The craziest auctions of 2021: Sales under the hammer go next level

It only takes a quick Google search to get a sense of how crazy Australia’s auction market has been in 2021.

“Toorak mansion sale of more than $40 million sets Australian auction record.”

“Albert Park home sells for $11.11 million at auction, more than $2 million above reserve.”

“Haberfield house soars $2.02 million above reserve at virtual auction.”

“Noosa apartment sets Queensland record of $16.1 million at auction.”

This year has been the biggest year for auctions in Australian property history. Clearance rates soared past 90 per cent. The number of people registering to bid – and then actively bidding – hit record levels.

According to the Domain End of Year Wrap report, there were 18 suburbs that recorded a clearance rate of 100 per cent for 2021. A further 15 suburbs had a clearance rate of at least 95 per cent.

And as the property market reached a fever pitch, or “white-hot” status, the median auction price hit unprecedented heights.

Sydney’s median auction price surpassed the $2 million mark, while Brisbane, Melbourne and Canberra all saw their median auction prices rise past $1 million.

Ray White managing director Dan White said low stock and high buyer demand had created the most competitive year for properties selling at auction that the group has ever recorded.

“For much of the year, buyers struggled with a lack of stock as lockdowns made sellers more cautious,” Mr White said.

“In November, we saw the number of properties for sale catapult upwards by more than 21 per cent nationally. So much so, that in the last week of the month, we saw the most properties going to auction we had ever recorded.”

Across the nation, tales of properties selling for hundreds of thousands of dollars over their reserve prices quickly unfolded as early as February, one after the other, until it got to the point where something needed to sell for literally millions of dollars over its reserve to raise eyebrows.

Stu Benson of Benson Auctions said he was “blown away” by Sydney’s auction market this year.

“There is no auctioneer or agent or speculator who could’ve foreseen this,” he said. “We knew there was going to be a lot of movement but nothing like on the scale of which happened.”

Setting a price guide for an auction campaign in the rapidly rising market had become “harder to pick than a broken nose”, he said.

“Without a doubt, from April through to September in Sydney, agents were having to review their price predictions multiple times throughout a campaign,” he said. “The needle was moving too rapidly. You could list a property and 28 days later you were completely off the mark.”

He cited a block of land at Kenhurst that sold via online auction for $4 million, $700,000 above its reserve.

SOLD - $4,000,000

52 Pitt Town Road, Kenthurst NSW 2156

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“I had the under-bidder email me after the auction to remark, ‘I went $690,000 above my budget! The online auction platform is like a video game, I was hooked!'” he said.

In Melbourne, buyers rushed to the Mornington Peninsula for that COVID lifestyle change. Properties in Portsea and Sorrento went to virtual auction but still sold for $1 million over their reserve prices.

Virtual auctions were front and centre of Melbourne’s property market in 2021, which Kay & Burton auctioneer Scott Patterson described as “extraordinary”.

“We adapted, we became nimble, people were still happy to be buying property. We had 26 Zoom auctions and sold 25 of them,” he said. “The worst part for Melbourne was when everything was completely frozen.

“We never expected the market to rebound as strongly as it has but it just shows the resilience of the Melbourne market. Auction volumes above 2000 and a clearance rate above 70 per cent – that’s unprecedented.”

Record auction results aside, the online auctions also created comedy gold, he said.

“People traded from their living room. Some were sipping on green tea or eating dinner. We even had people bickering on Zoom, telling us their next move without realising everyone could hear them and we had to tell them to mute themselves.

“There were definitely some comedy moments.”

It was a watershed year for Brisbane’s auction market. What had long been considered as a rich person’s-only method of sale quickly became the normal state of play.

“The level of comfort has been raised. For the first time, sellers in Brisbane felt the conditions were appropriate. They recognised that auctions were where they were likely to get the best price,” said Justin Nickerson of Apollo Auctions.

“The whole year has been remarkable. Every week it was incredible and we were wondering when this was going to end.”

He cited a series of auctions that were forced to go online at the last minute during a snap lockdown.

“We had 14 properties go under the hammer and 14 of them sold. They averaged 12 bidders. That was so unusual for Brisbane in any case but especially during a lockdown … the sellers still selling, the buyers bidding anyway. Nothing was stopping this market. Nothing was stopping this rampaging beast.”

Ray White chief economist Nerida Conisbee highlighted Brisbane’s auction success in 2021.

“The city that saw the biggest jump between 2020 and 2021 was Brisbane. Despite a big uptick in auctions conducted this year, Brisbane also saw a big increase in the number of people actively bidding,” she said.

“It was, therefore, no surprise that it was a Brisbane suburb that was the most competitive. Wishart in Brisbane’s south saw the highest number of average active bidders in Australia in 2021 with 9.4 per auction.

“The suburb is popular generally because it is in the catchment of the Mansfield State High School but also because of close proximity to retail facilities and nice parks.

“In 2021, it also saw its median shoot up over 17 per cent, putting it on track to hit $1 million in coming months.”

Ms Conisbee added that, at a capital city level, the suburbs that saw the most competitive bidding were generally not the most expensive.

“This reflects that as you get closer to the median for that city, the more people that can afford to buy in that location,” she said.

“Rosebud West topped the list for Melbourne and is, in fact, one of the most affordable suburbs in the red-hot Mornington Peninsula market.

A Sydney agent also topped the ladder for most bidders at a single auction. Ray White Baulkham Hills agent Deepak Bangarh registered 71 buyers for his auction at 6 Key Court in April this year.

It sold for $1.75 million – $550,000 above the reserve. Mr Bangarh said the property was within the Matthew Pearce Public School catchment, which is considered one of the best public schools in NSW.

“Most of the buyers were those with children who appreciated the school zone,” Mr Bangarh said. “The successful buyer had plans to knock down the property and build a new family home on the block. Meanwhile, the seller was able to downsize and move to the central coast.”