The Auction Advantage
August 10 2022
Auctions have been an extremely effective method of sale over the past two years when droves of emotional buyers pushed prices to record highs.
And as the market continues to evolve, auction campaigns remain a useful tool during a period where vendors attempt to weigh their own expectations against buyer sentiment.
An auction sends a clear message to buyers that the vendor is serious about selling and sets a firm deadline – usually three to four weeks – in which buyers have to act.
The feedback a vendor receives throughout an auction campaign provides a valuable barometer on buyer interest and a direct understanding of what a realistic sale price looks like.
Over the past year, Kollosche conducted 260 auctions. Our auction clearance rate for the 2021-2022 financial year was 93%, and the team’s year-to-date clearance rate sits at 87%.
Auction clearance rates across the Gold Coast are trending lower than in previous quarters – the city wide auction clearance rate for the last week in July was 28%.
While seasonal factors play into these figures, official auction clearance rates don’t account for those properties sold post-auction – usually within 14 days– when negotiations with top bidders continue to reach a deal.
Four bidders registered for the 23 July Auction of a three-level Beach House at 13 Ephraim Island Parade, Ephraim Island following a high-profile marketing campaign led by Daniel Sharp. A local buyer signed an unconditional contract post-auction for $4,050,000.
A new Sorrento price record was set last month for a grand five-bedroom house on a 2,220m2 Main River point position at 1 Rowes Court.
Sam Guo and Julia Kuo led the campaign to auction where a local buyer stumped up $8,300,000 under the hammer, with six bidders registered.
Seven bidders signed up for a tilt at 125 Camberwell Circuit, Robina on 8 July Where a unique chalet-style residence achieved $1,990,000.
Investors Ease Vacancy Rates
The Real Estate Institute of Queensland’s(REIQ) Residential Vacancy Report for the June Quarter shows rental vacancy rates eased ever so slightly on the Gold Coast.
While vacancy rates remain exceptionally tight, a rise of 0.1% to 0.5% was recorded– still a far cry from the 2.6% – 3.5% range considered to be healthy.
REIQ CEO Antonia Mercorella suggests the small relaxation could be attributed to strong sales conditions on the Coast, with investors returning prime properties to the market as rentals.
That trend is noted by Kollosche’s Property Management division who took just four days to lease the prestigious Ultra Penthouse in Broadbeach at $5,000 per week.
Sold by Kollosche for $7,400,000 at auction in June, the jewel of the George Avenue Ultra building offers 1,093m2 of lavish living over two levels.
The five-bedroom, four-bathroom penthouse counts 360-degree views, a vast beachfront balcony, a curved cocktail lounge, a rooftop terrace and eight-car basement parking among its luxury inclusions.
A four-bedroom waterfront house at 15 Bal Harbour in Broadbeach Waters sold by Kollosche at auction for $4,710,000 earlier this month has since been listed for lease at $2,100 per week.
Kollosche’s Property Management division notes strong demand for high-end rental properties priced for lease at $2,000 and above in recent weeks.
A four-bedroom luxury entertainer on Pinehurst Way, Sanctuary Cove has been leased for $3,500, while tenants have signed on for three apartments inside the newly-completed 272 Hedges Avenue at weekly rents of between $2,500 and $3,000.
Tenants for these prestige properties were all secured off-market, highlighting the power of Kollosche’s database as well as team collaboration.
Buyers who wish to lease their property post-sale appreciate the ease of handing over from the sales team to Kollosche’s leasing team who can prepare the property for lease and secure a suitable tenant. The process is seamless.
If our team can assist you in selling or leasing your residential or commercial property this month, please do reach out for a conversation – we are here to help.