Suburb record drives buyer confidence in online auctions

THE AFL and NRL may be suspended but that hasn't stopped Ray White agents and auctioneers from kicking goals across the country today as strong sales and a new suburb record headlined a day where bidders and buyers showed real confidence in the 'new normal' of online auctions.

The leading auction house booked a preliminary under the hammer clearance rate of 45 per cent across the country today but the campaign clearance number climbed to a healthy 54.2 per cent once all the sold priors were accounted for in this week’s tally.

Ray White Group Managing Director Dan White said auction numbers compared to last year were down but there were plenty of reasons to be positive.

"What is well up on last year, is the number of average registered bidders per auction, increasing from 2.5 to 3.9 for each auction today," Mr White said.

"There has been a tremendous consistency in genuine buyer interest right across the Australian metropolitan markets both before and during the pandemic.

"The key message from our auctioneers is, those registering, are genuine and are actively bidding.

"We're already seeing bidding activity and confidence increase as agents and the community become more familiar with online auctions."

Ray White NSW Chief Auctioneer Alex Pattaro said the day had seen some excellent results and there was a sense of growing positivity around online auctions.

"There has been a real shift in sentiment this week as buyers and vendors get accustomed to the 'new world' of online auctions - and it's pleasing to see our clients feeling more comfortable than ever with the platforms we use," Mr Pattaro said.

"Agents, auctioneers, vendors and buyers have adapted to this new way of buying property and the feedback we're seeing is overwhelmingly positive. Some are genuinely enjoying the ability to be able to bid and buy from the comfort of home.

"The really important thing is agents are still following the same process as if it was an on-site auction - and they're keeping that emotional connection with their clients throughout the auction with constant communication.

"Registered bidder numbers are strong, sitting at an average of nearly four per auction and just over two are participating in an auction on average. That highlights the competitive nature of auctions is just as strong as ever before."

And that competition was clear at the preliminary biggest under the hammer sale of the day, as Ray White Surry Hills Director Teresa Natoli and Sales Executive James Natoli managed the $1,185,000 sale of 23/15-17 Fountain Street (pictured above) in Alexandria, $85,000 over reserve.

“This one was an excellent auction with five of the six registered bidders battling it out to the tune of more than 60 bids as the final sale price smashed its reserve,” Ms Natoli said.

“We had more than 40 people through the private inspections in what was just a three-week campaign and you can really feel online auctions gaining traction now.

“People are adjusting to the ‘new world’ quickly, and when it produces results like these, it gives future vendors even more confidence that it’s a successful way to go.

“The market itself is still producing quite well, so we’ve decided to stick to our process as if it was an on-site auction, I can say with confidence this is our best online auction yet.”

Online auction competition continued as Ray White Bankstown Sales Consultant Anthony Roumanous orchestrated the $1,010,500 sale of 13 Leonard Street (pictured above) with competition between the four registered bidders pushing the price $90,500 over the reserve.

“Due to current restrictions we’re really seeing high-quality buyers coming through the door with a genuine interest in bidding for and buying the property,” Mr Roumanous said.

“We had four registered bidders today and all of them were active. What we’re seeing is a number of people who are finance-ready looking to buy before that approval expires.

“The online auction platform has been terrific and our clients have adapted really well to the platform. Our process, minus physical interaction, really hasn’t changed much at all.

“Auction is the best way to be selling a property right now and the winning bidder was successful with a $500 bid - so it just goes to show it doesn’t matter how far ahead you are in the end.”

The team at Ray White Punchbowl then joined the party as Sales Agent John Yatman successfully sold 14 Sunny Crescent (pictured above) under the hammer for $960,000.

“I actually love the ‘new normal’ of online auctions - it’s pretty easy and seamless - and the vendors are really receptive to our innovative platform,” Mr Yatman said.

“Everything is almost the same, just minus the physical aspect, but the key is you get to keep that emotional connection between bidders, agents and vendors.

“What we have seen is the quality of buyer increase because although less people are coming through the private inspections - the ones that are - are genuinely interested.

“So it’s all about making the most of the enquiries you do get and offering those potential buyers the best possible service to attract them to a private inspection.”

And the day wouldn't have been complete without arguably the cheapest property available in Sydney, as 4 Bluff Street in Green Valley that was managed by Ray White Wetherill Park Sales Executive Matthew Bell, sold for $573,500 - $43,5000 over the reserve.

“We launched this property the week before restrictions came in and once we moved into private inspections - it really streamlined the bidders who were genuinely interested,” Mr Bell said.

“The success is down to the strength of our team in numbers because not only can the bidders watch the auctioneer, they have a direct line to an agent to place their bid smoothly.

“At the beginning there were some unknowns but I can really feel vendors and potential vendors becoming really comfortable with this ‘new world’ of online auctions.

