The combination of investors coming to market and strong demand from home buyers created the perfect storm for activity at Ray White auctions today.
Australasia’s largest real estate group scheduled 316 auctions on Saturday, recording a preliminary auction day clearance rate of 78.9 per cent.
Ray White recorded an average of 4.2 registered bidders and 3.0 active bidders at its auction this weekend, reflective of agents’ feedback that a lack of stock is driving competition at auctions.
Agent feedback also reported a rise in investors selling their investment properties at auction this weekend. Ray White’s innovative auction data shows just 15 per cent of vendors in Sydney last weekend were investors, which jumped to 30 per cent today. Over the last month some 32 per cent of sellers in Melbourne have been investors selling up.
The top result of the day went to Ray White Collective agent Tom Lyne who sold 76 Crescent Road, Hamilton under the hammer for $5.2 million.
The auction which recorded the most registered bidders was 16 Arunta Crescent, Clarinda which recorded 18 registered bidders and eight active bidders. Marketed by Ray White Burwood agent Kimi Meng, the property sold under the hammer for $1.282 million.
SYDNEY
Ray White NSW state auctioneer Perry Edmondson-Clark said there was strong bidding and clearance rate data from all segments of the Sydney property market today.
“First home buyers and investors were out in force fighting for apartments, and there was also strong activity and confidence from buyers at house auctions,” Mr Edmondson-Clark said.
“We continue to see momentum in the market, snowballing into what we expect will be a phenomenal end to the 2023 auction calendar.”
Sold under the hammer for $2.6 million - $250,000 over reserve
Lead agent: Mark Griffiths - 0422 444 367
Ray White Seaforth
Six registered bidders, five active
Auctioneer: James Kerley, Ray White
The seller had owned and lived in the home for 55 years and was downsizing.
The buyers (pictured L-R Mark Griffiths and buyer) were a family with two kids who bought the home to live in while they built their dream home.
“Bidding started at $2 million with about 33 bids in total,” Mr Griffiths said.
“The market is pretty hot. At that price point it was hotly contested.
“There’s not much stock available, there’s only about 18 properties on the market in Seaforth at the moment, which means there’s even less properties at each price point.”
Sold under the hammer for $2.58 million
Lead agent: Fan Li - 0488 666 860
Ray White Norwest
Two registered bidders and two active
Auctioneer: Perry Edmondson-Clark, Ray White
The buyers (pictured above) were a couple who lived nearby and were upsizing.
“They were attracted to the location as well as the school zone. All the interest we had came from young couples with children who wanted a large house near the CBD,” Mr Li said.
The seller was an investor.
“There have been more investors selling at the moment as interest rates have gone up and rent often can’t cover the mortgage,” Mr Li said.
“We have more properties on the market at the moment with people in similar situations.”
Sold under the hammer for $800,000 - $50,000 over reserve
Lead agent: Matthew Carvalho - 0404 006 744
Ray White Surry Hills
Six registered bidders, six active bidders
Auctioneer: Tim Snell, Ray White
The seller was an investor, while the winning bid went to a first home buyer.
“The good real estate, A-grade properties with good fundamentals are performing well, with some of the other stock buyers being a bit more selective,” Mr Carvalho said.
“There’s definitely more investors selling at the moment, probably due to the rise in interest rates. Investments are always the first thing to go.”
Sold under the hammer for $1.575 million
Lead agent: Emile Corbino - 0416 791 208
Ray White Parramatta Group
Six registered bidders, five active.
Auctioneer: Paul Wright, Ray White
The sellers’ parents built the home 60 years ago, and they were selling the home after their parents passed away.
The buyers were two brothers who are builders and their wives who intend to build on the property.
“The market is still very positive,” Mr Corbino said.
“Land and houses close to Parramatta CBD, schools, and transport are doing very well, which was the case with this property.”
MELBOURNE
Ray White Victoria chief auctioneer Jeremy Tyrrell said auction volumes were ramping up.
“The winter market has a spring in its step as competition heats up and the number of scheduled auctions exceeds 170 for the second consecutive week,” Mr Tyrrell said.
“Buyer demand remains strong as there were more than two active bidders on average across the network, with reports of some auctions seeing bidder numbers in the double digits.
“Auction volume looks set to increase week to week as we move closer to Spring, however, sellers should remain confident off the back of a 69.2 per cent clearance rate for the week.”
Sold under the hammer for $1.111 million - $141,000 over reserve
Lead agent: Matthew George - 0431 632 127
Ray White Ferntree Gully
10 registered bidders, five active
Auctioneer: Jeremy Tyrrell
The sellers (pictured above left with buyers) had owned the home for 26 years and were downsizing and relocating to Druin.
The winning bid went to a young couple buying their first home, they were previously renting in the city.
“Where we are there is a lack of stock which is driving results like this, theres a lot less stock than we would usually see,” Mr George said.
“Whereas in some of the more beachy areas there’s a lot more stock. People are selling their holiday homes.”
Sold under the hammer for $791,000 - $101,000 over reserve
Lead agent - Dom Zampaglione - 0414 453 365
Ray White Gladstone Park
8 bidders
Auctioneer: Malek Younan - 0411 504 016
The sellers (pictured above) were a young family looking to upsize, while the buyer was downsizing from the same suburb.
“Most of the bidders were young families. We had really strong interest in this property,” Mr Younan said.
“Supply is still very low in this area which is driving great results.”
