This edition of Auction Insights looks at the transactions which have occurred during the first quarter 2017, being January to March. The first quarter period saw 46 commercial listings with Auction campaigns brought to market across the Ray White Commercial network with a strong overall 89.13% clearance rate. This is a robust result given the typically slow post Christmas period (January to mid February) of the quarter. The total volume of sales was recorded $62.594 million bringing the Year to March 2017 total to $244.366million across 183 auctions (163 sold) demonstrating an annual clearance rate of 89.07%.
Overall demand for commercial assets was strong in 2016, the start of 2017 is showing similar trends as owners and buyer expectations have adjusted with lower yields commonplace across most quality investment stock. The competitive auction environment has resulted in the bulk of sales (68.29%) sold under the hammer with Auction conditions with a further 14.63% sold prior as more investors suffer from fear of missing out, the remaining 17.07% concluding shortly after the Auction campaign when owner and buyer price beliefs become more aligned.