Energetic auction market across Australia

AUCTION activity has bounced back with tremendous energy off the back of softening finance conditions and lack of supply, according to Australasia’s largest property group.

Ray White has 2193 auctions booked in this month, up a whopping 28.8 per cent compared to last February.

This week alone, Ray White members scheduled 446 properties for auction with 225 of those to go under the hammer across Australia and New Zealand today.

Across New South Wales, Ray White had 72 properties listed for auction today with Sydney’s preliminary clearance rate sitting at 87 per cent.

Ray White NSW Chief Auctioneer Alex Pattaro said it’s been another exciting week with great attendance volumes reflecting a red hot market.

“First home buyers appear to be the flavour of the month,” Mr Pattaro said.

“Agents and buyers in the market have indicated finance is easy to obtain, increasing the pool of active and qualified buyers. With the oversupply of buyers, vendors should be considering getting their property on the market and take full advantage of the buyers within the market. Active and financially approved buyers are at a high and are at similar levels of 2017.”

Mr Pattaro said if more stock was to reach the market, there’s no doubt we would continue to see higher clearance rates and inevitably higher prices.

A three-bedroom penthouse apartment at 501/53 Palmer St, Cammeray sold under the hammer this morning for $2.955 million with three registered bidders fighting it out before a downsizer prevailed.

Ray White Lower North Shore associate director Justin Ferguson said, with a crowd of around 30 people watching on, bidding opened at $2.4 million.

“It went up quickly to $2.8 million with the three bidders throwing punches right up until the end,” he said.

“I think the market’s very strong, and this auction is a good example showing that Cammeray is on the radar for people looking to downsize, and they’ll pay a premium to get the right property.”

South-west of Sydney, 14 registered bidders wanted to get their hands on a four-bedroom brick Bankstown townhouse at an auction managed by Ray White Bankstown’s Graeme Rudder.

“Last week we had 18 registered bidders so we’re getting good numbers here in Bankstown, especially in the last six months since people are finding it easier to get more finance,” Mr Rudder said.

Mr Rudder sold 1/53 Pringle Ave, Bankstown this morning to a young couple, who paid $733,500 for the home which is a 15 minute walk to Bankstown Station and the CBD.

“We’ve got a 100 per cent success rate this year for our auctions and lots more coming up, so as far as we can tell it’s going to be a great year in Bankstown,” Mr Rudder said.

Meantime, a large crowd of more than 50 people turned up to watch a single-level brick family home in the northern Sydney suburb of Westleigh sell under the hammer for $1.32 million.

Five registered bidders were keen on the 696sq m property at 12 Spotted Gum Road.

“We had some strong bidding from all parties,” Ray White Cherrybrook|Thornleigh|West Pennant Hills agent Nathan Leuzzi said.

“It was a good mix of bidders, locals and those from out of the area. The buyer’s a family moving into the area. It’s a beautiful suburb, very quiet and no traffic lights but still close to the city.”

Ray White Caringbah selling principal Wendy Samrani had an outstanding day, selling 18 Drake Ave, Caringbah under the hammer for $1.510 million in front of almost 70 people.

“The reason why there was so much demand for this property is because there was no other similar type property on the market,” Ms Samrani said.

“Caringbah North is currently in high demand as it offers easy access to prominent primary and public schools and is so close to Cronulla beaches.”

Ms Samrani also sold 35 Ultimo St, Caringbah South under the hammer for $1.640 million with seven of the nine registered bidders being developers.

“A developer from out of the area was the successful highest bidder,” Ms Samrani said.

“It’s ideal for developers due to its north-facing backyard and substantial land size of 684sq m and located only an eight minute walk to Caringbah station. Caringbah South is currently a hot spot and very popular for developers to buy into.”

There were 14 registered bidders at an auction in Canberra for a large home at 16 Bussell Crescent, Cook which sold for $1.3 million under the hammer to a local family.

Ray White Canberra’s Troy Reddick managed the sale, which attracted a crowd of around 120 people.

“The market’s very good, particularly when it comes to well-located freestanding homes,” Mr Reddick said.

