Property
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Property Insider
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Renovations increasingly important Can the time of day make a difference to your auction result? to residential building industry The latest edition of the HIA Renovations Roundup report predicts that home renovations will become an increasingly important part of the residential building industry over the next few years. ‘2016 marked the strongest year since WWII for new home building starts in Australia but our forecasts indicate that activity is set to decline on this front over the next three years,’ commented HIA senior economist Shane Garrett. ‘In this context, our industry will become more dependent on work related to home renovations activity. Many are surprised to learn that renovations currently account for about one-third of all residential building work. By the end of the decade, renovations activity is likely to represent some 42 per cent of all residential building activity.
‘Detached house building in Australia reached very high levels between 1985 and 1995. This large stock of homes is becoming increasingly ripe for major renovations work. Added to the mix are remarkably low interest rates and the big homeequity windfalls in Sydney and Melbourne – pretty ideal conditions for renovations demand. ‘At the moment, the one key difficulty for the renovations market is the fact that turnover in the established house market is falling. This is an important driver of demand, and prospects for renovations
growth would be even stronger if transactions on this side of the market started to increase again, concluded Garrett. According to the March 2017 edition of the HIA Renovations Roundup report, renovations activity grew by 2.7 per cent in 2016 to $33.06 billion. The pace of growth is projected to slow to just 0.3 per cent in 2017, before reaching 3.2 per cent in 2018. Further growth in 2019 (+2.4 per cent) and 2020 (+2.5 per cent) is expected to bring the value of home renovations activity in Australia to $35.94 billion.
These are the results up to mid-March 2017: Time v clearance
72%
93%
74%
73% 71% 62% 65%
70% 61% 60% 100%
72% 68% 72% 66%
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LD Booyong - Clunes asking price $950,000 (sold in conj)
River Cottage - Wilsons Creek asking price $925,000
Coorabell House - Coorabell asking price $1.5 million
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Hamam Eden - Fernleigh asking price $1.375 million
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North Coast news daily: www.echonetdaily.net.au
Hillcrest - Eureka asking price $2.95 million
Coolamon - Coorabell asking price $1.495 million
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www.uniqueestates.com.au 0423 777 237 gary@uniqueestates.com.au
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Gary Brazenor
When we feel our best positivity flows through and I find buyers at these auctions have their strategy in place and don’t hesitate in competitive bidding. It doesn’t mean that all auctions in the afternoon are doomed. The clearance rate from auctions held at 2.30–4.00pm are still an impressive 72 per cent. Facts and figures aside, you can have the best time of day and the best market to sell in but, if all the work in the leadup isn’t done, the result won’t be the very best. It’s the collaboration of the auction campaign and an agent/ auctioneer duo that know how to get the best results.
Why is morning the strongest? They attribute it to two main reasons: 1. The first relates to supply and demand. A total of 55 per cent of their auctions take place from 10.45am till 2.30pm when most open homes and auctions take place. Only one-fifth of the auctions are conducted in the 9.00am till 10.30am slots. The owner of the property auctioned at 9.00am capitalises by having all the possible buyers at their auction. 2. The second reason is purely owing to biology and psychology. Energy levels are at their best in the morning when the body is at its most alert and focused.
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Willanna - Federal asking price $1.95 - $2.15 million
Three-year average
71%
Titijaru - Broken Head asking price $4.2 million
Coorabell Breeze - Coorabell asking price $1.35 - $1.45 million
2017
71% 66% 85% 59%
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Fig Tree Lane - Myocum asking price $1.95 million
2016
9.00am–10.30am
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Mont Rouge - Rosebank asking price $1.175 million
2015
10.30am–12.30pm 12.30pm–2.30pm 2.30pm–4.00pm 4.00pm onwards
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Galloway - Bangalow asking price $2.25 million
R & R Ranch - Bangalow asking price $4.5 million
Axford Auctions of Sydney recently did some research on their auction results for the last three years to see if any time of day produced better auction results than other times. The full article is available on the REINSW website.
Heartbreak Hill - Coorabell asking price $1.5 million
Sky Nest - Wilsons Creek asking price $1.65 - $1.85 million
We currently have high numbers of interstate and international buyers looking to secure their ‘Unique Estates’. Call Gary to discuss your property sale. Specialising in selling ‘Unique Estates’ in the Byron Shire hinterland and with over 15 years of industry experience, Gary will maximise your results through strong negotiation, unique branding & targeted marketing.
The Byron Shire Echo April 5, 2017 25