Archive for August 2015

Armadale: 2b Erskine St (Marshall White), after auction above $4.95m, 2 bidders

Bidders were not deterred by the cold or rain on Saturday with many auctions again seeing multiple bidding and strong results above reserve.

The talk during the week about oscillating share prices and a lowering Australian dollar appeared to have little impact on buyer interest over the weekend, particularly for the goodies.

There were a number of homes ‘bought before’ this week, particularly in Bayside.

Whether this is an anomaly or a new trend, time will tell. Perhaps with only one buyer or one standout buyer prepared to pay more than everyone else, agents saw the opportunity to sell well and the vendors were listening.

‘Smaller Land’ Auction Highlights:

Clever renovations / updated homes sold well:

New off markets this week: 

Auction Spotlight:

Malvern East: 39 Coppin St (Marshall White), under hammer, $4.46m, 5 bidders

39 Coppin St, Malvern East (John Bongiorno, Marshall White), under hammer, $4.46m, 5 bidders

A crowd of well over 100 braved the cold to watch the auction of 39 Coppin Street.  With the inspection buzzing prior to the start of the auction, John Bongiorno didn’t need to talk the property up – it spoke for itself.  Opening with a vendor bid of $3.6million, three bidders quickly took the price to $4.31million, where the property started to slow.  After adjourning for a half-time break, the property was announced on the market where two more parties joined in, the final result a solid $4.46million.

Hawthorn: 47 Victoria Rd (Andrew MacMillan, Jellis Craig), under hammer, $2.63m, 6 bidders

47 Victoria Road Hawthorn East (Andrew MacMillan, Jellis Craig), under hammer, $2.63m, 6 bidders

An icy chill was in the air for this 1pm auction, and auctioneer Andrew MacMillan did his best to warm up the very good-sized crowd of around 120 people which flooded Victoria Road (a central part of Hawthorn East). The auction started “like all others” with a vendor bid by Andrew of $2.2m, and it did take a while for crowd bidding to come about, but it did with nominated, modulated rises.
A long auction which finished at 1.30pm, the property was announced on the market at $2.51m and had good bidding depth from 6 bidders, selling for a very solid $2.63m.

Armadale: 2b Erskine (Marshall White), after auction undisclosed above $4.95m

2b Erskine Street, Armadale (John Bongiorno, Marshall White), after auction, undisclosed above $$4.95m, 2 bidders

Jack Bongiorno held proceedings under the soaring glass ceilings of the conservatory style dining/living area of this stunning Victorian home in front of a large crowd of close to 100 people. Jack didn’t waste any time and, after a thorough preamble, tabled a vendor bid of $4.7m, looking for $50k rises. Bidder 1 offered $4.75m and after some silence, Jack ducked out to speak with his vendor. Back within minutes, Jack told the crowd that we were now at the business end so if you want to bid, bid now. Bidder 2 offered $4.8m and with some more back and forth bids, the home was eventually passed in at $4.95m before selling after auction for an undisclosed amount.

Brighton: 2a Emily (James Paynter, RT Edgar), passed in, $3.525m, 1 bidder

2a Emily St, Brighton (James Paynter, RT Edgar), passed in $3.525m, 1 bidder

This architect designed home was a striking visual surprise at the end of the long driveway, tucked away discreetly behind a pretty period home close to Church St. After inspecting the home, around 70 people waited eagerly as James Paynter took centre stage – quite literally as he stood on the driveway’s turntable! Looking for a “nice, easy open”  – but unable to secure one from the crowd – James instead tabled a vendor bid of $3.3m. A second vendor bid did little to excite the reserved crowd, so James headed inside for a half-time break. Back outside, he asked a potential buyer if he wanted to bid. “Not ready yet,” was the reply. James joked that perhaps he should just keep vendor bidding until he reached a level the bidder was comfortable at, which drew some laughs from the otherwise silent crowd. Just as James was about to pass the property in, a gentleman offered $3.525m which secured him the right for post-auction negotiations.

Agent Opinion: “Are you seeing more offers before auction, are you recommending them and are the vendors accepting them?”

