The Gold Coast property market continues to prove itself the most buoyant and resilient market in the country, with a clearance rate of 90.6% for the June to July period, significantly outperforming the rest of the nation. Over the period of late June to late July, RWSP took 75 properties to auction, with 68 sold, achieving a clearance rate of 90.6%.
With market conditions changing, auction results reflect not only the various local markets of Australia but the skill levels of the agents in more challenging conditions.
Property data company CoreLogic said in its latest Quarterly Auction Market Review that Australia-wide from April to June, national clearance rates have dropped to 60.8% (around 20% lower than for the June quarter of 2021, and the lowest success rate since the September quarter of 2020).
Similarly, Dr Andrew Wilson of My Housing Market reported a national auction clearance rate of 60.9% at the weekend of August 6, lower than the 62.0% reported last weekend and well below the 81.5% recorded over the same period in 2021.
However, Ray White Surfers Paradise (RWSP) Chairman Andrew Bell said these figures are not reflective of their experience on the Gold Coast, where auctions on all types of properties are still proving more successful than private sales.
“The Gold Coast market is strong and solid, outperforming other states and cities across the board in terms of clearance rates, prices holding and market activity,” Mr Bell said. “It’s important to note also that this is representative of all types of properties, from entry level residential, to commercial, industrial and prestige properties.
“Generally mid-year is a softer market, so we have been pleasantly surprised at the clearance rate and high activity on the Gold Coast, which bodes extremely well for the upcoming Spring season.”
Charles Higgins, RWSP Residential CEO says the behaviour and activity underpinning these results is also positive news.
“Sellers are benefited by experiencing a shorter time on the market when auctioning than listing with a price, at around 30 days.”
Mr Higgins said. “This is due in part to RWSP streamlined auction process which has been fine-tuned over our 35 years in the Gold Coast market.
“We are seeing a strong turnout of serious bidders attending auctions – around three to eight bidders at each auction – as well as a significant show of on-lookers showing continued interest in the market.
“It’s a very positive sign for the Gold Coast market for 2022 and beyond.”
Mr Bell agrees, and says despite interest rate raises dulling interest in other areas of Australia, the Gold Coast has not recorded any significant price adjustments.
“Adjustments will likely occur in the near future due to the nature of property booms,” Mr Bell says, “but we are not predicting any massive drops or long-term crisis such as those experienced with the GFC.
“While there is activity around interest rates that will impact the market somewhat, the contributing factors are very different, and we are not expecting anything dramatic – especially given what we are seeing right now.
“Last year was frantic, and seller’s expectations were very high. Now, we are seeing an alignment of seller’s and buyer’s expectations around price, and that translates into deals being done.”
Mr Bell is one of the country’s most experienced auctioneers, with over 19,750 auctions under his belt. He says RWSP’s experience and processes around auctions are essential in achieving these kinds of clearance rates.
“Our team has over three decade’s experience in auctioning Gold Coast properties; that is the main reason our auctions are so successful and our clearance rates are so high,” he said. “We have skilled negotiators, an excellent marketing process, and we know this market inside out. These elements matter, and they are the reason we can achieve these results – they don’t just happen.”
“We are expecting our upcoming Spring Auction Event to equal or top the success of last year’s event, and that is good news for the Gold Coast.”