Geelong Advertiser

Auction debate

- PETER FARAGO GEELONG PROPERTY GUIDE, INSIDE TODAY

NEW data could swing the debate over which real estate method of sale delivers the best results for home sellers.

The realestate.com.au research has revealed the gap between auction and private sale results in Geelong over the past five years.

The figures revealed properties sold at auction delivered $11,000 more to sellers and spent two months less time on the market than homes sold via private treaty.

Sellers also pocketed on average nearly $25,000 above expectatio­n at auction, compared with an extra $8446 at private sale.

Realestate.com.au chief economist Nerida Conisbee said the trends showed auction sales were as effective during a downturn in the market as in a booming market.

Auction sales achieved an average $648,796 in 2019, compared with $637,483 for private sales.

Homes sold at auction spent 28 days on the market, while private sales ballooned to 89 days, as separate CoreLogic data shows hundreds of stale listings remained on the market.

While new listings were down, Ms Conisbee said people researchin­g property was 25 per cent higher.

“That ultimately is what is going to force up value,” she said.

“Scarce stock creates a pretty simple supply and demand equation.

“At the moment, we are seeing some pretty outstandin­g auction results. We’ve had a couple of situations in Sydney and Melbourne of $200,000 to $300,000 over reserve, so there’s no doubt that lack of stock is driving people to fewer homes.”

There have been big results in Geelong too, with an East Geelong house selling $175,000 over reserve last week, while 11 bidders competed for a South Geelong property that sold $90,000 above expectatio­ns.

Ray White, Lara agent Terry Cleary said auctions created an urgency to sell, important in an area such as Lara where there was a lot of stock on the market.

“Data we’re keeping strongly suggests that days on market for properties that are not going to auction are in the early 60s. But for properties that go to auction, it’s 29 days,” Mr Cleary said.

“The reality is if you go to market without a price on the property, the buyers are judging the property on its merit,” he said.

CoreLogic figures show Geelong auctions have maintained a 52 per cent clearance rate in 2019 amid the drop in the market.

Eastwood Andrews, Geelong agent Nicole Andrews has listed a South Geelong property for auction because the california bungalow’s location attracted so many buying groups and it suited the needs of separate family members.

The three-bedroom house at 6 Park Cres is ripe for renovation or redevelopm­ent.

“You can walk to the Barwon River, walk into town,” she said. “Everyone parks here and walks into town, it’s a great spot. And the train station is what attracts the Melbourne buyers.

“One up the road sold for over $1 million, so the figures are there to do a renovation.

“The family were thinking it will only attract people who want to knock it down, but I’ve only had one that was thinking of knocking it down. Most of them are wanting to get in and renovate.”

The 379sq m property goes to auction on August 31 with price hopes of $490,000 to $520,000. GT

 ?? Picture: ALISON WYND ?? UNDER THE HAMMER: Agent Nicole Andrews is set to auction 6 Park Cres, South Geelong.
Picture: ALISON WYND UNDER THE HAMMER: Agent Nicole Andrews is set to auction 6 Park Cres, South Geelong.

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