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This week’s auction data from Australia’s largest real estate group suggests conditions remain a little subdued, although there were some signs of stabilisation following the interest rate increase delivered last Tuesday.
Ray White’s chief economist, Nerida Conisbee, said open home attendance averaged 2.4 attendees per property nationally, down from 3.1 last week and 3.4 a year ago.
“That points to more subdued buyer activity, although it is not surprising given the combination of higher borrowing costs and ongoing pressure on household budgets,” Ms Conisbee said.
Average active bidders held steady at 2.5 nationally, the same as last week, which suggests that while fewer buyers are moving through open homes, the level of competition among those still participating has not deteriorated further.
Auction volumes increased to 827 properties nationally, up from 795 last week, although still slightly below the 849 scheduled a year ago. The national clearance rate also improved modestly to 67.1 per cent, up from 66.4 per cent last week. This suggests the market may have benefited from reduced uncertainty once the rate decision was made, even if broader sentiment remains cautious.
Ms Conisbee said the backdrop was still a challenging one.
“The rate hike has added to affordability pressures, while the ongoing conflict in the Middle East continues to push fuel prices higher and weigh on consumer confidence. Those factors are likely continuing to affect buyer sentiment and helping to explain the softer attendance figures,” she said.
Even so, annual price growth remains strong. National median house prices are 13.2 per cent higher than a year ago, with Brisbane, Adelaide and Perth still recording particularly strong gains. This continues to highlight the role of limited supply in supporting prices, even as buyer activity becomes more restrained.
“Overall, the data points to a market that remains under some pressure, but not one that is weakening sharply. Buyer participation is softer than earlier in the year, however clearance rates and bidder numbers suggest demand is still present. The next few weeks will be important in showing whether confidence begins to recover now that the rate decision is behind us, or whether current headwinds continue to keep activity more subdued.”
The city with the highest clearance rate for the week was Perth, with 100 per cent of auctions selling under the hammer for the week.
The highest sale of the day also came from Perth, where 65 Ullapool Rd, Mount Pleasant sold under the hammer for $4,051,000. The auction attracted 11 registered bidders, with the final winning bidder a local who wanted the largest block possible in Mount Pleasant.
Ray White Cottesloe | Mosman Park agent Noel Rogers said that while today’s result was outstanding, he has seen “a minor shift here in Perth over the last few weeks; buyers are more confident to negotiate, rather than feeling that sheer desperation to get in.”
The auction with the highest number of bidders came from South Australia, with 1 Majestic Ave, Paralowie (pictured above) attracting a huge 20 registered bidders. The property was sold for $992,000 under the hammer, with Ray White Prospect agent John Eglezos running the strong campaign.
SYDNEY
Ray White NSW/ACT head of auctions David McMahon said It was an interesting week across the auction market, with 175 auctions scheduled, an increase on the same period last year.
“However, approximately 40 per cent of these properties were either sold prior to auction or converted to private treaty, highlighting a notable shift in campaign strategies.
“Buyer hesitation continues to be evident. Bidder activity remains around 25 per cent down year-on-year, with an average of 2.7 registered bidders and 1.8 active bidders per auction this week,” Mr McMahon said.
“The most prominent trend emerging is the rise in properties selling prior to auction. This suggests that, despite softer on-site competition, there remains a clear opportunity for vendors to achieve premium outcomes. At the same time, it presents a window for well-prepared, finance-approved buyers to secure property ahead of auction day.”
4 Fleece Cl, St Clair (seller pictured above)
Sold under the hammer for $1.1 million
Three registered bidders, two active
Lead agent: Charlie Stoffers - 0427 302 196
Ray White United Group
Auctioneer: Alex Pattaro, Ray White
Ray White United Group agent Charlie Stoffers said buyer interest was evenly split, with “most of the interest about 50/50 between first home buyers and investors,” and that “the winning bidders were investors.” He added the sellers were staying local, saying they just need a bigger yard for the family.”
