QLD Statewide Commercial Auction Draws Large Crowd
Ray White Commercial has achieved solid clearance rates and prices often well over the reserve at auction events throughout Australia and New Zealand in a strong sign of growing confidence in commercial property markets.
Ray White Commercial CEO Mark Williams said monthly auctions at a wide variety of locations were being well attended with properties listed for sale attracting multiple bidders.
Mr Williams said recent Ray White Commercial auctions in Sydney, Melbourne, Brisbane, Adelaide, Auckland, the Gold Coast and Sunshine Coast had all generated healthy sales and many prices above the reserve.
A great launch for the first QLD State Commercial auction was held at the Stamford Plaza hotel in Brisbane’s CBD on December 11th.
Well attended with 120 bids on the 19 properties put up for sale. 7 sold on the day or prior plus 3 have sold since and negotiations are underway with the remaining properties.
He said the success of these auction events reflected on the efforts of the agents involved and their ability to have buyers bidding on a property unconditionally, the appeal of the stock and the skill of the auctioneer.
“Ray White has a strong history and culture of auctions and there can be good results for both buyers and sellers if the process is done well and agents have fully prepared and sufficiently exposed the property to the broader market,” he said.
Mr Williams said among the recent results achieved was $1.4 million for a 503 sqm development site at King Street in Sydney’s CBD which sold under the hammer at a Hilton Hotel auction for $100,000 over the reserve.
He said Ray White Surfers Paradise at a recent event sold nine out of 18 properties on the day, while Ray White Springwood had 13 registered bidders for a shopping centre at Ormiston on Brisbane’s bayside which sold for $4.24 million, with a net yield of 7.15 per cent.
“We have had two properties in Melbourne sell at auction for $150,000 above reserve, one in Adelaide $112,000 over reserve, while at auctions in Auckland and the Sunshine Coast we have had sales with yields of above 6.5 per cent,” he said.
“A feature of these auctions has been the spirited bidding on the day with individual properties often attracting more than 10 registered bidders.
“This sort of outcome is not always dictated by market conditions but it can be influenced by an agent fully understanding the process and putting the property in position to get a good result.”
Mr Williams said Ray White Commercial had increased the number of auctions nationwide through the course of 2009, staging 98 during the March quarter, 119 in the June quarter and 165 in the September quarter.
“There were 59 auctions held last month so this quarter should see the upward trend in auction volume continue and we plan to maintain that sort of pace during 2010,” he said.
The next State wide commercial auctions at the Stamford Plaza Hotel in Brisbane’s CBD are:
February 11th @ 10.30am
March 11th @ 10.30am
April 15th @ 10.30am