Qld sales are by negotiating on a listed price.

Traditionally fewer Qld sales are by auction, it's never been popular. Things may be slowly changing.

So for Qld, auction clearance rates are not a good indication of sales activity.
Marg

 

There are some properties listed for auction but the clearance rates never tend to not be over 60%. Is it just not a hot enough market?

 

Yep its just not hot enough, except for some inner city posh suburbs.

And for many auctions, even with 10 parties standing around, the auction might be passed in, then the REA goes around negotiating or taking offers. LOL.

Come here in Summer though, u need to feel it to believe it, its just too hot and humid for outdoor auctions as well =)

 

I'd love to spend the Sydney winters in Brissie....

 

Well buy a property on the GC or up north at maybe Mooloolaba for a winter escapade, you'll not regret it. GC has more dining and entertainment options, but Mooloolaba has the best prawns =) and is not too far away from Tin Can Bay where you can feed the dolphins in the bay, even in winter.(yep just did it last Sunday, dun ask me why, its just what people in QLD do I guess.)

It's cold enough tonight though, at 17 degrees now and probably 12 deg tonight, I am turning on my heater.

 

in vic, i've seen property listed and sold as private sale/sale by date/sale by neg (ie. not public auction) come up in the weekly auction results - is this common practice to bump up clearance rates? or is there another reason/loophole as to why this happens?

 

I haven't seen that in Sydney

I've got 2 houses in the Brisbane area and if I was to buy a cheapie unit near Brisbane CBD that would be good as a bolthole. My problem/obstacle is my job... I don't think undertaking my current work from Brisbane 3 months of the year would be acceptable.

#firstworldproblem

 

Gockie and I went house hunting one morning at the start of the year on the Redcliffe Peninsula. There was an auction happening in the same street as one of the opens so we attended the auction for the learning experience. It was a development site, different price range to a family home and therefore worth the auction fees.

A few weeks ago I attended an Open in Strathpine with one of the younger members here and there were three offers made that day. It was a regular family home. Why hold an auction and pay the ridiculous fees for a sub-$400K property?

 

You can always commute every 2nd week if they need to see you face to face, otherwise I'm sure that they could accommodate you in their plush Brisvegas offices.

 

Bah! Winters in Brissie..same old same old..

.look towards Asia my dear...you can live very well on 25K a year in some countries....and air tickets are super cheap these days

The food, the vibes, the culture...OMG! you ain't seen nothing yet!

 

At least in Sydney, auction fees are only about 1k. Which isn't ridiculous. The thing with Brissie though, the clearance rates are so low... unless it's a special property, I can't see why anybody would want to go ahead with it.

I think at this point in time, that won't fly in my role! The reason of "I want to work from elsewhere for 3 months of the year to get to warmer weather" won't work.... not just yet. However I think tossing the idea around some more might get me somewhere. Gotta be a creative with thinking. Can't hurt.

What can you suggest? I don't want heat with humidity either...

 

PM you

 

Sew the idea into the heads of the execs, they will all want to relocate up north for Winter. Then it would be discrimination if they don't allow the less-senior staff the same privileges