David Hart (Buxton, Brighton): “We are certainly seeing more buyers trying to take properties off the market prior to auction. From our perspective it needs to be an absolutely “auction stopping offer” before we recommend our vendor accepts it. As long as we contact every single buyer who has inspected the property to ensure there isn’t a better offer available before closing the sale, our vendors are invariably following our advice.”

Glen Coutinho (RT Edgar Boroondara): “We are actually seeing fewer offers prior to auction as most buyers understand that vendors prefer to go to auction in a hot market. Our recommendations to vendors in this climate is to run the property to auction.”

David Gillham (Noel Jones, Camberwell): “Last weekend we sold 50% of our auctions before,the offers were exceptional and our vendors were keen to sell before as the properties involved were on a main road and a railway line. A great offer should always be considered before auction providing all parties are given the chance to put forward an offer.”

Canterbury: 34 Warburton Rd (Hamish Tostevin, Marshall White), big crowd, opened $2m, sold for an undisclosed amount above $2.5m

Under the weight of greater auction numbers, the clearance rate stayed healthy over the weekend – hovering around 76%.

There was a level of discernment from buyers for properties with concerns, or those with ‘high’ vendor expectations.  The buyers were competitive, but not willing to ‘just keep going’.

Auction Highlights

With some unsettling at the stock exchange last week, it appeared more vendors were willing to accept the ‘bird in the hand’ prior to auction this week.

The off-market numbers continue to increase providing more opportunities for the local market to consider, however buyers need to able to sift through the properties that are really for sale and those that aren’t, and have a good understanding of the values and the process to ensure they buy well.

Hampton: 24B Bateman St (Simon Derham, RT Edgar), opened $1.2m, passed in $1.245m, sold after undisclosed

New this week:

Some areas of the market are starting to experience an increase in property appraisals.  No doubt buyers will be excited at the thought of more properties potentially coming onto the market before the end of the year, however, with the continuing media hype about the Melbourne ‘bubble’ and some shakiness in the stock market, this may be the first sign that the market could be settling, or dare we say it, cooling.

It’s hard to imagine the market cooling yet, and these are early days.  A settled week at the stock exchange could restore any waning confidence.  Of the auctions we attended on the weekend, we saw multiple bidders at every auction.

However, for some vendors, particularly those on busier road or with some other property concerns, the opportunity to sell now may provide additional piece of mind.

Agent Opinion: Do you expect to see an increase in appraisals in the coming weeks?

Kaine Lanyon (Marshall White): “We haven’t seen big, noticeable increases in appraisals (in Port Phillip)..maybe a little up, but it still very much feels like there are low numbers on stock, which should ultimately keep putting upward pressure on prices.”

It is different in Bayside, however. Speaking with Jenny Dwyer, (Hocking Stuart) office is experiencing a spike in property appraisals. Nick Johnstone (Nick Johnstone Real Estate) agrees. “Yes definitely. Lots of people want to get in before they think (the market) will come off. I don’t think it will come off though!”

Sandringham: 47A Vincent St (Steve Tickell, Hocking Stuart), open $1.2m, sold over $1.3m

Auction Spotlight – Some we attended this week:

6 Victory Street, Sandringham (Mark Earle, Buxton), under hammer, $1.69m, 4 bidders

Mark Earle stepped out into the sunshine in front of around 70 people to begin proceedings. With the crowd buzzing & a number of Buxton agents in attendance, there was a feeling of anticipation the air – this should be a good auction! And we weren’t disappointed. Bidder 1 came in strongly with an opening bid of $1.3m. Bidder 2 was quick to counter with an offer of $1.4m. Bidder 3 entered the fray and at around the $1.5m mark, Mark said we would be selling. Some rapid-fire bidding continued, with Bidder 4 joining the contest at $1.61m and the hammer coming down at $1.69m. An entertaining auction with strong bidding and great result for all involved.

