Archive for March 2015

Brighton: 7 Sussex St, Stewart Lopez (Kay & Burton, with Marshall White), after auction undisclosed

The market for the first quarter is closing as it started – strongly with more buyers than sellers for most properties.

Saturday was the last weekend before much of the Melbourne property market shuts down for Easter, school holidays and Anzac weekend.

There are a few auctions scattered spasmodically throughout April, however, most agents have advised vendors with family homes to wait until May to auction their homes.

This will be the last time we see auction numbers like this for at least a month, with April being interrupted by Easter celebrations, school holidays and the 100th anniversary of Anzac Day.

The break will provide an opportunity for many buyers to reflect on their choices and make adjustments where necessary.

Adjustments might include:

Or perhaps:

We have successfully helped buyers purchase what they want, where they want, within their budget by creating strategies for both advertised and ‘quiet’ properties.

Beaumaris: 21 Bolton St (Sam Gamon, Chisholm & Gamon), passed in, $3.4m

Vendors may also use this time to adjust.  John Bongiorno, Marshall White, says he has already seen vendors getting excited by past results and increasing their reserve prices.

Where properties this quarter have sold well, it has often been multiple buyers bidding ‘to buy’ the property.  Meaning the vendor was happy to sell and the highest bidder was definitely going to be successful.

A change may see more pass-ins and some adjustments to buyer confidence.  Trusting the information both buyers and sellers receive, that is specific to their focus property, will help parties achieve the outcomes they want.

On a different note, Chinese national interest remains strong for the right properties, spurred on by a weaker Australian dollar. This quarter saw an influx of mainland Chinese buyers moving to Bayside.

Speaking with directors Nick Johnstone (Nick Johnstone Real Estate) and Stefan Whiting (Buxton) they confirmed that approximately 50% of the homes sold in Brighton this month were bought buy Chinese buyers.   Kate Strickland (Marshall White) confirmed that 30% of purchases in March were by Chinese.

Some hot auctions included:

Sandringham, 47 Tennyson (Bill Jowett, Buxton), after auction, undisclosed, 4 bidders

Auction Highlights:

20 Hillcrest Avenue Kew, Peter Batrouney (Jellis Craig), passed in, $5.0m VB

With the market sizzling in recent weeks in Kew, this auction of this property was always going to be an interesting one. Chinese Nationals have been huge players at auctions, and traditionally they prefer properties which do not have Heritage Overlays, are not near cemeteries and are of a modern style – all the things that this property is not.

What this is though is a substantial landmark c.1850 original family home which had modernised on generous land over 1400m2 in one of Kew’s quieter streets.

At 3pm the setting was almost picture perfect with clear skies, mild weather and breathe of wind as auctioneer Peter Batrouney gave a spirited preamble (and interesting history lesson, always good to hear) in front of a 100-strong crowd (with few Chinese) in the scenic front garden.  A few metres away listing agents Geordie Dixon and Tom Ryan were on the look out for bidders.

Peter looked for an opening bid, but with none forthcoming, opened with a vendor vid of $4,900,000. This did little to encourage the crowd, and after a few minutes the half-time break was taken. The Jellis Craig team returned to happily announce they had revised instructions on the vendor’s reserve and the auction recommenced. Another vendor bid was announced at $5,000,000 and still no interest from the crowd so the property passed in at this figure, with a reserve later published at $5,650,000.

Overall quite a good property this one and in the hands of a very good agent so it should sell soon.

Kew: 20 Hillcrest Avenue, Peter Batrouney (Jellis Craig), passed in, $5.0m VB

51 Fourth St, Beaumaris (Steve Tickell, Hocking Stuart), after auction, undisclosed above $2.025m, 1 bidder

The 50 or so onlookers were ushered through the home and onto the large deck overlooking the sparkling pool – the scene was almost set for a party!

Auctioneer Steve Tickell stepped out too, and after a thorough preamble, highlighting the home’s many attributes (and deciding that the house was in Beaumaris, not Black Rock as some assumed), asked for an opening bid.

All remained silent so Steve tabled a vendor bid of $2m to kick-start proceedings.

A genuine offer came from Bidder 1 of $2.025m before the property was passed in for further negotiations.

The home was bought shortly after for an undisclosed amount.

Beaumaris: 51 Fourth St, Steve Tickell (Hocking Stuart), after auction, undisclosed, 1 bidder

Agent Opinion: What are stock levels like in Port Phillip at the moment, and whether the school holidays have as much impact on campaigns/sales as other areas?

