Buyers still out in force at auction

Lockdowns continue to drag on across Australia and yet the economic data and property market activity continues to be very positive.

Today the leading auction house Ray White conducted more than 100 auctions and recorded a preliminary auction day clearance rate of 87.7 per cent, with a whopping 8.9 average registered bidders and more than half of them active in the bidding. The bidder metrics remain off the charts despite the all-time low volume of stock making it to auction.

Online auctions in New South Wales and Victoria once again proved no obstacle with buyers comfortable with the seamless format and in fact many actually prefer it.

Today’s happy Ray White sellers across Australia were rewarded with 15.55 per cent more under the hammer than their highest offer prior, which is in fact an all time high for the group, and shows the power of creating competition at auction and going all the way to game day.

One of the main economic releases out last week was on international migration in the June quarter.

Ray White Chief Economist Nerida Conisbee said it was no surprise that international migration continued to show very few people coming into Australia.

“In the June quarter, we saw 59,380 Australian residents returning, however the majority of them were here short term to visit friends/relatives. More Australian residents departed than arrived, although overall we saw slightly more arrivals than departures," she said.

“The remaining 15 per cent back permanently were mainly from New Zealand, driven by the more relaxed restrictions with travel to Australia.

“With most Australians returning here for just a short time period, and most of them from New Zealand, the expat market for Australia’s premium property is likely to be relatively small.

“But anecdotally, it does appear to be making an impact on some of our more expensive suburbs. It is also likely being driven by expats not quite ready to return but keen to park their money in Australia’s surging property market.

“One observation about wealthy returning expats is that many of them own apartments in nice suburbs, having bought them when they were young and prior to heading overseas.

“On returning, many of them are selling them to upgrade to a big family home in the same suburb. This is leading to price falls for units in these suburbs, but big increases in house prices.

“If this is true, the suburbs our expats are choosing are possibly returning to places like Kirribilli, Dover Heights and Vaucluse in Sydney and Toorak and Brighton in Melbourne. All of these suburbs have seen big jumps in house prices but apartment prices have declined.”

Ray White NSW chief auctioneer Alex Pattaro was excited to see vendors receiving great results under the hammer, despite lockdown restrictions being extended.

“Another week in lockdown and another successful week of online auctions,” Mr Pattaro said.

“We continue to see strong bidding activity and property prices. As we start to enter the warmer months, there’s no denying that now is a great time to sell.

“The data suggests there is an abundance of buyers and sellers are gaining 15 per cent better prices under the auction hammer than offers during the campaign. We look to see this trend continue despite the extension of the lockdown.”

The top sale today was an outstanding result in Bondi Junction, 6 Ruthven St which was also a street record, selling for $3.3 million at online auction -- $400,000 above reserve.

With more than 60 groups viewing the home prior to auction,there were 13 registered bidders on the day, with five active bidders.

Ray White Woollahra | Paddington agent Randall Kemp said buyer interest was coming from investors and young families looking to upsize, with the winning bid going to a local Sydney investor.

“The property was really nicely renovated and in a really great location in the Woollahra school catchment area,” Mr Kemp said.

“There’s a lot of people looking in that price range, and it was a four bedroom which offered a bit more space compared to other properties in that price range which might be two or three bedrooms.”

Ray White Woollahra | Paddington agent Lisa Chadd said the vendor had lived in the home for 16 years, and put the property on the market after moving to Melbourne.

“She was extremely happy with the result, she’s over the moon,” Ms Chadd said.

“She liked the process better during COVID and liked that the groups coming through the home were serious buyers, rather than people just coming in to have a look.

“She liked that it was more of a private setting and she enjoyed the online auction process as well.”

There was plenty of action during the online auction for 10 McRaes Avenue, Penshurst, with the property selling for $2.422 million -- well above reserve.

There were 24 registered bidders with nine active bidders on the day.

Ray White Ray White Georges River | St George | Oatley agent Fraser Glen said the property was located in a popular pock in Penhurst.

“Homes in this area are always quite sought after and this one was directly opposite the park,” Mr Glen said.

