INDUSTRY NEWSNationalNEWS

Auctions continue to net higher prices: Ray White

Regardless of whether they occur online or on site, auctions are more likely to result in a higher property sales price, according to new data from Ray White.

Ray White Chief Economist Nerida Conisbee said no matter what condition the market is in, selling by auction gained vendors the best price.

“Our analysis of almost 10,000 auctions over the past 12 month has shown that on average, you get an 11.4 per cent uplift in price as a result of going to auction compared to when selling prior,” Ms Conisbee said.

“This percentage uplift does vary according to how strong the market is, but surprisingly does not vary much,” she said.

“In a very weak market, such as the early days of the pandemic in April 2020, this uplift was 10.4 per cent. In a very strong market, it gets up to around 13 per cent.”

Ray White has been analysing auction data closely for several years and tracks a wide range of metrics including clearance rates, average active bidders, registered bidders, sold price versus highest prior offer, properties withdrawn and the list goes on.

Ms Conisbee found there were two metrics which have been particularly strong in Sydney in 2021.

“The first is the gap between the highest prior offer and auction sale price, and the second is the number of average active bidders,” she said.

“Not surprisingly, both of these have remained at elevated levels in 2021 and are closely linked. The more competition for a property (active bidders), leads to a better price (gap between highest prior offer and sale price).”

Show More

News Room

If you have any news for the Real Estate industry - whether you are a professional or a supplier to the industry, please email us: newsroom@eliteagent.com