Auction

Results from our 2nd September Auction

Before I report on this week’s portfolio, I would like to review last week, 26 August 2019.  I reported the ‘under the hammer’ sale of  1/9 Tina Place in Sunnyhills, as well as the bidding activity for 7 Yacht Place which attracted a very pleasing seven bidding registrations, with bidding finishing at $1,600,000  and, with further negotiations in a multi offer presentation.  Within a day of my report being published, those negotiations concluded with an unconditional sale for our vendors above the final bid price.  A very satisfactory and favourable result for all contributing parties.

I can also report that 94A Clovelly Road sold, post auction.   Therefore, three of the four properties within that portfolio have sold.

The month of September started on a decidedly positive and confident note.  The 2 September 2019 portfolio comprised four properties located within Sunnyhills, Mellons Bay, Howick and Botany Town Centre.

As with previous weeks there was a very pleasing attendance at the Headsail room of the Bucklands Beach Yacht Club, the home of Ray White Auctions.  This 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.

Highlights included three extremely agreeable ‘under the hammer’ sales for:

  • 75 Glenmore Road, selling at $1,150,000
  • 1/70 Uxbridge Road, selling at $1,130,000
  • 29/ 21 Armoy Drive, selling at $572,000

The fourth property was 15 Baird Street and we are working with buyers investigating redevelopment options.

All in all, after three weeks of marketing it was a highly positive result of three unconditional sales from the four property portfolio.

As stated in my last two reports, 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.

September ushers in the start of the ‘spring months’ and what will be a continuation of the positive buyer activity that we have been experiencing during recent months.  Our vendor clients are certainly listing quality properties.  This gives buyers quality buying options as well as an opportunity to evaluate these options through our ability to offer direct access to an extremely 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 with headlines:  ‘Buyers continue to be out in force during the final weeks of winter, with the latest preliminary results from CoreLogic indicating the capital city clearance rate for the week ending August 25 could surpass the previous week’s mark.  Data from CoreLogic indicated a preliminary clearance rate of the highest in two years.

Sydney recorded a preliminary clearance rate of 84.7 per cent across 500 auctions this week, the highest preliminary clearance rate the city has seen since February 2017.  REINSW President Leanne Pilkington said while there had been an increase in volume, it was “nowhere near enough” to satisfy current demand.  “Last week’s open home attendances were up 42 per cent, clearly demonstrating that buyers are back in the market,” she said.  “We just need some sellers to join them.”

In Melbourne REIV CEO Gil King said the institute’s clearance rate of 81 per cent was the highest since the last week of April 2017.’

Ken Ralph

Auction Services Manager