Intense buyer demand fuels property market

Ray White says the Australian property market continues to be fueled by cheap credit and unprecedented buyer demand.

The largest property group in Australasia this week had 533 properties booked for auction which is down four per cent year on year and yet intense buyer demand helped propel the auction day clearance to 75 per cent by late Saturday. Across Australia, the group’s live listings are down 1.2 per cent in the last week, and yet sales are up 16 per cent which shows sellers that now is a good time to sell as there’s less competition and high demand.

The preliminary auction clearance rate in Sydney was 75 per cent too with strong demand reported from the inner city suburbs to out west. In Sydney, the group’s data shows a whopping 7.5 average registered bidders were recorded per lot - almost double the same time last year.

Ray White members are reporting a surge in expats returning home which is helping fuel demand for Australian sales and rental properties too.

In 2019, roughly one million Australians were living and working abroad. According to the federal government there are more than 29,000 Australians currently registered with DFAT wishing to return to home. So far 398,000 Australians have returned since 13 March.

Ray White NSW Chief Auctioneer Alex Pattaro said the Sydney market was functioning at a high rate with an almost palpable rebound in sentiment to pre-COVID levels.

“We all know Australians love property and now that the economic fundamentals have been re-established, the buyers are back in their droves. Property has always been a long term investment and something Australians aspire to,” Mt Pattaro said.

“Today was very strong on the ground in Sydney with big results across the beautiful harbour city.”

Located in one of Surry Hills' secret streets, this 5.5m wide terrace at 18 Griffith St sold today for $2.410 million to an expat who recently arrived home after a four year stint in New York.

Buyers had been falling over themselves to inspect the urban oasis which was sold today at auction through Ray White Taylor and Partners agents Annie Hodgson and Walter Burfitt-Williams (above)

The three bedroom zen-like terrace had a price guide of $2,000,000 yet the auction opened at $2.165 million which was over the reserve in the first bid.

There were nine registered bidders vying for the property including two locals who literally lived 50m away.

“It’s a sublime house, just 100m from Foveaux St, and yet so quiet,” Mr Burfitt-Williams said.

The owner bought the once-unlivable terrace in 2012 and undertook an incredible renovation which wasted no space.

“We have definitely seen a surge in expats moving home. Many are facing the issue where their own home is tenanted and they cannot find a house to rent,” Mr Burfitt-Williams said.

“Stock volume is still light and I think it’s even lower in the inner city which fuels the demand.”

The happy buyer, pictured here with her parents,, was so happy after winning the auction.

“It is such an amazing house and it just flows. I literally only saw it for the first time a week ago. The house is to our taste and it’s perfect and it’s all done and I am excited to move in,” she said.

The fashion designer had been working in New York until just recently.

“You go to New York for the lifestyle but it’s in political turmoil right now and with the coronavirus I knew it was time to come home. You couldn’t even move around the city. I loved New York but it’s not the same city right now. It was difficult to get home as flights were limited but all of my expat friends have since moved home as it’s just not the same city.

“It’s actually pretty scary how many people were getting sick over there so the time was right. I love my new home, it feels very safe, like an oasis in the city.”

Not too far away in Annandale, David and Xanthe sold their investment property of 33 years at 183 Nelson St, Annandale for $1.803 million.

The sellers, who live in Gladesville, said the Ray White Inner West team did everything they said they were going to and then some.

“I wanted the job done correctly and Tina O’Connor and Harry Psaradellis did everything they said they would, their communication has been excellent and kept us informed every step of the way,” David said.

The new owners from Glebe plan to rent the two bedroom cottage out initially.

“We always had great tenants as we kept the price down and they looked after the house. Why now? We just decided that now was the right time to sell. We thought about waiting or even not selling at all, but I am glad we did and I would highly recommend using Ray White agents again as their process and communication was excellent. They were not the cheapest but they certainly added the most value.”

Ray White Inner West agent Tina O’Connor said she took more than 180 groups through the house and signed up 20 registered bidders on the day.

“A lot of them were locals, young couples and looking for long term investments. It was a great auction with rapid-fire bidding, it was very spirited.”

Young families and even downsizers were keen on the two bedroom Annandale home.

“The buyers from Glebe are looking at a long-term investment, somewhere their children can stay when they go to university down the track.”

Ray White Surry Hills Associate Director Matthew Carvalho had a great day with 32/42 Lombard St, Glebe selling for $1.450 million and also the spacious townhouse at Terrace 5/208a St Johns Rd, Forest Lodge selling for $1.506 million.

