Rates rise hasn't deterred buyers

Buyers were not deterred by another interest rate rise, as a short supply of houses on the market drove fierce competition from bidders at Ray White auctions today.

Australasia’s largest real estate group scheduled 339 properties to go under the hammer today, recording a preliminary auction day clearance rate of 76.6 per cent.

Bidder numbers at auctions reflected the state of supply and demand, with Ray White recording an average of 4.9 registered bidders and 3,2 active bidders per auction.

The top sale of the day went to 15 Eastgate Ave, East Killara which sold under the hammer for $4.41 million, a great result for Ray White Upper North Shore agent Jessica Cao and her sellers.

The highest number of bidders recorded at auctions today was 19 bidders two different auctions, 94 Chifley Street, Smithfield, NSW, and 31A Wingate Street, Greenacres, SA.

The property at 94 Chifley Street, Smithfield, NSW, was listed by Ray White Wetherill Park agent Mario Piredda and sold for $1.115 million. The property at 1A Wingate Street, Greenacres, SA, was listed by Ray White Prospect agent Stefan Siciliano and sold for $900,000.

Ray White NSW chief auctioneer Alex Pattaro said it was a great first week of May.

“Despite an interest rate rise during the week it didn’t seem to deter buyers from competing at auctions,” he said.

“We are seeing higher than average open home attendees resulting In a strong average bidder number.

“The market conditions make it a great time to sell and sellers should have no fear coming to the market.”

15 Eastgate Ave, East Killara

• Sold under the hammer for $4.41 million

• Lead agent: Jessica Cao - 0466 877 260

• Ray White Upper North Shore

• Nine registered bidders, five active

The buyers were a young family who were upsizing, while the sellers (pictured above) were a couple downsizing.

The property sold for a street record.

“It's a big block of land, a family home with a really good feel. It’s a lovely warm home which has been well loved,” Ms Cao said.

“It’s a great location within a good school catchment.

“It was a nice open living space with views, it had a lot going on.”

43 Prospect St, Erskineville

• Sold under the hammer for $1.416 – $116,000 over reserve

• Lead agent: Shaun Stoker - 0424 172 217

• Ray White Surry Hills

• 10 registered bidders, four active

• Auctioneer James Keenan, Ray White

The property had been in the family for three generations, with one of its inhabitants including a professional boxer named Young Fargo, who fought in 262 fights.

“Almost all the bidders were builders, but the highest bidder was an investor who saw it for the first time on Thursday night and is going to do it up and rent it out,” Mr Stoker said.

“It was in a really good location right next to Erskineville village. Erskinville was voted one of the best suburbs in New South Wales and has received a lot of demand since then.

“Plus the property had a lot of potential to add value.”

Ray White Victoria chief auctioneer Jeremy Tyrrell said Melbourne's wet weather didn't dampen buyer interest, with reports of strong crowds across the 161 scheduled auctions for the Ray White network in Melbourne.

“Despite the latest cash rate announcement from the Reserve Bank, the preliminary clearance rate remained strong at 76.3 per cent, with 3.2 active bidders on average across all auctions,” Mr Tyrrell said.

“This is the second consecutive week this year where active bidder numbers have exceeded three on average, indicating there is an increase in demand.

“With a decline in property listings, plus growing migration numbers and a highly competitive rental market, the real estate market is remaining relatively buoyant amidst growing competition amongst buyers.”

24 McLean Ave, Bentleigh

• Sold under the hammer for $1.67 million - $280,000 over reserve

• Lead agent: Genevieve Hill - 0423 094 639

• Ray White Patterson Lakes

• Five registered bidders, four active

The winning bid went to a local couple who are going to knock down and rebuild. The seller had owned the property for 44 years.

“It was a great result, the vendor was in shock,” Ms Hill said.

“The location was a big raw card, it attracted a lot of buyers. The market is fantastic and we’ve had great numbers through every open home. This seems to be a very active market place and interest rates don't seem to have affected it.”

19 Murumba Downs, Oakleigh South

• Sold under the hammer for $1.565 million - $115,000 over reserve

• Lead agent - Leigh Kelepouris - 0422 283 480

• Ray White Oakleigh

• Eight registered bidders, four active

• Auctioneer: Robert Cincotta, Ray White

“The winning bid went to a family (pictured above with agent James Rasool and the sellers) who migrated from New Zealand and have been renting just around the corner,” Mr Kelepouris said.

“The sellers were a couple who bought the home a few years ago to downsize, but they ended up doing a major renovation to the property and are now moving to be closer to their family on the peninsula.

“Today the market has been quite healthy with homes selling quite well. Homes that are renovated are selling exceptionally well but homes that aren't are a bit slower but still moving.”

2/34 Linacre Drive, Bundoora

• Sold under the hammer for $550,000 - sold for $50,000 over reserve

• Lead agent: Daniel Nardella - 0423 488 822

• Ray White Mill Park

• 12 registered bidders, seven active.

The winning bid went to a first home buyer who lived in a nearby suburb. The sellers were a young family who were upsizing.

“The property had been fully renovated so the presentation was faultless. The vendor is an interior designer," Mr Nardella said.

“The location was elite as well with just a couple of minutes walk to all the amenities.”