“It’s right up next to Penshurst shops and the train station, only a matter of a few hundred metres.

“It was a beautiful character home which had been modernised.”

The winning bid went to a family who intended to move into the home.

Vendors Mark and Kristy Mottram (pictured above) were overwhelmed with the result after being a little apprehensive about listing during lockdown.

“We’re very happy with it, there was really good interest and the campaign was great from start to finish,” Mr Mottram said.

“We’re really happy with the result, it exceeded our expectations.

“We were a little apprehensive at first, but we thought ‘there’s not a lot of stock on the market’ so there were some positive aspects.

“We just weren't sure what was going to happen with the lockdown and the rules.

“But it all seemed to pan out in the end.”

Mr Mottram and his wife Kristy grew up in the area, and purchased another home nearby with more room for their young family.

“We had been looking for a while, the last 18 months, something came on the market we were interested in and we ended up securing that,” he said.

“We thought we’d secure something first and then put this property on the market.”

Mr Glen said the lack of stock and influx of buyers was driving prices for houses in the area.

“The market has been really strong and everything has been selling above expectation,” he said.

“There’s really low stock which is driving up the price.

“We’re not allowed to hold open homes so you think it would be hard to drum up competition, but we’ve had more one-on-one conversations with the buyers which has been really beneficial.

“There’s a strong market, money is cheap, there’s lots of buyers around and barely any properties -- it couldn't be better in terms of market conditions really.”

Elsewhere this Drummoyne property at 9/11 Bayswater Street sold for $878,500 at online auction on Saturday -- $118,500 above reserve -- a great result for the vendor and Ray White Drummoyne agents Mario and Jessica Carbone.

There were 10 registered bidders with seven of them active, forming fierce competition for the two bedroom home with 48 bids in total.

Interest was coming from owner-occupiers, first home buyers and investors.

The winning bid was a first home buyer moving from the inner city.

“I think it was the location, there’s great transport, waterfront parks, and the affordability which made it so desirable,” Ms Carbone said.

The vendor had previously lived in the home before moving to Melbourne and turning it into an investment property.

Mr Carbone said the vendor decided to sell but was nervous about selling during lockdown.

“We gave her some confidence that the market was really strong,” he said.

“The strict lockdowns came into place four weeks ago and she was a bit nervous, but she was happy to take out advice and proceed. I think her decision paid off with that great result.”

In what was more disappointing news, lockdowns were this afternoon extended to also cover regional Victoria from 1pm today, not just metropolitan Melbourne. This effectively puts a stop to all physical real estate activity - including private inspections - across the state.

Ray White Victoria and Tasmania CEO Stephen Dullens explained the impact this was having on the real estate market.

“The latest restriction announcements are another challenge for our customers across Victoria. With such a major financial and family decision as purchasing or renting a home, many customers are understandably hesitant to do this without physically inspecting the property. Our data tells us that customers are also hesitant to bring their property to market, preferring to wait for lockdown conditions to ease,” Mr Dullens said.

“We are hearing from more and more customers who have an urgent need to buy, sell or lease property. The ongoing restrictions make this extremely difficult and we’d welcome the opportunity to engage with government officials to discuss how we can help these customers while still ensuring the safety of the community,” he said.

The auction at 21 Dunsmore Road, Highton was pulled forward to 1245am to be held onsite auction and sold under the hammer for $745,000. Ray White Highton agent Adam Natonewski said he was home by 1pm!

While the number of auctions proceeding decreased substantially, those that were conducted performed extremely well.

Some examples include the auction of 6 Colonel St, Clayton nearly broke the internet today!

There were 125 people watching the online auction which Ray White Clayton agent Michael Renzella sold for $1.321 million, which was $290,000 over its reserve.

Some 15 bidders registered to buy the original three bedroom home on a prime 715sqm of land.

“I was literally shocked by how many people came out to watch this auction - it was crazy. There was a mix of family home buyers and the rest were investors and developers.

“At one stage there were $20 bids and a $1 bid as people were literally scraping the barrel!

