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Auction rates hammered

WA’S commercial auction clearance rate, or the rate of auctions that resulted in a successful sale, was only 38 per cent in September, according to the Commercial Property Monitor.

While the figure represented a recovery from the 21 per cent clearance rate in August, it was still well below the national average 50 per cent clearance rate.

Nationally, the volume of commercial properties going to auction reached a low during July but has improved each month since.

“Still, we are seeing a period of protracted low sales activity borne out by the latest monthly update,” CPM managing director John Wakefield said.

Volume has remained at less than half the high in May, while the clearance rate managed only 51 per cent or less in the past three of four months – despite the volume reduction.

New South Wales achieved an improved rate in September of 68 per cent sold compared to 57 per cent for August. WA was the only other state to improve its clearance rate during the month.

Mr Wakefield said the figures were “more or less expected” with the market slowly dragging itself out of the post-GST, post-Olympic stupor.

“A fall in both volume and clearance from the corresponding month last year clearly shows the softer conditions being experienced and how fundamentally the market has changed since the high volume/high clearance conditions of the first quarter 2000,” he said.

“Vendors brave enough to list are finding it difficult to interest purchasers and agents are averaging just one sale for every two auctions although I expect the market to improve by the end of October.”

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