In many parts of the country sellers have begun to mobilise as prices grow and buyer demand remains high.
Another capital city was added to the list of those permitted to host onsite auctions, with Sydney auctioneers now allowed back on the street with gavel in hand. While some were itching to get back onsite, others continued online but regardless of the method, the day still produced some impressive sales.
Leading agency Ray White recorded an 81 per cent clearance rate across the country while on average 6.7 registered bidders either tuned in or turned up to an auction and 3.5 actively participated by bidding. Auction still seems the way to go, with the group’s data showing that those that went all the way to auction day sold on average 11.61 per cent more than if they had taken the highest offer prior.
Ray White chief economist Nerida Conisbee said the number of active bidders at auction hit a record high of 4.1 in September across Australia.
“The drivers of this are well documented – lots of money, lots of buyers but relatively little on market, particularly in Melbourne and Sydney,” Ms Conisbee said.
“Will this high level of competition continue into the remainder of the year? It is likely that competition will remain elevated from previous years however there are two things that are looking to slow the market.
“The first is that we are heading into a late spring listing boom. As of this week, listings authorities across Ray White were 14 per cent above the same week in 2020. More stock on the market will be a welcome relief for buyers.
“The second is that APRA’s restrictions to finance come into place on November 1. This will reduce borrowing capacity by five per cent on average and is expected to moderate pricing most significantly in suburbs that are popular with first home buyers, as well as those that are more affordable.”
According to Ray White data, the region that has been most hotly contested at auction so far this year has been south-east Brisbane with Mansfield, Wishart and Greenslopes topping the list.
The New South Wales’ central coast also makes an appearance twice with Tascott and Ettalong Beach making the top 10 list.
In Sydney, Ray White New South Wales chief auctioneer Alex Pattaro (pictured above) said the outlook for the last few months of the year was strong.
“With more stock coming to market we feel this is only fuelling a buyer frenzy with plenty of buyers within the market trying to secure their next home,” Mr Pattaro said.
“Buyers are cautious and won’t overpay what is already stretched budgets and require the auction competition for them to pay premium prices on auction day.
“More stock coming to market makes now a great time to be able to buy, sell and settle before Christmas.”
While auctions were allowed back onsite today, Mr Pattaro continued online and streamed the auction of 6/152-153 The Grand Parade, Monterey straight into punter’s living rooms. The choice paid off as 11 registered bidders tuned in. The three bedroom apartment sold for $1.255 million after a successful marketing campaign through Ray White Brighton-Le-Sands | Ramsgate Beach principals Peter Tsekenis and Elia Economou.
Mr Economou said many buyers looking for a seaside lifestyle change have been turning their sights to the Monterey area.
“It’s a highly sought after location, especially those looking for a seachange that’s still close to the city, but stock in the area is very tightly held,” Mr Economou said.
“We’re hoping to see more properties coming onto the market now that restrictions are easing.”
Ray White Drummoyne agent Chris Wilkins also kept his auctions online today. A total of 16 registered bidders tuned into 122 Gipps St, Drummoyne and later 115 Victoria Rd, Gladesville in the afternoon, which came in as the highest national auction sale of the day. Mr Wilkins sold the Drummoyne home for $3.405 million after bidding began at $2.8 million and the property was called on the market at $3.35 million only 10 minutes in. With 15 bids in total, the three bedroom home went to a young family from the area.
Attracting developers and high net-worth buyers, Mr Wilkins’ late afternoon Victoria Road auction ended with a $4.5 million winning bid from a family buyer.
“The market is coming out of COVID like the rest of us, we’ve just celebrated freedom week and the resilience is still there,” Mr Wilkins said.
“Open home attendance has been good, particularly today and I think that buyers are enjoying the extra supply we’re starting to see.
“In the run up to Christmas, I don’t think there can be anymore of a rush than what we have been seeing and I think buyers will continue to buy up until Christmas.
“If you put your home on the market now you will continue to get a great price.”
The Gladesville property went to a young couple for $2.43 million, while Mr Brown’s Hunters Hill listing sold for $2.33 million after a local buyer cast the winning bid.
“The whole area has been incredibly strong and everything we get, we are selling straight away,” Mr Brown said.
“Demand has been strong across all buyer segments, but we’ve mainly been seeing young couples upsizing and looking to do a renovation or build a new home so they can continue growing their family.”
Ray White New South Wales auctioneer James Kerley (pictured above) finished off the day with the new suburb record sale of 7 Elanora Place, Cecil Hills which was marketed by Ray White Wetherill Park selling principal Marcus Biasetto. The palatial, 1,200sqm western Sydney home sold for $3.66 million with seven registered bidders all eager to secure what Mr Biasetto named “The King of the Hill”. The buyers were a family moving from north west Sydney.
(Ray White Victoria and Tasmania chief auctioneer Matthew Condon.)Momentum continues to grow in Melbourne and Victoria with strong results being recorded across the state.
Ray White Victoria and Tasmania CEO Stephen Dullens discussed the impact that pent up demand was having on the real estate market.
“With nearly a month since the return of private inspections in Melbourne and more easing of restrictions only a few weeks away, confidence in the Victorian real estate market continues to grow,” Mr Dullens said.
“Buyers and sellers remain very active with strong online auction numbers this week and in the weeks to come.
Mr Dullens said with confidence increasing, more buyers and sellers are returning to the market.
“In recent weeks. we’ve seen a large increase in new listings coming to market. Despite this, buyer demand continues to significantly outweigh properties available for sale,” he said.
