Strong buyer demand kicks off spring selling

THE property sellers who made it to auction day today were richly rewarded with sale prices under the hammer on average 11.5 per cent more than their highest offer prior across Australia.

Ray White had 261 auctions booked today and yet 55 per cent did not proceed. Only one actually withdrew from the market, while most have either sold prior, postponed or been converted to private treaty. The group's data recorded nine registered bidders on each lot today, which shows buyer demand remains extremely strong and well above long term averages.

Melbourne, with the tightest restrictions of any market, sold 12 out of 12 today with most members selling properties totally unseen and well over expectations and reserves.

Ray White Chief Economist Nerida Conisbee said the latest lockdowns appear to be providing a boost to pricing, even though economic growth is pulling back.

“It is difficult to see at an aggregate level what is happening to prices given there are so few transactions taking place,” she said.

“Our own analysis of weekly auction data however continues to show far fewer properties going to auction, far more people actively bidding at auction and a bigger gap between highest prior offer and the price properties are selling at auction.”

Ray White New South Wales Chief Auctioneer Alex Pattaro said spring selling season kicked off strongly.

“What a way to start the spring selling rush with a $1.9 billion record of sales value for August across Ray White New South Wales and ACT. There are still plenty of properties transacting, with the market providing future sellers with opportunities to sell and re-enter the market," he said.

“Bidding activity remains strong and we have right now 11 bidders on average across the state’s auctions.

“Notably auctions are obtaining better prices under the hammer. Our data shows an 11 per cent uplift on pre auction offers.

“We expect more properties to come to market as option volume ramps up towards the back end of the month, and into early October.”

Ray White Belmore agents Mourad Garabedian and Tony Skaf today sold 8 Boorea Ave, Lakemba for $1,300,000. Mr Garabedian said there were 10 registered bidders, and five were active.

“We had seven buyers who were adamant they wanted to negotiate with us prior to the auction. We spoke to our sellers and made an educated decision to run the auction and I am convinced that by creating competition at auction we got an extra $100,000 for our nervous seller. That $100,000 was an emotional value.”

They buyers were all local professionals and owner occupiers, and the sellers are moving to Dulwich Hill in the inner west.

Ray White Surry Hills | Alexandria | Glebe | Erskineville director Ercan Ersan was always confident of strong bidding for 16a Francis St, Enmore from first home buyers and couples who have been priced out of the two bedroom house market. The house sold at online auction today for $1,505,000 million.

Mr Ersan said there were three active registered bidders who pushed the price up over its reserve.

“Two young sisters bought it and plan to rent out it out and hope to capitalise down the track if they add value to it.”

Mr Ersan said the online auction technology had been a vital tool for selling properties. “We’ve sold 39 out 40 properties scheduled for auction in this lockdown,” he said.

Ray White Bankstown principal and owner Tony Roumanous said his team today sold four from four under the virtual hammer with a whopping 55 registered bidders in total, worth more than $4.7 million in total sales value.

The highlight of the day was when his son Anthony Roumanous sold 18 Handle St, Bass Hill for $1.157 million. The 20 registered bidders pushed the price past its reserve of $995,000.

“Since Monday, we have sold 12 properties in total and five of them were auctions and seven private treaties worth $12.42 million,” Mr Tony Roumanous said.

“This is what the spring selling season looks like now,” said the veteran agent who started in the industry some 41 years ago at age 17.”

Since the lockdown started on June 27 Ray White Bankstown have conducted 46 online auctions for a 94 per cent clearance rate, and had more than 471 registered bidders.

“This is one exciting market and we have been lucky we can still show private inspections," he said.

“There’s still more buyers than sellers and when I look back on the same weeks in 2019 and 2020, transaction volume and prices are up quite dramatically.

“In July 2019 we completed eight sales and our average price was $773,000, in July 2020 we did 24 and the average price was $731,000 and in July 2021 we did 43 sales for an average sale price now of $1,003 million. So 18 per cent more sales now and prices are up more than 22 per cent in two years.”

As Melbourne approaches a full month of restrictions not allowing inspections of real estate, the scheduled number of auctions continues to be well under historical levels, despite the huge demand from buyers right across Victoria.

Ray White Victoria and Tasmania Chief Executive Stephen Dullens discussed the work of the industry to support their customers.

“This week it was pleasing to meet with representatives of the Victorian government to discuss the challenges being faced in the real estate sector by our customers. We know of many Victorians with an urgent need to buy, sell or lease property and the opportunity to talk about their challenging circumstances was appreciated.

“This was a productive discussion and we look forward to further working with the state government on the best way to assist our customers, with theirs and the safety of the community top of mind,” Mr Dullens said.

Despite the heavy restrictions, those auctions that did proceed performed extremely well, with Victoria’s largest real estate group recording a preliminary clearance rate of 100 per cent and selling all 12 properties today.

Examples include Ray White Mount Waverley managing director Courtney Matthews launched 32 Wave Avenue just before lockdown number six and was able to take through a few buyers but since then has overseen a number of virtual inspections.

Today he sold the four bedroom house for $1.631 million via an online auction that he conducted at home.

There were 17 registered bidders, all locals from the Mount Waverley area, but only a handful of people were actually able to view the property.

