Archive for February 2016

14 Kerferd Street Malvern East – Listing Agent John Manton (Marshall White) looks on as the bids fly – 3 bidders

 It was another solid auction weekend with the REIV reporting a clearance rate of 78% from the 1083 reported auctions held across Melbourne.   Of note, numbers are still down on the same weekend last year, with approximately 400 fewer auctions.  This is one of the contributing factors supporting the current strong results.

Next week there are more scheduled auctions, however, whilst there may be more choice for buyers, we feel the depth of quality stock is not as high as it was last weekend.

 Observations:

 Auction Highlights:

Land Sales:

Land is still performing well with record results being recorded for two in Toorak, although comparing a couple of suburbs with similar offerings, buyers are starting to show some discernment.

Off-markets:

Auction Spotlight:

Glen Iris: 21 Netherlee Street (Mark Wridgway, RT Edgar) passed in $2.92m

21 Netherlee Street, Glen Iris (Mark Wridgway, RT Edgar), passed in $2.92m

One of the first auctions of the day, and a quiet crowd of around 30 gathered to watch proceedings with Mark Wridgway at the helm and Justine Harris assisting. This property was a really good land holding, with a north-facing rear, appealing primarily to developers. An opening bid of $2.6m came from the crowd but despite 3 bidders entering the contest, the property was passed in at $2.92m. We believe RT Edgar had an offer of over $3m after proceedings, but the property remained for sale at the time of publication.

Hampton: 19 Karoola Road (Hodges), passed in for $1.87m

19 Karoola St, Hampton (Stephen Wigley, Hodges), passed in $1.87m

A decent sized crowd of maybe 45 lined Karoola St, opposite Stephen Wigley and the Hodges team, and waited quietly for the auction to begin. Stephen gave a succinct preamble and called for an opening bid. All remained quiet, so he tabled a vendor bid of $1.8m to kick-start proceedings. Bidder 1 offered $1.82m, but after a second vendor bid and a final offer of $1.87m from our sole bidder, the property was passed in and remained for sale at the time of publication.

Black Rock: 16 St Andrews Court (Mark Earle), sold for $2m

16 St Andrews Court, Black Rock (Mark Earle, Buxton), sold for $2m

The tranquil and leafy St Andrews Court, aptly named as it runs along the 14th fairway of Royal Melbourne Golf Club, is a pretty little pocket of beachside Black Rock – a secluded cul-de-sac where suburbia feels a million miles away! Auctioneer Mark Earle stood in front of the large crowd and extolled the many virtues of the home and indeed its location, before calling for an opening bid. Bidder 1 offered $1.5m, and although low, this was accepted by Mark before Bidder 2 entered the fray at $1.6m. The price rose quickly and at $1.85m, Mark said he would be selling. In total, a four bidders vied for the property, with two battling it out to the end result of $2m.

Properties we like, scheduled for auction this coming weekend:

Agent Opinion: Are you seeing more buyers getting professional advice to try and gain an edge when purchasing a property?”

Peter Vigano (Jellis Craig): I have seen an increase in buyers seeking professional advice from advocates.  As buyers are becoming more time poor and agents transacting off market, advocates are able to give buyers more opportunities to secure properties.

Sandringham: 13 Bamfield (Mark Earle, Buxton), sold after auction $1.55m

Please note that due to Labour Day weekend there will be no Market Pulse on March 14. 

The AFL footy season is almost upon us. We will be running our annual Footy Tipping competition – it’s free to enter and lots of fun. Details on how to enter coming soon!

Hampton: 30 May Street (Robin Parker, Marshall White) – strong result, sold under the hammer with 5 bidders

Saturday was the first of the bigger auction weekends for the quarter and for sellers it was a good one. The REIV reporting a clearance rate of 77%, up 2% on the same weekend last year, although numbers were down with around 100 less properties to choose from.

The shortage in stock seems to be the ongoing discussion point with buyers … there just isn’t enough of the right properties (quality family homes and/or good downsizer options) to satisfy the demand.

Observations:

Vendors in traditional ‘fringe’ suburbs such as Brighton East and Glen Iris (particularly Brighton East, east of the Nepean and Cummins Road and Glen Iris, north of the Monash) are taking advantage of the current market .

Brighton East had 9 reported auctions – 8 sales, 1 pass in. Three of the bigger ones in the abovementioned precinct were:

Glen Iris had 9 reported auctions and sales – three of the bigger ones in the precinct above were:

Land/major renovations were still in demand with strong results in Kew and Elwood.