Kaine Lanyon (Marshall White): “Stock levels have been satisfactory over the last 3-5 weeks but it certainly now appears the numbers are drying up. Whether this is due to the Easter break, I can’t be 100% sure.Generally speaking I have never felt that in Port Phillip that school holidays has as much impact from s slowing down point of view compared with say Bayside &/or Stonnington & Boroonodara. Let’s hope for all concerned that the new wave of listings comes soon as the results should be speaking for themselves.”

There is still time to enter our footy tipping competition. Go to www.footytips.com.au and sign in to WoledgeHatt Footy Tipping for your chance to win $500.

We’d like to take this opportunity to wish everyone a happy Easter and if you’re lucky enough to be going away, safe travels.

Brighton: 3 St James Mews, Brian Devlin (Marshall White), under hammer, $3.55m, 3 bidders

For the really good properties, the auction market really sizzled today. Words such as ‘frightening and scary’ are strong ones, and they were being bandied about. And next week one would have to say the overall quality of offerings steps up yet again……

Two examples of properties that couldn’t sell last year, but did this year-

Some other highlights – 

The common thread to many auctions on the weekend – Chinese buyers.

It seems the desire for the Chinese to buy large new homes close to good schools has moved south to Bayside. We attended the auction of 3 St James Mews, Brighton on Saturday which demonstrated this.

A fairly bold vendor bid by auctioneer, Peter Kakos (Marshall White), started the auction at $2,950,000. We say this because the previous highest reported sale in the street (which is located on the old Brighton Technical School site) was $2,000,000.

Three Chinese families were involved in the auction, however, bidding was fairly controlled until the property was announced on the market at $3,275,000.

Intensity increased after this announcement with the hammer knocking down to the successful purchaser for $3,550,000. This was the first time the property had been re-sold since 1995 where it was purchased for $350,000, an increase 10 times the original purchase price.

Quiet Sales:

Conventional Saturday auctions are not the only mode of selling and selling well, as Jock Langley (Abercromby’s) sold two Hawthorn properties 10-12 Kooyongkoot Rd and 21 Shakespeare Grove for around $9m and mid $7m this week also.

As a buyer in the market you need to think outside the square, and relationships with agents (not just one within the agency) is the key.

Some off-markets this week –

Camberwell: 55 Radnor St, James Tostevin (Marshall White), under hammer, $2.3m, 4 bidders

The PPPs

The market has moved up quickly this year, taking another leap into unchartered territory for the first quarter of  2015.

With the market so hot at the moment, many buyers may be starting to feel like it’s ‘all too hard’.

Stock levels are similar to last year, however the number of buyers in the market place has increased.  The added pressure of a low Australian dollar is making it even more difficult to compete with international buyers and expats.

To maximise your chances of buying a home that will work, it is increasingly necessary to understand what it is you are trying to achieve.  For some it may be about the PPPs:

Whilst there is uncertainly around these things, it is far more certain that you won’t be buying something soon, or something that will work for you.

Once the ‘most important’ factor has been identified, additional flexibility around the other two Ps is the key to success at the moment.

For many, price is the least flexible of the three, however, buying a large home 10 kilometres further out than your preferred location, could become problematic, particularly if the children have to attend a school where you wanted to live.  10 kilometres is only 10 minutes on the weekend or the middle of the night, however, in school or peak-hour traffic, it can very easily escalate to 45-60 minutes and become quite taxing on the family lifestyle.

We help our clients work through different scenarios and provide property options and strategies to maximise buying a property that meets their most important goal.

Auction Highlights:

2a Dryden St, Canterbury, Antony Woodley (Marshall White), under hammer, $2.7m, 7 bidders

The setting couldn’t have been better for this auction as the sun was shining and the there was not a breath of air.

The vendors couldn’t have planned it better as they had renovated to sell (spending $340,000 as owner builders, according to the section 32) after buying the property almost two years ago for just over $1,200,000.

Campaign agents Duane Wolowiec and Stuart Evans roved the strong crowd of well over 100, and had everything perfectly in position for auctioneer Antony Woodley, who gave a spirited and well-measured preamble. There was a real buzz at this auction, and this was going to going to go strong, you could feel it.