Elsewhere, Ray White Coburg agent Raphael Calik-Houston labelled the auction of 1/33 Hare St, Fawkner a "cracker", with 10 registered bidders, and five active bidders, among the online audience of eager first home buyers and young couples.

Mr Calik-Houston said lockdown hadn’t dampened buyer demand and the property sold for $637,000.

“The buyers were not all locals, some from surrounding suburbs. We only one week of inspections and the buyer bought it 100 per cent sight unseen.”

Elsewhere, Ray White Ferntree Gully agent Ben Thomas signed up a whopping 19 registered bidders for the virtual auction of 1/4 Magnolia Street, Wantirna which today sold for $730,000.

“We only had virtual inspections during the two weeks campaign and we sold the unit for $80,000 over reserve.”

Meanwhile Bill Gianidis of Ray White Oakleigh today sold 25 Samada St, Notting Hill for $1.305 million to a local investor. Pictured above are the outstanding team at Oakleigh.

“This was a completely virtual campaign. I listed three weeks ago in lockdown and no-one had been through in person but I conducted about 50 virtual inspections with buyers all over Melbourne and even one person in Queensland. The price is amazing and shows how high demand is and buyer competition due to a sheer lack of stock,” Mr Gianidis said.

Ray White Queensland Chief Auctioneer Gavin Croft said the energy and momentum in the sunshine state's auction market was real and with no oversupply in sight was a good feeling.

"This momentum should stay right until the end of the year. Online auction attendees are certainly continuing to grow despite the normality and availability for buyers to be able to attend in Queensland but we are seeing so many buyers bidding and buying from Melbourne in particular," he said.

“We're really noticing how comfortable buyers are online to not only to transact but also to inspect online.

“We continue to see that interstate trend, week in, week out continuing to grow, and Melbourne bidders were a very big part of our registrations throughout last week.

“Affordability has certainly been one of the key drivers, particularly in the sub $1 million market in Brisbane proving popular with a consistent high registered bidder numbers in that category.

“Affordability is going to continue to be one of the key drivers that drives Queensland forward. Last month we fell painstakingly close to 500 auctions state wide, we finished at 486 auctions for August but now as we settle into spring I anticipate we’ll punch right through that number in September as the spring selling season takes off.”

Ray White Paddington star sales agent Judi O’Dea cracked a street record at 26 Thorn St, Red Hill today for her lovely sellers (pictured) who sold their five bedroom double storey home for $2.112 million.

“This is an outstanding result for this area. We had 10 registered bidders and half of them were bidders. The bidding opened at just over $1.8 million and we went on the market at $2.050 million. Two similar groups of buyers battled it out in the end,” Ms O’Dea said.

“The sellers are overjoyed.” They have completed a beautiful renovation and this sale now sees them moving on to their next project in Paddington.

Ray White Wilson Principal and Auctioneer Alistair Macmillian today sold 28 Blackmore St, Windsor for $1.220 million. ]

The small two bedroom cottage attracted a whopping 22 registered bidders and seven of them were active in the event today.

“It’s got to be a record for sure. The majority were locals, mostly young couples. It’s super close to the city, just 3kms.”

Ray White Kawana Waters agent Ryan Bradeley today sold the top sale at 9 Harbour Parade, Buddina for $2.420 million. There were some 19 registered bidders, and 11 of them were active in the exciting auction.

“It was a bit of a mix of local bidders and some from interstate and a local buyer bought it.”

Despite the rain, Ray White South Australia Chief Auctioneer John Morris said the first weekend of spring was pretty much finishing off exactly where winter ended with incredible numbers coming through Ray White South Australia.

“Last week's numbers were 10 registered bidders per auction on average at 91 per cent clearance rate. That's pretty much the same detail this week except bidder numbers have dropped slightly, but I've just come from an auction where we had 17 registered bidders and I'm hearing on the ground there are still lots and lots of bidders out there so I imagine that's going to rise.

“We have 93.6 per cent of all auctions receiving bidding. Another incredible number I like to look at lately is we traditionally hold between three and five per cent of the country's auctions here in South Australia. In the last two weeks, we've held 7.3 per cent and 7.5 percent of all of the auctions throughout Australia. I'm hoping that it can grow and get us past 10 per cent sometime soon.”

Ray White Norwood agent Andrew Baldino today sold 23 John Ave, Tranmere for $946,000 after some 21 registered bidders signed up to buy the home.

“We ran a textbook auction campaign. There were 62 groups through during the campaign and I had 12 confirmed bidders yesterday and another nine turned out today! Which was great. The opening bid was high at $750,000 and in the end a young investor bought the property to start her portfolio.”

“The seller is over the moon. She had lived there for 40 years. And 100 per cent, the auction process creates competitive bidding.”

Jae Curtis of Ray White Henley Beach today sold this huge block of land at 14 Kincaid Rd, Henley Beach for $1.452 million.

Some 25 registered bidders fought it out for the prime land.

“We had a $1 million bid and it went up in $25,000s after that. It’s such a great spot and was bought by a known local developer," he said.

“Henley has always been an auction area and if it was my property I would auction every single day of the week as it’s the only way to create competition in a transparent way.”