Archive for September 2015
September 12, 2015
53 Jordan Malvern (Marshall White), sold after auction
The increase in properties for sale this weekend did nothing to dampen the current trend – the good properties sold well.
Although the auction action will slow down for a few weeks for school holidays, agents and buyers are preparing for the late spring market which is to run right up to Christmas (except, of course, for a brief pause on Derby Day/ Melbourne Cup weekend).
Auction highlights:
- 33 Finch Street Malvern East. A ‘trophy’ home in the Gascoigne Estate on over 1000sqm. Jellis Craig agents Andrew MacMillan and Andrew McCann must have been thrilled the day they signed this home up for sale – it was a beauty. With three bidders over $5million, the property eventually settled a little over $5.2million.
- 30 Campbell Street Kew (James Tostevin/Anton Zhouk, Marshall White). Smaller land (approximately 625sqm), in a traditionally quieter part of Kew with a large house – basement car garaging, modern floor plan, three levels – $4.21million.
- 2 Crossakiel Court Hawthorn (Scott Patterson/Sam Wilkinson, Kay & Burton). An early offer just over $3m was declined before the auction, a good decision. The property sold for $4.01million. A compact home on Scotch Hill. We attended the previous auction in August 2012 where it passed in, selling after for $2.125million. Nearly double the price in three years and only some small updates.
Land Sales:
- 7 Wilson Street Brighton (Nick Johnstone, Nick Johnstone Real Estate). Approx. 1006sqm, northeast rear, $3.15million or just over $3,100sqm.
- 5-7 Braeside Avenue Camberwell (Chris Cain/Bryan Cain, JA Cain Real Estate). Approximately 1552sqm north rear, double block, ‘Burwood location’ $3.836million or $2,471sqm.
New off-markets:
- single-fronted renovated home, Hawthorn East – $1.2m
- brick single level period home, Stonnington Glen Iris – $2.5m
- timber period home on good land, Surrey Hills – $2.7m
- well renovated semi-attached period home, Malvern – $2.2m
- modern two-storey townhouse, Elwood – $1m
Auction Spotlight:
33 Finch St, Malvern East (Jellis Craig)
33 Finch St, Malvern East (Andrew MacMillan, Jellis Craig), sold $5.23m, 4 bidders
An expected big crowd for this trophy home in one of Malvern East’s best streets. Auctioneer Andrew MacMillan got things underway really quickly and offered a no – nonsense preamble, which was a really good call.
The auction opened swiftly with an opening bid of $4.6m and in no time has announced on the market at $5.035m with only two bidders taking part. Not long after a further three bidders came into play and the property sold under the hammer for $5.23m.
53 Jordan Malvern (Marshall White)
53 Jordan St, Malvern (John Bongiorno (Marshall White), after auction above $2.625m, 2 bidders
The crowd was buzzing as Jack Bongiorno stepped out to begin proceedings. He encouraged the 80 or so people to move into the front yard, but most of the spectators decided to stay out in the street. This didn’t deter Jack in the slightest and, after a thorough preamble, he tabled a vendor bid of $2.4m and we were away. Two bidders took the price to $2.625m where the property was promptly passed in. The home sold not long after proceedings for an amount above that.
48 Claremont Malvern (Jellis Craig)
48 Claremont, Malvern (Lachie Fraser-Smith, Jellis Craig), sold, $2.946m, 3 bidders
There were quite a few familiar faces at this auction, with many of the crowd from the earlier auction in nearby Jordan St venturing down to watch proceedings here. The crowd wasn’t quite as big – perhaps around 60 – but the spectators huddled around auctioneer Lachie Fraser-Smith, indicating there was a fair bit of interest. Bidding opened at $2.6m and before long there were three bidders in the mix. At $2.8m Lachie announced he would be selling and the price trickled upwards in small increments to the eventual sale price of $2.946m to a round of applause from those that had gathered.
Agent Opinion:“Are vendors waiting for the late spring market to sell (ie. After the school holidays) or are they preferring to sell quietly now if they can?”
