Auction

Results from our 5th June Auction

As we reported last week, our sales people are detecting more positive real estate activity from buyers. This may be following the sentiments noted in my ‘foot note’ last week from the Sydney and Melbourne market places, where there has seemed to be more positivity since their General Elections.

Our vendor clients are certainly listing quality properties, giving buyers’ quality buying options, as well as an opportunity to evaluate these options with favourable mortgage conditions and, a more stable real estate market. The goal of our Auction Marketing Programme is to provide our vendor clients with an unconditional sale. However, we require real estate activity to achieve unconditional sales, as well as activity which gives a momentum opportunity to attract offers and conditional sales post auction.

The 5 June 2019 portfolio comprised properties in Pakuranga, Half Moon Bay, Howick, Cockle Bay, Burswood and Dannemora. As always, the Headsail room of the Bucklands Beach Yacht Club, the home of Ray White Auctions, enjoyed a pleasing attendance. 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, giving them an idea of what is happening very currently in the real estate market.

Highlights of the evening were the ‘under the hammer’ sales of:

  • 18 Davington Way selling after some 20 bids at $907,000
  • 2 Mulroy Place after an exciting 26 bids at $1,402,000
  • 46B Rodney attracted 10 positive bids at $875,000
  • 10 Vincent Street after a positive buying attitude from bidder at $1,370,000
  • 93 Udys Road attracted 11 bids and at the time of writing this report, negotiations continue to close the sale for our vendors.
  • 25 Heron Place also attracted bidding interest and negotiations are again continuing.

Therefore, after three weeks of marketing it was a pleasing result and we continue to work with identified buyer interest for all of the properties that require sale confirmation.
So there is good buyer activity but, with an acknowledgement that buyers are still generally conservative/cautious. Nevertheless, we consider that we are achieving very 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’.

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, as stated above, we try to work with these potential buyers to attract the best conditional sale for our client vendors.

It is also important to note that some vendors are not always able to accept buyer expectations of price for various reasons. Be that as it may, auction marketing is a very positive way of testing the market in a defined space of time to determine if the buyers’ price will enable them to make the lifestyle/property change they envisage.
As a foot note – I keep an eye on Australian trends through reports published by Williams Media, which this week reported with headlines, ‘Busiest week for auctions since the week ending 24 June 2018 with improved clearance rates particularly in the Sydney and Melbourne market places and particularly the higher priced properties.’

Ken Ralph
Auction Services Manager