The auction opened with a low bid of $1,850,000 (not sure why) and it didn’t take long for multiple parties (mainly Chinese) to get into the thick of things well and truly and take this person over.

At $2,530,000 the property was formally announced on the market and clipboards were going everywhere, with the Duane and Stuart helping to explain to bidders where the bidding was at. In the end the property was sold for $2,700,000 – a very, very solid result one must say.

Canterbury: 2a Dryden St, Antony Woodley (Marshall White), under hammer, $2.7m, 7 bidders

10 Monaro Rd, Kooyong, Warwick Anderson, (RT Edgar), under hammer, $4.5m, 2 bidders

Around 60 people gathered along the footpath opposite and in front of the property up for auction as auctioneer Warwick Anderson went through the preliminaries. Calling for an opening bid, Warwick briefly paused while a few noisy cars roared down the street before tabling a vendor bid of $4.4m to kick-start proceedings.

Bidder 1 joined in at $4.425m and Warwick searched the crowd for more. Bidder 2 offered a strong bid of $4.5m before our auctioneer headed inside to refer to his vendor.

Back outside and Warwick informed us he was now selling. With no further bids, it was a breeze to the finish line for Bidder 2 who took the keys to the door at $4.5m.

Kooyong: 10 Monaro Rd, Warwick Anderson (RT Edgar), under hammer, $4.5m, 2 bidders

27 Royal Ave, Sandringham, Mark Earle (Buxton), under hammer, $2m, 3 bidders

What an entertaining auction, starring Mark Earle and two sets of bidders who kept the crowd laughing and mesmerized throughout proceedings! Held in the spacious backyard of this Sandringham home, around 50 people made themselves comfortable as they listened to Mark extol the virtues of both the two-storey home and its location.

Calling for an opening bid, Mark was met with silence so he instead tabled a vendor bid of $1.6m. Bidder 1 came in at $1.62m and Bidder 2 joined in shortly after.

We had a brief cameo from Bidder 3, but in the end it was a comedic double act with bidders 1 and 2 stealing the show from our master of ceremonies with their witty replies and easy banter. The price crept up slowly and the curtain eventually came down at $2m to a round of applause from the appreciative audience.

Sandringham: 27 Royal Ave, Mark Earle (Buxton), under hammer, $2m, 3 bidders

Good floor plan flow

When looking to buy a home, floor plan flow is really important. If rooms are arranged in an awkward way, then the functionality and livability of the home can be seriously affected. Pokey corners, dark spaces and cramped passageways often result, and this can affect the safety of those who inhabit or visit the home.

It is much better to walk past a room rather than through it, and generally speaking the direction path through a home from the front to back should involve as few turns as possible.

When visiting homes to buy, try not to be ‘tricked’ by the way the way furniture (which is often hired) is laid out and take particular notice as to what may be omitted. Often dining room tables are taking out of open plan living areas (so where would you eat casually?) and/or there is only one couch (so where would the rest of the family sit?).

Imagine your own furniture in the home, and the way in which you would live in it.

This is really important, and you may be prudent to take a few room measurements on site and scribble on the floor plan in a considered way at home fitting in your own furniture and family needs.

Maybe the house has a lot of ‘wasted’ space!

Of course renovation changes can always be adopted, but the trickier the plan the more costly this is to do.

Agent Opinion: Are vendors excited by the market at the moment? Are they wanting to wait until May to start an auction campaign or are many keen to sell privately during April?

Andrew Hayne (Marshall White, Armadale):

“There is a real combination of the two at the moment. Some vendors will wait until after May, if it is the right property, while others are choosing to sell off-market. There has been a lot of interest for campaigns after Easter, so we anticipate that May will be very busy.”

28 Rowland St, Kew, Dave Oster (Marshall White), under hammer, $3,840,000, 8 bidders

There was a real buzz at this auction, and fair enough. Prime Sackville Ward land – just under 1000m2 of it in a really good part – Rowland Street.

With s south facing rear aspect and the church located across the road (not ideal for many cultures, namely Chinese) this property did have its shortcomings.

While it was unusually quiet for a Grand Prix Saturday afternoon (I could always remember hearing the F1’s buzzing around in Boroondara – not now though as they have changed the engines), auctioneer Dave Oster got the auction underway at $2.5m and it didn’t take too long to get going.

With a string of bidders in the early $3m’s, Dave announced the property on the market at $3.5m and it was largely then a battle between two Chinese families, placed either side of experienced Marshall White agent Robert Ding with clipboard in hand, writing down the bid increments.

