New data shows the gap between auction and private treaty sales has widened sharply as the Sunshine Coast property market loses some momentum.
Sales performance information from Ray White Maroochydore & Buderim showed the clearance rate margin between the two sale methods has almost doubled during the past quarter.
During the past 12 months, properties taken to auction achieved a 90-day clearance rate of 81.1 per cent, compared to 71.9 per cent for private treaty listings: a gap of 9.2 percentage points.
But over the most recent 90-day period, as clearance rates dropped, properties taken to auction achieved a rate of 65.7 per cent, compared to 48.8 per cent for private treaty; a gap of 16.9 points.
Campaign withdrawals tells a similar story.
During the most recent 90-day period, private treaty listings were withdrawn from the market at more than double the rate of auction campaigns: 23.7 per cent compared to 10.6 per cent, meaning a private treaty listing is more than twice as likely to be pulled from the market without selling.
Ray White Maroochydore & Buderim director Dan Sowden said the changes were stark.
“With the widening gap in likely sale outcomes between auction and private treaty, sellers today need to make a clear decision about their sale strategy,” he said.
“Auction campaigns are giving owners a clear advantage and significantly higher probability of sale compared to private treaty.
“I actually think this gap is widening every month. The private treaty clearance rate we’re reporting today is more favourable than what we’re feeling week to week, because private treaty performance is continuing to soften while auction is holding firm.
“A defined timeline creates genuine urgency and competition between buyers, and that competitive tension is exactly what sellers need when it comes time to deliver the best price when conditions are less predictable. The data over the past quarter makes that gap harder to ignore.”
Mr Sowden said the clearance rate gap was likely understated in public perception, given media coverage of the property market is heavily weighted toward auction results.
Private treaty campaigns – typically marketed under strategies such as ‘For Sale’, ‘Offers Over’, ‘Contact Agent’ or ‘Offers Closing By’ – rarely have their outcomes reported publicly, meaning performance in this segment attracts less scrutiny than a quiet auction result.
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“Auction day results get reported because they happen in public, on a set date, with a clear outcome,” Mr Sowden said.
“Private treaty negotiations play out privately over weeks, so a property that sits unsold or is quietly withdrawn just doesn’t make the news the way an auction does.
“Our offices currently manage over 110 active campaigns being run under private treaty-style strategies.”
Based on last week’s auction day clearance rate of 56 per cent, Mr Sowden estimated that, if these campaigns were instead taken to auction, almost 60 of these properties would be likely to transact.
“That’s the real story for sellers. The buyers are there in the market: it’s simply a matter of creating a sales strategy that motivates buyers to make decisions and promotes a property above its competition,” Mr Sowden said.
Auction results
50 Coomaroo Crescent, Minyama
- Auction did not take place
- 4 bed, 3 bath, 4 car
- Ray White Kawana Waters, Brent Higgins
2 Freycinet Row, Buderim
- Passed in, contact agent
- 4 bed, 2 bath, 2 car
- Ray White Buderim, Gregory Ward
3/14 Toral Drive, Buderim
- Passed in, contact agent
- 3 bed, 2 bath, 2 car
- Ray White Buderim, Nicholas Low
2/8 Bluebird Parade, Bokarina
- Auction did not take place
- 3 bed, 2 bath, 2 car
- Ray White Mooloolaba, Kirsten Cowie/Adam Budd
7/2 Mantra Esplanade, Birtinya
- Auction did not take place
- 2 bed, 2 bath, 1 car
- Ray White Kawana Waters, Justin Wijaya/Matthew Johnson
49 Lamington Crescent, Banya
- Passed in, contact agent
- 4 bed, 2 bath, 2 car
- Ray White Mooloolaba, Jack Chamberlain
2304/100 Duporth Avenue, Maroochydore
- Sold prior for $1,850,000
- 3 bed, 2 bath, 2 car
- Ray White Maroochydore, Hayden Kehoe/Ari Whisson
18 Turnipwood Drive, Buderim
- Passed in, contact agent
- 4 bed, 1 bath, 2 car
- Ray White Buderim, Eden Farimbella
16 Forest Road, Palmview
- Passed in, contact agent
- 3 bed, 2 bath, 2 car
- Ray White Mooloolaba, Paul Leydin
4/10 Pangarinda Place, Mooloolaba
- Sold prior for $810,000
- 2 bed, 1 bath, 1 car
- Ray White Mooloolaba, Brent Higgins
1/24 Hinley Avenue, Maroochydore
- Sold under the hammer for $675,500
- 2 bed, 1 bath, 1 car
- Ray White Maroochydore, Hayden Kehoe
4/6 Barooga Crescent, Mooloolaba
- Passed in, contact agent
- 2 bed, 1 bath, 1 car
- Define Property, Ross Cattle/Katie Davies