Sandringham: 6 Victory St (Mark Earle, Buxton), under hammer, $1.69m, 4 bidders

33 Middle Crescent, Brighton (Peter Kakos, Marshall White), after auction, undisclosed above $5.1m

A big crowd flowed through the huge, 5 bedroom home on nearly 1150sqm before proceedings began in the lush front yard. Auctioneer Peter Kakos described the home as “prime Brighton real estate” before tabling a vendor bid of $5m straight off the bat. Bidder 1 offered $5.1m and after some prolonged silence, Peter headed inside to speak with his vendor. “I’m happy to take a gentle $50k rise,” he encouraged upon his return, but when all remained quiet, Peter passed the property in for further negotiations. Sold after for an undisclosed amount.

Brighton: 33 Middle Crescent (Peter Kakos, Marshall White), after auction, undisclosed above $5.1m

6 Medhurst St, Sandringham (James Wardrop/Hodges), under hammer, $1.295m, 3 bidders

A beautiful Spring-like day, and around 50 people lined Medhurst St to watch proceedings. James Wardrop was our auctioneer and after a thorough preamble, called for an opening bid. Bidder 1 kicked things off, tabling a bid of $1.1m. Bidder 2 joined quite quickly, and at $1.2m James announced we were on the market. Pointing out that all the action was to his left, and trying to encourage some bidding to his right, Bidder 3 (also to his left) joined at the death knoll. The hammer finally came down at $1.295m to the delight of the crowd.

Sandringham: 6 Medhurst St, (Hodges), under hammer, $1.295m, 3 bidders

9 Armfield Street, Brighton (David Hart, Buxton), after auction, $3.025m, 1 bidder

Standing tall at the end of the street, and abutting Whyte St Park, spectators took a moment to enjoy the views from the top deck before auctioneer David Hart stepped out to begin proceedings. After a succinct preamble, David called for an opening bid. Quiet, so David tabled a vendor bid of $2.65m to kick-start the auction. Bidder 1 offered $2.7m, but with no further bidding on the day, the property was passed in. Bought after auction for $3.025m.

Brighton: 9 Armfield St (David Hart, Buxton), after auction, $3.025m, 1 bidder

Architectural Concept

New houses designed and built some time ago often are purpose built for the owner and therefore it can be hard for new buyers to see potential in them.
Sometimes though with some careful consideration and planning they can be transformed to better suit modern day living. 33 Middle Crescent we thought was one of those offerings.

Challenges of the property :

Key pluses of the property :

Below represents a potential design option,using wasted space to the side of the house and also building over the rear roofline. This design is of course subject to required council approval.

Malvern East: 4 Central Park Rd (Carla Fetter, Jellis Craig), under hammer, $2.34m, 3 bidders

With another clearance rate around 80% last weekend, all the signs suggest the market is continuing to roll along steadily. Over the next four weeks the number of properties being auctioned will continue.  If vendor expectations can be managed, the current statistics suggest there will still be buyers wanting when the market shuts down again for more school holidays.

Auction highlights:

Property observations:

Often the ‘quiet’ properties present when the market is less active, such as school holiday periods.

We are currently experiencing an increase in ‘off market’ options.

With continuing hype from the our media about the ‘Melbourne property bubble’, it appears some vendors may be wishing to capitalise on the current market, rather than risk taking their property to auction later this year, just in case there is some truth to the media stories.

Speaking with Jenny Dwyer, (Hocking Stuart) office is experiencing a spike in property appraisals. Nick Johnstone (Nick Johnstone Real Estate) agrees. “Yes definitely. Lots of people want to get in before they think (the market) will come off. I don’t think it will come off though!”

New off-markets:

4  Central Park Rd (Andrew McCann, Jellis Craig), under hammer, $2.34m, 3 bidders

There was a hint of spring in the air as auctioneer Andrew McCann walked onto the sunny front yard for this 2pm auction. A good crowd listened to his measured and considered preamble and the auction commenced with a solid $2m opening crowd bid. There was good bidding at a steady pace for a few minutes with two extra bidders, then the property ultimately sold under the hammer for $2.34m. This represents a very sold result indeed, with a renovated product on bigger land next door (#4a) selling in October last year for around $20.000 more.

Architectural Concept:

The Gascoigne Estate is one on Melbourne’s most renown precincts, and given.
4 Central Park Road is a great opportunity for renovation that would work well.

