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Competitiveness Increasing At Auctions

By Jamil Allouche

Australia has been flexing its property market muscle recently at auction, where increasing clearance rates and a sense of competition has seen more houses sold.

At the moment the majority of the properties auctioned are sold, with a 72 per cent clearance rate, according to the Real Estate Institute of Victoria (REIV).

The remaining percentage of properties are 'passed in' or 'passed in on a vendor bid'. A vendor bid is when an auctioneer bids on the behalf of the seller to reach the reserve price. 

However, in light of the property market's growing strength, vendor bids have been decreasing. This year around 16 per cent of properties so far were passed in on a vendor bid, while last year that number was 26 per cent. That signals a lot more interest and activity from real potential buyers themselves.

"There is clearly an increase in the level of open competition at auctions lately and this can be measured not just through the clearance rate but also in the way the property passed in," said Enzo Raimondo, chief executive officer of the REIV.

If you are considering buying or selling property in Brunswick or Pascoe Vale real estate, think about enlisting the help of an experienced real estate agent to help you make the most of the current market conditions.

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