“People are still buying based on location, anything close to popular schools or major facilities is selling. Our clearance rates are rising, our average number of bidders is rising so we’re expecting to have a strong year.”

To Melbourne where Ray White Victoria Chief Auctioneer Matthew Condon said it’d been another exceptional week of auctions for members culminating in outstanding state and capital city preliminary clearance rates today of 88 per cent.

“Today has seen an increase in auction crowds which is actually a surprise given the rain and weather,” Mr Condon said.

“Based on preliminary data from the Ray White Group, there was a very healthy amount of average active bidders per auction. This was definitely noticeable on the ground with buyers actively bidding at each auction and bidding with a clear strategy in mind. The first home buyer and investor markets were very popular today and we are continuing to see momentum and competition in bidding once a property has been announced on the market and selling.”

A sign of the heat in the local Melbourne market was the sale of a two-bedroom updated apartment at 34/310 Warrigal Rd, Cheltenham.

Ray White Cheltenham director Kevin Chokshi sold the home for $610,500 to a young family who outbid another first home buyer in front of a crowd of more than 60 people.

“The family wanted to buy and had made an offer in Chelsea but preferred Cheltenham as it’s closer to the city and one of the best areas for good schooling,” Mr Chokshi said.

“There were five registered bidders. I’m finding the market really strong, full of confident buyers who know what they want and are going for it.”

Meantime, a fair chunk of the population of Warrnambool turned out for this morning’s auction of an iconic local home at 15 Altmann Avenue.

Around 250 people watched the renovated mid-century property sell under the hammer for $920,000 with five registered bidders in the mix.

“I reckon there could’ve been even more people but I’m being a bit conservative,” Ray White Warrnambool’s Jason Thwaites said.

“We had 168 groups through during the marketing campaign. It’s probably one of the more admirable homes in the city, designed and built by a local builder who took inspiration from houses built in Los Angeles in the 1950s. He lived there for 52 years and the current owners have held it for 10, sympathetically adding to and renovating the property themselves.”

The buyers were a young family already living locally.

Staying in regional Victoria, Ray White Geelong’s Laurie McGovan secured $671,000 on 114 Elizabeth St, Geelong West after hosting more than 100 groups during the three week campaign.

More than 150 people, including six bidders, attended this morning’s auction of the period home which was on the market for the first time in 60 years.

Up north, Ray White Queensland Chief Auctioneer Mitchell Peereboom said the strong clearance rate of 2020 continued across the sunshine state today.

“Every auction I called today had registered bidders,” Mr Peereboom said.

“We’re seeing competition between buyers quite fierce as we’re seeing less stock on the market which is driving our buyers to be willing to compete. It certainly has translated through to some great sale prices as well. The standout for me today has been the $700,000 to $1 million bracket.”

Queensland’s top auction result of the day was the sale of 31 Hazlewood St, Highgate Hill for $1.9 million.

Five registered bidders showed interest in the three-level home on a large 810sq m block of land in the popular Brisbane State High School catchment.

“There’s definitely lots of buyers out there and I think the banks have loosened up so we’re starting to see everything move again,” Ray White South Brisbane principal Luke Croft said.

“We had a really solid December and I think that’s carried over into January and February. Over 50 groups came through this home over the three weekends of the campaign.”

Ray White SA Chief Auctioneer John Morris said the Adelaide auction market was in full swing.

“Everyone I’ve spoken to so far has had successful sales throughout the day, strong bidding, plenty of registered bidders and looking like it’s just going to get stronger and stronger throughout,” Mr Morris said.

Twenty was the number of registered bidders, the highest for the day across the Ray White group, at the auction of 10 Scott St, Beulah Park.

Ray White Campbelltown principal Joe Hibeljic said the deceased estate attracted a large number of young buyers wanting to renovate.

Samuel and Vanessa Pearce (pictured above) secured the property, their first home purchase, for $837,000 to move closer to family.

“Throughout the three week campaign we had about 50 people come through but people came to the auction I hadn’t seen at the opens,” Mr Hibeljic said.

“There were about 80 people there, the whole street was full.”