Désirée Wakim (Marshall White): “Yes, historically, vendors do prefer to wait for the school holidays to finish before placing their homes on the market, and this year is no different. However, whilst there is a slight lull in the market, there are a few owners who are trying to capitalise on our tremendous market conditions to sell quietly if they can to avoid the traditionally competitive Spring Market.”
September 5, 2015
Brighton: 8 Elm Grove (Peter Kakos, Marshall White), under hammer, $3.185m, 3 bidders
Amidst news this week of faltering share markets and the Australian dollar dropping below 70 cents against the US dollar, our observations saw the good offerings (and some not so good), continue to perform well.
Auction highlights:
- 7 Xavier Ave Hawthorn (Richard Winneke/Campbell Ward, Jellis Craig). Single level updated original home on 559sqm. Even high-rise commercial buildings from nearby Glenferrie Road overlooking the backyard did little to deter buyers here – $2.316m.
- 8 Elm Grove Brighton (Barb Gregory/Jason Collie, Marshall White). Updated timber home, north rear, good street – $3.185m, 3 bidders.
- 29 Finlayson Street Malvern (Andrew Summons/Andrew James, Hocking Stuart). A pretty original home with lovely character yet a very major renovation ahead. It had the space around it in the right places (good side setback from carport and a generous rear yard approx. 647sqm). The flats across the road appeared to raise no concern, the result undisclosed, circa $2m.
The downsizer market stepped up another notch on the weekend.
This was evidenced clearly at 16 Courang Road Glen Iris (Jason Brinkworth/Fiona Ansell-Jones, Marshall White) on Saturday. Selling as land in April 2012 for $1.15m, a single storey new home with clever floorplan (see plan below) sold for $2.92m with spirited bidding from five parties.
Just around the corner at 165 Glen Iris Road (Zali Reynolds, Marshall White), a smaller (period) version of this also sold strongly, circa $1.6m. Smaller land, no rear yard, busier street, yet it was built on a single level and had secure car garaging – the perfect formula for downsizers.
Read more about downsizer properties in Architectural Insights (Click Here)
Land Sales:
- 3a Huntingfield Road Brighton (Ian Jackson, Kay & Burton). Approximately 706sqm, northwest rear, $2.375m or $3,364sqm.
- 1b Salford Avenue Balwyn (Sue Wooldridge/Julian Tonkin, Jellis Craig).
- Large land, over 1300sqm, cul-de-sac location within Boroondara’s esteemed Golden Mile (or ‘Gold Mine’ as one buyer recently referred to it as). Undisclosed, but in the high $3millions or around $3,000sqm.
The quieter sales continue:
64 St Vincent Place, Albert Park. A two-storey ROW terrace (on about 139sqm) sold for $2.95m (Marshall White One) after selling only three years earlier in the mid $1.7millions.
New off-markets:
- Well built ,bespoke 90s home, marvellous city views, Kew – $4.5m
- Modern family home, North Brighton – $6-7m
- Totally updated period home, single level, large land, Canterbury- $6-7m
- Single storey, period home Armadale – $4m
Auction Spotlight:
Hampton: 43 Ludstone St (Robin Parker, Marshall White), under hammer, $1.809m, 4 bidders
43 Ludstone Street, Hampton (Robin Parker, Marshall White), under hammer, $1.809m, 4 bidders
A slight drizzle didn’t deter the crowd of around 70 or so people that had gathered to watch the auction at 43 Ludstone Street. Robin Parker stepped outside and asked the crowd to huddle closer. After a thorough preamble, he asked for an opening bid and got one straight away from a lady to his right at $1.5m. Bidder 2 was quick to enter the contest before bidders 3 & 4 took up the challenge. A battle ensued before the hammer came down at $1.809m to a round of applause.
Elwood: 64 Dickens (Tony Pride, Pride RE), sold $1.372m, 4 bidders
64 Dickens Street, Elwood (Tony Pride, Pride RE), under hammer, $1.372m, 4 bidders
With the beach at the end of the street, it was timely the sun decided to shine for the auction of 64 Dickens Street. After an entertaining pre-amble by Tony Pride and opening vendor bid of $1,100,000, two bidders took the price into the early $1.2millions, Tony using the opportunity for a half time break. Upon his return, two more bidders decided to join in, the eventual result $1.372million.