Below represents a potential design option, keeping the building footprint compact (maximising the backyard area), providing good bedroom separation (main down and secondary rooms upstairs) and having a blend of formal and informal living areas). This design is of course subject to required council approval.

Auction Spotlight:

Brighton East: 2 Davies St (Russ Enticott, Hodges), under hammer, $1.59m

2 Davies St, Brighton East (Russ Enticott, Hodges), under hammer, $1.59m, 4 bidders

The crowd seemed to grow steadily throughout this Brighton East auction & eventually around 50 people huddled around to watch Russ Enticott in action. Russ went through the usual preliminaries and highlighted the home’s great location before asking for an opening bid. An offer of $1.25m came from a gentleman to his right before Bidder 2 tabled $1.27m. Bidder 3 was in at $1.3m and strong bidding continued before Bidder 4 offered $1.51m. Julian Augustini headed inside to refer to the vendor – without breaking Russ’ momentum – and at $1.57m Russ announced we were on the market. A young couple directly opposite our auctioneer was the winner on the day, taking the keys to the home at $1.59m.

Elwood: 110 Mitford St (Torsten Kasper, Chisholm & Gamon), after auction, $1.59m

110 Mitford St, Elwood (Torsten Kasper, Chisholm & Gamon), after auction, $1.59m, 1 bidder

Spread out on all four corners of the street, the crowd of around 50 waited quietly for auctioneer Torsten Kasper to begin proceedings. Torsten extolled the many highlights of the home – its fantastic location,  an easy walk to just about everywhere. A vendor bid of $1.5m kicked off the auction before Bidder 1 chipped in $1.52m. After some silence from the crowd, Torsten headed inside to refer to his vendor. Back outside, still silence, and the property was passed in to the sole bidder for further negotiations. Bought a short time after for $1.59m.

Agent Opinion: How are stock levels looking as we head towards the September school holidays and beyond?

Richard Winneke (Jellis Craig): It appears that September/October 2015 will possibly be a little quieter than the previous year for properties to choose from. However, August is certainly much busier than in years gone by.

Kew: 24 Byron St (Stuart Evans, Marshall White) opened $1.8m, passed in $2.03m, bought after (undisclosed), 3 bidders

Although there was an increase in the number of properties for buyers to choose from last weekend, there was no obvious reduction in the number of bidders vying for properties this week – many auctions had three or more bidders.

With some properties now selling for significantly more than they were only one or two years ago, (eg. 20 Studley Avenue selling for around a million and a half dollars more this year than the previous sale approximately 18 months ago),

There were examples where vendor expectations were starting to creep beyond the market, such as 24 Byron Street, Kew – three bidders, passing in for $2,030,000 (selling after for an undisclosed amount).

August is likely to see a steady flow of new properties hitting the net providing comfort for buyers in the shorter term. However school holidays start again in mid September and if you haven’t found the home you want before early September, there will be another fairly lengthy spell until November when the flow will improve again –  due to school holidays and two public holiday weekends (AFL final and Cup Day).

Other results:

With increased interest buyer in development sites, 41 Atkins Street Kew sold for $4.325m – three units on approximately1000sqm all sold as one. This follows the recent sale of 12 Stawell Street Kew (3 units around $4,500sqm).   Two similar offering for investors/buyers are 16 Oakleigh Street, Oakleigh East (Andrew Boyce, Hodges) auctioning on 29th August and one coming up in Hawthorn East.

There are still a number of properties selling quietly or before auction. Peter Vigano (Jellis Craig) sold 1b Marlborough Street quietly off-market in the mid $3m’s. Rob Vickers-Willis & Jeff Gole (Abercromby’s) sold 53 Vincent Street Glen Iris $2.5m pre-auction.

The auction of 888 Riversdale Road Camberwell didn’t necessarily live up to the hype on the weekend (sold on the 8th day of the 8th month, the number eight of course having good fortune according to Chinese culture), selling for $1,440,000 (or about $2,300sqm – which is fairly normal in the context of this current market, for what it was).

