Auction

Results from our 7 October Auction

As announced in our 30 September report, we are experiencing very positive and encouraging real estate activity.

On 6 October 2019, 2 Lorenzo Way was sold ‘under the hammer’ after 11 competitive bids, for $1,180,000.

The 7 October 2019 auction portfolio included properties within Farm Cove, Half Moon Bay, Mellons Bay, Howick, Cockle Bay and Dannemora.  The Headsail room of the Bucklands Beach Yacht Club, the home of Ray White Auctions, once again attracted a very pleasing number of people including those 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 started with 1/1 Paparoa Road, which was brought forward from its’ 14 October auction date due to a pre-auction offer which was accepted by our vendors, subject to the property being submitted to auction on the earlier date.  It sold ‘under the hammer’ for $1,000.000
  • 30A Baird Street followed, again selling ‘under the hammer’ after some 12 bids, for $875,000
  • Next was 9 Venus Place, which sold ‘under the hammer’ after 7 bids for $1,200,000
  • 46 Keppoch Court was another property which attracted a lot of attention, selling ‘under the hammer’ after some 22, very competitive bids, at $1,655,000
  • 261A Bleakhouse Road sold immediately post auction to the highest bidder

So, after three weeks of marketing, we have very positive results for both our vendors and also for the buyers who have either purchased, or are still negotiating to secure quality properties.

We continue to work with the 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 client vendors.

10 October 2019, 28 Cherrywood Crescent was brought forward from its 14 October auction date, due to a pre-auction offer which was accepted by our vendors, subject to the property being submitted to auction on the earlier date.  It sold ‘under the hammer’ for $1,200,000.

10 October 2019, later in the day, as a result of being asked to market 43 Cambridge Road in Riverhead, we witnessed competitive bidding from 5 buyer registrations.  After some 17 bids, it sold ‘under the hammer’ for $879,000.

Our vendor clients are certainly listing quality properties.  This gives buyers quality buying options, as well as an opportunity to evaluate the 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.

As indicated in our recent reports, the results we are achieving demonstrate a confidence in the current real estate market and, a confidence in the quality real estate options that we enjoy in our Eastern Beaches area, particularly as we move through the now remaining ten, effective transaction weeks for 2019.

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:  ‘While there has been an increase in houses taken to auction from last week, preliminary results show a dive in the clearance rate.  As the remaining results are collected, it’s likely that the final clearance rate will revise below 70 per cent for the first time since mid-August.

REIV CEO Gil King said “Regional Victoria had a higher clearance rate compared to Metro Melbourne.”

With the NRL grand final on this weekend, auction volumes across Sydney dropped with just 316 homes taken to auction across the city.  Preliminary results show a clearance rate of 79.8 per cent across the 233 results collected so far.  Over the previous week, final results show 74.5 per cent of the 950 auctions were successful making it the busiest week the city has seen since November last year.

Justin Nickerson of Apollo Auctions said “South East Queensland had a strong weekend, bouncing back to a clearance rate well in excess of 50 per cent.  Also positive was the growth in average registered bidders, which was slightly offset by a dip in the active bidding percentage.”’

Ken Ralph

Auction Services Manager