National auction clearance rate improves on lighter volume

Sydney pulled away from the rest of the country this week, with Ray White’s auction clearance rate jumping to 52.9 per cent in the harbour city. Nationally, the rate edged up to 40.1 per cent across 670 auctions, while Melbourne had a tougher week as their new rules kicked in this week leading to some confusion among buyers and sellers..

Ray White data shows the national clearance rate was 40.1 per cent this week, up from 39.1 per cent last week. There were 670 auctions scheduled nationally across Ray White, with this week’s volume down 22 per cent year on year which has been a consistent theme of the year.

Ray White CEO of Performance and Value Thomas McGlynn said this week’s auction results were another reminder of just how differently conditions were playing out across the country.

“While the national clearance rate improved slightly to 40.1 per cent, Sydney recorded a strong lift to 52.9 per cent and Brisbane improved to 40.8 per cent. Melbourne, on the other hand, experienced a more challenging week. It’s an important reminder that national figures don’t always reflect what’s happening in individual markets, particularly when buyer confidence and activity can vary considerably from one city to another,” Mr McGlynn said.

“What’s encouraging is that buyers are continuing to engage with the market, although we’re seeing them become more considered in their decisions.

“With properties taking longer to sell than they were six  months ago, the quality of the campaign and the ability to engage buyers early have become increasingly important.

“Our data continues to show that auction campaigns are bringing more buyers to properties and achieving stronger clearance rates over time. For sellers, there are still opportunities to achieve good outcomes, but understanding local conditions, setting realistic expectations and having the right strategy from the outset are more important than ever.”

The top sale of the day was in Sydney’s east where 160D Macpherson Street, Bronte
changed hands for the first time in 33 years when Ray White Phillips & Co sales duo David Tyrell and Alexander Phillips sold the home for $12.120 million with 2 active bidders.

Ray White Mt Gravatt recorded the country’s highest registered bidders today when 45 Denton St Wishart sold for $1,031,000 with 14 registered bidders, 6 of them were active, which sales agent James Austin sold under the hammer for his sellers. Ray White Mt Gravatt sold $9.128 million worth of property today, with 8 of all their 14 auctions selling under the hammer.

New South Wales

New South Wales auction clearances have rebounded sharply this week, the strongest in three months.

“Last week was a wobble, and this week buyers came back,” Ray White NSW CEO Tim Snell said.

“Regional NSW and Sydney’s eastern suburbs led the recovery. Registrations rose to an average of 2.5 per auction, up from 1.5 and active bidders lifted from 1.0 to 1.5.”

Open home traffic also strengthened. More than 10,000 people came through 4,777 Ray White inspections across NSW and the ACT. New listings averaged 4.1 attendees per open in their first week, up from 3.6 the week before.

Mr Snell said auction campaigns continued to draw far bigger crowds than private treaty.

“In week one, an auction listing drew 3.6 people per open, against 1.7 for private treaty,” he said.

“Over a full campaign, we meet 30 buyers on an auction by day 45, compared with 13 on private treaty. That’s more than double the buyer pool, and it shows in the results.”

Over the past three months, 61 per cent of Ray White auction listings sold within 45 days, compared with 47 per cent of private treaty listings.

“Auction has held steady over that period, while private treaty has slipped two points,” Mr Snell said.

“By day 60, about three in four auction listings have sold. For private treaty, it’s closer to two in three.”

Homes are taking longer to sell, however. The median time on market was 41 days over the past week, up from 36 days four weeks ago and 30 days six months ago.

“Buyers are taking their time, and vendors need to be patient,” Mr Snell said.

“Auction gives them the best chance of getting a result in this market, because it brings the most buyers to the table in the shortest time.”

160D Macpherson Street, Bronte
Sold under the hammer for $12.120 million (reserve $11.250 million)
3 registered bidders and 2 active bidders
Lead agent: David Tyrrell - 0422 491 435
Ray White Phillips & Co
Auctioneer: Damien Cooley, Cooley Auctions

This Bronte beachfront home called ‘Derwent’ has sold under the hammer today for $12.120 million. It was the first time the property had been offered in more than 33 years.

Local downsizers bought the five-bedroom home at 160D Macpherson Street, ending the vendors’ 33 years of ownership.

Bidding opened at $10 million and rose in $250,000 increments before slowing.

Two of three registered bidders competed, all of them local families.