Albert Park: 113 Richardson St (Oliver Bruce, Marshall White), passed in, $2.2m, 2 bidders

Auction Spotlight:

Sandringham: 9 Bamfield St (Buxton), under hammer $1.565m

9 Bamfield Street, Sandringham (Danny Corcoran/Bill Jowett, Buxton), under hammer, $1.565m, 4 bidders

With a huge crowd of around 90 people, multiple bidders & rapid-fire bidding throughout, this was a cracker auction all round. The spectators spread themselves out across and down the street – auctioneer Bill Jowett did a great job managing the bidding from all directions! A strong opening bid of $1.3m came from the crowd. Bidder 2 came in not long after at $1.31m and Bidder 3 at $1.35m. Bidding between the three continued before Bidder 4 entered the fray. More bidding, no half-time break and no “on the market” question, but when bids started trickling in at firstly $5k, then $2,500 increments, Bill announced that he would be selling to the highest bidder. The hammer finally came down at $1.565m to a round of applause from the appreciative crowd.

Hampton: 98 Orlando (Hocking Stuart), under hammer, $2.85m

98 Orlando St, Hampton (Peter Kennett/Jenny Dwyer, Hocking Stuart), under hammer, $2.85m, 2 bidders

The first of the ‘non-identical’ twins – a pair of newly constructed townhouses just metres from Hampton beach – was how Peter Kennett described the property on offer to the massive crowd of over 120 people. Peter asked if there was a game on at the MCG because “everybody seems to be here instead!”  After a dig at Carlton & Collingwood, and some subsequent chuckling from the crowd, a vendor bid of $2.5m kicked off proceedings and Bidder 1 chimed in $2.525m. Bidder 2 entered soon after and at $2.6m, Peter & Jenny Dwyer ducked in to speak to their vendor. Back outside, some more bidding and at $2.71m Peter announced he would be selling. More bidding and at $2.85m the hammer came down to cheering and clapping from all in attendance.

Hampton: 100 Orlando St (Hocking Stuart), after auction, $2.59m

100 Orlando St, Hampton (Peter Kennett/Jenny Dwyer, Hocking Stuart), after aution, $2.59m

The second, and slightly smaller townhouse but still featuring spectacular bay views, 3 bedrooms, pool, basement garage and luxury appointments, went to auction just minutes after its next door neighbour. The spectators that had remained after the previous auction wondered in earnest whether the under-bidder would be successful the second time round. We didn’t have to wait long to find out. Peter was quick to start the contest, opening with a vendor bid of $2.4m. Our under-bidder tabled $2.425m and, with no one else in contention, Peter quickly passed the property in – “Let’s go buy a house,” he enthused as he ushered the family of four inside. Sold after auction for $2.59m.

Agent Opinion: How are prices in your area compared to this time last year?

Stuart Evans (Marshall White): “I believe prices in Boroondara have increased by 10-15% in the last 12 months. Buyer demand for quality family homes is as strong as I have ever experienced. “

Brighton: 183 Church St (John Clarkson, Buxton), under hammer, $2.64m

A solid auction weekend overall, considering it was the first weekend back with numbers.

The good properties were well contested, and those over priced or with concerns (perhaps a combination of both) were left on the shelf.

There have been reports that the number of homes sold this winter is up approximately 20%.   This has been largely due to a number of buyers still wanting and canny vendors capitalising on this.

The good news for buyers who haven’t bought, is that there are some very good properties coming up.  Many of which will hit the internet this week. Two highlights are in the Gascoigne Estate (Malvern East).  Good family homes, tastefully designed and renovated.

Off-markets:

A tale of two properties – land, house, lifestyle – and the advantages of both:

Both sold on the weekend, for almost identical amounts, in the higher $2millions.

21 Haydens, a convenient location to the Concourse shopping centre, a few hundred metres to the beach and a west facing rear.  Approximately 683sqm with a, near new, large Lowe Construction family home and pool utilising most of the land. Concerns – the road is a local traffic thoroughfare, particularly during the day and the bus stop, complete with seat, is directly out the front.

