Ray White South Brisbane in its latest newsletter writes:
"Last night Ray White South Brisbane & CBD Residential again held it's monthly In Room Gala Auctions at the Greek Club with 19 properties going under the hammer. A busy night was had by all with over 200 people attending and 48 registered bidders on the night. 8 properties sold under the hammer & further negotiations are taking place on 4 other properties which should deliver over 60% clearance showing again that the 'hammer' beats a flat market."
But HS Brisbane Property's newsletter this weeks says:
"Love affair" with Auctions at an end! Once touted as the best way to achieve the best price, our 'love affair' with auctions seems well and truly at an end. Just on 80% of sellers in Queensland would want to sell their property through an auction, preferring to go through the "normal" private treaty sales process are even more sceptical, with a staggering 83%* avoiding auctions. The main reasons for buyers' steering clear of this type of purchasing process are:
- Worry about paying too much, due to the excitement of the auction
- Wasting money with property searches etc. if you don't end up winning the auction
- Stress of the bidding process
Property sales statistics reflect the Queenslanders' scepticism with less than 25% of all
homes being sold by auction, while
it's around 50% nationwide. Brisbane
The climax of the renovation reality show, The Block, gave many viewers a wake-up call as 3 of the 4 painstakingly renovated properties didn't even achieve reserve price in the all-deciding auction finale!
Previously we've highlighted the pitfalls of auctions, and it seems that the fundamentals of the auction process are far from ideal for the current Brisbane - and particularly CBD - residential property market ... and many Queensland sellers and buyers appear to see it this way too!"