Why are QLD/SEQ/Brisbane Auction Clearance Rates so low compared to the rest of the nation?

Weather worse in Brisbane then Melbourne... say what?

 

Suprise, Surprise. QLD has only 40% clearance rate and beaten by VIC, NSW, SA, ACT and Tasmania. Only WA and NT worse clearance rates this week:

Auction Results & Saturday Auction Clearance Rates

Victoria
71%
Clearance rate*
979 scheduled auctions

VIC auction results
New South Wales
80%
Clearance rate*
1197 scheduled auctions

NSW auction results
Queensland
40%
Clearance rate*
351 scheduled auctions

QLD auction results
South Australia
67%
Clearance rate*
152 scheduled auctions

SA auction results
Western Australia
30%
Clearance rate*
60 scheduled auctions

WA auction results
Northern Territory
0%
Clearance rate*
7 scheduled auctions

NT auction results
Australian Capital Territory
80%
Clearance rate*
111 scheduled auctions

ACT auction results
Tasmania
100%
Clearance rate*
9 scheduled auctions

TAS auction results

 

Queensland nudged up to 50% this saturday on preliminary results ending Sunday 13 November 2016.

Auction Results & Saturday Auction Clearance Rates

Victoria
75%
Clearance rate*
1420 scheduled auctions


New South Wales
81%
Clearance rate*
1281 scheduled auctions


Queensland
50%
Clearance rate*
317 scheduled auctions


South Australia
70%
Clearance rate*
141 scheduled auctions


Western Australia
45%
Clearance rate*
63 scheduled auctions


Northern Territory
50%
Clearance rate*
9 scheduled auctions


Australian Capital Territory
80%
Clearance rate*
96 scheduled auctions


Tasmania
50%
Clearance rate*
9 scheduled auctions

 

it comes down to simply facts - either they have money or they don't. A family looking for 2-3 months to get in a school zone don't just say ok we have 1 million in the bank but I just don't wish to spend another 50K more coz I don't feel like it (it's not in the culture or I am not used to it ). I going to spend all my weekends and time after work looking at saving some dollars. My kids can go to a lower end school in the meantime and i'll kill any extra curriculum activites in the meantime.

I think the auction culture shows confidence of the mkt and the ability for prices to grow. If it is at 40-50%. Simply macroeconomics - demand must exceed supply for prices to rise and if auction rates represent 40-50% (basic maths to work out why). Sure fundamentals are there Brisbane. Also pretty sure those areas in sunnybanks sell pretty quick or maybe (I don't know the auction rates is 99% there). but still when I went there to view some auctions in Brisbane all I saw were people standing around stressed out when a price goes up like 2-3K and that is in the middle of the auction not the end where else in Sydney and Melbourne that is next to normal. To be honest yesterday, I was surprised how the block results apartments selling for over 2 mil. (bids going like that).

 

..and that is what I mean by culture and attitudes.
It's not like 2-3k is much for Brisbaneites...but there attitudes/culture are to save it rather than spend.. so...
This gives the false impression that there is no Money in Brisbane... they just don't spend it like the southerns.
Country towners after all ...takes time..

 

I have another thought on this.....

The average person in Brisbane that doesn't read these forums are not structuring their loans wisely. They are borrowing 110% of the purchase price, using their PPOR as security, and being told by the lenders (not wise ones on here - I mean the average bank or credit union loan specalists) that they can put $1000 deposit and the rest will come (14 days for financials).

That is essentially what I was told and was working with before I starting reading and learning here. I was told by the loan approval guy at my bank - do not buy at auction. You can't - you can't borrow 110% and have anything prior to auction to use as a deposit (since you are supposed to put something like 5% down on auction day - I think)??

Of course I have been reading here extensively now and am no longer following the original recommendation from my bank guy. But - I would have totally gone down that path (as recommended to me) if I hadn't found this forum.

 

My thoughts:
1. I believe how much you put down is open to negotiation - get this sorted out with the vendor pre-auction (i'd ideally put down as little as possible)
2. I'd go the 110% borrowing to buy an IP and use funds from the PPOR to do it (loan split) - much better than other ways to fund it as it gives just about the best tax deductibility (if only the partner would let me... @virgo... you can see what i'm saying...)
3. Understand your borrowing capacity before buying at auction.

 

Yup except there were a couple of Melbournians and Sydneyside ppl unwilling to take shots in the auction.

I think It is really illogical to say because the auction is low 40-50% is because they don't want to part 2-3K. I use the school zone approach (if they want in the zone, and there is nothing in the market - the kids can't go to that school if they wanna skim on 2-3K, Either that or there is just too many on the market).

I have been to auctions worldwide and own property outside of Australia, there shouldn't be anything particularly unique or special abt Brisbane people. They speak same language, eat the same food. the way you're talking is like giving the impression that it's in Afghanistan and it's run by the Taliban or something. Simple macroeconomics - when there is demand for property x, with limited supply price rises (whether their attitudes is pinching pennies). Either there is just too much supply of the same product or there really is average demand. The pinching pennies theory just seems weird.

 

Then can we agree that it's entirely logical that a boom in Brisbane is inevitable...

 

yeah of course it is logical - just some of reasoning just isn't (sorry no offence)