Sold under the hammer for $1.282 million - $432,000 over reserve
Lead agent: Kimi Meng
Ray White Burwood
18 registered bidders, 8 active
The sellers were a couple who were downsizing while the winning bid went to a family who were first home buyers.
“We had a range of buyers including investors, developers and home buyers,” Mr Meng said.
“The vendors were very reasonable with their reserve which attracted a lot of people looking in that price range. The house came with a big block.
“Based on the number of inspections, buyer demand is still strong. We had more than 100 groups through during the four week campaign.”
6/20 Victoria St, Williamstown
Sold under the hammer for $1.108 million - $108,000 over reserve
Lead agent: Joanne Royston - 0402 996 622 (pictured above with auctioneer Dean Stanley)
Ray White Williamstown
Four bidders
Auctioneer: Dean Stanley, Ray White
The buyers were a young family who loved the location as it had views of the beach.
The seller was an investor who lived in the home years ago and the rented it out prior to selling.
“While its sad investors are selling and there’s less rentals on the market, it means more properties are hitting the market," Ms Royston said.
“There’s not a lot of stock on the market at that moment, so this just means there’s more affordable opportunities for buyers.”
BRISBANE
Ray White Queensland chief auctioneer Gavin Croft said listings volumes were on the rise.
“It’s been a fantastic week for auctions with well over 100 auctions scheduled throughout Brisbane this week. Volume has been sitting around 50-60 auctions per week for the last few weeks,” he said.
“We’re seeing the market open up with some more listings, meaning there’s more choice for buyers.
“Buyers will be pleased with the buoyancy and depth of auction listings starting to come through as we work towards spring.
“Even with the increased volume of listings, registered bidders at my auctions today sat at an average of four registered bidders per auction.”
Sold under the hammer for $5.2 million
Lead agent: Tom Lyne
Ray White New Farm
Five registered bidders, two active
Auctioneer: Haesley Cush, Ray White
The sellers built the home a few years ago and were now downsizing. The buyers were a local family looking to live in the home.
“We had strong interest with 120 groups through the home prior to auction,” Mr Lyne said.
“We had interest from local, interstate and even international buyers, with interest coming from a buyer in Portugal.
“It was a turnkey property which was architecturally designed. It has amazing views in an elevated position.
“The market is still really firm. There’s two types of buyers in the market at the moment, those gravitating to turnkey homes, and another level of wealth who are still going towards major renovations and rebuilds.”
855-857 Wynnum Road, Cannon Hill
Sold under the hammer for $1.04 million
Lead agent: Selina McIntyre
Ray White Bulimba
10 registered bidders, six active bidders
Auctioneer: Haesley Cush
The buyer was an investor who plans to rent out the property and then develop. The seller had lived there since he was 12 and is now 95.
“We had a mix of interest but it was mostly developers or land bankers. People were even looking at it for commercial use,” Ms McIntyre said
“It was 864 sqm over two lots. We had a town planning report done which allowed all buyers to understand what they can do with it.
“It’s in a great location for commercial use because it's on Wynnum Road. Across the road there’s an early childhood centre, a massage therapist, cafes, and plenty of other uses surrounding the property.”
ADELAIDE
Ray White South Australia chief auctioneer John Morris (pictured above) said there had been plenty of action in the auction market over the last few weeks.
“If it weren’t for the cold weather in and around Adelaide at the moment, you could be forgiven for thinking it’s spring time in South Australia with the unseasonably high amount of auctions that are going ahead,” Mr Morris said.
“We’re seeing the highest volume of July auctions for a couple of years, which is reflected in our clearance rates which are sitting well into the 80th percentile, with an average of 6.1 registered bidders per auction.
“Over the last couple of weeks 45 per cent of all auctions in and around Adelaide have been flying the yellow flag of Ray White.”
Sold under the hammer for $885,000 - $135,000 over reserve
Lead agent: Bailey Truscott - 0452 267 602
Ray White Gawler East
13 registered bidders, five active
Auctioneer: Ross Whiston, Ray White
The buyers were locals who already owned a property on the same street. They bought the property for their son to rent from them and renovate it back to its former glory.
“It was a very unique property. It was a 4000 sqm block which isn't something you see very often in that suburb.
“It’s very tightly held. The last sale on that street was 1.5 years ago and the sale before that was three years ago.
“The property wasn't in the best condition so there was plenty of opportunity for people to renovate and make it their own.
“Buyers were all attracted to the land size, house size, and location.”
Sold under the hammer for $388,200 - $38,200 over reserve
Lead agent: Lukasz Jaworek - 0455 229 646
Ray White Norwood
Five registered bidders, five active
Auctioneer: John Morris, Ray White
Bidding started at $220,000 with 75 bids placed before the gavel fell. The winning bid went to a first home buyer (pictured above with seller and agent Lukasz Jaworek) who was purchasing the home with the help of a HomeStart grant.
The sellers were a couple of investors who were retiring and didn’t want to worry about the mortgage.
“The majority of interest came from home buyers. It’s an entry level home under that $400,000 budget,” Mr Jaworek said.
“It’s relatively new, modern and low maintenance which is what people are looking for.
“Investors are definitely active sellers at the moment, whereas we’re not seeing as much activity from investors looking to buy.
“Investors who have held onto their homes for a number of years are cashing in while the market is still hot.
“A lot more rentals have come onto the market. About 60 percent of my auctions over the last months have been ex-rentals which investors were selling.”
PERTH
Sold under the hammer for $708,000
Lead agent: Noel Rogers - 0409 300 600
Ray White Applecross
One registered bidder
Auctioneer: Patrick Derrig, Ray White