SELLING season continues to surge with the country’s largest property auction house, Ray White, recording a national auction day clearance rate of 81 per cent with 209 auctions booked today.
Average registered bidders soared to an all-time high of 6.9 bidders per lot for the leading group. At the same time last year there were 2.5 average registered bidders per lot. Active bidding is now 3.8 per auction, up 1.0 on a year ago.
Australasia’s leading real estate group, which calls one in three auctions nationally, said there were more cashed up buyers than ever before.
The latest data from the national statistician on Friday showed home buyers’ borrowings jumped 12.6 per cent on the previous month. New loan commitments for housing reached $21.29 billion in August, according to Australian Bureau of Statistics. Data shows owner occupiers had the record increase. They borrowed 13.6 per cent more ($16.28 billion total) - the largest month-to-month rise in the history of the statistic. So the appetite for housing credit has never been stronger. The previous record was the 10.7 per cent gain set in July.
Ray White NSW Chief Auctioneer Alex Pattaro said competition among buyers was “exciting and very competitive across Sydney auctions” today.
“We’re seeing larger than average crowd attendance and strong registrations for our auctions. The positivity and confidence in the market is at a high with sellers obtaining premium prices across the board,” Mr Pattaro said.
“Buyers are doing everything they possibly can to try and snap up properties prior to auction to eliminate competition, although agents who are running campaigns right through to auction day, are seeing better auction day offers then pre-auction offers.
“We expect to see this positivity to continue throughout the remainder of 2020.”
First home buyers flocked to 7/92 Shepherd St in the well-known Chippendale Mews building. Ray White Surry Hills | Glebe | Alexandria | Erskineville Director Ercan Ersan sold the two bedroom unit in the converted box factory for $991,000.
“It’s got everything you want in a true warehouse conversion - high ceilings, huge windows, concrete floors and exposed timber beams,” Mr Ersan said.
“Two young couples fought it out at the auction. We have had about 100 groups through the apartment which is one of only 14 in the old box factory.” The building used to be a box factory and prior to that it was owned by the famed Australian artist Cedric Emanuel.
“My seller is upgrading to a house in Chippendale.”
Seller Alison Greer (pictured above with Ercan Ersan) said she believed now was a good time to be selling and buying.
“I have just bought a house nearby at a good price so I think if you are buying and selling in this market then now is a good time to go. I am no expert but I feel like next year might offer some challenges so I believed now was a good time to go,” Ms Greer said.
“Ercan has been great to work with. He’s been so honest with me, and the buyers, and he’s handled the campaign in a very calm manner. I feel surprisingly relaxed about the whole thing.”
Ray White Bankstown Agent Craig Stephenson signed up 17 registered bidders to 100 The Avenue, Bankstown today which sold for $890,000, some $100,000 over its reserve. The Bankstown agent said the deceased estate was bought by two local brothers who have plans to develop the block in a duplex. Under instructions from the NSW Public Trustee & Guardian the reserve was set at $790,000 and sailed through that due to the intense competition.
In Earlwood, Dean Vasil of Ray White Belmore knocked out a belter of an auction with the sale of 59 Earlwood Ave for $2.570 million, the highest price ever paid for a single story home in the suburb. This was also the group’s top auction sale of the day.
The house was called on the market at $2.350 million by Ray White NSW Chief Auctioneer Alex Pattaro.
“My sellers are over the moon. There were six registered bidders and the auction opened at $2 million. The house last traded for $1.986 million in 2015, five years almost to the day, and they only renovated the bathroom in that time,” Mr Vasil said.
“My sellers are looking for other investment opportunities now and the buyers (pictured above with Dean Vasil) are moving from Avalon to be closer to their grandchildren in Marrickville.” There were 65 groups through the house during the campaign.
Meanwhile in the nation’s capital, Treston Bamber of Ray White Canberra, sold this immaculate four bedroom entertainer at 30 Phyllis Frost St, Forde for $1.195 million under auctioneer Alec Brown’s hammer.
Mr Bamber said the owners work in the defence service and so designed the property for a resort-like feel as they are often away a lot for work.
“There were 101 inspections during the campaign and 10 registered bidders.The winning buyers (pictured) opened the bidding high at $1 million.” The buyers - who are expecting twins have missed out on five other houses recently.
“They have been underbidders on five other auctions and they were determined to win the keys today. Good luck to them, it’s a beautiful family home.”
Ray White Queensland Chief Auctioneer Mitch Peereboom said it was yet another fantastic week of under the hammer results across the Sunshine State.
“Auction results across all sale prices, we’ve seen some great competition across all price points with excellent results from apartments in Auchenflower to multi-million-dollar rural properties,” Mr Peereboom said.
“If you look at the different market segments performing, we know that buyers are active in the market and are taking advantage of low interest rates and favourable market conditions.
“Our owners are seeing a high number of average registered bidders per auction and that’s resulting in some outstanding sale prices.”
The day got off to the best possible start in Kedron as Ray White Lutwyche Sales Agent David Lazzarini and Sales Associate Callum Lazzarini sold 20 Sturt Street for $1,155,000.
“This was an absolutely incredible auction with a whopping 38 registered bidders - 10 of whom actively completed for what was an amazing final sale price for the vendors,” Mr Lazzarini said.
“There’s no doubt the result was driven by auction competition and you now have 37 buyers going back out into the market who are finance-ready to bid and buy now.
“The home was in the same family since the late 1920s and the block itself has been vacant since 2001. The winning bidders were a family who currently live locally.
