Auction success rate gets a bounce in first big weekend test
The record-setting $5.71 million Surry Hills, Sydney warehouse sale by businessman Neville Miles and his artist wife Beryl topped the prices in the year's first bumper weekend of capital city auctions.
It's McGrath selling agents Ben Collier and Andrew Hackett had been seeking $5 million plus for the Bennett Place warehouse, which dates back to the 1870s.
It's been extensively renovated by Hare + Klein since the 247-square-metre holding that spans three levels last sold at $3.1 million in early 2009.
Vendors and agents were hoping auctions got a wiggle on the weekend.
Volumes were up, and Melbourne's success rate, which has been a bit wobbly so far in February was 62% on initial results, and 63% after Sunday's results, bettering the 57% in the prior weekend.
"In light of the increased number of auctions this result provides an indication that demand is gradually improving this year," REIV chief Enzo Raimondo says.
Despite a negative forecast from the SMH property editor, Sydney also secured a slight improvement too with its 56% success rate - on initial returns - bettering the 54% of the previous weekend, according to Australian Property Monitors.
Both capital city results could come down slightly once the final results come in, but the industry will be happy that the weekend with the first big boost in auction numbers also brought sufficient buying demand that was steady or better than in the previous three weeks.
SQM managing director and industry commentator Louis Christopher today urged higher same-day reporting rates to ensure buyers and sellers get a better indication of market direction.
John Edwards' Residex indicated its 90% collection of all auction sales across NSW for the week ending February 25 showed a 52% clearance rate for the Sydney metro (51% in the week prior) and 40% in NSW regions (34% in the week prior).
The McGrath agency secured a 56% success rate from its 125 NSW Saturday auction listings.
Hocking Stuart's Anna Perry noted the Armadale office's four out of four sale in the 38 degree Melbourne heat.
Buxton auctioneer Matthew Young secured five sales from his five Melbourne auctions, although the Foam Street, Elwood listing was sold for $1,341,000 shortly after being passed in at $1,325,000.
The Real Estate Institute of Victoria was expecting around 880 auctions. The highest number of auctions will be held in Prahran (17), Richmond (15) and South Yarra (15).
With a full month’s auction volumes now known, Robert Larocca at the REIV says it is now apparent that the overall number of February listings is about 17% below the average between 2007 and 2011.
This year there will be about 1,900 auctions in February, compared with the five-year average of 2,285.
Melbourne buyers' agent Mal James noted for the second week in a row there was "some spark in the market". But noting eight of the top 10 reported auctions over $2.5 million were passed in, James suggests "we are not saying there is any fire, just isolated sparks".
Australian Property Monitors had 494 auctions on its scheduled Sydney list. It’s 21% down on the same time last year according, to Clinton McNabb, the APM research analyst.
The highest number of auctions in Sydney were held in Strathfield (12), Mosman (10), Kensington (nine) and Randwick (nine).
Simon Pryce, who works for The Wiggles as Ringo the Ringmaster, has sold his Coogee Art Deco apartment before this weekend’s scheduled auction. It was listed through McGrath agent Kel Gray, and Pryce was aiming for more than $625,000 for the apartment, which last traded for $470,000 in 2002. It’s understood to have sold at about $650,000.
