Rate rise didn’t dampen auction activity

It was a mega weekend for Ray White auctions, with the group scheduling 463 properties to go under the hammer today, up 19.44 per cent on last week.

There was plenty of buyer competition at Ray White auctions today, despite the Reserve Bank of Australia board announcing another rate increase on Tuesday, with the Ray White Group recording an average of 3.7 registered bidders and 2.5 active bidders per auction.

The group recorded a preliminary clearance rate of 72.8 per cent.

The top result of the day went to Ray White Upper North Shore agent Matt Bolin who sold 9 Calbina Rd, Northbridge, under the hammer for $4.7 million. The auction also recorded the highest number of registered bidders for the day, with a whopping 20 bidders registering to compete for the home.

SYDNEY

Ray White NSW state auctioneer Perry Edmondson-Clark said there was plenty of action at Ray White auctions across Sydney today.

“Despite Tuesday's interest rate rise, there were still buyers across all segments of the market today, albeit slightly reduced numbers compared to what we have seen over the last few weeks and months,” Mr Edmondson-Clark said.

“Transactions still happened and great prices were still achieved. There is still an abundance of buyers in the market, ready to buy and settle before Christmas.

“Auction must remain the preferred method of sale as it is a clear indication of the properties of market value.”

9 Calbina Rd, Northbridge

• Sold under the hammer for $4.7 million - $1.2 above reserve

• Lead agent: Matt Bolin - 0417 269 023

• Ray White Upper North Shore

• 20 registered bidders, four active.

The home had been in the sellers’ family for 23 years. The winning bid went to a young local couple.

“Most of the buyers were young families moving from apartments and looking for their long-term family home,” Mr Bolin said.

“Just two traffic lights from the city, now people are going back into the office suburbs like Northbridge have become really attractive. That 6-7 minute bus ride to the city makes these suburbs really appealing.

“Our numbers have been bigger at opens. Homes rated an 8/10 or higher are getting really good numbers through the open homes.

“If they’re in a good location and close to transport and schools, have good light, and no big trees they are doing really well.

“Properties on sloping blocks, with lots of trees and not centrally located aren't doing as well.”

72 Camden Street, Newtown

• Sold under the hammer for $3.8 million

• Lead agent: Shaun Stoker - 0424 172 217

• Ray White Surry Hills

• Two registered bidders, two active

The winning bid went to a young local lady.

“The sellers were builders who bought a double fronted house, knocked it down, got a DA and built two brand new homes. Their plan was to keep one and sell one,” Mr Stoker said.

“It was so well appointed with fantastic finishes and a really good layout. It’s rare in the Newtown area to get four bedrooms and a lock-up garage.

“I’ve found the market up until $2 million is strong, the two-bedroom terrace market. Over $2 million there's still quality buyers but there’s not 4-5 buyers competing, there’s usually one or two.”

55 Alexandra Avenue, Westmead

• Sold under the hammer for $2.1 million

• Lead agent: Steven Fan - 0411 885 168

• Ray White Parramatta

• 19 registered bidders, six active

A family owned the home for 56 years and originally built it (sellers pictured above with agent Steven Fan).

“We had 120 buyers inspect the home throughout the campaign, with 36 contracts sent out,” Mr Fan said.

“The buyer was an investor who saw it for the first time today.

“It’s very close to the CBD and the train station, but there’s talk about rezoning with the State Government which generated some interest.

“Most buyers were families and owner occupiers, there weren't too many investors looking but the winning bid went to an investor in the end.”

128 Ingham Ave, Five Dock

• Sold under the hammer for $2.96 million

• Lead agent: Fiona Hellams - 0419 264 474

• Ray White Inner West Group

• Six registered bidders, five active

The winning bid went to a local family who were upsizing. The owners had lived there for 20 years and were making a lifestyle change to suit their older children.

Ms Hellams said all interested buyers were younger families looking to upsize.

“The market is defying all odds at the moment,” she said.

“With what's happening with interest rates it's still very buoyant, especially those kinds of places where people have some equity and are upgrading.

“For a while people were very hesitant to move but they’re starting to get back into it.”

MELBOURNE

Ray White Victoria chief auctioneer Jeremy Tyrrell said with all the main events in spring out of the way, it was now full steam ahead to the festive season, which is just over 40 days away.

“Following Melbourne Cup week, where the Reserve Bank announced a further increase to the cash rate, auction volume surged this week with 225 auctions scheduled, a 36 percent increase from the previous week,” Mr Tyrrell said.

“Despite any concerns the interest rate hike may have had on the real estate market, buyer activity remained strong with the clearance rate continuing to track above 70 per cent at 71.4 per cent.

“With many forces continuing to place pressure on the real estate sector (interest rates, cost of living, rental constraints), population growth continues to stimulate clearance rates as demand remains strong.”

