Page 16 - Tropic Magazine Issue 29

TROPIC • REAL ESTATE

Auction

confidence

PROPERTY SALES
become the weekend auction clearance The current market conditions in Cairns
Nadine Edwards from LJ rate. The clearance rates across both cities are offering an exciting opportunity to
Hooker Edge Hill explains why in February were high 70s to low 80s per potential sellers to have confidence in an
the current property market cent (CoreLogic March 2021). Our office auction strategy. Cairns has a shortage
provides the perfect auction clearance rate currently sits at 66 per cent. of property and an oversupply of buyers.
We saw buyers remain steady in the last
climate. six months of 2020 waiting for a forecast
drop in prices that never came. Prior to
Capital cities across the country have Auctions means more Christmas, we were receiving multiple
always embraced auctions, with offers per house from two or three buyers
Melbourne clearly the auction capital work for an agent. who were willing to commit.
of Australia. Regional towns have been However, it’s probably one By mid-January 2021, the shortage
reticent to accept auctions, preferring to of stock continued. New buyers have
adopt a price strategy to market property. of the most transparent entered the market and, combined with
So why do regional towns do this? sales strategies available to the buyers from the last six months of
The main reason is that both the seller 2020, have created some of the most
and agent do not understand the auction both seller and buyer competitive situations I have ever
process. Another reason is that unless an witnessed. In February and March we
agent is trained in the auction process, experienced open homes where between
it’s not going to be a method they’ll offer 56 and 73 groups attended and eight to 13
to a seller with great confidence. written offers were received. Resultant
In capital cities where auctions have been A seller can assess the market reaction to sale prices not only exceeded previous
the favoured selling option, agents have their property without any price obstacle historical benchmarks but also both
had to skill themselves with the ability and a buyer on auction day can fully seller and agent expectations. We are in a
to run a successful auction campaign. appreciate the level of genuine interest a strong market where in many instances,
The market barometer in these cities, in property has and bid accordingly within demand drastically outweighs supply. It is
particular Sydney and Melbourne, has their means. the perfect auction climate.

14 Stuart Street, Edge Hill

2910 109

page views on property inspections
realestate.com.au

15 $680,000

registered bidders sales price

MORE: cairnsedgehill.ljhooker.com.au

16 • Tropic • Issue 29