Adelaide’s auction market has had a bumper start to the spring season

THE ADELAIDE auction market has had a bumper start to the spring season, with almost double the number of properties auctioned last week over preceding few weeks.

26/914 Karen and Siggy Walter out the front of a property in Kensington Park they sold at auction a few weeks ago.

THE ADELAIDE auction market has had a bumper start to the spring season, with almost double the number of properties auctioned last week compared with the preceding few weeks.

One hundred and thirty one homes went under the hammer in the week ending September 21 — with a clearance rate of 70 per cent — compared with 77 properties in the week before and 75 for the same week last year.

Toop&Toop chief executive Anthony Toop said the spring season had started early, indicating a strengthening market.

“The market has definitely lifted substantially and noticeably compared to the previous few years and it is not just the number of auctions being conducted, but the level of activity at those auctions,” he said.

“Back in the boom we used to have a lot of people at auctions ... and that is starting again.

“Because auctions are successful ... people are starting to move back to auctions again.”

Mr Toop said the increase in auction attendance was translating to an increase in bidders and prices.

“We are getting a trend of 10 to 15 per cent over reserves on the high-demand properties,” he said.

Historically, the AFL Grand Final weekend sees a drop in the number of properties auctioned — 68 properties are due to be auctioned this weekend — but Mr Toop said he sees the market bouncing back stronger than ever next week.

Harcourts Mawson Lakes principal Peter Asimakopoulos said he sold a Brompton home at auction last weekend to a buyer who had flown in that day just to purchase the home.

“(The buyer) flew in on Saturday, purchased at auction and flew out, it was just amazing,” he said.

“It shows that the market in Sydney is too expensive and the buyers are now coming to South Australia.”

Mr Asimakopoulos said he is seeing a move towards more auctions in Adelaide, a market that has a low proportion of auction sales compared with traditional sales.

“Two years ago I wouldn’t do many auctions but now I do them all the time,” he said.

Karen and Siegfried Walter recently sold their Kensington Park property at auction through Kay Morris of Toop&Toop for more than 10 per cent above the reserve price. “ It was nice to think there were so many people interested in your property and accordingly we got a really good price,” Mrs Walter said.

Real Estate Institute of South Australia chief executive Greg Troughton said it was unusual to see such a large spike in the number of auctions early in Spring. “I am surprised because normally there is a lull before the Grand Final ... but I’m not complaining about it and hopefully there will be more people out at those auctions,” he said.