Preliminary auction results saw a further decline in commercial property transactions over last week, with just 17 commercial properties going to auction, down from 45 preliminary auctions held last week.
Although only 17 properties went to auction, 14 sold. Out of seven commercial auctions in Victoria, all seven properties cleared. Six of these were industrial, each of them warehouses with an office, and four of them sold within the same complex at Ferntree Gully. Of seven commercial properties at auction in New South Wales, six of the properties cleared. Three of the cleared auctions in New South Wales were in the retail space, and each were located across Sydney’s western suburbs. The other commercial auctions were held in Queensland, Western Australia and Tasmania.
Preliminary auction volumes are woefully below the 78 auctions held in the equivalent week last year, however the clearance rate among commercial properties remain strong. Due to the longer cycles and fewer transactions within commercial real estate, these auction results could suggest that stock is tightening, as vendors expect further capital appreciation over the coming years.
The table below indicates National Auction Clearance Rate figures.
Commercial Research Analyst, CoreLogic
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