AUCTION sellers are capitalising on high buyer demand, incredible price growth and a shortage of stock that has left them with less competition in the market.
Today, the Ray White Group recorded a national clearance rate of 84 per cent of the 124 auctions conducted. Average registered and active bidder numbers came in at 8.6 and 4.3 respectively, proving that buyers have remained undeterred by the lockdowns affecting the country.Ray White Chief Economist Nerida Conisbee said intense competition for property has remained strong this winter.“Prices have accelerated far more quickly through COVID-19 than they otherwise would have, driven by a combination of exceptionally high savings rates partly as a result of huge government stimulus and record low finance,” Ms Conisbee said.“While sellers are holding out, we have not seen a similar hit on buyer demand. With fewer auctions taking place, the average number of active bidders nationally in July was at 3.7 per property.“And the gap between highest price offered before auction and price sold at auction remains more than 12 per cent in August to date.”Summing up, where we are now is that buyers are cashed up and keen to buy. Stock levels have declined giving buyers fewer choices and creating strong competition. Conditions in the short term point to a seller’s market, however Ms Conisbee noted “this is a dynamic market with so many factors at play.”In Sydney, Ms Conisbee said Ray White saw more listings in June than they had ever seen in that month. They were up 24 per cent compared to the previous year and up 90 per cent compared to June 2019.“It was expected that this would calm the supercharged price growth we were seeing,” she said.“The lockdown then hit at the start of July and listings were down 26 per cent in that month compared to June and 23 per cent down compared to last July.“Sellers have become more hesitant over lockdown and this has also impacted the number of auctions proceeding with many moving to private sale or selling prior.” In Sydney, Ray White New South Wales Chief Auctioneer Alex Pattaro (pictured above) said high density unit stock was lagging slightly behind the housing market but he continues to see strong house prices and competition across Ray White auctions.“Auction day prices are exceeding buyer indication levels, helping sellers obtain a price well above their expectations,” Mr Pattaro said.“There is no doubt that we are in a seller’s market and if sellers were hoping to achieve a particular price for their home, based on our data and what we are seeing, now would be the best time to come to the market.”This Saturday, the top sale of the day belonged to Sydney with Chris Wilkins of Ray White Drummoyne, who sold 5 Burnell Street in the suburb for $7.575 million under the virtual auction hammer. Some 15 registered bidders tuned in with the hopes of securing the four bedroom home on one of Sydney’s most sought after inner west streets. In the end, the buyers were a local family who Mr Wilkins said really acknowledged the quality of the opportunity.“I expected it to sell well but didn’t expect to get to where it did but there have been some great sales in the area,” Mr Wilkins said.“There’s been a lot of activity on this strip recently. Properties have been selling in the multi-millions and this was a great opportunity to get a foot into the growing market.“Burnell Street has become the golden mile of Drummoyne.”A local couple who had already sold became the new owners of 6 Canara Ave, Phillip Bay today after a nail biting auction that ended with their $2.38 million winning bid which was $530,000 above reserve. Selling agents Phillip Elmowy and Amy Vella of Ray White Maroubra | South Coogee marketed the listing along with Eden Elmowy who said the eight active bidders of the 17 who registered created a fiercely competitive auction.“We are absolutely blown away by the result which comes back to the shortage of stock, influx of buyers and low interest rates making money very cheap,” Eden Elmowy said.“There aren’t a lot of homes that come up for sale in Phillip Bay so that drove a lot of the interest.”No. 10 Lincoln St, Stanmore also broke the multi-millions at auction today, selling for $2.19 million through Ray White Petersham agent Luke Northcott. Mr Pattaro conducted the auction, taking a $1.8 million starting bid to open proceedings and eventually selling the home to a first home buyer couple.Mr Northcott said the result was down to a combination of the quality of the house and the strong Sydney market.“It’s a good house and while it’s not on a huge block of land, the previous owners did a renovation to give it large proportions and lots of natural light,” Mr Northcott said.“You can also move straight in and not do anything with it but it also has scope to add your own touches.”
In Melbourne, it was a case of deja-vu with restrictions in Melbourne once again extended and a stop to all physical real estate activity. With another seven day period of no onsite auctions or inspections within Melbourne, it was pleasing to see agents back at work in regional Victoria to once again assist customers with their property needs.Ray White Victoria and Tasmania CEO Stephen Dullens explained how challenging these restrictions are for communities in Melbourne.“With physical inspections in Melbourne now only allowed for nine of the past 30 days, we are once again hearing from customers with an urgent need to buy, sell or lease property. With customers unable to inspect property, this is making the task extremely challenging,” Mr Dullens said.“As it worked so well last year, we would again welcome the opportunity to engage with the government on how we can best assist Victorians with an urgent property need, most importantly in a safe manner.”In the auction space, Ray White Victoria Chief Auctioneer Matthew Condon (pictured above) said given the extension of the lock down and the limited time buyers had to inspect properties, this week had seen significantly less auction volume than usual.“However, the low supply of property available, combined with the extremely high level of buyer demand this weekend created conditions that are conducive towards sellers achieving exceptional results,” Mr Condon said“Based on preliminary data from the Ray White Group, Victoria recorded one of its highest averages of registered and active bidders this weekend. This was evident at all online auctions, with bidders bidding very aggressively and doing everything possible to secure their desired property.“It's great to see that sellers that chose to continue with their auctions online today, despite the extension of the lockdown, were rewarded with great prices.”After a marathon auction lasting an hour and 20 minutes, Mr Condon was able to bring the hammer down on 30 Koonung Rd, Blackburn North with a $1.2955 million bid from a local investor. The auction also topped the national leaderboard for most registered bidders, coming in at 33. Marketed by Ray White Manningham agent Jarrod Tyler, the auction opened at $900,000 with 10 bidders actively bidding.Mr Tyler said the Blackburn North brick home represented a good quality, solid investment for buyers.“We had three main groups interested in the property - investors wanting to land bank it, a few people wanting to knock it over and build a bigger home and first home buyers looking to enter the marketplace,” Mr Tyler said.“One thing we’re seeing a lot of at the moment in Blackburn North are people knocking over existing homes and rebuilding or doing substantial renovations. Blackburn North is better value for buyers than some of the surrounding suburbs but I think with so much interest coming in that won’t be for long.”Over in south-east Melbourne, Ray White Berwick director Eric Zhang swears by the auction method and today’s under the hammer sale of 53 Golf Links Rd, Berwick was just another example of how the method allows vendors to achieve premium prices.Mr Zhang sold the five bedroom property to a local family for $1.313 million through an online auction that attracted nine registered bidders. The Berwick home sold $163,000 above reserve, allowing the sellers to move forward on their plan to downsize.“The price surprised us, it went way above expectations but competition is very strong at the moment and bidding was competitive from each of the six active bidders,” Mr Zhang said.“Many buyers are considering Berwick as a good value suburb and while stock is low, demand is still very high.“Because of this, at the moment we are finding that the auction method is the best vehicle to create competition and achieve the best result for the vendor.”