15 Boston Rd, Bundoora

• Sold under the hammer for $1.056 million

• Lead agent/auctioneer: Andrew Mizzi - 0410 304 000

• Ray White Bundoora

• Five registered bidders, three active

Bidding opened at $850,000 with the winning bid going to a young couple upgrading from a unit.

“The seller moved down from Sydney and bought it from me five years ago for $920,000.

“She’s now got two children and decided she needed something bigger.

“Anything in that $1 million to $1.1 million mark sells really well in our area, so I wasn’t surprised we were able to achieve such a great result.”

18 Minerva Cres, Vermont South

• Sold under the hammer for $1.68 million - $260,000 over reserve

• Lead agent: Li Morris - 0402 148 988

• Ray White Glen Waverley

• 10 bidders, seven active

The buyer was a local who will move in with her parents.

“We helped the sellers find a larger home which is why they are selling,” Ms Morris said.

“They said if they could get $1.5 million they would be ecstatic, so they are over the moon with the result, they couldn’t believe it.

“We had a huge amount of interest, with over 168 groups through the open homes prior to auction,

“It was very well maintained, with three bedrooms plus a study.”

3 Deanswood Court, Cheltenham

• Sold under the hammer for $1.102 million

• Lead agent/auctioneer: Kevin Chokshi - 0430 195 517

• Ray White Cheltenham

• Two active bidders

Mr Chokshi said bidding started at $900,000 on a vendor bid.

“It was purchased by a couple of first home buyers. Interest was mostly FHB and some downsizers,” Mr Chokshi said.

“The seller was downsizing to another property in Cheltenham.

“There’s been a little bit of fear from buyers with the interest rate increase but the people who are buying are aware of the financial climate and have factored the rises in.

“The consensus from most buyers is that these interest rates are temporary.”

103 Bridgewater Way, Rowville

• Sold under the hammer for $1.027 million - $197,000 over reserve

• Lead agent/auctioneer: Blayze Fatchen - 0408 387 164

• Ray White Ferntree Gully

• Eight registered bidders

The property had been in the sellers’ family for 38, with eight siblings selling the home after their mother sadly passed away.

“The winning bid went to a young couple who plan to move into the home, they saw it for the first time on Thursday.

“We had 95 groups through the open homes prior to auction.

“People were attracted to how neat and tidy the property was. It was unrenovated but it was really neat and you could move straight in.

“Also the gardens caught a lot of people’s eye. There were beautiful gardens where everyone commented on home much care must have gone into them.”

BRISBANE

Ray White Queensland chief auctioneer Gavin Croft said the interest rate rise announced earlier this week hadn’t dampened the spirit of buyers across south east Queensland.

“I have had six out of six auctions sell so far today, with an average of six registered bidders per auction,” Mr Croft said.

“I think some buyers are a little more cautious, but those who are bidding are bidding hard to secure a property, especially with the current lack of supply still in place across the Brisbane market.”

29 Canberra Drive, Ashgrove

• Sold under the hammer for $2.42 million

• Lead agent: Tamara Lee - 0421 767 034

• Ray White Ashgrove

• Six registered bidders, four active

• Auctioneer: Adam Downes, Ray White

“The buyers were a local couple with three kids who lived in the area but had grown out of their home so were upsizing,” Ms Lee said.

“The seller bought the home in 1997 so she’s staying local and moving to a smaller house in Ashgrove.

“We had a lot of interest from avid gardeners because the gardens were beautiful, and a lot of local families.”

126 Gracemere St, Grange

• Sold under the hammer for $1.621 million

• Lead agent: Alistair Macmillan - 0410 636 221

• Ray White Wilston

• Eight registered bidders, three active

• Auctioneer: Phil Parker, Ray White

Bidding opened at $1 million, and eventually sold to a young couple who were looking for a long term home. Mr Macmillan said they intend on doing a renovation in years to come.

“This was the first time the home has ever come to market,” he said.

“It’s been in the same family since it was built in 1926. The seller is 94 and watched the auction live online.

“There’s been no adverse impact from the rate on Tuesday, open home numbers were stronger today than they were last week.

“Buyers right now are confident interest rates have peaked and that there should be some sort of respite next year.”

54 Main Avenue, Wilston

• Sold under the hammer for $1.325 million

• Lead agent: Andy Flanagan - 0412 318 086

• Ray White Ascot

• Six registered bidders, four active

• Auctioneer: Phil Parker, Ray White

ADELAIDE

Ray White South Australia chief auctioneer John Morris (pictured above) said there were 163 auctions scheduled across South Australia this week, 64 of those being Ray White auctions.

“The clearance rate has been in excess of 80 per cent, with 25 out of 28 of my own auctions this month selling under the hammer,” Mr Morris said.

“Bidder numbers remain strong, just shy of seven bidders per auction, with the percentage of those increasing at around four active per auction.

“Auction remains the preferred method of sale, with days on market sitting at 21 for auction versus 36 for private treaty, and sellers receiving premiums more than 11 per cent higher than the highest offer received prior to auction.”