Australia’s biggest auction event draws crowds of over 2,000 in real estate bargain
Nearly $ 20 million worth of properties sold under the hammer in just five hours at Australia’s largest auction on the Gold Coast on Monday.
On a perfect hot and sunny day, more than 2,000 people came out to buy and sell, and by 4 p.m. the ripple of excitement that had kept the atmosphere charged with anticipation turned into $ 19 million. of goods sold.
There was a wide array of real estate on offer, from entry-level apartments to waterfront mansions, and even a multi-million dollar charter boat.
Andrew Bell, CEO of the Ray White Surfers Paradise Group, was upbeat at the start of the day and his positivity was justified – the location of the RACV Royal Pines Resort was packed with people, the auction pace was fast, and the hammer often fell.
The first buyers Michael Hodgson and Candice Scott landed the first deal of the day under the hammer, setting the tone for a succession of meteoric and hotly contested auctions.
The young couple struggled with each other’s nerves as they fought over an entry-level three-bedroom, two-bedroom property in Ashmore, inland from Surfers Paradise.
Having previously lived in the house as tenants, securing it for themselves arguably meant more than most and, after the $ 400,000 auction kicked off, it was a battle between the couple and a another bidder, who went back and forth until the hammer fell to $ 498,000.
Shocked by Shell but delighted after signing the contract, they said they were delighted to have come out on top.
“It sounds surreal, weird, ”Hodgson said. “I thought from the start [the opposing bidder] was just a bluff, but obviously not.
“We are really excited.”
Soon after, a rare five-bedroom waterfront home in Biggera Waters, north of Southport, was sold under a hammer for $ 1.01 million to a Gold Coast local. Lyndal Salomon.
Ms Solomon, who had not bought a home at auction for more than 20 years, had to stand up and brave the auction with her son Fraser for moral support.
“It was scary,” she said afterwards. “My husband is away, so I had to come and do everything myself. “
But after looking at the property with her husband for a long time, she became determined to make it her own and managed to outbid whoever was bidding against her.
“We’ve always wanted to live on the water and the opportunity presented itself and we just loved it,” she said. “It was a little scary not to have done it before, but I’m happy with the result.”
The auctions on the cheapest properties were particularly hot, including a one-bedroom unit at Mantra on View in Surfers Paradise.
The crowd gasped when a bettor made an opening bid for $ 80,000, but a quick succession of bids saw her sell for $ 118,000.
Likewise, a generously-sized one-bedroom unit in Southport sparked an auction frenzy when it started at $ 130,000. After being declared in the market at $ 190,000, the hammer fell to $ 195,000.
Two rarely available duplex blocks at Burleigh Heads to be won in separate auctions were hotly contested and won by the same buyers, a pair of local developers.
Situated on a total of 1148 square meters of land in the desirable Koala Park area and right across from Tallebudgera Creek, 6 and 8 Ikkina Road has been described as a ‘developer’s dream’.
With one block sold under the hammer for $ 1.04 million and the other for $ 925,000, marketer Jackson Paradise said buyers were considering redeveloping and building new duplexes.
“It’s a great result for the region,” he said. “The buyers are happy, the sellers are happy. “
The highest price paid under the hammer was $ 1.1 million for a three-bedroom apartment at Rivage Royale, Southport.
Andrew Bell was happy with the way the auction went and said the event went 30-40% better than he expected.
“It was a successful day,” he said. “The financing means that some of these properties will be sold afterwards, but overall it’s a success. “
He said this year’s buyers were inherently more confident about the state of the Gold Coast market.
“I think what happened last year was that the market was changing and not everyone understood what was going on, so there was a bit of restraint,” did he declare.
“Twelve months later, the bidders are more comfortable with the market, the prices have come back a bit and that is bringing people back to the market. “
And bring them what he did: at 4 p.m. the customs clearance rate was hovering around 50%. This rate is expected to increase significantly in the coming days as properties under negotiation are finalized.
Interstate buyers were plentiful on Sunday, with many drawn to the stable Gold Coast market, Bell said.
“What was missing for a long time here was stability. The Gold Coast was known to be hot and cold, but it enjoys greater stability, ”he said.
“We now have a fairly strong local economy, low unemployment and people say, ‘yes I can live here now.’
The latest data from Domain’s Home Price Report showed home prices on the Gold Coast remained high in 2018, despite a declining domestic market.
Mr Bell said it was important for people to understand that the Gold Coast was not suffering from a “post-Commonwealth Games crisis” but had slowed down simply because of the normal cycle.
“What we didn’t realize was that the market peaked in November 2017, ”he said.
“Then Christmas covered that up, then January is usually a pretty busy time, and then there was the Commonwealth Games. So after that, it was “oh, the market calmed down after the Games”, but it was actually just the normal cycle going on.
“Typically you have about two to three years of a bull cycle and you’re done. You have two years of corrections and we already had one. The correction phase should therefore be completed by the end of this year.
But while Sunday’s event was considered a success, it wasn’t necessarily an indicator of how the real estate market was performing for the rest of the year, Mr. Bell said.
“Normally that tells us a lot about how the year is going to go, but not this year and the reason is that we have a federal elections and there will most likely be a change of government, ”he said.
“There are also a number of important policies that will negatively affect real estate in the interim, including changes in negative leverage on used properties and changes in capital gains tax.
“Neither will help the market. They will confuse the market and relax the market for these resale properties. I think that will be the wild card for 2019. ”
Andrew Bell’s suburb to watch in 2019:
Ashmore is located a suburb inland from Surfers Paradise and you can expect to pay around $ 671,000 for an average four bedroom home. Homes start at around $ 500,000 and go up to around $ 1.26 million.
“It’s an emerging suburb that still holds great value,” said Mr. Bell.
Broadbeach, located just south of Surfers Paradise, has undergone a massive revitalization, with the G: link tram stopping here. Its large parks and expansive beaches are complemented by a multitude of new cafes, restaurants and shops.
“There is a really strong, the community feels there with wonderful restaurants, people love it, and so they ditch this house further, to get something in an apartment there. This is a clear trend that we are seeing, ”he said.
The median price of a two-bedroom unit is $ 530,000, while a three-bed unit will likely set you back around $ 1.1 million.
Immediately south of Broadbeach, Mermaid Beach has long been the best performing suburb on the Gold Coast. Home to the much sought after Millionaire’s Row, Hedges Avenue, this is where you’ll find some of the most expensive oceanfront real estate on the entire coastline.
Like Broadbeach, its stunning beaches are now complemented by great cafes, restaurants and shops.
Despite this, two-bedroom units can still be purchased for a median price of $ 416,000, according to domain data, while three-bed units average around $ 760,000.
“Once again, that desire for a central location is really being felt now,” said Mr. Bell. “Mermaid Beach is where people want to be.”