CITY FOLKS are selling up in favour of a regional or Queensland lifestyle change while eager buyers compete for low stock in Australia’s major capital cities.
While it seems that state migration slowed during the back half of 2020, there are still plenty of Australians who figured there was no better time than the present to offload their city home in favour of a sea or treechange.
According to the most recent ABS data in interstate migration (from June to September 2020), there was a net loss of 11,200 people from Australia’s greater capital cities to the regions. This was a larger net loss than in the previous quarter and the September 2019 quarter. The net loss was the result of 41,800 arrivals from and 53,000 departures to non-capital city areas.
Not only this, the statisticians found that Queensland gained the most people from net interstate migration over the September 2020 quarter, while New South Wales lost the most. Mirroring this, the ABS also found that Brisbane gained the most people through net internal migration while Sydney lost the most in the September quarter of 2020.
Making the move to lower density cities due to the “new normal” in workplace, lifestyle and family situations has certainly been the theme of auction sales over 2020 and something that has appeared to continue through to 2021.
Last weekend, the sellers of 132 Union St, Erskineville, which sold under the hammer for $1.615 million through Ray White Surry Hills’ Shaun Stoker, have already moved to NSW’s Central Coast. While Ray White Upper North Shore director David Walker sold 2 Yanilla Ave, Wahroonga for $2.330 million for sellers Elliot and Ann Humphreys who had recently relocated to Kingscliff.
The Sydney vendors weren’t the only ones to have a successful weekend with plenty of city buyers still eager to compete for continued low levels of stock on the market. Nationally, the Ray White Group lived up to the Super Saturday auction hype, booking an 80 per cent auction day clearance rate and 6.7 average registered bidders. Average active bidders was also at a high of 3.5, while across the country 180 auctions were conducted by the group.
Meanwhile, capital cities still recorded their own growth after housing values continued to rise throughout January with CoreLogic’s national home value index up 0.9 per cent over the month. Housing values have now overtaken pre-COVID levels by one per cent - a new record high.
In Sydney, Ray White NSW Chief Auctioneer Alex Pattaro said it was a great start to the auction year for New South Wales.
“Auction volume last weekend was way up compared to previous years and the general feel of the market is nothing but positive across all segments,” Mr Pattaro said.
The Sydney market exceeded last year’s figures as 10.1 average registered bidders attending auctions around the city and 4.3 actively participated. The auction day clearance rate also sat at a high of 90 per cent.
This weekend, there will be a further 43 auctions conducted in Sydney with the standout being 208 Banksia St, Pagewood (pictured above). More than 100 prospective buyers have inspected the three bedroom house which is being marketed by Ferry Suwito of Ray White Kingsford and has a price guide of $1,800,000.
Mr Suwito said most interested buyers have been owner-occupier families wanting to upsize from an apartment.
“The price is right which is why I think it’s attracting a lot of buyers, there is also not a lot of stock on the market at the moment so that’s why we are seeing such huge OFI numbers,” Mr Suwito said.
“The land size has been a big factor for many buyers, there aren’t many houses around here around the 525sqm mark. They are seeing a lot of potential in the property and most are planning to do some renovations and extend the house.”
The other standout of the day will be an auction called by Mr Pattaro and listed through Ray White Belmore director Mourad Garabedian and agent Tony Skaf. The beautifully presented two bedroom apartment at 6/541 Burwood Rd, Belmore has already attracted more than 40 inspections with more to come during the week. The Belmore unit is expected to sell at upwards of $650,000.
Mr Garabedian said the apartment is an uncommon offering for that area of Canterbury and Bankstown.
“Not only is it newer than what we usually see in the area but where it stands out is that the floorplan has been restructured and the property has been upgraded with stone benchtops, ducted air conditioning and offers two car spaces, a storage cage, large verandah and storage room,” Mr Garabedian said.
“This is not something that comes up often so a mix of first home buyers and downsizers have both jumped at the chance to secure the apartment. With an apartment in Belmore, we would usually get about 20 buyers throughout the whole campaign so we’re expecting a good turnout on Saturday.”
In the afternoon, Ray White Killarney Heights’ Brian Fairweather will take 7 Yass Close, Frenchs Forest and 2 Rathowen Pde to auction in what is set to be two competitive auctions.
Ray White Victoria Chief Auctioneer Matthew Condon said it has been a strong start to the year for Ray White Victoria when looking at both auction volume and auction results.
“A number of offices pushed hard at the end of last year to ensure they had auctions and auction events scheduled in January 2021,” Mr Condon said.
“This year more offices in Victoria took part in the initiative which was reflected in the results.
“It was also great to see that the low stock levels and high buyer demand created exceptional results for agents and sellers that chose to auction in January.”
First home buyers in the market for an inner city unit are in luck this weekend as the two bedroom apartment at 89/88 Wells St, Southbank (pictured above) goes under the hammer through Ray White Southbank sales manager Michael Pastrikos.
Mr Pastrikos has overseen huge numbers through open homes with a total of just over 170 groups inspecting the property. With the $570,000 to $625,000 price guide, the Southbank apartment has been popular with first home buyers planning to take advantage of the first homeowner’s grant.
Meanwhile, the vendors of 2/4 Hilton St, Mount Waverley, like many Australians, are selling up for a seachange. The couple is eager to sell and head to the Mornington Peninsula for a lifestyle change away from the busy Melbourne city. The Mount Waverley property has a price guide of $800,000 to $880,000.
Ray White Mount Waverley managing director Courtney Matthews has seen a mixture of downsizers, young couples and young families at open homes resulting in 120 inspections over the campaign.
“There are a lot of young families hoping to get into the Mount Waverley school zone while the single level layout has attracted downsizers.,” Mr Matthews said.