“The market is filled with a lot of noise externally with everything happening; rates, conflict overseas, petrol prices,” he said. “Supply and demand is still key, and the owner was upsizing. They acknowledged it might be a bit lower than it had been a few months ago, but they’re also buying at the same price.”
“We sold 135 properties last month for our office alone,” he said. “Upsizing and downsizing still needs to happen.”
“There are more conversations and education around pricing,” he said. “The buyers are a bit hesitant on committing; they are often not prepared to put things under contract; there is a lack of urgency.”
“Auction is great because it puts an end date on it,” he said.
78 Underwood Street, Paddington
Sold under the hammer for $2.48 million
Five registered bidders, two active
Lead agent: Jackson Snell - 0450 917 817
Ray White Centennial Park
Ray White Centennial Park agent Jackson Snell said the winning bidder was a couple from the UK. “They moved to Australia and the parents are here helping out. They are owner occupiers and plan to start a family living in this beautiful home.”
“It was the first time this property has been offered to the market in 75 years; a deceased estate sale. The selling family purchased the property from the church in 1951. The property was passed down through the generations, and they are thrilled with the result, handing it over to a new family.”
“In the last 48 hours, myself and Dean Jarman have sold five properties,” he said. “We are finding that being clear and transparent with the vendors and buyers, and doing a lot of hand holding, instils confidence. We are overcommunicating and being really clear with people.”
5 Colette Place, East Killara (buyers and sellers pictured above)
Sold under the hammer for $2.67 million
Four registered bidders, two active
Lead agent: Jessica Cao - 0466 877 260
Ray White Upper North Shore
8/235 Darlinghurst Rd. Darlinghurst
Sold under the hammer for $877,000
Seven registered bidders, five active
Lead agent: Amber Riethmuller - 0411 437 673
Ray White Touma Taylor
9/235 Darlinghurst Rd, Darlinghurst
Sold under the hammer for $1.2 million
Three registered bidders, all active
Lead agent: Amber Riethmuller - 0411 437 673
Ray White Touma Taylor
Ray White Touma Taylor agent Amber Riethmuller said the two side-by-side units were a deceased estate that had not come to market in decades, with the same owner holding one for 25 years and the other for 15 years, and that “the three nieces of the owner were the benefactors.”
“The interest today was predominantly from owner occupiers; no investors were registered to bid today. Everyone was either a first home buyer or downsizer.”
“Number nine was bought by a downsizer owner occupier, and number eight was bought by a lady in her 30s who was a first home buyer,” she said. “The three nieces who inherited it were absolutely thrilled with the result.”
“Today’s auctions are an indication that the market sub $1.5 million is performing really well,” she said. “Once you push over that price point, things are a little more challenging. First home buyer type properties are performing well; it is propped up by our government.”
“Sellers are nervous and buyers are definitely being a bit conservative with their bidding; you aren’t seeing huge knockout bids anymore,” she said. “With the terrace houses in our market around $2.5-5 million, the buyers here are becoming quite cautious. People are really feeling the global economy.”
MELBOURNE
Ray White Victoria chief auctioneer Luke Banitsitis said the Melbourne market has shown resilience after the interest rate rise this week, with the auction day clearance rate currently sitting at 72 per cent.
“This is a sign that the market is still willing to compete for good property. Average registered bidders sit at 2.2 and active bidders at 2.1, remaining consistent with previous weeks,” Mr Banitsitis said.
“Our auction today in East Melbourne today was a phenomenal auction with seven active bidders for a two bedroom flat, at a drop punt away from the MCG. It sold under a heavy competition with a mix of first homebuyers, investors and downsizers showing that the market still has depth for well marketed and priced property.”
67A Cecil Street, Williamstown (sellers pictured above)
Sold under the hammer for $1.17 million
12 registered bidders, six active
Lead agent/auctioneer: Joanne Royston - 0402 996 622
Ray White Williamstown
Ray White Williamstown agent and auctioneer Joanne Royston said the winning bidder was “a downsizing lady; she was in a bigger home around the corner and is an empty nester. She loves Williamstown, it is just the next street over from her.”
