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Poor result at luxury home auction
Released 19 November 2010

The interest rate rise and strong Aussie dollar were cited as reasons for a disappointing outcome at a recent auction of luxury homes held at the Sydney Opera House.  

The properties for sale included 10 homes in NSW valued at between $2 million and $10 million each, with a total estimated worth of $30 million. Organiser Ray White sold two out of the 11 homes, raising just $4.1 million.

The event took place less than a week after the Reserve Bank raised its benchmark interest rate by a quarter of a percentage point to 4.75 per cent. “We’ve been a little bit crash-tackled by the interest rate increase last week,” says Ray White Chairman Brian White.

The properties, which were marketed in Australia and Asia, drew interest from bidders based in Singapore, China and Indonesia. But overseas buyers were quieter than usual, according to auctioneer Sam Kelso.

“The overseas buyers are more concerned about the Aussie dollar,” he says. “It (US dollar) isn’t buying as much as it was six months ago.”