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A WAVE of buyer confidence swept over the nation's auctions today with a lack of stock continuing to underpin hot contests across Australia. The Ray White Group - the largest auction house in Australasia - had 455 auctions scheduled this week, and 255 on Saturday alone.
The group's data shows its auction day clearance rate was sitting at 77 per cent nationally late on Saturday - with its Sydney network the standout of the leading group at a preliminary early clearance of 83 per cent, and 81 per cent in Melbourne. Average registered bidders was a solid 4.6 per cent today per auction.
More than 4000 people attended a Ray White auction today, capping off a huge week where already more than 10,000 attended an auction within the White family-owned and led network.
The biggest crowds were reported in Adelaide today where each of its 15 auctions had more than 67 people in attendance, according to Chief Auctioneer John Morris. "It’s the last day of winter and the sun is out and so are the bidders," Mr Morris said.
Ray White NSW CEO Jason Andrew was busy on the tools today calling the auction action at multiple properties. Mr Andrew was at 50 Beach St, Coogee for agent Nadar Hotait of Ray White Maroubra | South Coogee, which sold under the hammer for $2.492 million in front of a large crowd in the backyard.
“There were four registered bidders - all locals from in the same street or nearby - who were all attracted to the location and opportunity to build up to maximise the iconic view,” Mr Andrew said of the house which sold for 12 per cent above its original expectations.
“The Ray White NSW auction team has a lot of auctions out in front of us in September and October. The time to go is now as the buyers are back.”
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Ray White NSW Chief Auctioneer Alex Pattaro said there were packed crowds at auctions and opens for inspections across the harbour city today, which bodes well for “an incredible Spring”.
“The last few weeks have laid the platform for what we believe will be an incredible Spring, with high numbers of active bidders and strong clearances. We believe Spring is shaping up to be a true cracker. The Ray White NSW team alone has 150 auctions scheduled for September and it’s proof that more stock is trickling into the market.”
The top auction sale of the week was an epic battle over this grand Palm Beach classic sandstone cottage at 153 Pacific Road which Ray White Prestige (Palm Beach) principal Noel Nicholson sold for $7.670 million on Thursday night in Mosman.
The two horse race, in the end, was won by an eastern suburbs buyer who paid $2 million over reserve. Mr Nicholson ran a textbook auction campaign - with print media booked in all the local and national publications and more than 110 people attending his opens for inspections. The buyers were all from Upper North Shore and the eastern suburbs.
There were five registered bidders, three of them were active and the estate was over the moon with the outcome.
“To get so many people through during the campaign is unheard of in Palm Beach,” Mr Nicholson said.
“There are few Palm Beach estates that can rival Seabell for its premier position, privacy and distinguished pedigree. It’s been in the same family for more than 100 years. It was built when one had the choice of the finest settings on the peninsula and spanning 2,072sqm the house boasts a splendid northeast aspect with iconic Palm Beach views from the Lighthouse to Kiddies Corner.”
An example of the speed of the Sydney market was evident at this three bedroom luxury unit in one of Sydney's most prized architectural gems which just sold for $5,165,000 - some $415,000 over its reserve - after a fierce battle among four active bidders on Thursday night.
Inner city apartment specialist Francis Fusco of Ray White CBD Residential said buyers were attracted to the visionary design and unparalleled architectural masterwork of Renzo Piano's Macquarie Apartments.
The 198sqm apartment at 49/155 Macquarie St, CBD enjoys a lobby shared with only one other apartment with breathtaking views of Sydney adjacent the Royal Botanical Gardens, and in walking distance to the State Library and NSW Parliament House and Circular Quay.
Auctioneer Jason Andrew took the opening bid of $4 million from one of the five registered bidders and it moved quickly up to its final price of $5,165,000.
“There was strong competitive bidding right to the end and it’s a pure demonstration of how the auction method can extract the best price for vendors.”
The pace of the market has risen dramatically in the last few weeks in Sydney. This two bedroom Centennial Park unit at 49/155 Macquarie St sold on Friday night for a street and block record for $882,000, prior to it’s scheduled auction date of today.
Agent Andrew Cary of Ray White Paddington (NSW) said buyers who had missed out on previous sales at auction were more determined than ever right now to secure properties if possible before game day.
“The convenience of a sale prior worked well for both parties as they both lived out of Sydney,” said Mr Cary who had more than 60 groups inspecting the property during the campaign and more than 10 contracts were requested.
“The interested buyers were from all over, but the main interested parties were a neighbour, an ex-pat and country buyer looking for a city base.” The tightly-held building was refurbished about 10 years ago, and it’s one of the best presented buildings on the street and it’s close to both Paddington and Woollahra.
“Funnily enough the building is the only company title on the street and this was not a factor in deterring buyers due the building condition and management,” he said.
The $882,000 price was $122,000 above the record set last year in the building, plus it’s also a street record for a two bedroom apartment under 60sqm and a street record for a company title.
“The auction method worked perfectly to create a sense of urgency for all buyers to have competed their due diligence enabling strong competition and bidding a day before the auction date. The vendor took all of my advice during the campaign and opted to remove the tenants and professionally style the property. This provided me the opportunity to show buyers privately when needed and resulted in the successful purchaser buying the property who was unable to inspect the property during the planned inspections.”