“It was an amazing lockdown campaign with only virtual inspections. We are well practised at this by now and a lovely local family bought the house and plan to build their dream home on it.”

“We are very experienced at lockdown selling from the first one to now, we are still selling and there’s no shortage of buyers.”

Elsewhere, Angela Limanis of Ray White Cheltenham ran a spirited seamless online auction from her own home for the unit at 25/94-96 Cavanagh St, Cheltenham.

Despite the best efforts of her little Jessie dog (pictured) who tried to steal the audience with his barking as the auction was heating up, Ms Limanis sold the two bedroom ground floor unit under the hammer for $650,000 to a local first home buyer named Ashley who had been looking all over Bayside, including apartments and townhouses.

Ms Limanis had had plenty of interest from first home buyers, downsizers and investors.

“My clients had been through two lockdowns during the campaign but we had been running virtual inspections in between open periods so buyers still got a chance to look through the house while private inspections and open homes are not allowed,” Ms Limanis said.

Sellers Trevor and Amber were totally wrapped with the result and couldn’t fault the online process at all.

“We started our campaign before the lockdown and we had heaps of interest from buyers. We had a lot of confidence from Angela to keep going. I think online auction sales are the new normal and might be the way of the future. Angela and Jessie made it real and relatable for selling in lockdown at home.”

The couple bought their first home together in 2011, and recently moved within Cheltenham have been renting their unit out.

Celebrity agent Kevin Chokshi of Ray White Cheltenham today wrapped up the sale of this stunning four bedroom home at 179 Macedon Rd, Templestowe Lower for $1.6 million shortly after its auction. The home had received a sparkling makeover, of a high standard similar to renovations on The Block, the reality TV show which Mr Chokshi is on right now.

The campaign was popular with families who loved the views, location and quality renovation.

“The real estate market is just like an elevator and it’s only going up,” Mr Chokshi said.

Agent and auctioneer Jonathon Eaves of Ray White Oakleigh (pictured above) just sold 48A Euston Rd, Hughesdale for $1.338 million, some $288,000 over its reserve.

Mr Eaves, who called the auction in his living room at home with his two and a half year old twins watching on, said “it went just mental. It was a crazy fast paced auction”.

“We had 12 registrations and the reserve was set at $1.050 million which means we sold at a record $4,200/sqm. We only had one open before the lockdown and we had 35 physical inspections but all up we had 102 inspections with all the virtuals,” Mr Eaves said.

“It’s pretty amazing, I had vendors calling me in the middle of the auction wanting to talk about listing as they were watching the auction!

“Of course my sellers were worried about the lockdown environment but I knew we had followed the process and there were a lot of buyers so they are very happy sellers today.”

Mr Eaves said his little boy (future agent Harry pictured above with his number board) was watching on and loves listening to daddy on the phone all day at home in lockdown.

“This is real life. I have twin toddlers Harry and Connie so you can imagine what it’s like! But we are all in it together but we are still selling at auction. Many of our competitors are postponing auctions or selling quietly but not us.”

There was strong interest in Brisbane properties today, with large numbers of registered bidders turning up for onsite auctions.

Salisbury property, 184 Lillian Ave recorded 15 registered bidders at the auction on Saturday.

Competition was fierce with three bidders active throughout the auction.

“We didn’t have many bids because the bidding was quite aggressive,” Ray White Annerley agent Bevin Powell said.

Bidding started at $700,000 with the winning bid going to a young couple (pictured below) for $890,000.

Mr Powell said the three bedroom home was tidy and well-presented.

“It was nicely finished, it was high-set and had a big office downstairs which appeals to a lot of people at the moment,” Mr Powell said.

“The vendor lived there 20 years and is making a tree change and downsizing.”

Mr Powell said the market was strong at the moment.

“Six months ago I think this property might have only got $750,000,” he said.

“The market is crazy at the moment with stock selling within days if it's not an auction.

“There’s just more buyers than homes at the moment.

There was a record sale in Gordon Park on Saturday with 92 Gordon St, selling for $2.065 million at the onsite auction.

There were 27 registered bidders with five active bidders on the day - this was the highest bidders today.

