Like in many Asian markets, property auctions are mainstream in Australia; live auctions in Australia are not restricted to distressed properties. On-site auctions are widely used across the whole property spectrum, including luxury properties.
Covid-19 is now forcing real estate professionals to bring these auctions online after the Australian Prime Minister, Scott Morrison, banned on-site auctions.
The article mentions that more than 200 Sydney properties will go under the hammer, in one weekend, via online bidding platforms.
What can we learn from this?
1/ Online auctions are a credible and effective way to buy and sell properties.
2/ Online auctions are a great tool for real estate professionals to continue to transact and do business during the crisis.
2/ Online auctions can address increasing liquidity issues facing many real estate professionals by facilitating the transaction process.
I believe this article provides a window into the future of the real estate industry: an industry that will be dramatically affected by the current crisis, and that may have to accelerate its adoption of digital technology and alternative transaction models.