Ray White Queensland chief auctioneer Gavin Croft said despite another rate increase from the Reserve Bank of Australia, it hadn’t dampened energy around auctions.

“Helping this is lower listing volumes right across the state but, in a noticeable trend, auction volumes are now on the rise,” Mr Croft said.

“At Ray White Queensland we conducted 470 auctions across April, and early signs are we’ll be smashing through 600 in May.

“Part of the current demand continues to see strong buyer appetite to secure property prior to auction. I had 19 properties scheduled to go to auction today, and 11 of them sold prior to auction. We’re seeing more and more of this desire to secure a property prior to auction.

“I sense things are starting to change with more stock starting to come through, but we have a very healthy auction space here in Queensland.”

96 Towers St, Ascot

• Sold under the hammer for $4.3 million

• Lead agent: Damon Warat - 0413 200 063

• Ray White Ascot

• Eight registered bidders, three active

• Auctioneer: Phil Parker, Ray White

The winning bid went to a family who were relocating from interstate. The seller was a developer who had just finished the brand new home.

“Bidding kicked off at $3.3 million, with two buyers battling it out until the end,” Mr Warat said.

“It sold for $4.3 million which is a record for a two-level home in Ascot on 400sqm.

“It was an exceptional layout and an exceptional finish. It was brand new and was created perfectly for the market.”

14/108 Macquarie St, St Lucia

• Sold under the hammer for $1.21 million

• Lead agent: Robin McIlwain - 0411 530 870

• Ray White Toowong

• 16 registered bidders, seven active

While the majority of bidders were first home buyers and young couples, the winning bid went to a mother and daughter from Tasmania who intend to renovate the home for the mother to live in.

“Bidders were attracted to its size, it’s 175 sqm in a building of only 15 apartments,” Ms Mcilwain said.

Iit was the top floor and the buyers specifically wanted a penthouse. It has lock up accommodation for three cars.

“It’s also quite rare to get north facing Brisbane river frontage.”

18 Archibald St, West End

• Sold under the hammer for $2.23 million

• Lead agent: Luke Croft - 0411 847 001

• Ray White South Brisbane

• Six registered bidders, four active bidders

Two side by side blocks went under the hammer in West End today, and while 18 Archibald Street sold under the hammer, the neighbouring property at 16 Archibald Street passed in.

According to Mr Croft, the major difference was 18 Archibald Street was a post-war building which could be knocked down and redeveloped, while 16 Archibald Street could not be demolished as it was pre-war.

“18 Archibald was purchased by a local family who wanted to knock down and build a new home. He was an architect,” Mr Croft said.

“It had been in the sellers' (pictured above) family for over 70 years.

“The market has improved over the last four weeks. Low number of stock and lack of available properties is fuelling that. There’s a lot of good buyers currently out in the market.

“This property, being post-war, presented a rare opportunity in West End because you could demolish it and rebuild.”

Ray White South Australia chief auctioneer John Morris said it was a huge week for auctions.

“The weather is horrible and wet, but the auctions are on fire,” Mr Morris said.

“Last week we closed with an 81 per cent clearance with average registered bidders close to nine. This week is looking similar with average registered bidders at my auctions in excess of 10.

“While it’s King Charles’ coronation today, the crown for auction should go on the Adelaide auction market for its high clearance rates and bidder numbers, recording 35 per cent auction market share across the state.”

15 Cohen Ct, Clovelly Park

• Sold under the hammer for $717,500 - $147,500 over reserve

• Lead agent Reece Pilgrim - 0437 776 409

• Ray White Norwood

• 13 registered bidders, seven active

• Auctioneer: Sam Grover, Ray White

The buyers (pictured above) were a couple of first home buyers, while the sellers were investors who had owned the home for quite some time and had been renting it out.

“It’s in a good spot on a nice quiet street,” Mr Pilgrim said.

“It’s in the price bracket where a lot of people’s affordability still lies.

“Most of our bidders were first home buyers with a couple of investors in the mix.”

15A Rugby Street, Dover Gardens

• Sold under the hammer for $605,000 - $30,000 over reserve

• Lead agent: Chris Daley - 0422 465 689

• Ray White Glenelg

• Six registered bidders, four active.

Bidders were made up of both first home buyers and investors.

“The winning bid went to a first home buyer (pictured above) who had been looking for over a year,” Mr Daley said.

“Buyers were attracted to the location in Dover Gardens which is a growth suburb, it’s opposite an idyllic park, near the shopping centre and near the beach.

“It’s also on a good sized block for a courtyard home.”

1 Market Street, Kensington

• Sold under the hammer for $1.05 million

• Lead agent: Vicki Rizo - 0487 244 089

• Ray White South Perth

• Four registered bidders, four active

• Auctioneer: Mark Whiteman, Ray White

The buyers (pictured above) were a family relocating from Willetton, while the sellers were a couple who bought a property with their daughter for a tree change.

“They were attracted to the location, it's a great area,” Ms Rizo said.

“Also the character of the home. It’s a good size with city views.

“The market has been good, things sell quickly and there’s still lots of demand. I think buyers are a bit more hesitant but we’re still getting lots of people through open homes.”