This edition of Auction Insights looks at the transactions which have occurred during second quarter 2017, being April to June together with the overall performance of the 2016/2017 financial year. The second quarter period saw 73 commercial listings with Auction campaigns brought to market across the Ray White Commercial network (up from 46 last quarter or 33 for the same period in 2016). These auctions yielded a robust selling rate, with strong clearance of 86.30% recorded with a total volume of sales of $95.588 million. The total 2016/2017 financial year saw $310.927million change hands in auctions which represents193 sales across a total of 223 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 may start to dampen this demand. The competitive auction environment has resulted in the bulk of sales (67.36%) sold under the hammer (2016/2017 financial year) under auction conditions with a further 16.06% sold prior, this has waned as urgency has subsided this year with less buyers suffering from the fear of missing out. The remaining 16.58% concluding shortly after the auction campaign when owner and buyer price beliefs become more aligned.