Results from our 10 June Auction

We are certainly detecting more positive real estate activity from buyers. They are benefiting from our vendor clients who are listing quality properties and thereby, 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 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 10 June 2019 portfolio comprised properties in Pakuranga, Farm Cove, Half Moon Bay, Cockle Bay and Beachlands. 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.

Four of the six properties attracted bidding interest with two of the properties attracting conditional buying interest. Highlights of the evening were ‘under the hammer’ sales of:

  • 20 Trelawn Place after some 12 bids, at $1,270,000
  • 84 Beachlands Road, at $965,000

At the time of writing this report, 2 Jack Place is subject to a multi offer presentation this evening. We continue to work with buyers who placed bids at auction and the remaining conditional interest properties. Therefore, after three weeks of marketing, it was a pleasing result.

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: ‘CoreLogic market commentator Kevin Brogan told Williams Media the combined preliminary clearance rate for the capital cities showed the volatility within the market snapshot. “Brisbane had one of the busiest weeks they have had in a while, having not been affected by the long weekend,” he said.’

‘REINSW President Leanne Pilkington said the auction market was now free to build some momentum going forward. “With buyers showing more interest since the election and our first interest rate reduction in about 3 years the struggle for the market is to access properties to sell,” she said. “Agents on the ground are hopeful with the various disruptions of holidays and elections now behind us, sellers will return to the market.”

‘Ray White Victoria and Tasmania Chief Auctioneer Matt Condon said the long weekend had seen lower auction numbers in Victoria, but not a decrease in interest. “On average we’ve seen exceptional attendance numbers at both open homes and at auctions,” he said. “We also continue to see strong confidence in the market from buyers. This is evident from the number of active bidders at each auction.”’

Ken Ralph
Auction Services Manager