Results from our 24th June Auction

As I have reported over the past two weeks, we have certainly detected more positive real estate activity from buyers. They are benefiting from our vendor clients listing quality properties and thereby, giving buyers quality buying options, along with an opportunity to evaluate these options with favourable mortgage conditions and, a more stable real estate market.

This week’s auction demonstrated an extremely favourable level of activity. We identified bidding interest in all but two of the properties with strong conditional interest in the remaining properties within the portfolio. The goal of our Auction Marketing Programme is to provide our vendor clients with an unconditional sale. However, positive real estate activity will also identify conditional buying interest and sales, post auction.

The 24 June 2019 portfolio comprised properties in Pakuranga, Howick, Golflands, Botany Downs and Cockle Bay. 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.

The highlights of the evening were the ‘under the hammer’ sale of 1/17 Solana Court at $910,000 and both 19 Bradbury Road and 5 Grassways Avenue each being sold ‘unconditionally’ post auction, after further negotiations with the highest bidders.

Congratulations to both the listing sales people and the selling sales people who worked professionally to keep the unconditional interest ‘alive’.

At the time of writing this report 11 San Luis Place, 2/25 Udys Road and 36 Selwyn Road are all under negotiation, some in a multi offer presentation. Post auction, we continue to work with buyers who placed bids at auction and the remaining conditional interest properties. Thus, after three weeks of marketing it was an extremely 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’.

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 the headline: ‘Melbourne leads capital clearance rates as city continues strong June performance. Melbourne was the standout in last week’s auction results, with agents attributing proactive bidding to an under supply in the market. Melbourne has been the pick of the major markets in auction results for the week ending June 23, with the city’s final clearance rate likely to be its highest since May last year.

Auctioneer Harry Li from iSell Group told WILLIAMS MEDIA an under supply of property had made buyers more proactive in the Victorian market. “We haven’t really experienced increased confidence from the seller’s side yet,” he said. “In the coming months, we hope sellers start activating and moving on with their plans.”

Ray White Victoria and Tasmania Chief Auctioneer Matt Condon said winter was proving to be a great time to sell property.’

Ken Ralph
Auction Services Manager