May 2016 - WoledgeHatt

May 28, 2016

By Alexandra Ruffell | 30 May 2016

A solid clearance rate again – 74%, although stock levels are down and we are seeing more discernment regarding price for some properties. 62 Campbell Street Kew – (auctioneer Antony Woodley, Marshall White) passed in $4.005m, 3 bidders

Although the cold weather is kicking in, the sentiment at auctions and the Melbourne property market in general is still warm.

We saw a good number of homes auctioned on the weekend, however, the numbers are still down about 15% on the same time last year and results are healthy with the REIV reporting a clearance rate of 74%.

Off Market or Private Sale/Pre Market

The words ‘off market’ appear to be the modern replacement used to describe listed properties for sale, where the vendor wants to sell their home privately or want to ‘test the water’ before a full blown auction campaign.

Many email alerts to buyers are now headed ‘new off market opportunity’.

There is something special about knowing about an ‘off market’ property compared to a ‘private sale’ or ‘pre-auction property’ – it suggests you are receiving a special opportunity that other buyers haven’t had.

If you are considering an ‘off market’ opportunity, thorough due diligence and a good understanding of the process will help ensure you buy well.

For details of the auctions we covered on Saturday, see our twitter feed HERE:

Land sales

Demand for good land is still solid, with developers and building companies actively participating in the market. Some neighbours are still banding together in growth land corridors so that their properties can be consolidated for multi-residential development, taking advantage of the recent directives from government to promote development in key areas and retain neighbour character in other areas.

91 Radnor Street Camberwell (Peter Vigano/Sally Morrison, Jellis Craig) – 698sqm with a liveable, rentable home, bought after auction – $2.03m or around $2,900sqm. Next door is auctioning on Saturday – although a lesser home. Prices here seem to be holding fairly steady – last year 57 Bowen Street sold for $2.33m – slightly larger land, lesser house and a better part of the street comparatively.

54 Baker Parade Ashburton (Cameron Edgoose/Daniel Wheeler, Marshall White) -large land holding in a good location, 859sqm with a 20m frontage – circa $1.7m or around $2,000sqm.

21 Wolseley Grove Brighton (Greg Costello/Rowan Thompson, RT Edgar) – 694sqm corner block, north rear – $2.405m or $3,465sqm.

54 First Avenue Kew (Todd Braggins/Duane Wolowiec, Marshall White) – 650sqm and although a south facing rear, it is a good side of the street due to block slope – $2.003m or $3,081sqm.

Townhouse sales

Quality townhouses in good locations remain desired in the market place, however where there is an oversupply in a precinct or the quality of the finish and/or layout is not up to buyer expectations, these can remain for sale for some time. As a townhouse buyer, it is easier to make a mistake if you buy the wrong townhouse.

111 Stokes Street Port Melbourne (Michael Sculz/Simon Carruthers, Cayzer RE) – sold in July 2014 for $1.75m, on the weekend – $2.16m

59 Staughton Road Glen Iris (Bryan & Chris Cain, J.A Cain RE) – a new Metricon build – $1.802m

59 Staughton Road Glen Iris (JA Cain) & 111 Stokes Street, Port Melbourne (Cayzer)

From an Architect’s Eye – What makes a good townhouse?

Increasingly we are getting briefs from our clients to buy townhouses. Some important things to consider when searching for a townhouse include:

Proportions – what room sizes and ceiling heights make for a good space? 2.4m ceilings are too low
Fit-out and fixtures – does it match suburb expectations? Over spec-ed may have as many negative implications as under
Is there a premium for a downstairs bed/bath combination? How much less is a property worth without one?
Garaging and security is important
Private courtyard area – is this balanced with the size of the home?
Location – what amenities is it close to?
Additional expenses – are there body corporate fees or additional insurances?

Off Markets

A few new properties this week:

Smaller period home – Hampton – circa $2m
Well renovated original home – Ashburton – $1.6m
Modern two storey home – Glen Iris – mid $2ms
Modern home in blue chip Balwyn – early $2ms
Classic architect designed townhouse – Toorak mid $1ms

Auction Spotlight:

Brighton: 11 Butler Street (Marshall White) sold $3.571m, 3 bidders

Brighton, 11 Butler Street (Peter Kakos, Marshall White), sold $3.751m, 3 bidders

An entertaining auction from the get-go. Peter Kakos took centre stage in front of a generous crowd of around 60 people. One of the last auctions of the day and the air was starting to feel a little crisp. A vendor bid of $3.4m was tabled to kick-start proceedings, but we soon had two, then three bidders vying for the architect-designed property in the heart of Brighton. At $3.605m Peter announced the home was on the market and a flurry of bids – both big and small – ensued until the hammer came down, eventually, at $3.751m.

Agent Opinion: “We’ve heard from agents in the Eastern suburbs that the market has softened following the changes to FIRB rules. Have you noticed any changes around the McKinnon/Bentleigh areas, in particular the school zones?”