She said there was “a bit of variety of bidders; young couples, downsizers. South Williamstown is very hard to crack into the market,” noting that “professional couples” were active but “no families for this one.”
Ms Royston said the broader market remained active but unpredictable. “We had another auction in West Footscray this morning; a house that needed a reno. We had three active bidders and sold it just over the top of the guide. People are taking building costs into account,” she said.
“I had 10 auctions scheduled for today; we sold four prior, two on the day, and the other four pushed out,” she said. “There is no real rhyme or reason to what is doing well. The four that we have pushed out are all at different price points; it is slightly volatile. As agents, we need to adapt literally weekly at the moment, changing strategy day by day.”
The seller Simon said he and his wife were confident in a good result today, albeit a little nervous with “everything going on in the world over the past few weeks.”
“It was great to see the home go to someone who knows, loves and appreciates the area,” Simon said.
“We had it as an investment for a few years; it was originally my father-in-law's home.”
“We were really confident in Joanne and her recommendation of the auction method; it felt like the campaign went on forever because we were wanting to keep the house beautiful for every open home. I am a big believer in presentation being important. We got the house styled; I would go and do gardening every week and had a lot of pride in the house,” Simon said.
8/35 Powlett St, East Melbourne
Sold under the hammer for $912,000
Seven registered bidders, all active
Lead agent: Toby Campbell - 0409 965 146
Auctioneer: Luke Banitsitis, Ray White
Ray White CRE
Ray White CRE director Toby Campbell said the winning bidder “was a buyer's advocate who bought it on behalf of a client.”
“The property was an investment for the sellers; it has been in the family for 50 years. His grandmother bought it off the plan in the 1970s. Another agent had quoted $650,000 for this place, so you can imagine they are absolutely stoked with the result.”
“Anything under $950,000 is going really well with the first home buyer incentives. I don’t auction absolutely every property, but most properties really benefit from an auction,” he said. “The buzz and excitement and energy; it was palpable.”
“East Melbourne is one of the most prestigious suburbs; right near the city, tree-lined. This suburb is over 50 per cent parkland, which shows how peaceful it is, but still within the buzz,” he said.
9/15 Sunray Ave, Cheltenham (pictured above)
Sold under the hammer for $1,077,000
Two bidders
Lead agent/auctioneer: Angela Limanis - 0414 664 374
Ray White The Bayside Group
Ray White The Bayside Group agent and auctioneer Angela Limanis said both bidders were first home buyers. “Timing was a factor; had people coming in late in the piece but couldn’t bid due to finance or not having sold their place yet.”
“The home has been in the family for three generations since the 1980s; however, the noteworthy part is that the family back then purchased it from Mark Mitchell (Con The Fruiterer from the Comedy Company). The young ones won’t remember him, but anyone growing up in the 80s/90s certainly will!”
“They purchased it from them and are now in Queensland. They went from 300sqm to 35 acres! So it has been a huge tree change for them.”
“I haven’t noticed too much hesitation today; there is good confidence in quality properties,” she said. “You can sense buyers are holding back a little bit, but there doesn’t seem to be too much fuss about rates, etc.”
BRISBANE
Sold under the hammer for $1.38 million
Four registered bidders, three active
Lead agent: Bevin Powell - 0405 650 609
Ray White Annerley
Ray White Annerley agent Bevin Powell said the winning bidder was a local investor. “He was on his way to bid at another property, but he thought he would pop in to this one first. He is still going to try and buy that one too!”
He said the sellers “have lived here and raised their family here. They are retiring and moving to the bayside to be near the water.”
“We had an offer for $1.2 million in the first week, and he is very glad he waited,” Mr Powell said. “We had four bidders today, but a similar property three weeks ago had 15 bidders. It does feel like quite a drastic change, but there are still enough buyers to get the job done.”
ADELAIDE
John Morris, chief auctioneer at Ray White South Australia, said that on election day in South Australia, both voters and property participants are “doing exactly the same thing,” making important decisions.