“This is resulting in competitive bidding at auctions driving strong results and high clearance rates.”
Interested buyers weren’t hard to find for Ray White Blackburn agent Allan Smith’s 44 Witchwood Cres, Burwood East auction listing. The online session attracted six bidders with the property eventually selling to a young couple from the inner city for $1.49 million – $340,000 above the starting bid – after being called on the market at $1.485 million.
Mr Smith said Burwood East and Blackburn South have been hot areas for a couple of reasons.
“We have the Burwood Shopping Centre, the light rail and the tram that goes straight past Deakin University and Presbyterian Ladies College all the way through to the Melbourne CBD. There are all the amenities buyers are looking for and fantastic views of Melbourne,” Mr Smith said.
The Ray White Burwood agent has also seen stock levels rising in the past few weeks.
“Everyone is rushing to get their property on the market because of the hiatus over Christmas. Lots of buyers also want to get into something at this time of the year so they can get their children into a new school by February,” he said.
“The other thing is that there’s a bit of a rush because the buyer’s perception is that property prices are just going to keep going up.”
Ray White Preston agent Ian Dempsey welcomed a string of more than 60 interested buyers through 27 Hobbs Cres, Reservoir(private inspection marketing documents pictured above) as soon as one-on-one private inspections returned to Melbourne.
After listing the property just before the sixth lockdown, Mr Dempsey sold the Reservoir home today at a competitive online auction for $1.242 million as a virtual crowd of five registered bidders watched on. The buyer was an investor, however Mr Dempsey said interest was mixed.
“The two strongest bidders were investors but we also had some downsizing couples and young families looking at it,” Mr Dempsey said.
“The land component was good – it had a bungalow, a swimming pool and a reserve behind a large allotment so it was attractive.”
Ray White Rowville agent Nick Strilakos topped the leaderboard for most registered bidders as 36 buyers tuned in to watch his online auction of 2 Ling Drive, Rowville. The five bedroom home sold for $1.5 million as 11 bidders actively bid.
In Brisbane, Ray White chief auctioneer Gavin Croft said it was an incredibly busy 48 hours for Ray White Queensland auctions.
“Starting on Thursday morning we held the Gold Coast auction event at the Sheraton on the Gold Coast where 25 properties were submitted to auction from the Ray White Burleigh Group, Ray White Broadbeach Waters and Ray White Robina, selling 22 from 25,” Mr Croft said.
“Today, we had a really strong outcome for a Graceville home, selling to a buyer from interstate who had not set foot in the property.
“It’s certainly something that we’re seeing a lot. We saw it very much at Thursday’s Gold Coast auction event.
“It’s certainly becoming a theme, where buyers are comfortable enough to be able to acquire and purchase off the back of seeing the property virtually.
“I would suggest that one in every five over the last two weeks has been purchased in that particular fashion.
“And strong clearance rates feel like they’re going to remain from now until the end of the year – there’s good energy.”
One of Graceville’s grand homes went under the hammer today through Ray White Toowong agent Sharon King.
‘Liege’ at 29 Molonga Terrace sold for $2.5 million at a morning auction conducted by Mr Croft and attended by three registered bidders. The 1,214sqm home complete with tennis court and Queenslander features was popular with locals but it was an Adelaide buyer who claimed the keys despite never having stepped foot in the house.
Ms King said she has been inundated with interstate interest for many of her campaigns.
“I have spoken to so many buyers who just want to get up to Queensland and enjoy our lifestyle, these buyers in particular were eager to relocate from Adelaide,” Ms King said.
“The tennis court, land size and space were huge draw cards during the campaign.”
Meanwhile, Ray White Annerley principal Geoff Sellars said the suburb was quickly moving towards the $1 million median price mark off the back of two stellar auction sales today. No. 12 Albert Street(pictured above) went under the hammer to a young couple coming from the northside for $1.085 million while 12 Nalder Street(sold sticker pictured below) sold to first home buyers for $930,000 later in the day.
“There’s no doubt that stock turnover has been quick but there hasn’t really been an increase in on the market listings for us,” Mr Sellars said.
“There are still good numbers of buyers out there but I think some of those aspirational ones are starting to come out of the market.
“But if we have quality numbers at auctions like today where Albert Street attracted 10 bidders and Nalder Street had nine then we’re feeling pretty comfortable.”
In Adelaide, Ray White South Australia chief auctioneer John Morris (pictured above) said South Australia as a whole was truly embracing the auction method as their preferred way to sell.
“There is now about 10 per cent of all properties going to auction whereas in the past this has always been below five per cent,” Mr Morris said.
“Last week, Ray White called 33 per cent of all auctions in South Australia, which was four times more than their nearest competitor.
“This week we’re just shy of 30 per cent but we’re still two and a half times above our nearest competitor and next week that rises, yet again, when we’re calling 64 auctions out of 210.
“This is just the springboard for an absolutely fantastic month to come.”
In Woodville North, Ray White Port Adelaide principal Nick Psarros was busily keeping up with his 12 registered bidders all vying for 31 Fletcher St, Woodville North. In the end, the four bedroom brick home sold under the hammer for $915,000 – $117,000 above reserve to a local family.
Mr Psarros said the auction began at $500,000 and then quickly shot up past the reserve until buyers were bidding in $1,000 lots.
“We’ve broken several price records in the area recently, the market and the demand for homes in Woodville and the surrounding suburbs has been huge,” Mr Psarros said.
“There’s still a lot of buyers around but we are also seeing more stock coming onto the market and with that I think it will balance itself out.”
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