Results from our 29th July Auction

The 29 July portfolio comprised three properties which reflect both the mid-winter listing activity, as well as the comment/quote I included in last week’s report from Williams Media in Australia:

‘Ray White Victoria/Tasmania Chief Auctioneer Matthew Condon commented, “Stock levels remain quite low.  Winter 2019 is proving to be a great time to be selling a property and that’s reflected in the strong clearance rates we’ve seen today,” Mr Condon said.

You should also note at the conclusion of this report, the comments this week from Sydney:

“The winter months are typically slower for the Sydney market however we are seeing vendors rewarded for selling now as competition continues to increase week on week.”

The more limited portfolio still attracted a pleasing attendance to the Headsail room of the Bucklands Beach Yacht Club, the home of Ray White Auctions.  It included 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.

We had identified bidding registrations for one of the properties.  The remaining two attracted conditional buying interest from those who were unable to meet the unconditional terms of the Auction For Sale and Purchase Agreement.

88A Uxbridge Road sold under the hammer at $1,340,000, with the strong result reflecting buyer interest in this very appealingly designed and presented home within the Howick Village precinct – quite a ‘standout’ home.  The buyer interest and sale result was also due to our Company policy of cooperating with other company buyer introductions to ensure maximum buyer interest for our vendors.

We had identified conditional buying interest v. buyers who were able to meet the terms of the Auction For Sale and Purchase Agreement for 72 Nelson Street, with conditional buyers in attendance at auction time.   Immediate negotiations commenced post auction, which concluded with an offer for vendor consideration.   Subsequently, at the time of writing this report, additional buying interest has resulted in further offers which will be presented to the vendors in a multi offer presentation.

Likewise, 189A Gills Road attracted conditional buyer interest and we continue to work with those parties.   As a result of the marketing feedback over the past three weeks, the vendors have been able to encourage continued interest by placing an extremely “buyer value” listed price.

Wednesday 31 July

2/45 Drake Street was auctioned ahead of its scheduled auction date due to a pre-auction offer which was accepted, subject to the property proceeding to auction at the earlier date.

The bidding was opened at the pre-auction offer of $800,000 and, after 10 competitive bids, sold under the hammer at $821,000.

So, after three weeks of marketing, extremely pleasing results which underline my comments over recent weeks on positive buyer activity.

During the mid-winter months new listings, in some years, can be more limited as vendors wait for the brighter spring months.  However, as we have demonstrated again in recent weeks, there is very good buyer activity as buyers readily recognise that when quality properties are offered For Sale, the time of year is of no consequence.  Well marketed properties will sell each and every month of the year.

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 from CoreLogic:  ‘volumes remain lower each week compared to last year.  Looking at results across the individual property types, the last four weeks have seen the unit market come in with a higher final clearance rate each week relative to the number of houses sold.

The two largest auction markets, Melbourne and Sydney, saw their preliminary clearance rates rise this week; with both cities seeing an increase in volumes over the week.  Ray White New South Wales Chief Auctioneer Alex Pattaro said there had been a spike in confidence from first home buyers and investors this weekend, typically in areas where infrastructure was nearing completion.  “The winter months are typically slower for the Sydney market however we are seeing vendors rewarded for selling now as competition continues to increase week on week.”’

Ken Ralph

Auction Services Manager