Auction Report 9 September 2019

An addition to the 9 September portfolio produced an absolute ‘highlight sale’ – a buyer confidence boost – amongst properties located within Half Moon Bay, Cockle Bay, Flat Bush, Mt Wellington and Papatoetoe.

As with previous weeks, there was a very pleasing attendance to the Headsail room of the Bucklands Beach Yacht Club, the home of Ray White Auctions.  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, to give an idea of what is happening very currently in the real estate market.

17 Rangitoto View Road was the addition to the portfolio, having been brought forward from its’ scheduled 23 September auction date.  This was due to a pre-auction offer which was accepted by our vendors, subject to the property being submitted to auction on the earlier date.

The bidding commenced at the pre-auction offer of $3,118,888 and, after some 15 competitive bids, sold at $3,250,000.

This was a ‘year highlight sale’ as  it demonstrated that our Eastern Beaches area has quality properties comparable with the Eastern and Central Suburbs and, that is recognised by buyers who appreciate the appealing position factors and buying options within our Eastern Beaches area.  Whilst this property certainly deserved special buyer attention, a planned marketing programme and careful management of the listing throughout the marketing period resulted in a very favourable result for our vendors.  It also gave the buyers the opportunity to move to a prestige neighbourhood location.

The sale of 22 Gibbston Crescent has been confirmed to the highest bidder at auction.

We continue to work with 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 vendor clients.

The goal of our Auction Marketing Programme is to provide our vendor clients with an unconditional sale or, after three weeks of marketing there is a base to work with conditional buying interest if unconditional buying interest is not achieved at, or immediately post auction.

September ushers in the start of the ‘Spring months’, typically bringing with it an increase in listing activity and what will be a continuation of the positive buyer activity we have been experiencing during recent months.

Our vendor clients are certainly listing quality properties.  This is giving buyers quality buying options, as well as an opportunity to evaluate these options with our ability to give prospective buyers direct access to an extremely experienced, award winning team of mortgage advisors who have access to a variety of lending institutions and their very favourable mortgage conditions.

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 with headline:  ‘The seasonal impact of Spring may already be starting to show in the national auction market, with the latest results from CoreLogic indicating a rise in volume for the combined capital cities in the week finishing September 1.

The rising clearance rates that have characterised the auction market this winter have softened slightly in the face of more properties being listed across the past week.

Despite the upturn in volume throughout the past week, auctioneer Leon Axford, of Axford Auctions, told WILLIAMS MEDIA demand was still outweighing supply.  “Buyers are competing for quality property,” he said.  “If sellers are thinking of selling their property they are doing themselves a disservice by not investing in a quality marketing campaign and running to auction to give themselves a chance of a phenomenal result.”

Real Estate Institute of New South Wales President Leanne Pilkington said it would be interesting to see whether Spring would usher in the expected influx of listings.  “Auction numbers are still significantly lower than the same time last year, but have been showing a small increase weekly increases,” she said.

Ray White Victoria and Tasmania Chief Auctioneer, Matt Condon, said it had been an exceptional end to winter for the state.  “Preliminary data from Ray White Victoria showed high levels of auction bidders and healthy crowd sizes,” he said.  “On the ground, you can really feel the confidence and strength in the market.”’

Ken Ralph

Auction Services Manager