“In the first week of online auctions I invited today’s vendors to sit in and watch the process and from there they were comfortable to proceed and it was a terrific result for them.”

Ray White Victoria and Tasmania Chief Auctioneer Matt Condon said it had been a successful week when it came to online auctions.

"It's great to see confidence in the Victorian property market remains but it's even more pleasing to see the newfound confidence of purchasing properties via online auction," Mr Condon said.

"Our preliminary data is showing us an increase in both the number of registered bidders and number of active bidders on average this week, which is really great to see.

"Buyers are now bringing their bidding strategies online. We're seeing auctions starting nice and high, with buyers bidding back and forth against their competition."

And that competition was one of many factors as 65B Lebanon Crescent (pictured above) in Mulgrave, managed by Ray White Glen Waverley Partner Marc Lum and Area Manager Ryan Zhu, smashed the suburb townhouse record after selling for $1,146,000.

"The previous record price for a townhouse in Mulgrave was $1,000,000 at the height of the market back in 2017 - so to beat that by $146,000 in a market that is said to be uncertain during this health pandemic - is quite remarkable," Mr Lum said.

"We love the online auction platform and our office actually sold six out of nine properties under the hammer today - we can clearly see emotional bidding is still there online.

"The eventual winning bidder didn't actually bid until the property was declared on the market and then it was a real tug of war between her and the under-bidder.

"Our marketing for the property was also well-received as we created a 10-minute long in-depth video that made you feel like you were there actually inspecting the property."

And the Victorian success continued in Doncaster where Ray White Glen Waverley Area Managers Nicholas Richards and Rachel Ye managed the $605,000 sale of 4/719 Elgar Road - a whopping $115,000 over reserve.

“We’re really starting to see vendors get used to the ‘new normal’ of online auctions - and like anything new - the more you do it the better it seems to be,” Mr Richards said.

“Everyone is logged in individually on the day and there is someone assigned to each bidder - so there’s a constant stream of two-way communication during the auction.

“This result is the perfect example of why auction is the best method of sale in any climate. The highest offer received prior was $500,000, so the vendor is quite rightly delighted.

“The auction itself attracted a whopping 42 bids and the lucky buyers were a young couple who had been renting locally and wanted to stay in the area.”

Not to be outdone, Ray White Frankston Sales Agents Brooke Wegener and Dion St Laurent joined the success, selling 68 Lawson Avenue (pictured above) in Frankston South for $715,000.

"This was my very first online auction and honestly, I just followed the exact same process I would if it was an on-site auction campaign," Ms Wegener said.

"The real positive is that I've had a few potential buyers reach out to me and ask if they can sit in on an online auction to understand the process.

"Interestingly, the couple from Melbourne who bought the home, have never once been to see the property so that goes to show buyers are getting comfortable with buying sites unseen.

"The online auction platform should be seen as an opportunity because it's a great way to showcase our auction processes to prospective clients in the comfort of their own home."

Ray White QLD Chief Auctioneer Mitch Peereboom said agents, buyers and sellers were adapting to, and embracing the online auction system.

"We're seeing a number of properties that are transacting through the platform and buyers are certainly willing to compete unconditionally," Mr Peereboom said.

"That great thing is sellers get to watch the auction and that allows them to make informed decisions and as agents we can continue to conduct the process as we always have.

"What's really encouraging is that a number of properties that are coming to market are still choosing auction as the method of sale and these are poised to produce some great results."

And a great result is what we saw at 196 Mooloolaba Road (pictured above) as Ray White Buderim Sales and Marketing Consultant Dan Smith and Sales Associate Jake Loiero sold the property for $820,000.

"The property actually went live to the market the day before the restrictions came in - but we decided to stay the course and we got a positive result," Mr Smith said.

"We're seeing a lot of genuine buyers coming through the private inspections and we're dealing with people now who are motivated to bid and buy.

"The online auction process is good and we've really been able to streamline our process over the last couple of weeks with some good practice.

"Stock is still coming to market and our auction success rates have been strong with this 'new normal' way of buying property."

Success was something that was also felt over in Hamilton, where Ray White Ascot Sales and Marketing Consultant Oliver J. Jonker sold 7/72 Markwell Street (pictured above), for $495,000.

"This was a fantastic result for our vendor, given the over-supply of apartments in Hamilton, so to attract five registered bidders was a real achievement," Mr Jonker said.

"Potential sellers who are sat on the fence should be getting off and listing now because there is a huge amount of buyer enquiry coming through.

"Two of the registered bidders only came through for the first time last night and the fact a third of the people who inspected registered means there was real interest in this one.

"The only reason it sold as well as it did was because of the competitive environment that online auctions creates between bidders."