“We had seven registered bidders in Forest Lodge and the new buyers are a young couple who just sold in Lane Cove,” Mr Carvalho said.

The auctioneer took the opening bid of $1.35 million, which was the reserve.

“The property offers a lot of bang for your buck as it’s strata titled but it’s a logical move as it’s very big and comes with parking. If you’re looking to buy a house in the area at this price point, your money would only get you a two-bedder and no parking. The property market is on fire at the moment.

Ray White Victoria and Tasmania Chief Auctioneer Matt Condon said state's real estate market continued to grow in both momentum and strength.

“This week has seen an increase in the average number of active bidders per auction, which has certainly been a factor in our high clearance rate,” Mr Condon said.

“It’s evident that there’s a much higher level of buyer demand for property than there is supply of property available.

“There’s still a window of opportunity for sellers to place their property on the market and be sold by Christmas. Overall, Ray White Victoria is expecting a strong auction day clearance rate this week.”

The day got off to a great start when Ray White Craigieburn Sales Consultant and Auctioneer Daniel Diamantopoulos (above) called and sold 19 Bellfield Drive for $770,000, alongside Sales Assistant Jess Beames.

“The sellers are absolutely stoked with the outcome as the property sold for $90,000 over the reserve price and well above the highest offer we’d received prior,” Mr Diamantopoulos said.

“This sale gives you a real idea of the power of auction with seven of the 10 registered bidders competing hard - driving the price all the way up from the opening bid of just $500,000.

“People looking to sell now should note there are now nine finance-approved buyers who will now be hitting open homes again after missing out on this one - now is the time to list.”

The happy buyers of 19 Bellfield Drive, Craigieburn, Victoria

Seller Lynda Baldwin said she and her husband, Adam, were not willing to wait another year to sell because they wanted to take advantage of the current market and sidestep any future unknowns.

“We had done a lot of research and set the reserve at $680,000 after receiving a huge amount of interest in the property - but feedback was coming in at around $630,000 to $640,000,” Ms Baldwin said.

“Once the auction started, it just didn’t stop, it went through the roof - I said to Adam it would be sensational if it somehow got to $700,000.

“I don’t think the market has relaxed at all in Melbourne. People are now really getting into it again and I think real inspections have made a real difference.

“I have to praise the whole team and Ray White Craigieburn, they worked so hard, and the communication was outstanding. We always knew where we stood.”

Ray White Carnegie Director and Auctioneer Matt Hurlston

The success continued for the Ray White Carnegie office as Partner/Sales Consultant Josh Hommelhoff and Sales Consultant John Pantelios successfully managed the $991,000 sale of 1/36 Sycamore Street in Malvern East - $101,000 over reserve.

“There was a huge amount of interest in this property with a whopping 67 private inspections during the campaign and 38 watching the auction live online,” Mr Hommelhoff said.

“That translated into 16 registered bidders - five of whom were active - and that alone is a real testament to just how active the property market in Melbourne is right now.

“The pent-up demand is clear for all to see and we just don’t see things slowing down as we head into the festive period. The lucky winning bidders were first home buyers.”

The happy vendors and their family at 3 Dirigo Drive, Wheelers Hill, Victoria.

Then, over in Wheelers Hill, Ray White Glen Waverley Area Manager Cristine Jones and Sales Associate Tracy Tsang sold 3 Dirigo Drive (picture above) for $950,000 - $85,000 over reserve.

“This is a terrific result and our sellers are delighted. They were hesitant to come to the market in Stage Four lockdown but my phone was off the hook with buyer demand,” Ms Jones said.

“We knew it was a good time for them to sell and they went for it. I would advise anyone who is thinking about coming to the market, but are hesitating, to take a deep breath and do it now.

“Interestingly, of the 12 registered bidders we had, two were from Point Cook - which is a fair distance away - this just goes to show people are on the move and looking more central.

“The market shows no sign of slowing down, either. At the first inspection of my new property in Mount Waverley, it took an hour and a half to stagger the 20 groups who wanted to look.”

Ray White Queensland Chief Auctioneer Mitch Peereboom said the strong property market had continued with some great results in the Sunshine State this week.

“Our clearance rate remains strong and certainly, our average number of registered bidders is also in a great space, consistent with where it was over the last few weeks,” Mr Peereboom said.

“We’ve seen some outstanding sale prices as a direct result of the competition that’s being created as buyers are willing to compete for properties.

