Logan City’s Surging Property Demand: A Price-Driven Phenomenon

Logan City is currently experiencing the demand which the rest of South East Queensland was enjoying in 2020-2021. This is clearly price point driven and is attracting an equal number of investors and owner-occupiers.

When you look at the feature auction later in this report, it is interesting to note that the home in question doubled in price in the past three years from $370,000 to $771,000.

The average days on market is at an all-time low and agents are struggling to replenish their stock levels accordingly (auction is a great tool to ensure a three-week attraction period).

Clearance Rates

The clearance rates in Logan City have been consistently strong, with an average rate of 85% either sold under the hammer or sold prior. This figure indicates a healthy demand for properties in the area, signifying a seller’s market.

The high clearance rates suggest that auctions continue to be an effective method for selling properties in the region – while acknowledging that if one clear contender is the superior purchaser – then selling prior to auction is in the sellers’ best interest.

Attendance and Bidding

Attendance at auctions in Logan City has remained strong, with a notable presence of potential buyers. On average, there are twice as many active bidders in this market than in its neighbouring precincts of Brisbane and the Gold Coast.

With six active bidders per auction, the competitive nature of the real estate market in the region is clear. This level of bidding activity is a testament to the attractiveness of the price point of Logan City.

Sales Prior to Auction

The market conditions are clearly in favour of the seller, and buyers are keenly aware of the shortness of stock available for them to purchase. This accounted for a SOLD PRIOR percentage of around 30% of all recorded auctions in Logan City for the March quarter.

Buyers were sick of missing out, and good agents negotiated a maximum offer that was acceptable for their sellers. In most of these cases, it should be pointed out, there was not multiple interest – so, it was probably in the sellers’ best interest to sell prior to auction.

Post Auction Clearance Rate

The 14-day post-auction clearance rate is particularly impressive, standing at 96%. This statistic underlines the resilience of the Logan City property market, as the majority of properties successfully transition from auction to sale shortly after the event. It reflects buyer commitment and the effectiveness of the auction process in this region.

Challenges for Agents

Despite the strong market conditions, real estate agents in Logan City are facing challenges in obtaining listings. The demand for properties has led to a scarcity of available listings. When properties are listed, they tend to sell quickly, resulting in low “days on market” statistics. This competitive environment places pressure on agents to source new listings to meet the high demand.

This is a snippet from our latest quarterly auction report. To read the feature auction download a copy here.