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Auction

Auction Report 31 August 2020

As with the previous week, our 31 August portfolio was reduced to two properties being offered for sale, due to the lockdown level 3 restrictions curtailing the number of inspections each day.  Therefore, the balance of the portfolio has been transferred to 7 and 14 September.  The two properties were able to continue to auction as they had sufficient marketing time, prior to the lockdown.

Under level 3 lockdown, we again had to swap the home of Ray White Auctions, the Bucklands Beach Yacht Club, for virtual/on line auctions from our Howick Office training room.

The properties being offered were found in Mellons Bay and Flat Bush.

Vendors, buyers and our sales team were able to participate in the auction via the internet where they were able to view the property being sold.  Bids were received by ‘phone communication to the auctioneer.

Both properties were sold ‘under the hammer’ after competitive bidding.

85 Beach Road in Mellons Bay sold ‘under the hammer’ after some 7 competitive bids from 3 registered bidders, for $1,220,000.

8 Skelligs Drive, Flat Bush also sold ‘under the hammer’ after some 14 competitive bids, for $1,175,000.

So, after over three weeks of marketing, we achieved extremely pleasing, positive and competitive bidding providing great results for our vendors.  However, it must also be acknowledged that the sales provided buyers with an opportunity to buy quality real estate assets knowing that, while having to competitively bid to be the ‘winner’, they were bidding for property which was also the first choice for a number of other buyers.

We look forward to rescheduling the remaining properties during this month of September, so that buyers can fully investigate all conditions of the auction, unconditional, For Sale and Purchase Agreements, particularly at this time, as building inspections can now be carried out immediately.

As a foot note, I keep an eye on Australian trends through reports published by Williams Media.

As with previous weeks, there was little auction activity comment from Sydney and Melbourne due to their continued various ‘Lockdown’ requirements.  However, the following comments were made.

‘This week Core Logic reported the combined capital city preliminary auction clearance rate improved across a higher volume of auctions.  There were 1,163 homes taken to auction over the week, up on the 1,064 the week prior.  The performance across the two largest capital cities remains mixed as Melbourne saw the lowest number of auctions held since May this week, while Sydney recorded the busiest week for auctions since April.

Preliminary results across Melbourne show just under half of the homes taken to auction this week were successful (49.6 per cent), while the other half were reportedly withdrawn.  One year ago, a much higher 768 Melbourne homes were auctioned, recording a final clearance rate of 74.4 per cent.  The high withdrawal rate against an already low number of scheduled auctions, together with such a high proportion of properties selling prior to the auction event rather than under the hammer, implies vendors have become increasingly reluctant to test the market through the lockdown period.

There were 730 Sydney homes taken to auction this week, returning a preliminary auction clearance rate of 74 per cent.  In stark contrast to Melbourne, the number of auctions across Sydney has been consistently trending higher, with this week’s auction volume, at 730, the highest the city has held since April.’

Ken Ralph

Auction Services Manager