“The speed of sale means stock is moving really quickly. Buyers are missing out, which means they’re bidding with even more vigour to make sure they can secure a property before Christmas.”

On a hot day in Brisbane, there was an exceptional result in Red Hill as Ray White Ashgrove Sales Agent Tamara Lee (above right with Ray White Auctioneer Phil Parker) successfully sold 36 Confederate Street for $937,000.

“The campaign was incredibly active throughout with more than 85 groups coming through with the property attracting a cross-section of buyer profiles,” Ms Lee said.

“It’s a fantastic time to be selling your home because buyers really are looking to get things done unconditionally this side of Christmas - the only way to do that is via an auction.

“We had seven registered bidders for this one, with four of them active, and there was strong competition in the bidding. The under bidder was aggressive but was eventually edged out.

Sellers Anthony and Deborah Godden (pictured above left with Ray White Ashgrove Sales Agent Tamara Lee) said they were selling to move back home to South Australia.

“We’re relocating back to SA to be nearer to family and Anthony also has a new job, so we’re very happy with the outcome of the auction today,” they said.

“We always try to buy in the market we sell in as well - that’s the reality of it - so it doesn’t really matter when you sell or buy, as long as you stay close to the market at the time.

“There are a lot of buyers out there and there’s not a lot of stock around. Money is cheap at the moment and buyers are willing to pay a reasonable price.”

The stand-out sale of the day in the Sunshine State came courtesy of Ray White Broadbeach Waters Principal and Auctioneer Mitch Palmer (above) and Sales and Marketing Consultant Sabrina Chen as they sold 54 Edinburgh Road in Benowa Waters for $1,538,000.

“This was a hotly contested with seven registered buyers battling it out - and it really came down to the wire with three families fiercely contesting at the end,” Mr Palmer said.

“Bidding actually started back at $1,000,000, but as is the case with the power of auction, that competition drove the price all the way up and well beyond the highest offer prior of $1,400,000.

“The market is very strong with incredibly low stock and high demand driving exceptional competition. The eventual winning bidders didn’t want to buy at auction originally, but after sitting down and having a chat with them, they felt comfortable - and they won.

“The home itself was built with real quality and buyers now are looking for that high-quality home now as well as position - and overlooking the water - this ticked both boxes.”

Ray White South Australia Chief Auctioneer John Morris said the brightest light in the real estate auction market in the Festival State was Australasia’s biggest real estate group.

“Ray White held 32 per cent of auctions this weekend and 37 per cent over the whole week - the highest registered bidders for the week was Friday night with 27,” Mr Morris said.

“A shout-out to Ray White Norwood’s Stefan Siciliano for selling a property 14 per cent over reserve this week, and to Ray White Unley’s Blake Scholz, who sold a property 28 per cent over reserve.

“Of the 291 auctions scheduled for November in South Australia, Ray White will be conducting 119, ensuring the bright lights of Ray White will continue well into the festive season.”

Ray White Norwood agent Stefan Siciliano signed up 27 registered bidders who were all keen on the original character home at 9 Staffa Street, Broadview with a huge 24m frontage. The likeable agent said it was an amazing result for his sellers on Friday night.

Sellers Akarra and Ocea were delighted with the result of their dad’s estate which sold for $771,000, some $101,000 over reserve.

“It was crazy with so many people at the auction. The excitement was next level. It’s been great working with Stefan as he was never pushy and only spoke to us about facts and figures and the whole team had a lot of care,” Akarra said.

“The house is in an inner city area and seemed to be very sought after by developers and yet a family bought it and will move in.”

Ray White Norwood has six properties scheduled to go under the hammer this weekend. The house at 17 Bradfield St, Burnside sold through agent Brandon Pilgrim for $830,000 after 13 bidders registered to buy.

Ray White Woodville Principal Peter Kiritsis had a turnout of more than 100 people to watch the auction of 22 Jenkins St, Cowandilla sell for $631,000. The 1926 bungalow home had received a huge amount of interest from buyers - particularly those looking for a renovated character home.

Meanwhile Ray White Henley Beach principal Anthony Fahey today sold 21 Riverway, Fulham Gardens for $870,000 in front of a crowd of more than 150 people. Some 10 registered bidders turned out to buy the home - with its manicured lawn and gardens - which had been in the same family for more than 60 years.

“We had a bit of everything on this one from builders to the neighbours as it’s right on the river. A local family bought it who already live in the same suburb.” Mr Fahey took 77 groups through the property during its textbook auction campaign.