In Brisbane, Ray White Queensland Chief Auctioneer Gavin Croft said auctions across the state continued to record outstanding prices this week.“The Gold Coast in particular has seen some great sales this week but auctions in Brisbane have also been well attended,” Mr Croft.“We are not seeing the same spike in volume of properties coming to market that we would usually see as we move into spring but there is no doubt that buyer numbers have remained strong.“Competition from buyers is fierce and with low stock it means sellers who come to market now are achieving above expectation prices.”
Proving that none of the steam had gone out of the growing Brisbane market after a brief lockdown last week, Ray White Metro North principal David Treloar sold 53 Vardon St, Wilston for $1.195 million to a local developer (pictured above). The entry level Wilston home was called on the market at $1.1 million as 18 socially distanced registered bidders looked on, including the underbidder who had planned to transform it into their family home.
Mr Treloar said the sale price was a pleasant surprise after the campaign was pushed forward a week due to lockdown and not being able to take buyers through after the tenant was forced to isolate for two weeks.“It was a great result, the campaign was strong with 65 groups going through before lockdown but I didn’t expect it to sell for this price,” Mr Treloar said.“The lockdown and restrictions haven’t pushed the market backwards at all. There are no indicators to suggest that the market has slowed down.”In Hendra, Ray White Ascot’s Nick Kouparitsas recorded one of the top Ray White Brisbane sales at 58 Pring Street. The five bedroom luxe Hendra property sold for $2,590,000 after six of the 11 registered bidders stepped up to bid. The property changed hands between two local families with the sellers buying elsewhere in the area. Mr Kouparitsas said he received good interest throughout the auction campaign.“The layout of the home is designed especially for families so I knew we’d get a lot of interest and the owners were pretty ecstatic with the price,” Mr Kouparitsas said.“There is plenty happening in the Hendra market, particularly in the top end of $2.5 million upwards. There is real demand for homes in that price category.”
In Adelaide, Ray White Chief Auctioneer John Morris said Australia’s greatest athletes might be back from Tokyo and in extended quarantine, but Ray White’s greatest agents were out and about today, whether it be online or onsite all the way throughout Australia.“In Adelaide, we are very lucky to be able to hold onsite auctions and we're holding 23.4 per cent of them this weekend,” Mr Morris said.“Last week we had a clearance rate of 93.5 per cent, with over 10 registered bidders per auction and every single auction last week had bidding. That has slightly dropped off this week with 12.5 per cent of auctions not having any bidding.”Ray White Norwood agent Brandon Pilgrim topped the Ray White Adelaide sale board today with a $2.46 million auction at 22 Royal Ave, Burnside. The five bedroom home designed by architect David Chapman was sold by retired teachers and orchardists David and Anne Lymn. After 15 years in their custom designed Burnside home, the couple are now welcoming the new buyers - a young local couple looking to upsize (pictured above).Mr Pilgrim said the sellers were thrilled with the $260,000 above reserve price.“As soon as it was called on the market, the bidding went crazy,” Mr Pilgrim said.“The sale was a mix of a hot market, a sunny Adelaide day and the opportunity to buy a beautiful home in one the city’s best suburbs.”In Rose Park, Ray White Tea Tree Gully principal Sam Doman oversaw a bittersweet auction for his late grandmother’s 47 Watson Avenue home which was attended by 12 registered bidders. Mr Doman’s grandmother Shirley Miller bought the land in 1961 with the proceeds of a raffle win for £4,000 but today the home sold for $1.3 million.Rose Park is one of Burnside’s most intact historical 19th century suburbs full of 1800’s villas and cottages. Mr Doman said with substantial avenues, trees and gardens and rear lane access, properties like 47 Watson Avenue are not out of character to the historic Rose Park.“Rose Park is now an affluent, blue chip suburb only 1km from the CBD. The shopping and local amenities have really taken off and it’s surrounded by parklands,” Mr Doman said.“The buyer was a local who loved nan’s gardens. He just sold and is now looking to downsize.“I think Nan shone over us today and every single open we did, the sun was shining, there was no rain and we ran the perfect campaign.”
