A Brisbane vendor is putting the brand new 5/53 Ashmore Street, Everton Park apartment under the hammer on April 10 without reserve.
As reported by Domain.com.au, real estate agent Mandeep Singh of Ray White Eight Mile Plains said they are putting the property in a no-reserve auction, despite it being risky, because they believe it can help them gain much interest. The nine-unit property located near Everton Park's shopping center was developed by McIvor Developments. There are still four units left unsold.
Having a reserve is a safety net for the vendor but it can also bring frustrations among sellers and buyers during an auction.
McIvor Developments director and vendor Scott McIvor told Domain.com.au, "By not having a reserve, I think it creates honesty and certainty in the process. It often holds buyers back, with people being more reserved, wondering whether it is even on the market. And then it can be frustrating for the people who have bid, but the property still doesn't sell."
The unit to be auctioned has two bedrooms, two bathrooms and one-car parking space. If the auction next month goes well, the remaining units might also be put under the hammer using the no-reserve, no-bidding tactic.
Meanwhile, according to Financial Review, Australia's housing market seems to remain resilient based on the auction data for the week of March 19. Clearance rates were at the strong levels despite the record numbers of auctions in Brisbane and Melbourne. Brisbane had a record 179 auctions with a clearance rate of 30 percent.
Domain chief economist Andrew Wilson said that, "Brisbane is a steady market. The city has never had a strong auction culture and usually has a clearance rate of about 50 per cent."
During that auction period, a four-bedroom house at Camp Hill fetched $1.42 million. It was the most expensive sale, getting $20,000 more than reserve.