Ray White Ascot selling agent Andrew Flanagan said there had never been a sale over $2 million in Gordon Park before -- so it was a great result for his vendors (pictured above).

“The vendors had been there for 30 years, it was a family home for a long time but they’ve decided to downsize,” Mr Flanagan said.

“It's a huge, flat, corner block with only one direct neighbour.

“The home is a beautiful Queenslander with a wrap around verandah.”

The winning bid went to a local investor.

Buyers turned up in force at 105 Welbeck St in Alderley, with 10 registered bidders, and six of those active at the onsite auction.

With bidding starting at $710,000, the property sold for $1.145 million, some $145,000 above its reserve.

The winning bid went to a local couple, Kirsten and Mark (pictured above with Ray White Wilston agent Jessie Hall), who have their second baby on the way and were looking to upsize.

“It’s sitting on a great street and there was also all the parklands just around the corner,” Ray White Wilston agent Jessie Hall said.

“It needed some TLC but the vendors had done some updating to the bathroom so the new owners could move straight in which was really attractive to buyers.”

The vendors had owned the home as an investment property for five years.

“The vendors live down south and had never actually seen the property,” Ms Hall said.

“They were really happy with the result and the return on investment.”

Ms Hall said there had been huge demand for properties in Alderley.

“We've had huge numbers through open homes, with a lot of first home buyers looking in the late $900,000s to early $1 million range,” she said.

“There’s been really active bidding at auctions and it’s a really strong market overall.”

Ray White Queensland chief auctioneer Gavin Croft said investors and buyers wanting to move from interstate were driving the market at auction this weekend.

“Today has been a consistently stand-out day right across the board,” Mr Croft said.

“So far today I’ve conducted seven auctions and seven have sold. An obvious note from the competition today has been resurgence of investors back into the market.

“We had a couple of good auction results earlier in the day out in the Redbank Plains region in that Western corridor, particularly from investors looking to seek out those better returns.”

Mr Croft said properties at Northgate and Everton Park attracted buyers looking to move up from Sydney.

“We're particularly seeing people from those southern states bidding over the phone, and competing,” he said.

“Those interstate buyers were really playing a role here today, as well as the investors.

“Across Brisbane today we've seen an average of 4.5 registered buyers per auction, good competition, and investors back in the market.”

Ray White South Australia Chief Auctioneer John Morris said there were 50 auctions scheduled this week, which was approximately 30 per cent of all auctions throughout South Australia which was actually the lowest it's been all year.

“But that's the only percentage that is low, the auction day clearance rate sits at 100 per cent with 12.8 registered bidders per auction and 4.3 of those are participating in the auctions.”

The Adelaide auction market continues to fire up this winter which is paving the way for a strong spring selling season.

On Thursday night Ray White Glenelg agents Jed Redden and Chelsea Casey signed up some 30 registered bidders mid-week to buy 4 Fairbanks St, Beverley for $780,000.

Ms Casey said the majority of the buyers were locals with one interstate bidder. “The winning buyer was a local couple and the sellers were over the moon.”

Ray White Norwood. Agent Brandon Pilgrim today sold this beautiful sandstone villa at 21 Montrose Ave, Norwood for $1.150 million. There were 15 registered bidders but only five of them were active in the auction.

“We had 140 groups. It’s a nice character home in a good spot which was attracting a lot of young professionals, small families and even some downsizers,” Mr Pilgrim said.

“The buyers were all locals but one couple really wanted it.”

Later at 5 Hubbe Court, Burnside Mr Pilgrim sold this 1970s masterpiece in a dress circle location for $1.765 million to a young couple.

“There were 12 registrations but only two active bidders as the lady who opened the bidding started high at $1.6 million. They have been under bidders at recent auctions and their baby is due in about three months so she was determined to buy soon!”

Meanwhile Liana and Shane (pictured) are the proud new owners of 24 Truscott Road, Enfield. Ray White Norwood agent Stefan Siciliano said there were 10 registered bidders, and half of them active in the auction. The house was exchanged for $637,000 in front of a crowd of 40 people.