Preliminary commercial auction results in the week ending 28th of July suggest much more subdued auction activity than in the previous week. Just 25 commercial properties were recorded going up for auction across Australia, compared to 37 in the previous week. 13 of these auctions cleared, suggesting a preliminary clearance rate of 52%, compared with 54% the week before.
These results are unusually low compared to the equivalent week in July 2016, when 64 properties went to auction with a clearance rate of 61%. Most of the commercial auction activity was concentrated in Victoria, specifically in or on the fringes of the Melbourne CBD, where 7 of 10 recorded auctions sold.
While commercial auction activity seems to be in decline, the average sale price is on the rise. The total sales value of cleared properties over the week, according to the preliminary results, was $36.4 million.
The highest value of these was a $6 million service station in Sandgate, Queensland. The average service station sale recorded by CoreLogic over the last three years is closer to $3 million. However, the Sandgate site reportedly has exposure to 63,000 passing cars per day, is a relatively new property, and is fully leased with a fixed annual lease of 3.5%. The land area was also higher than the 3 year average for service stations at 2,714m2.
The table below indicates National Auction Clearance Rate figures. Eliza Owen Commercial Research Analyst, CoreLogic
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