Aussies to gamble on auction clearance rates

ScreenHunter_19 Jun. 24 13.31

By Leith van Onselen

Sportsbet has today announced that it will allow Aussie punters the opportunity to gamble on auction clearance rates:

Property enthusiasts can vote on three categories, what they think clearance rates will be in the Sydney and Melbourne markets, and which capital city will have the best clearance rate.

At $1.75, Sydney is the hot favourite to win, followed by Melbourne at $2.20, Canberra at $7.00, Brisbane at $10.00, Adelaide at $11.00, Perth at $15.00 and Tasmania in last place at $21.00.

Novelty trading and marketing expert at Sportsbet Will Byrne told Real Estate Business the introduction of the auction clearance rates was due to the huge discussion around it.

“Now we’re seeing more coverage about the auction clearance rates,” he said. “The focus is around Melbourne, but Sydney had a record last weekend, making a topical debate amongst everyday life that we thought we might as well get involved in conversation,” he said.

“It’s good to give the public an opportunity to actually have their say, especially if they plan on partaking in an auction on the weekend. It makes it a little more exciting for them to see how it’s going to turn out”…

Auctioneer with Cooley Auctions, Andrew Cooley said his concern with betting on clearance rates was the accuracy.

“The figures that are put out by organisations like RP Data and APM are not 100 per cent accurate. So, to establish an accurate clearance rate is nearly impossible because if a property is withdrawn or not sold, a lot of agents don’t necessarily record that result, so the official clearance rate is never really known,” he explained.

In order for there to be a fair and well-functioning betting market on auctions, transparent and accurate information on auction results and clearance rates is required, neither of which is available currently.

Australia’s current auction reporting system could best be described as nothing more than a guide, with each of the private reporting agencies – the REIs, APM, RP Data, and Residex – often reporting differing results with a material number of auctions missed each week and auction results artificially inflated.

There’s also a big question market over whether provisional auction results – i.e. those reported initially – would be used as the basis of measurement, or final clearance rates, which come out later in the week, capture more results, and are typically lower.

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Comments

  1. I hope this takes off and leads to a Tom Waterhouse-esque style enquiring into auction clearance rates.

    • Agree would be great to see Tom pop up twice every commercial break during the Block etc.

      • darklydrawlMEMBER

        hehehe… They don’t call them ‘odds’ for nothing I guess…. Bloody strange if you ask me 🙂

  2. “Beam me up Scotty. There’s no intelligent life down here.”

    (Fitzroy graffiti, early 1980s)

    • Alex Heyworth

      Almost as good as the best ever Melbourne graffiti, back when Norm Gallagher was in jail. “Free Norm” – to which the wags added “with every $10 purchase of petrol”.

  3. McPaddyMEMBER

    I remember I thought that the RP Data daily resi property index was ringing the bell on our RE madness. Then this comes along…

    • +1

      Imagine all the jobs this will create just monitoring the auction results, betting suspensions, inquiries into alleged rigging of results, regulation of the auction betting industry, additional channel on pay tv etc. The possibilities are endless.

  4. Now if only I could get a bet on the likelihood of auction clearance rates being fiddled by the RE industry…

  5. boyracerMEMBER

    Guys you are looking at this all wrong.

    This may actually lead to us getting accurate, reliable & timely auction clearance rates instead of the make believe fairy floss ones we currently get.

    I for one am for this new endeavour.

  6. Uh….now I’m worried. Have I suddenly woken up in a parallen universe complete with MB but with a host of weirdos hogging the political and media spaces??? Seriously, the headlines today have been weirder by the minute.

    If I’m still on the same old place, I think I’d really, really like to leave…somewhere back to the bloody Middle Ages or even to Roman times. Could hardly be worse than the slow death that is the present

    • Ronfire,

      What is happening in this country of late puts me very much in mind of the Roman period………..the last days of it.

      • You could probably extrapolate that to quite a few other countries around the world, I suppose…

  7. innocent bystanderMEMBER

    next you will be wanting transparent and accurate information on the form guide

  8. In order for there to be a fair and well-functioning betting market on auctions, transparent and accurate information on auction results and clearance rates is required, neither of which is available currently.

    Didn’t you get the memo? RBA has given their blessings by quoting “rising” auction clearance rates in their statement of monetary policy. So it is deemed to be transparent and accurate /sarc

  9. Sportsbet are owned by Paddy Power. They’ve built their reputation in Europe by getting media to write about their latest novelty markets and generating millions worth of free publicity.

    This kind of thing: http://blog.paddypower.com/2010/09/17/pope-around-town-london-town/

    I’m sure if you try to bet more than 25 dollars you’ll be told where to go. They won’t take any risk on this unless it’s worth talking about.

    I’d imagine they’ve had a few real estate agents opening accounts today…

  10. Just when you think the private reporting agencies aren’t biased enough! Who’s to stop them from reporting 20% less of their auctions knowing their $5000 punted is going to come through?!?!