June auctions swing into action

IN Australia, there is still plenty of momentum in the market resulting in another standout month for the Ray White Group, recording almost $6 billion in sales over May.

Words like “cooling” and “softening” have been thrown around about the current property market which has been coupled with the dip in Melbourne auction numbers due to a fourth lockdown, leading to some negative predictions. However, Ray White data paints a picture of a market still at a historical highs. Meanwhile, the transition from a massive May to a promising June has been smooth with no indication that buyers are planning to take their foot off the gas.It’s almost unthinkable to remember that this time a year ago Ray White wrote $2.37 billion, and has now just produced a stunning $5.53 billion in sales across Australia with all markets still firing on all cylinders.“We were expecting big things from the month and May certainly disappoint. We are so proud that our members helped almost 16,000 people with their property ambitions - it was another fascinating month ,” Ray White Group Managing Director Dan White said.“With restrictions pretty well eased in all regions, except Victoria, we don’t want to be lulled into a false sense of security. We know the economy may still have challenges ahead of us but also we know as a group we have what it takes to continue to navigate through whatever comes our way.”Despite the group’s consistently strong headline record results, the underlying trends have not shifted over the past year. But what a difference a year makes - this time last year there was much uncertainty around property and the real estate outlook. Fast forward 12 months and these are some of the best conditions the leading agency has ever seen in their 119 year history.The combination of improving economic conditions and low interest rates have continued to support consumer confidence which, in turn created persistently strong demand for housing.A common belief is that supply remains well below average and this imbalance between demand and supply is continuing to create urgency among buyers, contributing to the upwards pressure on housing prices. But this is misleading as it’s ‘all stock on the market’. Ray White’s new listing authorities are firmly up on two years ago (up 29 per cent) and on a year ago (up 35 per cent). While the group’s total stock on the market remains down 30 per cent on two years ago, this includes all old stock - a measure that can be misleading to focus on.One metric that has eased slightly is open home attendance from its peak in March when Ray White had more than 80,000 people attend 4,468 open homes, compared to the 75,400 who attended 4,423 listings in May. However Ray White members are still recording upwards of 200 attendees at some properties during their campaigns which is incredible heading into the winter selling season.Australian auction markets continue to defy gravity with out of this world results. Across Australia there were 2,933 Ray White auctions booked in May. Of those the leading auction agency cleared 74 per cent under the hammer, while 20 per cent sold prior to the auction. Registered bidders remained at 5.4 per lot while there were at least 3.3 active bidders at each auction. There was also active bidding on 90 per cent of all auctions and Ray White data shows that vendors received on average almost 12 per cent more than their highest offer prior going to auction. A figure that’s been consistent all year. Sydney, Melbourne and Adelaide are all going into a long weekend where auction numbers are down slightly on other Saturdays of the month. However, the network is still expecting strong results for those vendors who choose to sell at auction this weekend.One of the Sydney standouts of the long weekend is expected to be 149 Rochford St, Erskineville (pictured above) with a custom feature wall by internationally acclaimed graffiti artist Lee Harnden. The three bedroom unit was also given a new lease on life in 2004 when everything but the facade was rebuilt. Selling agents Shaun Stoker and Moira Verheijen of Ray White Surry Hills | Alexandria | Glebe | Erskineville said the vendor’s hard work has paid off with buyers coming from all over the inner-city hoping to upgrade into something with more space.Earlier in the morning, Mr Stoker also expects some solid interest on 61 Wells St, Newtown where buyers are loving the well-renovated terrace home in a great location.

In Melbourne, Ray White Cheltenham director Kevin Chokshi said he’s seen a 40 per cent increase in enquiries since the lockdown began as bored Melbournians turn to trawling the property portals. The Cheltenham agent plans to run the auction of 1/2 Coleman Court (pictured above) through a hybrid onsite and online method. Coleman Court has been popular with young couples, young families and downsizers alike who all love the Block-style renovation.This weekend marks the end of an auction campaign that was half in and out of lockdown. Ray White Craigieburn agent and auctioneer Daniel Diamantopoulos said his team had to engineer a way to suit the swelling demand for 15 Calibre Avenue while still in lockdown. Due to the huge interest numbers the auction will still go ahead online."As soon as we launched the property online we had the typical influx of people through and the beginnings of a strong campaign,” Mr Diamantopoulos said.“Then we went into lockdown and the campaign was uncertain with buyers not being able to inspect the property. However, enquiries were still good so we asked the owner to get their camera and do a virtual tour through the house.“There were 16 attendees and we received such a great response from them. We will have people bidding who as of yet have never actually seen the house physically.”

Auctions will continue as hot as ever in Brisbane with no long weekend to distract auction punters.Ray White Ascot will be holding their auctions in-room on Saturday. Two beautiful Brisbane properties are set to go under the hammer - 7 Apex St, Clayfield (pictured above) through agent Vanessa Harte and 23 Butler St, Ascot being marketed by fellow Ray White Ascot agent Alexander Shean.Mr Shean said the classic Queenslander has attracted 60 groups through open homes and a mix of different buyers.“There’s been a range of buyers including first home buyers and interstate buyers as well as investors. It’s good to see them back in the market after being absent for a while,” he said.“Meanwhile, the interstate buyers will be bidding from their homes in Sydney and Melbourne.”

In Adelaide, auctions are gaining in popularity as Ray White leads the way. Experienced auction agent Ray White Port Adelaide principal Nick Psarros will add another under the hammer sale to his belt this weekend. The character features of 41 Russell Street, Ethelton (pictured above) have been popular with buyers wanting to get a foot in the door of the sought after suburb.“I’ve received interest from Adelaide locals wanting to come across from the other side of town and a couple of first home buyers. There’s also been quite a bit of interstate interest,” Mr Psarros said.“They all love the style and character of the home and the solid construction.”Last year’s top Ray White South Australia auction agent Stefan Siciliano will have more to celebrate this Saturday after a successful under the hammer sale for 26 Davis St, West Beach.The auction method is also gaining momentum in Perth where this weekend, Ray White Cottesloe | Mosman Park director Deborah Brady expects to book not one but two successful under the hammer sales.Just after midday, Ms Brady will take 92 Clement Street, Swanbourneto auction after 56 groups inspected the three bedroom home. She said interest has come mainly from families who live in the area looking for something close to the ocean to put their own stamp on.“Buyers are thinking about the next five to 10 years. The house is fairly original and untouched but still has good bones,” Ms Brady said.“Many plan to rent it out while they get plans done to create their own long term dream home.”Meanwhile, 60 Railway Street, Cottesloehas been popular with first home buyers and younger executives. Ms Brady said like Clement Street, it has a lot of potential - especially on the huge block.