Archive for November 2015

Brighton: 50 Asling St (David Hart, Buxton), sold $4.13m, 6 bidders

Saturday’s auction results demonstrated that 2015 is going to finish the way it started. On a record number of properties available for auction, the market saw a reported 66% clearance rate. The overall sentiment from buyers is still positive for the $1m plus market.  Although there were a few properties sold beforehand at higher levels, the highest result on Saturday was 34 McKean Street Fitzroy North (Stephens/Laferia, Nelson Alexander), a renovated warehouse by renowned Melbourne architect Kerstin Thompson for an undisclosed price in the high $4millions.

34 McKean Fitzroy – a great example of why it pays to get a good architect

Interest is now turning to 2016. The first quarter is likely to be short and sharp – Easter (Good Friday) falls early on the 25^th March. Vendors who have run out of time to auction this year should feel confident that buyer interest will continue next year and for those vendors whose properties have ‘passed in’ recently there may still be good opportunities to sell before Christmas with a number of under-bidders still wanting.

Auction Highlights:

Land sales:

Off-markets:

Talk and activity is increasing with respect to off-markets and 2016 pre-markets.

Auction Spotlight:

14 Bateman St, Hampton (Robin Parker, Marshall White), after auction $2.6m, 4 bidders

As Robin Parker started his preamble, a black Maserati purred down the street and grinded to a halt outside number 14 Bateman. The crowd of around 35 watched intently and admired the car before Robin resumed his preliminaries and called for an opening bid. Bidder 1 offered $2.1m and we were away. Bidders 2 and 3 entered soon after and at $2.525 Robin ducked inside to refer to his vendor. Back outside, he advised us that he wasn’t quite at reserve and the property passed in soon after at $2.555m. Sold after auction for $2.6m.

Hampton: 14 Bateman St (Robin Parker, Marshall White), after auction $2.6m, 4 bidders

25 Ash Grove, Malvern East (John Morrisby, Jellis Craig), sold $2.54m, 4 bidders

A big crowd of around 85 people line Ash Grove to see what would happen at number 25. John Morrisby was our auctioneer and after a succinct preamble called for an opening bid. All was quiet so he tabled a vendor bid of $1.825m to kickstart proceedings. In the end we had three bidders in the mix, and as an unreserved auction, the home eventually sold for $2.54m to a big round of applause.

Malvern East: 25 Ash Grove (John Morrisby, Jellis Craig), sold $2.54m, 4 bidders

Agent Opinion: Following on from the Domain article this week, is the market still strong for all properties, or are you noticing some changes in the amount of buyers, their interest and competition for the A Graders, B Graders & C Graders in  your area?

Sam Gamon (Chisholm & Gamon): “The question really comes down to houses v apartments because we’re seeing a two-speed market and have been for about 6 -8 weeks. Houses are attracting huge competition and generally have an abundance of buyers whereas apartment interest is slackening off unless it’s suitable for downsizers as owner occupier properties, has a high level of finish or a significant point of difference such as Art Deco features, house-like proportions or generous outdoor areas. Quality is the key in both market segments and we are feeling the B and A-grade homes are finding less attraction in the market place. Buyers are probably being a little less forgiving so it’s important for vendors to place significant emphasis on their presentation and pricing. You don’t get a second chance to make a first impression so make it count. “Attraction” properties generally always go well and we have huge demand for those top tier houses, townhouses and apartments. The market is currently carrying some historically high stock levels which means buyers are likely to be more discerning. Consider selling your home in December or mid-January when there is potentially less available.”

Malvern East: 8 Coppin St (John Morrisby, Jellis Craig) passed in $3.5m

There are signs that the buyers are starting to move their focus away from property and onto more pressing deadlines such as Christmas, shopping and holidays. The number of buyers inspecting at opens is starting to slow. That said, the buyers for the good properties are still there. Last week Marshall White sold two large family homes, both over $6million at 53 Hawthorn Grove Hawthorn (Zali Reynolds) and 9 Bates Street Malvern East (Rae Tomlinson).

Last week we looked closely at Balwyn North, which was looking a little over-supplied (and/or) with vendors wanting prices well above the market. The clearance rate last week was 45%. This week there were 16 auctions reported with only five bought, resulting in a clearance rate of 31%. The trend appears to be continuing.

Another property up for sale after being purchased only 14 months earlier for $3.17m was 15 Nevis Street, Camberwell. A large newer home on 722sqm with north rear passed in on a vendor bid of $3.1m.