“All local families loved it, and the family who won the keys today just loved it from the very first open home. We had two people very keen from day one and one bidder registered their interest in the last 24 hours,” Mr Tyrell said.

The north-facing home sits on 553 sqm within a gated enclave and has 180-degree views over Bronte Beach. It features a pavilion-style entertaining terrace, five bedrooms plus a study, a master suite with ensuite and dressing room, and a Jetmaster fireplace. There is a standalone double garage plus off-street parking.

Victoria

Victoria’s first weekend of declared reserves has delivered mixed results. Vendors, buyers and agents are all adjusting to the new auction rules.

“As expected, the first week of declared reserves has created some unpredictability, as vendors and buyers all learn to operate under the new conditions,” Ray White Victoria and Tasmania Chief Auctioneer Luke Banitsiotis said.

“There are certainly buyers out there looking to transact. As they learn the new auction landscape, the next one to two weeks may throw up some data we weren’t expecting.

“Once all parties adjust and fine-tune their processes, we expect the market to stabilise and continue on a similar path to before October.”

7 Minimbah Court, Frankson South
Sold just after the auction for $1,167,500
2 registered bidders, 1 active bidder
Lead agent: Ashley Weston -  0439 101 677
Ray White Frankston
Auctioneer: Luke Banitsiotis, Ray White

A young Seaford family has secured 7 Minimbah Court, Frankston South, for $1,167,500, buying shortly after the home was passed in at auction. Under the new rules, the vendor’s reserve of $1,200,000 had been disclosed a week before auction day.

Bidding opened at $1.07 million, and a vendor bid of $1.1 million followed. The property was passed in to the sole active bidder, and a deal was struck soon after. 

Ray White Frankston lead agent Ashley Weston said the buyers were upgrading into a stronger school zone. Knowing the reserve in advance gave them confidence.

“The buyers liked the transparency of the disclosed reserve. They knew exactly where they stood,” Mr Weston said.

“Having these price conversations a week out is great. Buyers can stop assuming and just come along. Bringing that conversation forward beats waiting for auction day.”

Mr Weston said the changes had made little difference to how his office operated.

“We’re all for price transparency, and we’ve always done the right thing, so not a lot has changed for us,” he said.

The vendors (pictured above) were happy with the result because they needed settlement before Christmas.

Mr Weston has worked in real estate for 20 years and he described current conditions as the toughest he has seen.

“The pace of price reductions is incredible. The GFC, the banking royal commission, even COVID were never this bad,” he said.

“Affordability pressures across the economy, four rate rises, the federal budget changes, and uncertainty about jobs have all compounded at once. People are questioning where things will be in six to 12 months.” Luke Banitsiotis of Ray White was the auctioneer.

114 Rosanna Road, Heidelberg
Sold under the hammer for $1,010,000 
1 registered bidder, 2 active bidders
Lead agent/auctioneer: Nick Petrovski - 0412 838 020
Ray White South Morang

A local couple (pictured above) has bought 114 Rosanna Road, Heidelberg, at auction for $1,010,000. The vendors met the market on the day, accepting a price below their advertised $1.1 million reserve.

Bidding opened at $960,000. Two bidders competed before the hammer fell.

Ray White South Morang lead agent and auctioneer Nick Petrovski said the result was strong given how few buyers came through the home.

“We only had 10 groups through the open homes, so getting two of them bidding was great. That’s 20 per cent of the buyers,” Mr Petrovski said.

“It was a bit slow to start, but auctions work. It’s a good result considering the home is on a busy main road, and the sellers are happy.”

4 Roycroft Close, Glen Waverley
Sold under the hammer for $1.4 million 
3 active bidders
Lead agent: Jack Qi 0451 978 567
Ray White Judd White
Auctioneer: Dexter Prack, Judd White

A young couple has bought 4 Roycroft Close, Glen Waverley, at auction for $1.4 million. They outbid two other parties for the original five-bedroom home.

More than 30 people gathered for the auction. Three bidders competed before the vendors put the property on the market, and the hammer fell at $1.4 million against a disclosed reserve of $1.45 million. The home sits on a 689 sqm block in a quiet court. It offers buyers the option to renovate or rebuild. The buyers plan to move into the home.