Ray White Ermington Director Adam Stephens (pictured above) ran a short but textbook auction campaign at 11 Coffey St, Ermington which resulted in a great result for his vendors who he has known for more than 10 years since he sold it to them.
There were nine registered bidders, all locals, who were interested in owning the original three bedroom brick home for its sweeping views of the Harbour Bridge together with the full city skyline, Parramatta River and Olympic Stadium.
The house sold for $1.28 million under the auctioneer’s hammer and the winning buyer plans to build his family’s dream home there. Mr Stephens ran a 2.5 week campaign and had more than 64 groups through and he issued 11 contracts prior.
“It was a great result in front of more than 100 people in the yard and of the nine registered bidders, and six of them were active,” Mr Stephens said of the auction which opened at $1 million, and moved up in $50,000s and then $25,000s increments.
“There’s definitely a vibrancy about the market,” he said. “The price achieved is not far off what we were seeing at the height of the peak. My vendors are very satisfied with the outcome and it’s a fair representation of the true value of their home.”
“A result like this today will expand the market’s belief that now is the time to sell, and with me. A lot of people won’t have seen an auction like what we saw today in more than 18 months.”
But it was in Bonnyrigg that attracted the Ray White Group’s highest number of registered bidders so far today when 17 people came out to have a crack at the modest three bedroom brick and tile home at 11 Hasluck Road, which was sold by Ray White Wetherill Park sales agent Mathew Bell today for $642,000, $97,000 over reserve.
The crowd of just over 50 people watched on as auctioneer James Kerley took the opening bid of $550,000 and as the bidding jumped straight to $600,000, which knocked out most of the would-be bidders.
The auction ended up moving in $1000 increments in the end between two bidders and the eventual buyer was delighted with the result and he will move in soon after selling his home in Liverpool.
The owners, investors from Lithgow, had owned their long term rental property since 2001.
“They are over the moon with the result, in fact, the wife was speechless at the end,” Mr Bell said.
“The biggest thing at the moment is the lack of properties for sale. There’s only one other house in Bonnyrigg for sale that hasn’t been there for more than 60 days. If you run an auction campaign in this climate it will work. It all comes down to presentation and price - that is my gospel for real estate.”
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Ray White Victoria and Tasmania Chief Auctioneer Matt Condon said this week had seen a large spike in the volume of auctions across Melbourne.
“It’s been an exceptional end to winter, with preliminary data from Ray White Victoria showing high levels of auction bidders and healthy crowd sizes. On the ground, you can really feel the confidence and strength in the market.”
Ray White Werribee Director Domenic Belfiore sold the five bedroom home at 64 Marion St, Altona North for his vendors who had lived there since they were married some 55 years ago.
“My vendors are a lovely couple who are downsizing so it was the first time offered in 55 years. I had some 82 inspections during the four week campaign and my vendors really wanted to go to auction,” said Mr Belfiore who was the auctioneer too.
The property sold for $1.050 million today, which was $260,000 over its reserve.
“We had 10 buyers who turned up and the first bid was at $750,00 and five bidders pushed it to $900,000 and then two bidders battled it out to $1.050 million," he said.
“My vendors are over the moon. If a property is priced well now, it will sell. We had four auctions today in my office and sold three. Opens for inspections are busy but stock remains tight. We are booking a lot of auctions for October 5th after Grand Final weekend.”
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In Brisbane, Ray White Paddington (QLD) agent Judi O’Dea’s buyer of 8 Bee St, Bardon was on her way home to Spain, and she was quite distraught that she couldn’t attend the Saturday morning auction.
“She’s an Australian expat living in Spain and she was on her way home and got to Singapore and turned around and came back so she could bid at the auction,” said Ms O’Dea, pictured here with associate Michael Kleimeyer and her sellers and buyer.
The classic colonial three bedroom home on over 900sqm sold for $1.396 million and there were nine registered bidders in the hunt today looking to secure this prime opportunity.
Meanwhile, in inner city Albion, Ray White Ascot agent aka 'Mr Auction' Ian Cuneo and sales associate Andy Flanagan had 12 registered bidders vie for this cute cottage at 17 Camden St which eventually sold for $865,000 to a Sydney buyer who will move up to be closer to family.
“It was a great auction. Albion has always done well but I think some people overlook it but it’s so close to the city. We took 80 groups through during the campaign and it was popular from the get go,” Mr Flanagan said.
“Everyone was active in the auction. Auctioneer Phil Parker took the opening bid of $550,000 and it went from there up to $865,000.”
In Adelaide today, Ray White Norwood agent Stefan Siciliano said there were 16 registered bidders at 14 Oakdale Dr, Gillies Plains which sold for $577,000 in front of a crowd of 50 people.
The agent home was built by Weeks Peacock in 1998 and with contemporary upgrades, this fantastic family four bedroom home was very sought after by families.
“The seller gave the buyer a $5 note to cover the developer’s original incumbrance of 10c per year in the area to keep the house to a certain standard," he said.
"I wasn’t expecting so many registered bidders but we had 55 groups through during the three week campaign and they were all mainly young families looking to upsize so close to the CBD.”
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