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What does it take to achieve growth in cooling markets?

14 May 2019 Tim Neary

Over the last six months, the team at Lower North Shore real estate firm Raine & Horne HM Group has consistently achieved 75 per cent auction clearance due, it says, to “savvy marketing and a strategic investment” in the region’s infrastructure.

Co-principal of Raine & Horne HM group David Hill said the team has continued to be buoyant, despite cooling conditions.

“We never subscribe to the view [that] softer market conditions is the end of the world, and we continue to look for innovative ways to put more buyers together with the right properties,” he said.

“Since December, we have run a series of showcase auction events where multiple properties go under the hammer. To date, we have been able to maintain a 75 per cent auction clearance rate with properties selling before, during or up to two weeks after an auction.”

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The team’s latest Auction Showcase Event was held last month at a new boutique townhouse development in the suburb of Naremburn.

Mr Hill said that five properties went under the hammer, including apartments in Cremorne Point, Wollstonecraft, Willoughby, Cammeray and Crows Nest.

“The multiple auctions are working well for several reasons. An auction campaign runs typically for four weeks, and this puts a deadline under buyers to make a purchasing decision. 

“Given we usually have four to six properties selling under the hammer, we attract a bigger group of registered bidders. If a bidder misses out on one property, they might take a shine to another, that house or apartment that is going under the hammer, and it matches their budgets.”

Expectation

Mr Hill said that vendors with more realistic price expectations, the region’s long-term popularity and the prospect of even better infrastructure were factors in attracting more bidders to the team’s Auction Showcase Events.

“Lower North Shore vendors are very savvy and aware of the prevailing market conditions and have adjusted their price expectations accordingly.

“At the same time, long-term owners are still enjoying values that are around 45–50 per cent higher than when the market took off in June 2012.

“For buyers, this region’s proximity to jobs in the CBD and North Sydney is a massive plus. The decision by The Nine Network to be the anchor tenant in (nearby business hub) North Sydney’s tallest tower is a massive stamp of approval and is sure to attract more jobs to the region.
 
“More jobs is always a plus for real estate markets on the Lower North Shore, as it attracts more buyers, renters and investors.”
 
Mr Hill said that an additional train station in North Sydney is being built as part of the Sydney Metro, along with an underground station at Crows Nest.
 
“We already have good infrastructure, but the additional stations recognised the growth prospects for this region, which will ultimately underpin the long-term growth in real estate values.”

What does it take to achieve growth in cooling markets?
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