Weekend auction tipping result

Weekend auction tipping result
Cassidy KnowltonDecember 8, 2020

When only around 50% of auctioned properties are selling it can be difficult to work out which half will sell and which won't. Take for example 30 Elwood Street, Brighton and 15 Chastleton Avenue, Toorak. On paper both multimillion-dollar properties in blue-chip locations, with great parcels of land and homes have strong appeal. In a more stable markets both properties would attract strong interest and sell via a competitive auction. On Saturday however the outcome for both properties could not be more different.

While a crowd of 60 people watched the auction of 30 Elwood Street, the auctioneer failed to extract a single bid, and the property was passed in on a vendor bid of $2.4 million, $100,000 less than the agent's quote range. It could be argued that the fear of a European financial meltdown kept buyers away. But Chastleton Avenue, on the other hand, attracted four bidders who competed aggressively for the property before it was finally sold under the hammer for $4,135,000, more than $200,000 above the reserve.

The result illustrates that although there are still purchasers out in the marketplace with money there are not enough to cover all the available stock and selling property at auction this spring is a game of chance.

While the RBA's decision to cut rates will help build some long needed confidence in the market overtime it will take a few more rate cuts next year, as predicted by Westpac's CEO Gail Kelly, before enough buyers come out of the woodwork to re balance the market.

The remainder of 2011 will continue to be a buyers' market.

30 Elwood Street, Brighton, VIC, 3186

Sale price: Passed in on a vendor bid of $2.4 million

Agent quote: $2.5 million to $2.75 million

% above agent quote: 0%

Bidders: 0

Last sold: May 1992 at $620,000

Growth since last sale:  7.19% (calculated on passed in value)

Median growth: 7.44%

Average tip: $2,805,750

% Correct tips 10.78%

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