In keeping with our thoughts of a continuing strong downsizer market, two good properties sold in Kew with Jellis Craig circa $2.5million – 92 Wellington Street (Greg Toogood) and 70 Foley Street (Peter Vigano).s

Auction Highlights:

Land sales:

Off-markets:

Auction Spotlight:

North Melbourne: 35 Little Leveson St (Edward Hobbs, Biggin & Scott)passed in, $1.977.5m

35 Little Leveson St, North Melbourne, Edward Hobbs (Biggin & Scott), passed in, $1.977.5m, 4 bidders

A great crowd of well over 100 gathered in the laneway that is Little Leveson Street in North Melbourne. The offering was a unique one, and not easily repeatable – a classy inner city warehouse conversion close to great cafes (such as the Auction Rooms) and a short walk to the CBD. Auctioneer Edward Hobbs have a brief preamble and then didn’t have to wait too long for an opening bid, which came instantly at $1,770,000. A string of bids followed from three other parties and the property eventually passed in at $1,977,500 and remains for private sale at the time of writing with an undisclosed reserve.

Malvern East: 32 Forster Ave (John Morrisby, Jellis Craig), under hammer $1.87m

32 Forster Ave, Malvern East (John Morrisby, Jellis Craig), under hammer, $1.87m, 4 bidders

Slight drizzle didn’t deter the crowd at this Malvern East auction. John Morrisby was our auctioneer and, assisted by Andrew Luke, stepped out on to Forster Ave and called for an opening bid. Unable to secure one, he instead tabled a vendor bid of $1.5m to kick-start proceedings. One by one, four bidders entered the competition and at $1.69m John announced he would be selling. Bidder 4 was a late entrant but left with the prize when the hammer came down at $1.87m to a round of applause.

Brighton: 25 Meek St (David Hart, Buxton), after auction $2.4m

25 Meek St, Brighton (David Hart, Buxton), after auction $2.4m

Auctioneer David Hart was met with quite a big crowd as he took centre stage on Meek Street alongside Phillip Mellody and Tom Davidson. A vendor bid of $1.95m was tabled before Bidder 1 chimed in at $2m. Bidder 2 offered a $50k rise and bidding continued until the price reached $2.24m and the property was passed in. The home sold after auction for $2.4m.

Agent Opinion: “We are constantly asked how the Melbourne market compares to that in Sydney. Here is an interesting take”

Geoff Hall (Kay & Burton): “Despite some cooling of the market on a national basis, Melbourne is the hottest housing market in the nation, with Sydney in second place over the past quarter.

Whilst the volume of stock is up considerably on this time last year in Melbourne, the number of quality family homes on offer is relatively low. This is the key reason that clearance rates for houses in good locations remains consistent and in excess of 75%.

National dwelling values across the combined capital city index rose 0.2% over the month of October and were up by 1.4% over the quarter and 10.1% higher over the year.

In the latest price data up to the end of October, the annual price growth gap between Sydney and Melbourne has closed coniderably. In the past three months, Melbourne’s home value index has increased 3.1%, easily the biggest among the capital cities, while Sydney’s rose only 1.5%. In annual terms, Sydney is up 15.6% and Melbourne 12.8%. If the current trend continues in a month or two these positions will be reversed.

A survey of property valuers, financiers and market analysts has predicted property prices in Sydney and Melbourne will continue to increase for the next six to twelve months. Around half of the respondents to “The Property Directions Survey”released by the Australian Property Institute, said an upward trend will continue for a further six months. One third of respondents believed the upward trend will last a further 12 months in both Sydney and Melbourne.”

15a Dixon St Malvern (Kevin O’Brien, Jellis Craig) opened at $1.6m, on the market at $1.8m and sold under the hammer for $1.97m. Two bidders, fast auction.

The market is continuing to roll along at a steady pace.   As the end of year closes in the competition to buy is still strong, particularly for properties close to good private schools or those within renowned public school zones. 5 Prince Street, Hampton (Jenny Dwyer, Hocking Stuart), a ‘volume’ build family home sold for $2,100,000.

There are still some good options for buyers auctioning in December and many of which should attract spirited bidding come auction day.

In areas of good supply (perhaps even over supply), the market seems to be slowing a little. Maybe some vendors are even getting a little ahead of the market. Balwyn North for example, according to REIV records, saw 11 properties up for auction on the weekend with only 5 of these sold – a clearance rate of only 45%.

Auction Highlights:

Downsizer Properties:

Demand continues to strengthen for quality downsizer offerings – single storey homes close to amenities.

On a different note, in Hawthorn East there were four properties auctioned on the weekend and all were purchased within the last two years. Although they didn’t all sell, they all had bidding above their earlier sale prices.

Off-markets:

Auction Spotlight:

Malvern East: 16 Westgarth St (Damien Davis, Jellis Craig), passed in $3.125m, 3 bidders

26 Westgarth St, Malvern East (Damien Davis, JC), passed in $3.125m, 3 bidders

This pretty Federation style home is situated on a leafy street described aptly by auctioneer Damien Davis as a “Plane Tree Tunnel.” Around 70 people crowded around to see what would transpire and Damien called for an opening bid. All remained quiet, so Damien suggested an opening of $2.8m to kick-start proceedings. Still quiet, so he tabled a vendor bid at this amount. Silence ensued so Damien headed inside to refer to his vendor. Back outside and he was rewarded with bids from 3 interested parties who each entered the competition with a succession of $25k increments. The price eventually reached $3.125m, and Damien passed the property in for further negotiations. The home remained for sale at the time of publishing.

