New Zealand home auctions success ahead of coronavirus lockdown ‘bodes well for industry’

New Zealand home sales continue giving hope the Australian market will withstand the fast-paced changes to property deals.

Ten properties are set to go under the virtual auction hammer tonight on the Gold Coast. Picture: Andrew Henshaw

If New Zealand is anything to go by, demand in the Australian market will withstand the fast-paced changes to property sales as the country attempts to combat coronavirus, says Ray White boss Dan White.

Last night, Ray White New Zealand had a bumper evening of Wednesday auctions ahead of the country’s total lockdown for the next four weeks, which began on Thursday.

Six properties sold under the hammer in the 24 hours leading up to lockdowns across the company’s kiwi offices, with a combined value of $NZ8,169,000 ($8,060,241). Many of the homes on offer had several registered bidders, with one property in Three Kings, an inner-city suburb of Auckland, attracting 14 phone bidders.

“The changes in New Zealand and Australia came a few days earlier than we thought. It is certainly a different world for auctions, that’s for sure,” said Mr White, the company’s managing director.

“A lot of auctions have been brought forward, we called a lot on Wednesday in Sydney. In New Zealand, Ray White Ponsonby (a trendy suburb neighbouring Auckland CBD) just did three from three auctions last night.”

On Tuesday evening, Prime Minister Scott Morrison announced all public auctions and open homes would be banned for the foreseeable future as the government stepped up social gathering restrictions. Private, one-one-one inspections and digital auctions are now being referenced by the industry, while more sellers are turning to private treaty sales.

Mr White had advocated for the real estate industry to be considered an essential service as the sector could act as an economic booster, saying it is “a shame” the government decided to halt traditional sales methods for now.

“I think it was a bit of a shame over the past couple days but whatever is best for the community. We have been telling everyone to do the right thing so there was no resentment there, so that is good,” he said.

“Now we are just getting ready for the right method to be able to do private auctions but bidders are coming in from their own computer screen so that’s just taken a quick change.”

Almost $4m worth of property was sold under the hammer in the leafy riverside Brisbane suburbs of Sherwood and Graceville on Wednesday night in the Ray White agency’s first “virtual” auction event.

Local principal Cameron Crouch said 80 per cent of properties on offer were sold as the team readies for the new world of digital auctions and private inspections.

Ten properties are set to go under the virtual auction hammer tonight on the Gold Coast.