Auction activity ramps up as rates rises pause
Auction activity is continuing to ramp up following RBNZ announcing the official cash rate would remain at 5.5 per cent last week.
Ray White New Zealand scheduled 117 auctions last week, up 7.3 per cent on the same time in 2022, with an all sold clearance rate of 58.9 per cent, up 11.45 per cent.
The group recorded an average of 3.4 registered bidders and 2.6 active bidders per auction.
“As the country celebrated its second Matariki public holiday last week, Ray White's auctions were cause for similar celebration,” Ray White New Zealand lead auctioneer Sam Steele said.
“There were 78 auctions conducted for the week with a58.9 per cent success rate, showing buyers and sellers desire to transact even during the busy school holiday period.
“The average number of registered bidders continued its steady climb with 3.4 per auction on average while almost 10 per cent of auctions were sold prior to their auction date, further highlighting the increased momentum and activity in the market.
“Auctions outperformed all over methods with time on the market with auctions selling in an average of 28 days while the average for private treaty was 55.
“The total percentage of properties listed by last week auction was close to a third, sitting at 29.3 per cent, while in the last three months Auckland has seen 44.9 percent of properties listed via auction.”
The top result for the week went to Ray White Epsom agents Richard Thode and Andrew Milne who sold 12 Mamie Street, Remuera, Auckland City, under the hammer for $3.6 million.
With Ray White Epsom auctioneer and CEO Jeff Tubman on the gavel, the property attracted seven registered bidders and four active bidders.
Mr Thode said the property garnered a lot of interest, with more than 70 groups through prior to auction.
“It was always going to do well because it's in a unique spot on the hill with unobstructed views. It ticked a lot of boxes for a lot of people,” he said.
“Bidders were all downsizers who wanted something not as big, but people who wanted to enjoy the indoor outdoor flow and the views.
“The winning bid went to a Chinese couple who had been living in the area and renting.
“The sellers (mother and son pictured above) were a couple who had bought a new property up north and were relocating out of Auckland. They had lived in the home for more than 12 years.”
The property with the highest number of registered bidders was 109b Wyllie Road, Papatoetoe, Manukau City, which recorded a whopping 19 registered bidders on auction day.
The property sold under the hammer for $764,000 - a great result for the vendors and Ray White Takanini listing agents Cathy Mei and Samsith Kim.
“It was a nice bungalow in a good relocation, but it needed some TLC,” Ms Mei said.
“It attracted a range of buyers including first home buyers, traders, and investors who wanted to renovate it.
“The sellers were local investors who had had it as a rental. They had it for about 10 years. They rented it to a Cambodian family for 10 years as it was right near the Cambodian temple.”
Mr Kim said he had been aiming for between 15-20 registered bidders.
“The winning bid went to a trader who is going to fully renovate it inside and out,” he said. “It had the classic look and the location is really good close to the airport and the hospital.”
Ray White Manurewa, Manukau, Mangere, Mangere Bridge had six properties go under the hammer at their in-room event last week, with an auction day clearance rate of 50 per cent.
The top result of the day went to Ray White Manukau agents Lawrence Kenyon-Slade and Aeshan Perera for 42 McDivitt Street, Manurewa which sold under the hammer for $1.13 million.
With Ray White New Zealand lead auctioneer Sam Steele calling the auction, the property attracted 11 registered bidders and six active bidders, recording 30 bids before the gavel fell.
The property featured two dwellings, including the main three-bedroom house, plus a second three-bedroom dwelling which was added in 2021.
The winning bid went to an investor who had been looking in the area.
“We had a mix of buyers with both investors and owner occupiers looking to make some rental income on the side as they could rent out the back unit,” Mr Kenyon Slade said.
“The vendors were investors who invested in a really strong marketing campaign which resulted in about 80 buyers enquiries in three weeks and 11 registered bidders.
“It's a very tidy home and income property and a very sought after type of property.”