Auctions growing in popularity

AUCTIONS are becoming a more popular way of selling in Cairns.

Clearance rates through auctions in the city have increased to higher than the state average, according to leading property sites.

Auction clearance rates for houses in Cairns is about 38 per cent, compared to the state average of 36 per cent. But Cairns auctioneer Darcy Smith said the clearance rates were likely to be higher than 38 per cent.

He s ol da t wo- bedroom apartment along Minnie St at Parramatta Park last month which had seven registered bidders. A first homebuyer won the auction.

“I think auctions are becoming a lot more popular and a lot more successful as a way of selling,’’ Mr Smith said.

“Buyers are becoming more familiar with auctions and sellers are starting to see the benefits in the method.”

Mr Smith said auctions could present a quicker way of selling and vendors didn’t need to expose their price to the market.

Queensland property laws don’t allow price guides for auctions – unlike other states.

“I reckon it might be higher than 36 per cent – up to 50/50,’’ he said.

“The last three auctions we have done, two have sold under the hammer and one passed in.

“I think we’ll see more of a trend like Melbourne of Sydney with more auctions.”

Professionals Cairns South agent Stuart Lovell said price often became a barrier when selling a house.

“When you have an auction, the buyers are attracted to come through the property, the price isn’t there to scare them off,’’ Mr Lovell said.

“If you put a price on the property, the buyer might see it as out of their price range.

“The whole idea is to get people through the door – once they are in the house, they fall in love it, they go back and do their homework and get their pre-approval with the bank.”

In two recent auction campaigns Mr Lovell was involved with both sold before auction.

“It’s a big thing in capital cities,’’ he added. “Cairns is getting there slowly.

“I think it’s a great way to sell a property.”

According to RP Data, the national auction clearance rate was boosted to 79 per cent for the week ending April 12, which was largely lifted by the Sydney and Melbourne markets.

The weekly data did not break down regional clearance rates but Brisbane recorded a 50.9 per cent clearance rate in the same week.

Picture: JUSTIN BRIERTY ON A WINNER: DJ Smith Property auctioneer Darcy Smith sold this Minnie St apartment to a first-home buyer and says auctions are a more successful way of selling.