South Yarra: Not everything sold this weekend. 29 Palermo St (Gerald Delany, Kay & Burton), passed in $3.4m, 2 bidders
29 Palermo Street, South Yarra (Michael Armstrong/Gowan Stubbings, Kay & Burton), passed in, $3.4m, 2 bidders
Around 100 people lined the street outside this “wow” South Yarra property – architecturally designed over three levels featuring a spectacular elevated glass pool. Gerald Delany was our auctioneer and after accepting an opening bid from advocate David Morrell at $3.2m, Gerald surprisingly tabled a vendor bid straight over the top at $3.25m. Inside to refer to his vendor, Gerald returned and the bidding continued in $25k increments before the home was passed in at $3.4m. It is currently still for sale.
Agent Opinion: “Are vendors increasing inquiry, but not necessarily wanting a full campaign? Are many people preferring to consider an off-market approach?”
Steve Burke (Hocking Stuart): “We have been amazed at some recent results. Off-markets are definitely on the rise. However, the question always arises as to whether the off-market sale price was at the optimum level or not. Auctions are, I think, the best way to sell. They are transparent & you can always sell before or after.”
Downsizing? Where to from here
16 Courang Glen Iris, sold 5/9/2015 – good example of what downsizers should be looking for
Downsizing? Where to from here
One of the fastest growing property markets in Melbourne is the ‘downsizer’ market.
Gone are the days where the ageing population is happy to potter around the house and garden until greener pastures present.
The modern downsizer is more often than not active, financial and very keen to travel and socialise.
Most downsizers are searching for similar things –
- Single storey (or at least the main bedroom downstairs)
- Super close to amenities (less than 1km, but more preferably less than 500m to shops, restaurants and rail transport)
- Large open plan kitchen/meals/family area
- Plenty of space to entertain
- Garaging
- Security
- Low maintenance, easy lock up and leave property
Many have lived in their larger family homes on bigger blocks for more than 20 years. The homes are often requiring regular ongoing maintenance and repairs, detracting from time that could be better spent catching up with friends, going to the theatre, playing golf and travelling.
The family home is likely to be one of the biggest investments a person/couple will make and it is fair to expect that if one is ‘downsizing’, so should the house and the budget, hopefully leaving some money aside for retirement and travel.
The most desired home amongst the downsizers appears to be a single level home on a smaller block of land (own title), allowing for a courtyard/outdoor meals area and maybe a small pool. The internal flow should have a large open plan kitchen/living/meals area, a smaller secondary living room, three bedrooms and two bathrooms. A garage is preferred, particularly if it has direct entry to the home.
Working through the options, next is the townhouse (with main bedroom downstairs), followed by the single storey villa units (6-8 in the block) and finally the apartments.
The number of buyers entering this market is growing, it seems almost weekly.
Buyers who think they will be able to downsize their budget may be in for a nasty surprise.
On 5th September 2015 16 Courang Road, Glen Iris was auctioned and nearly all the interest was from the downsizing buyer group.
This property was last sold as ‘land’ in 2012 for $1,150,000. A new single storey home, a good floor plan and a pool resulted in a massive $2,920,000 with three buyers still bidding above $2.8million.
In November three smaller properties in Malvern, (15a Dixon Street, 30 Dixon Street and 5 Irving Street) sold well over their reserves between $1.9m-$2m with multiple bidders, leaving a large number of under-bidders still wanting.
For those trying to ‘value’ these types of properties using the traditional ‘land plus building’ method, these prices do not always ‘stack up’. In some instances, they don’t even come close.
Buyers are finding that instead of depositing money into their savings account, they are withdrawing even more to remain competitive in this growing market place.
Some buyers may think that the only way to be successful in this market is to find more money. However, if this were the only way to purchase homes successfully, professional services such as ours would very quickly become obsolete.
Buyers first need to have a good understanding of what they want and then be able to identify properties that can meet these needs. We believe that many of the answers lie in the ability to recognise these properties, then being able to obtain and decipher the information effectively. Appropriate strategies can then be implemented to help create certainties and increase the opportunity of being the buyer.