4 min readHomely’s Queensland State Manager and REIQ Auctioneer of the Year for 2021, David Holmes, knows the Queensland property market inside-out. Here are his top five bidding tips to help you take on the Queensland property market this spring.
With Victoria’s lockdown extending into the end of September (and beyond), and Greater Sydney’s continuing until at least the end of the month, Queensland looks like a very attractive place for a lot of Australians right now as we head into the warmer months.
While Brisbane ticks off record high dwelling values, experts say there is still plenty of growth to come, making now a great time to enter this market. Our own stats at Homely show a 115.6% increase in total QLD listing views, engagements and enquiries in the last 6 months compared to the previous 6 months.
This weekend marks the first of spring auctions, and Mr Holmes says that judging by the busy month auctioneers had in August, September is going to be big.
Here are his tips for getting ahead of the rest:
1. Go hard, early
His first piece of advice is to hit the month head on, “go hard and early in the first weekend of spring auctions around Brisbane’, says Holmes. He believes bidders who hold back – hoping to beat competitors with a late offer – will be left behind in the current market. “Competition is strong and bidders who are winning right now are those that go hard and early”, he says, “they’re setting the pace for the auction, blowing others of the water with a strong early bid and unsettling those who planned a late run.”
It’s best to be in front and dictate the pace of the auction. Holding back, waiting to come in at the end with a winning bid, is simply too costly with the amount of competition in the market.
Holmes explains that, “it’s now common to have 10 or more bidders at auctions in Brisbane’s inner-ring and the competition is just too strong to come in with a last-minute bid”, adding that bidders adopting this last-minute entry strategy simply get left behind.
2. Time is precious
David Webb, Homely’s Head of Industry, adds, “With the Queensland market being this strong, now is not the time to play games. If you are interested in a property you need to make the agent aware. There are so many buyers out there that properties can be sold in literally a matter of hours.”
Holmes’ advice is to find the agent with the most listings in the suburb: these agents are your best sources for comparative sales and what interest has been like at both auctions and off-market sales. This will help you identify value and your budget, saving you time, money and heartache down the line.
3. Accept that auctions are actually a good thing
This year has been unusually strong and steady for the auction market in Brisbane with clearance rates increasing 15.9% in the last year. “7 out of 10 Brisbane properties taken to auction throughout August were sold under the hammer”, says Holmes.
So what does September have in store? Holmes says auction demand – in South-East Queensland especially – is heating up, with his early Spring bookings 40% higher compared to this time last year.
Webb explains, “Auction clearance rates are a big indicator of how a market is travelling, and the Queensland market is currently flying.” He adds, “While auctions seem scary, they can be good for buyers because of the transparency they offer – in an auction you know what you are up against and what the going price is at all times.”
4. Look outside the big smoke for auction opportunity
Contrary to previous market behaviour, Holmes says that auctions are no longer a tactic reserved for the inner-ring. “Auctions are spreading beyond the 10km CBD radius. You’re just as likely to see auction paddles flying in the mortgage belts of Warner and hobby farms around Munruben, as you are on the verandahs of Queenslanders in New Farm,” he said.
5. Don’t be left on mute: online auctions are here to stay
Holmes says bidders should expect hybrid auctions – where bids are made in-person and virtually through online platforms – to be common throughout spring in Queensland.
“About one in three participants in an auction were now bidding online”, he says, “It wasn’t uncommon for buyers from Sydney and Melbourne to fly up to Queensland on a Friday afternoon, bid on the Saturday and enjoy the weekend on the Coast. But with border closures, the hybrid model of in-person and online auctions are likely to be popular for the remainder of 2021.”
The advice from Webb is, “Familiarise yourself with the auction process. Jump online and have a look at how an action is run. This way you will understand the real estate lingo, and know when the key times of an auction take place.”
Holmes urges home-buyers to embrace the perks of online auctions, saying, “Put on your comfies and settle in for the ride. “COVID-19 was the catalyst for online auctions, but there’s been a definite shift. Online auctions are convenient and they work. Whatever happens from here on when it comes to the pandemic, online auctions are here to stay. So why not take advantage of bidding from the living room? Make yourself nice and comfortable: throw on your favourite tracky-dacks – or boardies – and bid with confidence.”
There you have it – your five ways to bid with confidence in Queensland’s property market. Why not check out Homely’s latest Queensland listings ahead of this weekend’s spring auction kickoff?