A elderly local gent came in quite late and ended up winning the day at $3.84m – which was a strong result. 8 bidders in total here and well conducted auction by Dave who kept pace perfectly and conducted himself very respectfully in front the big crowd of well over 100 people.

354 Williamstown Rd, Port Melbourne, Frank Callaghan (Frank Gordon), under hammer, $1,010,000, 4 bidders

A midday auction and the sun was burning down on the backyard of 354 Williamstown Road. The 40 or so onlookers sought shade where they could leaving the hottest spot in the yard for auctioneer Frank Callaghan to conduct proceedings.

Frank stayed cool and calm despite the heat, fielding bids from four bidders in all corners of the sunny yard. The house itself is a blank canvas waiting for some rejuvenation. The recent sale of a completely refurbished ‘Bank House’ nearby shows the potential of this style of house.

Bidding opened at $800,000 and at around the $930,000 mark, Frank announced that there was no reserve and we would be selling.

Some more bidding ensued before the hammer came down to a very pleased Bidder 4 at $1,010,000.

65 Claremont Ave Malvern, John Bongiorno (Marshall White), under hammer, $2,510,000, 2 bidders

With a crowd in excess of 100, auctioneer John Bongiorno, didn’t have to work too hard for an opening bid, with two bidders jumping in immediately.

If there were other parties planning on bidding, they never got the chance.

On the market at $2,200,000 the property eventually sold for $2,510,000, in excess of $4,000 sqm.

Architectural Concepts: 19 Marlborough Ave Camberwell 

The Golf Links Estate in Camberwell had a very distinctive uniform style – and it had a real charm. If you are lover of the English style (that is to say brick homes, with tiled roofs, timber windows and cottage gardens) then you will like this precinct of Camberwell.

This home has many pluses, and great bones for renovation and extension, which are:

While very liveable in its current form, the central kitchen, dated utility areas and lack of a bathroom to the first floor are obvious weaknesses for modern day living in this house presently.

While a bigger scale renovation could easily be created, the response below looks to keep the first floor envelope and only extend back the rest of the house in a small way. It is in a way spending as little as possible to achieve a functional plan and helping to avoid overcapitalisation.

Agent Opinion: With the timeframe for campaigns before Easter now passed, what are the selling plans for May?

Glen Coutinho (RT Edgar Boroondara)

“Most pre Easter auctions are now locked away. Vendors are now planning campaigns starting after Easter and the school holidays,
with the start date being the first Saturday in May. Subsequently the last two Saturdays in May will be big auction days.”

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There was a buzz in the air today – and with so many auctions scheduled, the market overall performed well for sellers.

A standout auction we attended was 38 Kooyongkoot Road, Hawthorn (John Manton / Justin Krongold Marshall White), selling almost a million dollars over reserve. With $100K jump bids late in the piece it was quite amazing to watch really, and a similar huge result just around the corner at 3 Kembla Road a few days prior, no doubt the stage was set.

For the good properties and the sensible vendors, auctions of 6 bidders are the norm now rather than 3 bidders.

But not everything is making it to auction. A few sold before auction this week – namely 7a Maling Rd, Canterbury (Stuart Evans Marshall White) and 101 Argyle Rd, Kew (Robert Ding Marshall White) this week. Buyers certainly need to be on their toes, available and ready to buy.

Average properties (those on main roads, with tricky floor plans or having privacy issues) are still struggling though, and buyers in the main are wary. That said, applying a blanket approach to square metre rates on properties doesn’t really work. Understanding the precinct, the selling  history of the property and surrounding homes and ultimately whether it is a good or bad home are important factors to a good buying decision. Planning and preparation are the keys.

Of note in Bayside, 80 Canberra Grove, Brighton East has changed hands three times since 2009.  It was bought on the weekend for $1,849,000 after being purchased less than two years ago for $1,420,000, and before that in 2009 for $1,335,000.

65 Champion Street, Brighton (viewed by most as land only) was bought for $2,700,000, or approximately $2,900 sqm.

Two Up and Two Down

The ‘two up and two down’ topic comes up quite regularly when we discuss homes with clients, but we rarely buy these homes. Why not?

A ‘two up and two down’ home is one with two bedrooms upstairs and two bedrooms downstairs. There are often bathrooms serving each floor, and conventional floor plans of varying styles.

