26/10/1999 - 22:00

WA has fewest auction sales

26/10/1999 - 22:00

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THE percentage of WA properties sold at auction is the lowest in the country, research by the Commer-cial Property Monitor shows.

WA has fewest auction sales
THE percentage of WA properties sold at auction is the lowest in the country, research by the Commer-cial Property Monitor shows.

Australia-wide auction clearance rates were 55 per cent in September, down from 65 per cent in August.

By comparison, WA auction clearance rates were only 25 per cent, down from 30 per cent in August, the lowest mainland figure in the country.

All states except Victoria dropped from the previous month. Victoria had the highest clearance rate of 67 per cent for September.

CPM managing director John Wakefield said the company had only just created the new data series for the property industry.

“This is the first time that the industry has had access to such comprehensively derived auction clearance results for commercial and industrial property,” he said.

The research is based on an analysis of more than 500 auctions nationally.

Mr Wakefield said the number of properties incorporated in the study was high enough to say it was representative of the auction market as a whole.

He said the auction clearance rate measured the relationship between supply and demand.

“It also measures the viability of auctions over other methods of sale,” Mr Wakefield said.

He said the figures were useful in isolation to pinpoint the market at a certain time and, when

combined with other figures, would give a better indication of the market.

“In the case of WA, it indicates a shallow demand for property, and that the best method of selling here is not at auction but by private treaty.”

Colliers Jardine research manager, David Cresp differs with Mr Wakefield on the conclusions drawn from the figures.

Mr Cresp said while the figures perhaps showed auctions might not always be a desirable way to sell a property, it did not indicate a lack of demand in the commercial and industrial market.

Instead, he believes there is strong depth of demand and a lack of supply of good quality commercial and industrial property in WA.

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