Date: 2021-15-02 19:30:46
Competition for property across Adelaide is getting so fierce it’s turning auctions into bidding frenzies, with many homes fetching $100,000 more than expected under the hammer.
Real estate experts say a combination of record low interest rates, limited properties on the market and the state’s control of COVID-19 is creating the buying “hysteria”.
A Norwood property was just one that sold well above reserve at auction on the weekend.
Selling agent Matt Smith, said a local investor outbid 15 other registered buyers to snap up the cottage at 26 Elizabeth Street for $1.24 million.
He wouldn’t reveal its reserve price but said it was between $1.05 million and $1.1 million.
“There’s a distinct lack of supply and added to that is a huge demand because money is so cheap – the combination of the two is creating hysteria,” he said.
“In 17 years I’ve never seen a better time to sell than now.”
Meanwhile, an Athelstone property fetched $928,000 under the hammer – $158,000 above its reserve price.
Joe Marriott said 21 prospective buyers registered to bid on the house at 6 Bilney Drive, which attracted mostly young families looking to upsize.
He said the buyers were local and had been looking for a while.
“It’s really competitive out there,” said Mr Marriott, who sold the property with Jordan Ekers.
“We’re finding most buyers who end up securing a property have missed out on three or four previously, those are the people going hard and strong.”
Further south, 25 registered bidders vied for the keys to a Glenunga property, which fetched $950,000 before about 200 people at auction.
Daniel Oliver, who sold the property at 2A Ashmore Street with Millie Campion, said the vendors were shocked at its sale price.
“They were just absolutely mesmerised and couldn’t believe how many people were there.”
He said its proximity to Glenunga International High School attracted househunters, including the eventual buyers who were a family looking to upsize.
BR Auctioneer director Brett Roenfeldt had two auctions booked for Saturday but said both sold prior.
“The previous weekend I had five bookings and we sold all five under the hammer all in excess of reserve – we averaged $112,000 over reserve,” he said.
“That’s an indication of the strength of the market.”
Mr Roenfeldt said it was becoming more difficult to set price guides as demand increased.
“Buyers are setting new benchmarks for where they see value on a daily basis,” he said.