The auction markets have already started to regain their lustre as Australia recovers from the impacts of the pandemic — but how can sellers take advantage of this revival and increase the chances of getting their property sold under the hammer?
A study by Domain that analysed 20 years’ worth of data identified five factors that influence how likely a property would sell by auction, which include the following:
- Day of the week
- Investment Activity
- Property Attributes
Recent data show that there is an increased share of auctions happening midweek, a trend that started to become prominent in 2020.
In fact, around a quarter of auctions across Australia in the year so far happened midweek — 21% across combined state capitals and 43% in regional markets.
While Saturday auctions still perform best by a long shot, midweek auctions started turning out good outcomes price gap narrows.
“Interestingly, the price difference between midweek and weekend auctions has significantly decreased — the narrowing price differential is another data point that suggests midweek auctions are perhaps becoming more mainstream,” the report said.
“Not only have midweek auctions grown in popularity, but they have also seen the greatest improvement in clearance rates and are starting to rival prices achieved on a weekend.”
The month is also a crucial factor that can foretell whether auctions would do well.
Based on data, February is the best time to sell and January is the worst, while all other months are relatively equal.
Increased investment participation is also a huge indicator of the likelihood of auction success.
Evidence also suggest that houses are most likely to sell at an auction, particularly those with two bedrooms and one bathroom.
In terms of location, properties in the ACT and South Australia are the most likely to get sold while Queensland properties are less likely to sell.
The top-performing areas for auctions, however, are composed of markets in Sydney, Melbourne, and Adelaide:
- Eastern Suburbs, Sydney
- Central & Hills, Adelaide
- City & Inner South, Sydney
- Adelaide West, Adelaide
- Adelaide South, Adelaide
- Outer East, Melbourne
- Inner West, Sydney
- Inner South West, Sydney
- Inner East, Melbourne
Photo by @sora-shimazaki on Pexels
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