“The north facing deck, individual driveway and the fact that the current owners have kept the house beautifully, has really stood out to many buyers.”
Across the country, many agents are faced with a lack of stock which Mr Matthews said has contributed to huge enquiry numbers.
“We are still seeing a complete lack of stock and open for inspection numbers have tripled from their usual pre-COVID numbers,” he said.
“At the moment, there is extremely high buyer demand, average house prices are spiking and activity in the market has skyrocketed.
“Young families and younger buyers are particularly active and coming into the market more than what we would normally see.”
Continuing on from a year of auction success, Ray White Cheltenham’s Kevin Chokshi has started off 2021 with some spectacular auction results. This weekend should be no different with two sought after properties going to auction through the Cheltenham agent. Mr Chokshi will kick off the day with 43 Latrobe St which has a price guide of $820,000 to $900,000 followed by 210 Charman Rd which is priced at $1,050,000 to $1,150,000.
Another highlight will be the early morning auction of 1/59 Jesmond Rd, Croydon which has a price guide of $580,000 to $630,000 and will be going to auction through Ray White Ferntree Gully agent Matthew George.
Later in the day, Ray White Mill Park agent Daniel Nardella will auction off his listing at 70 Stockdale Way (pictured above). The price guide of $530,000 to $580,000 has attracted a host of Melbourne’s first home buyers and more than a few downsizers.
Meanwhile, Ray White Carnegie agent Josh Hommelhoff is expecting one of the biggest auctions of the weekend for Melbourne at 12 Wallace Ave, Murrumbeena. The four bedroom home has received over 200 inspections and has a price guide of $1,700,000 to $1,800,000.
In Adelaide, many agents who chose to maintain momentum throughout their auction campaigns have reaped the rewards. Ray White SA Chief Auctioneer John Morris said many properties are selling 10 to 15 per cent above the reserve when taken all the way to auction day.
“I am also finding that opening bids have become more aggressive and where this would usually knock out a lot of the competition, it hasn’t seemed to over the past few weeks,” Mr Morris said.
“All of the auctions I have conducted have sailed beyond reserve after strong opening bids.”
Ray White SA held a 44.8 per cent auction market share throughout the last quarter of 2020 and according to Mr Morris that trend seems as though it will continue.
“Last week alone, we held just shy of 40 per cent of all of South Australia’s auctions and this coming week we are holding 46.25 per cent,” he said.
Agent Nick Beneke will be conducting his first auction under the Ray White Glenelg flag this weekend when 5 Hollard Ave, Grange goes under the hammer. Mr Beneke, who originally came from the Ray White Grange office, said competition will be fierce as families compete to get their foot in the door of the sought after, coastal suburb.
“It’s a great spot to raise a family and while there is interest coming in from mature families, it’s mainly been popular with younger buyers looking for something they can knock down and build their dream home on,” Mr Beneke said.
Ray White Port Adelaide principal Nick Psarros has a development opportunity at 16 Folland Ave, Northfield that has attracted more than 50 groups to open for inspections.
“It’s a blank canvas - there is opportunity to renovate or knock it down and build two homes on the block,” Mr Psarros said.
“Everyone we’ve spoken to is interested so it’s shaping up to be one to watch this weekend.”
Another to watch is Ray White Woodville principal Peter Kiritsis’ Bluestone villa auction at 44 Robert St, Croydon (pictured above), which will go under the hammer after 30 years with the same family.
In the Sunshine State’s capital, Brisbane, the weather may not be sunny but that won’t be stopping buyers. Especially for Ray White Lutwyche’s David Lazzarini who has a 607sqm developer’s dream block at 52 Seventh Ave going to auction in the morning.
Mr Lazzarini said there has been plenty of activity during the campaign despite the lack of a house on the block.
“Vacant land so close to the city is rare and the avenues of Kedron are a desirable place to live so I’m expecting some competitive bidding from both developers and owner-occupiers wanting to build their dream home,” Mr Lazzarini said.
“It will be a good auction to reflect buyer demand at the moment.”
On the other side of the river, Ray White Springwood agent Tracey Steuart will be auctioning a 1298sqm corner block for the first time in 28 years at 22 Allamanda Dr, Daisy Hill. The Springwood agent is expecting a great turnout after strong numbers at open homes.
On the Gold Coast, interstate buyer interest has been huge. A trend that Ray White Runaway Bay Group agent Leo Ryan has seen during the campaign for 11 Oxley Drive, Paradise Point (pictured above). Mr Ryan has overseen more than 60 inspections of the waterside, resort-style home.
“We have had plenty of interest from buyers in Darwin, Sydney, and Melbourne as well as lots coming from all around south east Queensland. They’ve been a mix of families and mature age people all chasing that resort style seachange that has been popular in the last year,” Mr Ryan said.
In Western Australia, Ray White Applecross agent Noel Rogers will be auctioning off 16 Russell St, Fremantle (pictured above). Mr Rogers said the property has drawn extraordinary interest because of its tightly held location between South and Marine Terrace.
“The reason it’s so tightly held in that spot is because the houses are on flat, level ground which allows you to walk from your front door only 100m to the CBD of the port city,” Mr Rogers said.
“There has been a lot of interest from people through the riverside suburbs of Perth and the western suburbs. They see it as an opportunity to secure a fantastic retirement property where you still have plenty of space on a relatively large piece of land but with no stairs.”
Mr Rogers said he is also receiving enquiries from regional Western Australia.
“They are interested for similar reasons and are looking for a Perth base and somewhere to come and retire,” he said. Ray White WA CEO Mark Whiteman will conduct the 12pm auction.