“They loved the parkland outlook and the 20 metre frontage which allows for design flexibility for their dream family home. You won’t find another vacant block like this so close to the city.”
Ray White Metro North Principal (Auctioneer) David Treloar and Sales Executives Zac Muller and Sarah Olsen.
Attention then switched to Norman Park as Ray White Metro North Sales Agent Zac Muller sold 78 Railway Parade for $545,000 after confident bidding from the eventual buyer.
“We had 12 registered buyers here today - most of whom put their hand up to bid - for what is a renovator’s dream in one of the most sought-after spots south of the river,” Mr Muller said.
“It was a good result around the price the vendors were hoping for so they were happy to sell at that value and we’re happy to help a new family move into Norman Park.
“If you’re looking at selling, then now is the time to do it. There’s no doubt it’s a seller’s market and you can see that by the amount of people competing today. Demand is outstripping the supply of property available and there are plenty of sellers out there ready and waiting to buy.”
Buyer Jamieson Plumpton, who was at the auction with his two young daughters (pictured above), said he was into his renovations and Norman Park ticked the location box for him.
“The two just went together perfectly. Both of my girls go to one of the local schools so it ticked all the boxes for me. I’m really happy to be the winning bidder today,” Mr Plumpton said.
“It’s just a fantastic leafy suburb that’s close to the city and close to all the amenities. I’m one of the lucky one because I’d actually only been looking for the past couple of weeks and now it’s mine I can’t wait to get cracking on it.
“I didn’t have any concerns buying during COVID-19. If you’re buying in a price range that you are comfortable with then you can’t go wrong, in my personal opinion.”
Ray White Victoria and Tasmania Chief Auctioneer Matt Condon said with auction volume increasing, it was evident that the last couple of months had created pent-up demand.
“Preliminary data has revealed one of Ray White Victoria’s strongest weeks of activity when looking at the average registered and active bidders per auction,” Mr Condon said.
“This was evident at our online auctions with large crowds logging in to watch our online auction platform, competitive bidding, and properties selling well in excess of reserve price.
“It’s clear the low supply of properties available and the high level of buyer demand are creating conditions that are conducive to sellers achieving exceptional results.”
Ray White Carnegie Director/Auctioneer Matt Hurlston calling 46A Morgan Street, Carnegie, VIC.
The Ray White Carnegie team of Josh Hommelhoff and Dane Costello kicked the day off with one of those exceptional results - selling 46A Morgan Street for $1,132,000 - $62,000 over reserve.
“The property was on the market for five weeks in total - three weeks prior to restrictions and two weeks after - and we had more than 100 enquiries in that time,” Mr Hommelhoff said.
“In that two-week period we had over 60 private inspections for this property and that led to 15 registered bidders on the day, seven of whom actively competed throughout.
“Enquiry has ramped up massively since the easing of real estate restrictions. In the first full week of private inspections being allowed, our office did a whopping 200 in six days.
“I’ve never experienced anything like it in my 18 years and the logistics are challenging but we are delighted to be back working and the demand from buyers is incredible right now.”
The demand was also evident for Ray White Warrnambool Sales Agent/Auctioneer Jason Thwaites as he successfully sold 11 MacLand Drive for $429,000.
“This result is the perfect example of why auction is the best way to see your property. We only had two registered bidders, but they both battled it out strongly, and the property ended up selling $29,000 over the reserve price,” Mr Thwaites said.
“We had 14 private inspections during the four-week campaign with interest coming from both owner-occupiers and investors - with an investor buying on the day.
“The regional market is really good across all the regional centres and we’re seeing a lot of interest. Not just from metropolitan Melbourne, but across the whole state.”
Ray White SA Chief Auctioneer John Morris said the sun was high today and so were the bidder numbers across the state.
“From the number of auctions I’ve already called this weekend - the average number of registered bidders per auction is a whopping 10,” Mr Morris said.
“These are incredible statistics. I’ve personally so far sold all of my properties under the hammer and I still have a few more to go.
“For Ray White Group as a whole in South Australia we’ve had 25 auctions in total which equates to a market share of 42 per cent, meaning we’re dominating once again.”
The absolute stand out came in Paralowie where Ray White Tea Tree Gully Sales Agents Marco Fellegvari and Buri Son sold 39 Rita Drive for $551,000 - a property that attracted a huge 32 registered bidders.
“This was an epic auction and I’m not joking when I say we had to take over the whole street for it - there were 50-70 groups - such was the interest in this property,” Mr Fellegvari said.
“This result is testament to the auction method working to the best of its ability. John Morris and our Loan Market guys have done a wonderful job in training us to really prepare buyers to be ready and able to bid on auction day.
“There were more than 40 bids and it literally came down to $50 increments in the end with the lucky winning bidders being first home buyers who had been saving for a long time.
“There’s so much confidence in the market right now with interest rates so low and the unconditional nature of auction is more appealing than it’s ever been.”
Buyers Tiffany and Rowan.
The success continued in Stepney as Ray White Norwood Sales Executives Ryan Stapleton and Eliyas Alemayo sold 28 Wells Street for $885,000.
“This was a really great result for our vendor and the first home buyers who had been renting locally for a number of years are delighted with their purchase,” Mt Stapleton said.
“There was a huge amount of interest throughout the campaign with more than 50 groups coming through as we see interest in properties increasing on a weekly basis.
“We had nine registered bidders on the day - five of whom were active - and that competition ensured a really good price for our vendor and further proves the value of selling your home via the auction method.”