20 Reed Street, 424sqm, two street frontages, a well positioned period home with a large back yard, one block back from the beach and an easy walk to both Albert Park and Port Melbourne. Concerns – further money will need to be spent on the property as the home will require a major renovation at some stage.

Both homes offer a variety of lifestyle opportunities, however, Reed is likely to offer better capital growth opportunities given the land size and proximity to the city.  The bulk of the purchase price for Reed in the land, with a nominal amount for the home, whereas Haydens was as much, if not more, about the house with a more evenly split ratio between house and land in the purchase price.

Beaumaris: 21 Haydens Rd (Mark Earle, Buxton), under hammer, $2.8m

Historically, land has been the driving factor in increased property prices with the buildings depreciating over time.  As families become more time poor, proximity to the city will become more desirable for buyers.  Whereas, once, Albert Park was limited for schooling options, this is no longer the case with both primary and secondary schools close by, and new ones, such as Haileybury College, opening in the city as early as next year.

Whilst the property prices may be very similar today, there is likely to be a growing gap between the two in the future.

Sandringham: 17a Sims St, (Steve Tickell, Hocking Stuart), passed in, $2.58m

Next weekend will be the 8th of August, and there are plenty of auctions. Given the heavy numbers, buyers should consider buying before, but this strategy is not that easy if you are emotionally attached and/or have not done it before.

Auction Snapshot:

Malvern East: 14 Wilmot St (Mark Staples, Hocking Stuart), under hammer, $1.555m

14 Wilmot St, Malvern East: (Mark Staples, Hocking Stuart), under hammer, $1.555m, 3 bidders

A good sized crowd of around 80 people lined both sides of Wilmot Street as Mark Staples took centre stage alongside Steve Burke for the auction of number 14. Bidding was fast and furious and after opening at $1.2m, it didn’t take too long for the home to be on the market at around the $1.42m mark. Three parties took the price to $1.555m before the hammer came down to a round of applause. A quick, rapid-fire auction.

Hampton: 52 Littlewood St (Christian Hegarty, Buxton), after auction above $2m

52 Littlewood St, Hampton: (Christian Hegarty, Buxton), after auction, undisclosed above $2m, 1 bidder

The threat of rain looming above, along with the brisk morning air, didn’t deter the 50 or so people that had gathered to see what would transpire at the auction of this large, modern family home in Hampton. Christian Hegarty was our auctioneer and after a succinct preamble, he called for an opening bid. As the crowd huddled around, Bidder 1 offered $1.8m. Christian then tabled a vendor bid of $1.9m before the property passed in to the lone bidder at $1.95m, before selling after auction for an undisclosed amount above $2m.

Brighton: 5 Warriston (Peter Kakos, Marshall White), sold $2.010m

5 Warriston Street, Brighton, (Peter Kakos, Marshall White), under hammer, $2.010m

A good crowd, closer to 100 gathered to watch Peter Kakos auction 5 Warriston Street. Whilst the competition was enough to engage, he managed to include some humour and fun to an otherwise serious situation.

The successful bidder started and finished and was bold in his bidding, the first bid at $1.65million. A second bidder presented immediately, however, he was in and out quickly, before the third joined in. On the market at $1.78million, things started to slow as the numbers approached $1.9million, eventually selling for $2.010m.

Not that much of a surprise really – this area of Brighton has been providing good value for buyers, (e.g. The two sales earlier this year at 6 and 17 Willansby Street, ) particularly considering properties with similar proximity to shops and transport on smaller land further south ( 1 Mildura Ave, Sandringham and 4 Orlando Street, Hampton) both sold recently over $3,000 sqm, with less desirable houses. Even 3/49 Abbott Street, Sandringham, 465sqm – but still one of three units – sold for over $2,900 sqm and still needs a good cosmetic renovation.
When considering the area to buy, it pays to understand what is happening beyond the immediate market you are looking in.

Footnote: You might be interested to check out the winners of the recently held 2015 Houses Awards. Click Here for photos & details of some really stunning homes.

Australian House of the Year and winner of New House over 200 m2: Planchonella House by Jesse Bennett Architect. Image: Sean Fennessy