Autumn auction action: Rate cuts and prime properties sees fierce competition for houses

The first weekend of Autumn auctions saw some exceptional prices achieved with the major auction markets of Sydney and Melbourne maintaining an over 70 per cent preliminary clearance rate according to CoreLogic.

Movement, urgency and strong post-auction negotiations are the theme for the first weekend of sales across the country.

New South Wales

A stunning newly built duplex at 10a Palmer Street in South Coogee, Sydney sold for $5.85 million under the hammer.

It’s one of the only high quality luxury duplexes in the area with a commanding view of the glistening Pacific Ocean.

“You just don’t get homes like this in the neighbourhood,” Nader Hotait of Ray White Eastern Beaches said.

“The auction was a sensation. Bidding started at $4.7m and went all the way up to $5.85m with three active bidders,” said Matthew Walker, Mr Hotait’s colleague.

“The vendors built the home themselves and the adjoining duplex which we sold 12 months prior for around $4.8m, so it’s a great result.”

Sydney recorded an early clearance rate of 71.4 per cent across 981 auctions. The preliminary rate was down from 74.4 per cent a week earlier (revised back to 65.3 per cent).

Victoria

While the Melbourne property market still has a hill to climb — more than $50,000 for the median house price before it reaches its 2021 peak, the sentiment in the market this weekend is one of fresh optimism.

According to CoreLogic, 1376 auctions were held across the city which was down slightly from the 1437 auctions a week prior.

Known for quality heritage homes in close proximity to the city, prices in Melbourne’s Albert Park have remained static over recent years.

However, the tide has turned, according to Simon Gowling of Jellis Craig who sold 80 Beaconsfield Parade for $100,000 over the quoted sale price for $4.9m under the hammer.

A single-level Victorian residence of grand proportions, the home had been owned by the same family for 45 years. Boasting not only waterfront proximity it has coveted dual street frontages.

“The market has completely changed in the past week. It’s done a complete backflip!” said Mr Gowling said. “We had four bidders competing.”

Queensland

Brisbane’s property market is setting a blistering pace, with a record-breaking five-day auction campaign at 12 Laura Street, Highgate Hill. Place Estate Agents are calling this one “the fastest auction campaign in Australia”.

This campaign, led by agent Michael Hatzifotis of Place Kangaroo Point and chief auctioneer Peter Burgin, underscores the continued strength of Brisbane’s property market.

The home attracted huge interest, culminating in an intense bidding war with 36 bids from eight registered bidders. In a fiercely competitive showdown, the property ultimately sold for $1.49m — a staggering $90,000 over reserve.

The successful buyers, a local family, were drawn to the home for its sought-after State school catchment, securing a prized spot in the neighbourhood.

Meanwhile, the sellers, who had called the property home for 15 years, were understandably emotional as they passed it on to its new owners.

Despite CoreLogic reporting Brisbane took out the lowest preliminary clearance rate at 55 per cent across 185 auctions, this lightning speed campaign shows demand is still at an all-time high as the city continues to be one of Australia’s most dynamic real estate hotspots.

Western Australia

With WA posting an auction clearance rate of just 25 per cent, the vendors and new owners of a stunning Tuscan estate designed by award-winning architect Philippa Mowbray were both celebrating with champagne.

The grand family home at 36 Watkins Road, Dalkeith comprising five bedrooms, four bathrooms, and a study/theatre room and an entertainer’s kitchen, seamlessly blends a Tuscan feel with the Australian way of life.

Vivien Yap of Ray White Dalkeith/Claremont was able to secure a price of $6.15m, with seven bidders vying for a happy ending to their fairytale.

“The market at the luxury high end is still a little bit slower. Certainly the interest rate announcement has stimulated increased interest and I’m seeing a resurgence in the market,” Ms Yap said.

For vendors who have been biding their time and waiting to bring their property to market, this is music to their ears.

South Australia

A historic Adelaide home, known to locals as The Olive Grove, was still under negotiation after being passed in over the weekend.18 Elizabeth Street, Eastwood was built in 1890 and has two bedrooms, one bath, a coveted laneway access and a pizza oven.

Listing agent Alexandra Green of Harris Real Estate Kent Town described the property as the “perfect blend of history and contemporary”.The current owners operated it as an Airbnb for the past few years due to its perfect position a stone’s throw from the best Adelaide has to offer.

According to CoreLogic, 140 homes were taken to market in Adelaide with a strong 77.9 per cent preliminary clearance rate.

“There is a lot more optimism in the market, especially with first home buyers and families. Things are feeling a little more achievable,” Ms Green said.

“Before the rate cut there was a lot of negative energy. We are seeing a lot more movement now.”

As banks begin to pass on the rate cut to borrowers in the weeks ahead, sales results and competition can only get stronger.