August Auction Day

By Nadia Salvetti

1. Now is as good as ever

  • We have continued to see a strong depth of demand from buyers for well marketed properties as our June auctions received over 400 enquiries and 32 registered bidders across the 4 properties. This competition has led to yields as sharp as 5.58% and record $/sqm rates. A 75% clearance rate under the hammer increased to 100% within two weeks post auction.
  • Ray White data shows there has now been a return to three consecutive months of residential price growth – a key driver in the sub $10m commercial market where much of the private commercial investor confidence and wealth is generated – and with interest rates now possibly peaking and population growth accelerating it looks like this growth will continue at least for the short term.
  • Commercial Sales Volumes in QLD have reduced by up to 40%, however this is a supply side issue not demand. There is limited stock available which is underpinning sale prices.
  • What could change this? The large number of fixed price mortgages being reset to variable which is likely to be felt in late 2023 or early 2024 which may force more sellers to divest assets.
  • Recent results show that buyers have as much confidence in the QLD commercial property market now as ever, why wait to see what happens?

2. Crossroads lead to considering your position now

  • One of two things are forecast to happen later in 2023; the media headlines will catch up with the positivity of the current market results which will lead to greater confidence in owners to market their properties; or ‘bear-ish’ forecasts play out and there is an increase in the number of distressed sellers. Both scenarios lead to increased stock to distract buyers from your asset if you decide to sell later.
  • In the latter scenario, what better time for liquidity to re-invest or recycle capital. If the former is accurate – and most of the indications are now that is more likely – there is no better time to sell than when buyers are active, price results are strong and there is very limited stock available. This is the market right now!
  • Forecasters fall into one of two categories, “those who don’t know, and those who don’t know they don’t know”. We can only rely on what we know is happening now and make decisions accordingly.

3. Greater exposure to buyers through collective marketing

  • Ray White Commercial QLD’s August Auction Day will see a diverse collection of buying opportunities fall under the hammer. The event, along with a competitively priced, value-add marketing package, will create greater visibility for the sale of your asset.
  • Not only are there significant marketing savings, thanks to our advertising suppliers, your property will benefit from exposure to tens of thousands of additional buyers through our August Auction Day event promotion at no additional cost to you.

Please reach out if you would like further information or for a confidential discussion regarding your property.

August Auction Flyer_eBrochure

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