Brighton: 197 Church St (David Hart, Buxton): after auction, undisclosed above $3.25m

Off-markets:

Auction Highlights:

Glen Iris: 17 Ferndale Road (Daniel Wheeler, Marshall White), sold under the hammer $2.41m

17 Ferndale Road, Glen Iris: Daniel Wheeler (Marshall White), under hammer, $2.41m, The sun was shining and the stage was set for this auction; a period home in the Hill and Dale precinct of Glen Iris. Whilst liveable and rentable, most would look at this property as a potential new home site and it had the added benefit of  a north—facing rear.  Importantly it backed on to Ferndale Park, and these offerings have certainly gained popularity with buyers in recent months (and a really strong sale in nearby Wallis Ave last week). Auctioneer Daniel Wheeler gave a no-nonsense preamble and looked for an opening bid, which came reasonably quick from the crowd at $1.6m. It was not too long after that the property was announced ‘on the market’ at $1.7m and then crept steadily in the $2m’s, selling strongly for $2.41m. Great result here for listing agent Zali Reynolds and co-agent Jason Brinkworth. Most at the auction would note that the property next door is listed for upcoming sale with Damien Davis of Jellis Craig, which is a new home on similar land, so it will be interesting to see what the vendor’s expectations are.

Hampton: 44 Kingston St (Chris Carrington, Nick Johnstone), sold under the hammer $1.922m, 5 bidders

44 Kingston Street: Chris Carrington (Nick Johnstone), under hammer, $1.922m, Quite a high number of people wandered down from nearby May Street to watch this Nick Johnstone auction in Kingston Street. Chris Carrington was our auctioneer and after the Domain coffee van drove away, he called for an opening bid. Bidder 1 offered $1.5m and we were away. A total of 5 bidders competed for the property, with bids coming fast and strong. Eventually bidding slowed to $1,000 increments, selling to a very happy Bidder 3 for $1.922m

Properties we like, scheduled for auction this coming weekend:

Agent Comments:“How has the year started compared to last year?”

Stewart Lopez (Kay & Burton): “As usual, the market has started strongly after the break. A shortage of listings is driving strong sales at all price points, in particular with ‘off market’ transactions.”

Five bidders battled it out at 13 Rosemary Road, Beaumaris (O’Brien Real Estate) on Saturday. The home sold for $1.475m in front of a big crowd of around 90 people

Welcome back to the 2016 Melbourne Property Market and thank you for reading our weekly Market Pulse. We will continue this throughout the year during key auction weekends. We hope you find it both enjoyable and helpful.

2016 has started as expected, with no real surprises or changes to the 2015 market.

Our early observations reveal:

There was really only a light scattering of auctions this weekend. Early results were positive with the REIV reporting a clearance rate of 77% across Melbourne. A common thread amongst some on offer were they were dated homes with good land content and functional townhouses

Auction Spotlight:

Off-markets:

Auction Highlights:

Glen Iris: 10 Wallis Avenue (Daniel Wheeler, Marshall White), sold $2.205m, 5 bidders

10 Wallis Avenue,  Glen Iris (Daniel Wheeler, Marshall White), sold $2.205m, 5 bidders

Dated single level home, but it was all about the land here.  With mature trees at the front and rear of the block which may be difficult to remove (STCA), the property did have good width and most importantly it backed on to Ferndale Park, a point which was not lost on buyers and the very good-sized crowd of well over 100 people. Opening with a low cheeky crowd bid of $1.3m, the bidding soon went up to $1.75m and the property was called on the market by auctioneer Daniel Wheeler. That only seemed to warm bidders up and with five of them fighting for this property it sold well above reserve for a whopping $2.205m (or $3,083sqm).  Interesting to note next door (no.8) sold for $1.441m around two years ago. Very professional auction by Daniel (he didn’t miss a bidder, was courteous to the crowd and didn’t skip a beat), and he was well supported by co-agent Clare Maloney –  they make a good team

Beaumaris: 13 Rosemary Road (Byron Kerr, O’Brien), under hammer, $1.475m, 5 bidders

13 Rosemary Road, Beaumaris (Byron Kerr, O’Brien Real Estate), under hammer, $1.475m, 5 bidders

Quite a crowd gathered in Rosemary Road for the auction of number 13 – a three bedroom, three bathroom family home surrounded by tropical gardens. Around 90 people lined the street on both sides and enjoyed a coffee from the mobile coffee cart. Byron Kerr was our auctioneer and after an enthusiastic and succinct preamble, he called for an opening bid. A yell of $1m came from the crowd and we were away. Bidding came from all directions – with five bidders in total. The home was sold for $1.475m to a hearty round of applause from all those in attendance.

Hampton: 17 Banks Avenue (Troy Ellis, Follett & Co), after auction $1.66m)

17 Banks Avenue, Hampton (Troy Ellis, Follett & Co), sold after auction $1.66m

Banks Avenue was very tranquil – a reasonable sized crowd of around 30 people had gathered to see what would transpire at the auction of number 17 and they chatted quietly as they awaited the commencement of proceedings. Auctioneer Troy Ellis took centre stage and gave a thorough preamble before asking for an opening bid. The crowd remained silent so Mr Ellis tabled a vendor bid of $1.55m. A second vendor bid of $1.625m was put forward but with no further bidding on the day, the property was passed in. It sold later for $1.66m.

Properties we like, auctioning this week:

Auction Opinion: “How have you seen the start of the year compared to last year?”

Tim Derham (Abercromby’s) “Stock levels for quality family homes are down as compared to last year. If open for inspections are an indication then this market will continue from where it left off in 2015.”