Auction

Results from our 23rd September Auction

Our 23 September auction portfolio resulted in very positive bidding and buyer action and, demonstrated a continuation of the auction activity which our vendors have enjoyed over past weeks.   Pakuranga, Sunnyhills, Farm Cove, Bucklands Beach, Highland Park, Mellons Bay and Cockle Bay were represented in the portfolio.   There was a particularly large attendance to the Headsail room of the Bucklands Beach Yacht Club, the home of Ray White Auctions, including people who had registered buying interest, those who had expressed conditional buying interest and those who came along to see what is selling and for what price, to give an idea of what is happening very currently in the real estate market.

The evening began extremely well with the ‘under the hammer’ sale of 119 Aviemore Drive, selling after some 31 bids for $883,000.  37 Glenfern Road followed, again selling ‘under the hammer’ after some 15 bids, for $1,320,000.  5 Wheatley Avenue was the next to sell ‘under the hammer’ after some 20 bids, for $831,000.

7 Browns Avenue was certainly the bidding highlight of the evening selling ‘under the hammer’ after massive bidding competition, some 61 bids in all, at $1,370,000.  2/304 Pakuranga Road followed and sold ‘under the hammer’ at $660,000.

While the auction portfolio was progressing, 16 Beaconview Rise concluded a sale to the highest bidder at $2,250,000.

So, after three weeks of marketing these were highly pleasing and positive results for our vendors.  However, it should also be acknowledged that buyers were able to secure quality properties. The results are a confidence in the current real estate market, as well as a confidence in the quality real estate options that we enjoy in our Eastern Beaches area.

We continue to work with other identified buying interest for the balance of the portfolio. There are always various reasons why potential buyers cannot meet the terms of an Auction For Sale and Purchase Agreement, which is a totally unconditional agreement.  However, we try to work with these potential buyers to attract the best conditional sale for our vendor clients.

The goal of our Auction Marketing Programmes is provide our vendor clients with an unconditional sale or, after three weeks of marketing, there is a base to work with conditional buying interest if unconditional buying interest is not achieved, at or immediately post auction.

Our vendor clients are certainly listing quality properties.  This offers buyers quality buying options, as well as an opportunity to evaluate these options with our ability to give prospective buyers direct access to a highly experienced, award winning team of mortgage advisors, who have access to a variety of lending institutions and their very favourable mortgage conditions.

I continue to emphasise that we consider we are achieving extremely good price results for our vendor clients within a much defined marketing period, acknowledging that our challenge always is to meet vendor price expectations with buyer price expectations.  As with all sales, there needs to be a ‘win/ win’ on both sides – vendors need to be satisfied that the price achieved is the best the market for that item will allow and, buyers need to be satisfied that they have achieved ‘buyer value’.

As a foot note, I keep an eye on Australian trends through reports published by Williams Media, which this week  reported:  ‘Despite an increase in auction activity, CoreLogic warns volumes still remain lower than from the same time last year where 400 more properties went to auction, although half of these failed to sell.

Agents and auctioneers are expecting to see increasing numbers throughout the rest of Spring, with the exception of the long weekend, which always experiences lower levels of activity.  Auctioneers such as Damien Cooley and Lachlan MacDonald of Cooley Auctions are seeing heightened activity from the weekend auctions, with properties they have sold surpassing written reserves.

There were 1,022 Melbourne homes taken to auction this week, 77.8 per cent of which returned a successful result, up on the 74.5 per cent final auction clearance last week when volumes were lower (826).  One year ago, 53.8 per cent of the 1,161 Melbourne homes taken to auction cleared.

Justin Nickerson of Apollo Auctions said South East Queensland remained steady last week.

“This was highlighted by a handful of high end sales above the 4 million mark, with those auctions returning a surprisingly strong depth of registered bidder numbers,” said Mr Nickerson.’

Ken Ralph

Auction Services Manager