October in-room auction success

Local real estate agency Ray White Southbank | Port Phillip once again hosted two of its now signature in-room auctions in October with great success. Running nine auctions across two separate events, principal Andrew Salvo said the auctions once again demonstrated the effectiveness of the model. “The auction process cuts through the awkwardness. It’s a fun night with multiple auctions and a full room of people. There’s genuine tension and mystery in the air. That’s the atmosphere that successful auctions need,” he said. “We get so much efficiency out of this process as we can fully utilise weekends to get as many people through properties as possible.” Now a national initiative, the Auction Collective provides potential buyers with the opportunity to bid on properties in a different and less formal environment. With its office at 111 Clarendon St packed to the rafters, Mr Salvo said that nearly every property had either been sold at auction or since the events. “We sold five of the nine at, or prior, to the auction. Four properties passed in, of which one received an offer immediately following the auction,” he said. “All other properties have since sold apart from one, which will be auctioned again in the new year once the tenant vacates the property.” “The interesting fact is that of the original five properties that sold, all were sold to owner occupiers. The properties have transitioned from investment properties to owner occupied properties which is a clear indication of our maturing inner-city apartment markets. “More and more young Melbournians are viewing inner city high density living as a very affordable and attractive option for them.” “The four that originally passed in were all tenanted investments with 12-month leases in place.” While Mr Salvo said that while there had been a recent rebound in investor activity, the market still had a long way to go. “As investments, these properties have gross returns of anywhere between five and seven per cent. In our view, with these returns, it is only a matter of time until investors return to the market in a big way,” he said. “For now, it is the owner occupiers that dominate the inner-city markets and vendors should be mindful of this when positioning their properties for sale.” raywhitesouthbank.com.au