Rael Levitt, CEO of Auction Alliance, says auctions were once dependent on liquidations and foreclosures, but the industry has changed dramatically from the 1990s when forced auctions accounted for 85% of sales.

He says the auction industry in SA has been following Australian trends, where they have become a first-choice method. Therefore a buoyant property and capital asset market fuels auction values, Levitt says.

Today only 25% of auctions are of a forced nature, reflecting the increased optimism and business confidence that the lowering of the interest rates has brought.

"The moment the the repo rate dropped we found bidders were paying higher prices at our auctions. It is amazing how quickly buyers respond to the macroeconomic environment."

Levitt says rising prices in the residential, commercial and industrial property markets will fuel demand for auctions.

"Low interest rates also affect other business segments such as the car industry, capital asset sales and agriculture."