Aside from the conventional four-person family (not as common today as it once was), the majority of families or buyer groups are not that well suited to these homes, as parents generally want good separation from the children’s bedrooms as the family grows. Having two children upstairs and one downstairs doesn’t tend to work and is not desired by many buyers.

Compare this with a floor plan that offers one bedroom downstairs and three bedrooms upstairs. This works for four, five or even six person families, as the parents can live downstairs while the kids can dwell somewhat independently upstairs. It can also work OK when the kids leave home, as the ground floor alone is used and there is less need to clean upstairs or ‘rattle’ around in a larger home.

Beware of ‘the two up and two down’ home. While it may suit you now for a particular stage in your life, it may not in the future and it could limit the potential sellers to a small group, which can affect capital growth.

 Auction Highlights:

38 Kooyongkoot Road, Hawthorn (John Manton, Marshall White), under hammer, $5,085,000, 5  bidders

About 90 in attendance for the auction of this smartly designed (albeit a bit dated) family home in Kooyongkoot Rd Hawthorn.

The action has been really hot in this part of the world lately, I along with many others are keen to see what transpires here.

John Manton (Marshall White) is the auctioneer and he looks for a bid in the mid-to-high $3m’s. He gets it not long after and the auction gets going in moderate amounts with two bidders.

At $4,100,000 the property is announced on the market and the bidding steps up a level. There are not many bids, but I am counting five bidders over $4,500,000 and the bidding is now jumping in $100,000 increments. Now that is a sign of a strong auction!

At $5,000,000 the auction starts to wind down a little in terms of bidding and John (with a very big smile on his face!) knocks the property down at $5,085,000 – almost $1,000,000 over reserve.

Amazing – this result could be a real game changer for the Scotch Hill area and no doubt this auction will be the talk of the town today. Great result for John and co-listing agent Justin Krongold.

35 Ewart Street, Malvern (Jack Bongiorno, Marshall White), under hammer, $2,560,000, 4 bidders

Quite a good sized crowd lined the street as Jack Bongiorno took centre stage. Not wasting any time, Jack tabled a vendor bid of $2m to kick-start proceedings.

Bidder 1 jumped in at $2.025m and Bidder 2 came in soon after. At $2.15m, Jack headed inside to chat with his vendor, and to give the crowd some thinking time. Back outside, Jack advised that we were not yet at the reserve.

Bidder 3 entered the contest at $2.19m and Jack headed inside once more at $2.250m, when the ‘on the market’ question was asked.

Back outside and yes, the home was now selling.

An additional bidder joined in towards the end, albeit only briefly, and the hammer fell at $2.560m to a round of applause from the 70 or so spectators.

Kyarra Street, Hampton:

Kyarra Street has seen two homes sold in as many weeks.  Located centrally between Sandringham Village and Hampton Street, it is walking distance to the beach, shops, stations, restaurants and schools.

You may recall 6 Kyarra Street, (Hodges) a period home with good options to extend, providing options for the home to grow with the family (one of Adam’s options: http://www.woledgehatt.com.au/architectural-concepts-6-kyarra-st-hampton/

6 Kyarra sold well with six bidders for $1,640,000.

12 Kyarra (Hodges) was more than double that – similar land (approx.. 600sqm), same orientation and a real ‘WOW’ house.

Two bidders fought for it, the price settling at  $3,305,000.

Agent Opinion: How does the current market compare to others, in your experience?

Steve Tickell (Hocking Stuart, Brighton):

The current market has a definite 2009 feel about it. Buyers in their droves, not enough properties to satisfy their appetite and bidders walking away frustrated from auctions as properties go well beyond the expected price ranges.

With interest rates at an all time low, real estate consumer confidence as good as its been for some time, and a sense that prices could increase rapidly in the months ahead, there’s no doubt we are in for a hectic first half of 2015!

The hot topic of conversation at the moment is the increasing presence of Asian investors entering the market. Whatever your view, there’s no doubt they are definitely making their presence felt right across Bayside, conspicuous with their spirited bidding at auctions, and in the way they attend open inspections in large family groups. For agents they are a breath of fresh air, their enthusiasm for real estate evident for all to see, their competitive nature and keenness to negotiate a test of one’s patience and skill.

They have certainly added a new dimension to the market place, and made life for real estate agents just that bit more interesting. As if we didn’t already have enough to make life interesting on Saturdays!