Notable shift in auction clearance

The New Zealand property market experienced an uptick last week in auction clearance results nationally, demonstrating a strong finish to winter and optimism ahead of spring.

Ray White New Zealand head auctioneer Sam Steele said there was a notable shift with Wednesday’s announcement of the first OCR drop since 2020, sparking fiercely competitive auctions nationwide as buyers hurried to seize fleeting opportunities. The result was a 52.5 per cent success rate across 107 scheduled auctions.

“With an average of 2.6 registered bidders per auction nationwide, the noticeable uptick in stock levels has presented buyers with options in previously tight markets, or perhaps the end of this market,” Mr Steele said.

“While auctions with three or more registered bidders enjoyed success rates over 75 per cent.

“Vendors’ confidence in auctions remains robust, with this method consistently outperforming other sales approaches, averaging just 34 days on the market compared to 57.5 days for private treaty transactions.

“Nearly a quarter of all properties brought to market by Ray White last week were auctions, accounting for 24.5 per cent of total nationwide stock. Notably, more than 26 offices across the country listed over 50 per cent of their properties as auctions.”

Across the nation, all metrics tracking auction success were trending upwards, fostering optimism and anticipation for the upcoming surge in stock and renewed buyer interest.

The highest sale of the week was of 20 Tohunga Crescent, Parnell, Auckland City which sold under the hammer for $4,090,000. Ross Dowie from Ray White Parnell said it was one of the most remarkable campaigns of his career.

“The property had been in the family for well over 60 years, the grandparents originally bought the property with a cottage on it, and they eventually passed it on to their children who built this home. The grandchildren, who are now in their 50s, sold the home. It was a very emotional and beautiful auction,” Mr Dowie said.

“They invested in staging and great marketing. They were very involved in the campaign, in the best way possible. We ended up extending the campaign by a week because of the delays in mortgage approvals at the moment.”

Mr Dowie said he had over 50 groups through the property which is extraordinary for the $4 million price range.

“We ended up with five registered bidders for the property, and most of the market feedback was around the $3.5 million mark,” he said.

“The buyer was a family who are local to Auckland, with children at the local high school here. They came along to the first open home and fell in love.”

Mr Dowie said that Parnell is one of the oldest suburbs in New Zealand, and is one of the closest suburbs to the CBD in Auckland.

“There are some suburbs that most people in the country have heard of it, and this is one of them. There are lots of lovely old homes with sea views and it is generally tightly held,” he said.