16 September 2017
The market has shown signs of fragmentation over the past month.
There is no doubt the good properties are still being hotly contested (and continue to create new price records) and this is likely to continue while there is a shortage of quality family homes and smaller single-storey homes for buyers to choose from. However, should the property be problematic in some way, or have a high vendor, or a combination of both, the buyers are showing discernment. The quoted price is all important to these selling.
There is additional pressure on the agents now to get the quote right. We have been through a number of good homes that haven’t had the volume of buyer inspection expected. Many buyers still think they need to add 10-20% or more to the quote and are avoiding the properties altogether.
Buyers should remember that the quote is only one piece of the puzzle. There are some good opportunities for buyers at the moment if they know how and where to look.
Of interest also is the increasing number of homes sold before auction, leaving some buyers disappointed if they aren’t prepared to move quickly. This week in particular there were a very healthy number of ‘bought befores’. As a buyer, this can be good way to go, so long as you are comfortable in your mind of ‘value’. In this scenario, you could quite easily pay several hundred thousand dollars over what you may need to at auction day if you have not thought through your strategy.
Some ‘bought befores’ of note:
- 16 Downes Avenue Brighton (Kate Strickland/James Redfern, Marshall White). Large family home on big land (approx. 923sqm), ready for next update or potential new build site – sold before auction – undisclosed amount over $4m.
- 11 Urquhart Street Hawthorn (Richard Winneke/Campbell Ward, Jellis Craig). Solid original home that had been renovated in the past and in tasteful order. Undisclosed price around $3.9m.
- 8 Hansen Street Kew (Stuart Evans/Duane Wolowiec, Marshall White). Generous block of 745sqm approx. with a neat MCM house – south-facing rear and slope considerations – undisclosed price around $3m.
- 6 Newbay Crescent Brighton (Alex Schiavo/Nathan Berrill, Kay & Burton). Approx. 712sqm, west-facing rear, convenient spot between Bay Street shops and the beach – sold before auction $3,560,000 or $5,000/sqm.
- 129 Peel Street Windsor (Guy St.Leger/Tom McCarthy, Biggin & Scott). Approx. 328sqm, north-facing rear and generous frontage. Sold for a very healthy $2,056,000 or $6,268/sqm if you placed no value on the house.
- 5 Stoke Avenue Kew (Sophie Su/Daniel Williams, Marshall White) – $5,580,000. Period reduction builder-spec home, 927sqm approx. north rear.
With limited auctions until after the Grand Final, we will return with our updates in mid-October. October 28 is shaping up as a very big auction weekend for buyers and sellers alike, with these properties to go online to the public in two to three weeks’ time.
Happy holidays, if you’re managing an opportunity to escape the lingering cold, and ‘Go Tigers’!
24 Kintore Street Camberwell (Peter Vigano/Jessica Zhang, Jellis Craig). Early Edwardian single-level pretty brick home with return verandah in an A-grade street , but south rear, small bathrooms and tricky car garaging – undisclosed amount around $4.3m.
7 Wandsworth Road Surrey Hills (Tim Heavyside/Harley Toyle, Fletchers). Well executed period reproduction home, north rear – bought for $3,851,000.
5a Cairnes Crescent Brighton (Jason Gill/Kate Schuster, Hodges) – renovated two-storey family home – undisclosed amount over $3.7m.
6 Merrion Grove Kew (Greg Toogood/Richard Earle, Jellis Craig) – large modern home, north rear close to Kew Junction – undisclosed amount over $6m.
18 Vickery Street Malvern East (John Morrisby/Sarah Sharp, Jellis Craig) older style renovation, comfortable as is, or could be further improved – $2,525,000.
101 Ruskin Street Elwood (Sam Hobbs/Michael Paproth, Marshall White) – approx. 512sqm, east-facing rear, original semi-detached home with no heritage overlay – undisclosed but over $2.3m or around $4,500sqm
4 Bolton Street Hampton (Matthew Pillios/John Clarkson, Buxton) – approx. 604sqm, with south facing rear – $2,515,000 or $4,163sqm
8 Vickery Street Bentleigh (Kosta Mesaritas/Sasha Pat, Buxton)– approx. 644sqm, sold for $1,915,000 or $2,973/sqm. Not far from Centre Road and a stone’s throw away from the train station.
- Large townhouse, Beaumaris – mid-$1m
- North-facing land, Sandringham – $2m
- Renovated, downsizer home with garaging, Toorak – early $3m
- Very large land, Hawthorn – over $7.5m
- Family home on good land, Sandringham – early $2m
- Renovated period home, Canterbury – over $6m
- Large brick home Hawthorn on good land – circa $4m
27 Wheatland Rd Malvern
This property is a desirable offering with its direct access to Milton Gray Reserve at the north rear. The home itself is a classic Edwardian at the front with a comfortable, yet dated extension at rear, offering solid scope to take this home to the next level with a future renovation (STCA). Obviously many could see the potential and were keen participants in the auction held by Justin Long from Marshall White. Immediately starting with a vendor bid of $2.7m, three bidders quickly brought the offer to $3.05m, at which point the question was asked if the property was on the market. Returning from a vendor discussion with the answer of ‘not quite yet’, the auction resumed to swiftly hit the desired level at $3.1m. This news brought in bidder four, who was, however, unable to keep pace once bidder five joined. This left bidder one and five to fight it out alone, with bidder one the eventual victor, securing the property for $3.4m. A strong result, well above vendor expectations.
27 Sandringham Rd Sandringham
This is a pretty timber Edwardian, looking for the next renovation, in a sensational location. There was, however, buyer uncertainty with the development due to take place along the north rear boundary. David Picking from Hocking Stuart held the auction on behalf of the team and got things started with a vendor bid of $1.5m. It was slow going, with two bidders going up first in $10,000s and then in $5,000s. At $1.55m, David went inside to confer with the vendors, who were not prepared to part with the property at this level. No further bids could be teased out of the bidders once at $1.575m and the property was passed in at this level. Post-auction negotiations managed to secure the sale for $1.61m.