“There has been a shift in the market for the first time in a long time, with the auction clearance rate sitting at around 70 per cent, a step back from where we were this time last year and the lowest seen in some time.”
According to Mr Morris, this is being driven by changing buyer behaviour, as “people are concerned about energy prices and the uncertainty happening around the world,” leading to bidder numbers softening to around five registered bidders per auction compared to seven or eight previously.
“WIth fewer bidders the social proof isn’t quite as strong, which can make sellers more cautious. As a result, instead of making that immediate decision under the hammer, some are choosing to pause, reassess, and test the market post auction.”
Despite this, Mr Morris stressed that activity is still strong, with bidding occurring at 98 per cent of all auctions and overall volumes rising, with Ray White managing 43 per cent of the 150 auctions scheduled this week.
“Strong results are still achievable; if the seller has the right agent, the right campaign, they will get the right competition,” Mr Morris said. “My own results are holding firm at close to 80 per cent auction day clearance rate.”
Sold under the hammer for $1.095 million
Seven registered bidders, five active
Lead agent: Savvas Eftimiou - 0414 263 428
Ray White Grange
Ray White Grange agent Savvas Eftimiou said the winning bidder was a young first home buyer who lives locally, while the sellers were a young family who had lovingly bought it as their first home too.
“They raise their own three children here, and have now purchased acreage down south and are having a tree change. They are absolutely thrilled with the result,” Mr Eftimiou said.
Reflecting on market conditions, he said “the rate rise this week was a bit of a scare,”
“I noticed it in conversations with buyers, particularly with lots of first home buyers who were more cautious, he said.
“I encourage buyers to be prepared and deal with finances being pre-approved instead of hoping that it doesn’t sell at auction; you have to be in it to win it,” he said.
“Our office is sitting at around a 85-90 per cent clearance rate still, which shows auction is really the best and most transparent way to let it play out on the front lawn.”
52 Bushman Drive, Walkley Heights (pictured above)
Sold under the hammer for $1,647,500 (suburb record)
Eight registered bidders, four active
Lead agent: Jaya Prageeth - 0430 397 878
Ray White Para Hills
Auctioneer: John Morris, Ray White
Sold under the hammer for $992,000
20 registered bidders, eight active
Lead agent: John Eglezos - 0413 835 213
Ray White Prospect
Auctioneer: John Morris, Ray White
PERTH
Ray White Western Australia CEO Mark Whiteman said the increase in interest rates did not seem to deter bidders in Perth today, with all auctions selling under the hammer.
“We note that our agents worked tirelessly to make today's sales, however registered bidder numbers remained strong and trestles bare testimony,” he said.
65 Ullapool Rd, Mount Pleasant (pictured below)
Sold under the hammer for $4,051,000
11 registered bidders, three active
Lead agent: Noel Rogers - 0409 300 600
Ray White Cottesloe Mosman Park
Auctioneer: Patrick Derrig, Ray White
Ray White Cottesloe Mosman Park agent Noel Rogers said the opening bid was $2.5 million, with about 25 bids in total, going up in increments of $100,000 until it got smaller after about $3.6 million. The very last bid was $1,000.
“The winning bidders were a local couple, professionals who are within walking distance of almost all of the property already. They love the area and wanted to be a little closer to the river. They wanted the biggest chunk of land they could find in Mount Pleasant!”
He said the sellers “have moved across the water to the western suburbs to be closer to schools for their kids.”
“We have seen a minor shift here in Perth over the last few weeks; buyers are more confident to negotiate, rather than that sheer desperation to get in,” he said. “Buyers are becoming more sharp and asking for what they want.”
Sold under the hammer for $1.11 million
10 registered bidders, seven active
Lead agent: Cam Keevers - 0408 916 704
Ray White Keevers Group
Auctioneer: Patrick Derrig, Ray White
Sold under the hammer for $875,000
Six registered bidders, three active
Lead agent: Cameron Smart - 0411 598 969
Ray White Canning River
Auctioneer: Mark Whiteman, Ray White