35 Vermont Street, Glen Waverley
Sold under the hammer $1,220 million 
4 active bidders
Lead agent/auctioneer: Max Turner - 0434 770 384
Ray White Mount Waverley

A home owned by the same family for around 100 years has sold at auction for $1.22 million. Four bidders competed for 35 Vermont Street, Glen Waverley.

Mr Turner said his vendor’s grandmother originally lived in the home, and the vendor had lived there since the 1950s.

Three families and a developer bid for the 672 sqm block, which backed directly onto a park. The bidding finished $70,000 above the reserve.

The buyer plans to demolish the existing home and build one large residence.

The block has a 16.8 m frontage and a 40.1 m depth. It is zoned for Glen Waverley South Primary and Brentwood Secondary, and is close to Wesley College, Monash University, The Glen, Glen Waverley Station and the Monash Freeway.

Queensland

Ray White Queensland Head of Auctions Tom Gunness said clearance rates across the state stabilised over the last seven days resting at 36.5 per cent up from 25.2 per cent the week prior.

“The signals remain consistent with past weeks where we are seeing active bidding across 80 per cent to 90 per cent of our auctions. Buyers demonstrating a genuine appetite to purchase and vendors either willing to meet the market or continue to sit on the market.

“Our average registered bidders increased over the last seven days to 2.8 buyers per auction. The strength of the Queensland market is closely tied to supply and demand and these bidders numbers are evidence of that. The reality of the new market price is setting in amongst homeowners with more sellers willing to meet the market on auction day.”

8 Westgate Avenue, Springwood
Sold under the hammer for $1.090 million
8 registered bidders, 6 active bidders
Lead agent - Johnson Teo - 0422 804 811
Ray White Springwood and Shailer Park
Auctioneer: Phil Parker, Ray White

A local family has bought 8 Westgate Avenue, Springwood, under the hammer for $1.09 million after six bidders competed at auction.

Eight parties registered to bid, and all of them were local. The buyers are a family from nearby Eight Mile Plains.

Ray White Springwood and Shailer Park lead agent Johnson Teo said it was a very active auction.

“I was literally running around in circles between the buyers,” Mr Teo said.

“This is a good result despite the tough conditions, and the sellers are happy.”

Phil Parker of Ray White was the auctioneer

437 Newnham Road, Upper Mount Gravatt
Sold under the hammer for $770,000
11 registered bidders, 4 active bidders
Lead agent and auctioneer: James Austin - 0425 890 657
Ray White Mt Gravatt

“There was a strong competitive bidding bidding for the Mansfield and Wishart school catchments. Newnham Road was a standout auction with 11 registered and it sold on the wedding anniversary of the deceased sellers. Daughters were the executors and went to Mansfield high where it was auctioned,” Mr Austin said.

South Australia

Ray White South Australia Chief Auctioneer John Morris said many agents appeared to be moving away from auction in the state while Ray White was doing quite the opposite. 

“Last week we conducted over 110 auctions - up a staggering 59.4 per cent on the same time last year and more than 80 per cent attracted bidding with 50 per cent of those selling,” Mr Morris said.

“We continue to dominate the auction landscape while not one of our nearest competitors holds even 4 per cent market share. Incredible numbers and we are 10, 11, 12 times more than our nearest competitors. 

“So the question is - why are so many agents turning their backs on auctions or discouraging their sellers from even considering it? 

“I think it's the fear of looking stupid by standing in front of a crowd and not selling on the day, but our job is not to make ourselves look good on auction day. 
Our job is to achieve the best possible outcome for our seller. And in a declining market, time is money. The longer a property sits unsold, the greater the risk of achieving a lower price. 


“Add to that the certainty of an unconditional contract and the argument for auction becomes even stronger. Within 45 days, over 80% of properties taken to auction have sold compared with just 50 per cent of properties marketed through other methods. 

“We know that auction isn't a guarantee of a sale on the day, but it creates competition, provides a clear deadline, and as the numbers demonstrate, it gives the sellers a significantly greater chance of selling their property sooner rather than later. 


“And in a market where prices are changing day by day, week by week, agents should be focussed less on how they look on auction day and more on how quickly they can deliver a strong result for their vendors.”

53 Harrison Road, Devon Park
Sold under the hammer for $1,361,000
14 registered bidders, 4 active bidders
Lead agent: John Eglezos - 0413 835 213
Ray White Prospect
Auctioneer: John Morris, Ray White