Hampton: 36 Avondale St (Steve Tickell, Hocking Stuart), sold after auction $2.53m, 2 bidders

36 Avondale St, Hampton (Steve Tickell, Hocking Stuart), sold after auction $2.53m, 2 bidders

Beautifully presented Californian bungalow in one of Hampton’s most prized streets – Steve Tickle was our auctioneer, assisted by Jenny Dwyer and Will O’Brien. An opening bid of $2.2m came from a gentleman in the crowd, however everyone else remained silent so Steve headed inside to refer to his vendor. Back outside and Bidder 2 entered the competition with a $25k rise. A second half-time break at $2.44m and with no further bidding on the day, the property was subsequently passed in. The home was sold after auction for $2.53m.

Agent Opinion: With only 3 weeks for campaigns to start (auction date 19th December), will there be a late rush?

James Tostevin (Marshall White): “I’m not anticipating a late rush of auctions on December 19^th, at this stage. The market remains strong however, many vendors are basing their price expectations on results from 2 to 3 months ago, which is not in line with current market conditions.”

Armadale: 12 Denbigh Rd (Anthony Grimwade, RT Edgar), passed in $3.775m, 1 bidder

Off the back of Cup weekend, we saw quieter auction activity with a smaller sample size and some lesser quality properties on offer. The clearance rate according to the REIV was 71%, which is still quite healthy.

With Christmas not far away, stock numbers are slowing.  Unless vendors are prepared to shorten their campaigns, there are only three more weeks where we are likely to see new properties advertised for auction – this would take us to the 19th December. Agents are starting to talk of upcoming auctions for 2016 and ‘off-market’ properties, quietly for sale now.

Brighton East: 22 Shasta Ave (Halli Moore, Buxton) passed in $2.325m, 2 bidders

Auction Highlight:

Land sales:

Off-markets:

Sold before auction:

Auction Spotlight:

Glen Iris: 17 Clyde St (John Morrisby, Jellis Craig), sold $1.92m, 4 bidders

17 Clyde St, Glen Iris (John Morrisby, Jellis Craig), sold $1.92m, 4 bidders

About 60 people were in attendance for the auction of this basic period home on about 650m2 with north facing rear and two-storey flats to the eastern side. Representing basically entry level into this area, Auctioneer John Morrisby gave a good preamble and then looked for an bid of $1.5m.  Listing agent Ian McLennan scouted the crowd for bidders and before long three were in play, seeing the property to be announced on the market at $1.826m. Not long after Bidder 4 timed her run late and needed only two bids to buy the property under the hammer for $1.92m – good tactic this. Sometimes it works, sometimes it doesn’t!

Armadale: 5 Barkly Ave (Kevin O’Brien, Jellis Craig) passed in $1.85m

5 Barkly Ave, Armadale, Kevin O’Brien (Jellis Craig), passed in $1.85m, 1 bidder

A colourful ice-cream cart offering free frozen treats brightened up a rather gloomy Spring morning. Kevin O’Brien was mindful of the ominous weather too, and gave a fast-paced preamble to ensure that proceedings weren’t interrupted by rain. Calling for an opening bid, but met with the usual silence, Kevin tabled a vendor bid of $1.75m to get things underway. After a half-time break, Bidder 1 offered to meet Kevin’s vendor bid, which Kevin accepted before tabling a second vendor bid of $$1.775m, and then a third of $1.85m. With no more bidding on the day, the property was passed in and remained for sale at the time of publishing.

Middle Park: 150 Canterbury Rd (Greg Hocking), passed in $3.5m

150 Canterbury Road, Middle Park (Greg Hocking, Greg Hocking Holdsworth), passed in $3.5m

Greg Hocking, assisted by John Holdsworth, stepped out onto Canterbury Rd in the early afternoon sunshine in front of a crowd of around 30 people. After a succinct preamble, Greg asked for an opening bid but, unable to secure one from the quiet crowd, tabled a vendor bid of $3.5m to kickstart proceedings. Inside for a half-time break, Greg returned and did his utmost to encourage bidding. Unfortunately the crowd remained silent and Greg was forced to pass the property in.

Architectural Insight: Swimming Pools

Should we have a pool or not? Is it worth buying a home with a pool even if we don’t need one yet? These are some common questions and when looking at a property with a pool, there are some key things to look for:

Often buyers do not want a pool and will not look at properties that have them. These can be good opportunities for buyers, as you can easily remove and/or fill them in – at a cost of course. While this is not that simple, it is possible and certainly worth considering.

Agent Opinion:“The lead up to Christmas is looking to be much of the same as it was before Melbourne Cup Weekend. Do you think that the market will change after Christmas, or do you expect it to stay the same?”

Julian Augustini (Hodges): “Spring stock levels heading into the latter part of the year are solid but there is not an oversupply. I would expect that if a 70% success rate maintains across Melbourne until the end of the year, then a positive market will flow through into 2016. “