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Published 28 January 2013 10:31, Updated 30 January 2013 21:58
This property with waterside swimming pool, 5707 Anchorage Terrace in Sanctuary Cove, sold at auction for $2 million. Photo: Fairfax
Heavy rains did not deter buyers from snapping up 72 Gold Coast homes on Sunday worth a total of $32 million.
Billed as Australia’s biggest residential auction, Ray White’s annual “The Event” brought 103 properties to market and sold 72, showing an overall clearance rate of 70 per cent.
The outcome reflects an overall increase in transactions for the Gold Coast market, which has struggled since peaking in 2007.
Many of the auctions were for distressed properties sold under instruction and while most sold higher than reserve, buyers enjoyed heavy discounts, well down on prices. A Worongary home listed for almost $4 million in 2009 sold under instruction from receivers for $1.255 million.
Ray White Surfers Paradise Group chief executive Andrew Bell said the auction was the most successful on the Gold Coast for six years.
“For people to come out in such numbers in such atrocious weather conditions shows there was a great level of commitment and intent,” Mr Bell said.
“The strong competition for properties, the prices achieved and the great clearance rate certainly shows renewed interest in the property market here on the Gold Coast.”
The top sale was a luxury three-bedroom home on Anchorage Terrace in Sanctuary Cove achieving $2 million.
The property sale was a strong indicator for Ray White’s prestige auction to be held at Palazzo Versace on Thursday evening. A commercial auction will be held on Wednesday.
Mr Bell said there had been a change in buyers’ sentiment.
“In the last five years we’ve had people waiting until after the auction to make an offer, but many people felt they needed to be bidding if they wanted to secure a property.”
Just before the auction 17 properties were sold, indicating a marginally lower clearance rate of 63 per cent for the 86 properties that were actively auctioned.
Ray White Marine also sold three of their eight offerings on the day.
Nicole Marsh, director of the Gold Coast-based buyers advocacy group Eureka, said transaction numbers were finally thriving.
“I strongly believe the bottom has passed for the Gold Coast market and we have come out the other side,” she said.
While transactions have improved, prices are not expected to rise in the coming months.
Ms Marsh said vendor price expectations were now in line with what the market was willing to pay, and there were plenty of buyers in the market for quality properties.
“I’ve spoken to some agents who are flat out and selling homes within three days of their listing,” she said.“There are buyers around, but it is a lot different to the 2007 boom and people are more cautious about how they spend their money,” she said.
This story first appeared on The Australian Financial Review