This edition of Auction Insights looks at the transactions which have occurred during third quarter of 2017, being July to September together with the overall performance 2017 calendar year to date.
This third quarter period saw 60 commercial listings with Auction campaigns brought to market across the Ray White Commercial network (down from 76 last quarter yet up from 41 for the same period in 2016). These auctions yielded a robust selling rate, with strong clearance of 98.33% recorded with a total volume of sales of $93.332 million. The total calendar year to third quarter saw $251.513million change hands in auctions which represents 163 sales across a total of 173 auctions.
Overall demand for commercial assets continues to be strong in 2017 after a highly competitive 2016 period. Trends continue to be similar however owners and buyer expectations have adjusted with lower yields commonplace across most investment quality stock, while changes to some financing regulations have slightly dampened some of this demand for some asset classes. The competitive auction environment has resulted in the bulk of sales (73.63%) sold under the hammer (2017 calendar year to date) in Auction conditions with a further 15.34% sold prior. Earlier in the year the sales prior to auction had slowed with some urgency coming out of the market, however this period we saw some pick up in activity with a return of “FOMO” back in some
markets. The remaining 11.04% concluding shortly after the auction campaign when owner and buyer price beliefs become more aligned, most notably for development site assets which have seen demand levels subdued.