Further price growth expected as prices rise and auctions go above reserve
Throughout September, the topic of discussion led by the Reserve Bank very much centred around a ‘housing bubble’, with their recent bi-annual Financial Stability Review (FSR) mentioning that the composition of housing and mortgage markets is unbalanced and new lending to investors is out of proportion to the rental housing share of national housing stock.
However, analysts and property experts say further price growth can be expected across many capital cities, with Sydney in a prime position to capitalise with predictions of up to a further 10% growth in values over the next 12 months.
Nationally, the spring auction market commenced well and we can expect the next 12 auction weekends to produce several record-breaking ‘Super Saturday’ events across Australia. With buyer numbers, investor demand and bidder registrations over the past four weeks rising (based on average numbers recorded by Auction Services) coupled with a supply shortage across many states, it is untoward to say the market is reaching its peak when property prices are still strengthening.
Auction numbers in October are at healthy levels as a flood of new property enters the market. A ‘Super Saturday’ on October 25 is highly likely based on early indications. Weekends in November are filling at a slightly stronger rate compared to this time last year which will be welcome news for home buyers and sellers. The national auction clearance rate for the month of September was 72%, up 5% on September 2013. Sydney continues to impress with 80%+ clearance rates for eight consecutive weeks leading into October. Other cities such as Adelaide and Melbourne are recording equally impressive clearance rates. The Auction Services team recorded a monthly clearance rate of 82% for September.
In an article published last Saturday in The Daily Telegraph, Co-Director of Auction Services Rocky Bartolotto shared his views on the first ‘Super Saturday’ weekend of Spring. In Sydney the South-West region had the highest number of auctions for the day, followed by the Inner West.
LJ Hooker Granville Sales Manager, Jason Gerban said Granville/Parramatta and surrounding markets continued to achieve strong results in September, with 15-30 groups attending every open. Last Saturday, five auctions were conducted on site with all five selling well above reserve with bidder registrations reaching as high as 28 for one of the homes.
A stand-out result was the auction of a 12-year-old three bedroom townhouse at 1/166-168 The Trongate, Granville following only a three-day marketing campaign as per the vendor’s instructions. Despite such a limited timeframe, both the agency and Auction Services Auctioneer/Director Rob Trovato felt very confident of an exceptional price based on recent sales results and the agency’s large database of suitable buyers. The vendors decided not to sell the property off-market and thereby limit competition, after three days of consecutive opens, the property went to auction and set a new record for three bedroom townhouses in Granville selling for $597,000.
Great results are not only occurring in South-West Sydney – Below are some of our highlights for September.
Auction Services – September highlights
• 10 Reynolds St, Balmain sold for $1.363M –113,000 over reserve by Belle Property Balmain
• 76 Wilga Rd, Concord West sold for $1.507M – $157,000 over reserve by Time Realty Five Dock
• 1 Francis St, Epping sold for $1.325M – $75,000 over reserve by NNW Property
• 3 York St, Gladesville sold for $1.4M – $150,000 over reserve by Little Real Estate
• 5 Cross Road, Longueville sold for $3.005M – $205,000 over reserve by Ray White Lane Cove
• 1 Stanwell Cres, Ashcroft sold for $510,000 – $130,000 over reserve by Raine & Horne Cabramatta
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Rocky Bartolotto is a Director and Chief Auctioneer at Property Auction Services. Property Auction Services guarantee to provide and implement a professional process for our valued clients choosing to sell through auction. With over a decade of experience calling auctions across all Sydney regions, we are confident our auctioneers will provide you with a service that is unrivalled and unique to each individual requests. For more details visit www.auctionservices.net.au. |
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