Peter Sinclair (McGrath, Bentleigh): “The mood in the market has changed, no question. The increase in the stamp duty surcharge, the banks shutting the doors to non-resident borrowers, developers struggling with the time it takes to get permits through council and now a Federal election in a month or so creates lots of chatter in the buyer community. McKinnon Secondary College zone is a different beast though; for decades, there has been a force field surrounding this part of the market, just like Balwyn, Glen Waverley etc. It seems bullet proof and is not affected to anywhere near the same extent when there is a market correction. Buyers are looking through the south eastern and eastern corridors for secondary school opportunities; no doubt in the past twelve months, the McKinnon Secondary zone has seen significant price increases because of price increases in surrounding school zones. Even the Bentleigh East section of the school zone, where traditionally prices have been a little lower than other parts of the same zone, has now caught up to Bentleigh, Ormond and McKinnon.”

Posted in Market Pulse

May 14, 2016

By Alexandra Ruffell | 16 May 2016

Prahran: 83 Pridham St (Andrew James, Hocking Stuart), sold $1.555m, 3 bidders

Without wanting to sound the same, the weekend was exactly that! The good properties sold well and those with some concerns or with high vendors, passed in – some selling later, some still available for buyers to consider. For the good properties we saw multiple bidders and strong prices, many well above the announced reserve prices.

The REIV reported a clearance rate of 73% from the 708 auctions reported. While interest rates are low, there does seem to be a bit of uncertainty in the market and some inactivity, maybe due to the pending election. This is a fairly normal.

The market we are in right now is quite a dynamic one. Many transactions are happening quickly and quietly. Timing is important. As a buyer you shouldn’t necessarily expect the campaign to run as advertised as many properties being bought before auction.

However, it can also be important to determine whether you are the ‘only buyer’. Some homes are selling before auction because there is one buyer prepared to pay well above the remainder of the market and an auction may not necessarily provide the best forum to extract the full amount from the buyer. Remember the agent is engaged and paid by the vendor to get the most money for the vendor.

For details on the auctions we covered on Saturday, CLICK HERE to see our twitter feed.

Land sales:

20 Charles Street Glen Iris (Nigel Terrace/Karl Fitch, Fletchers) – 970sqm land with two existing dwellings in GRZ1 zone – $2.3m or $2,446sqm

312 Glenferrie Road Malvern (Sally O’Connell/Andrew Hayne, Marshall White) – 876sqm, corner block in RGZ1 zoning – $4.7m or $5,365sqm

36 Alamein Avenue, Ashburton (David Macmillan/Natalie Hall, Jellis Craig) – 624sqm, opposite Warner Reserve – $1.356m or $2,173sqm

28 Lorne Parade, Mont Albert (Mark Fletcher/Tim Heavyside, Fletchers) – 696sqm (opposite train line) – $1.358m or $1,951sqm

Off Markets:

Some new ones we saw this week:

3 bedroom, 2 bathroom with garage – Hawthorn – $1.4m
2 bedroom, un-renovated single level Victorian cottage – Fitzroy North – $1.1-1.2m
Basic home with very good land content (over 1000sqm) – Beaumaris – $2.5m
Large family home – Kew – $6m plus
Family home, Grace Park – Hawthorn – $4.5m
Basic single level home – Malvern – $1.6m
3 bedroom, 2 bathroom townhouse – Prahran – $1.3m

Properties we like, scheduled for auction June 4 :

Auction Spotlight:

Albert Park: 24 St Vincent Place Nth (auctioneer Jack Bongiorno, Marshall White), sold $7.805m, 3 bidders

Albert Park, 24 St Vincent Place North (Oliver Bruce, Marshall White), sold $7.805m, 3 bidders

A large crowd closer to 200 than 100 had gathered to this two storey Victorian auction for the first time in around 40 years. Auctioneer, John Bongiorno, was in his usual good form, quickly starting proceeding on a vendor bid of $6m. It did appear for a moment that it may have been going to stop there too. However, upon return from the quick half time break, the first bidder made their move offering $6.2m. Proceedings moved very quickly from there as two other bidders joined in. On the market at $7.31m, the three bidders were still comfortably bidding above $7.5million, the property finally selling for $7.805m (over $16,000sqm).

Prahran: 83 Pridham St (Andrew James, Hocking Stuart), sold $1.555m, 3 bidders

Prahran, 83 Pridham Street, (Andrew James, Hocking Stuart), sold $1.555m

With some strong recent sales in this pocket, there was a real buzz at this auction, with around 80 people gathering in the narrow, pretty street consisting mainly of charming cottages. On offer was a tastefully renovated and extended two bedroom home, with a prized north-facing rear. Auctioneer Andrew James didn’t have to look too far for an opening bid, as this came from the crowd at $1.3m. Quick-fire bidding saw this property on the market at $1.391m and sell under the hammer for $1.555m – 3 bidders in all putting their hand up. With an unrenovated version in nearby Wrights Terrace selling for $1.303m last weekend and having a south-facing rear, the result here felt about right.

Agent Opinion:“Are strong prices pushing buyers to fringe areas?”

John Morrisby (Jellis Craig): “There is and always has been a frustration of not being in a position to purchase a property in your preferred location. Has it been heightened of late due to strong(er) prices ? Yes, but this has been one in the same with the lack of offerings, particularly those of quality & sought positions. As core areas experience price increases this will naturally affect the pricing of the fringe areas on a pro rata basis. The question is, when is ‘the eye’?”

Posted in Market Pulse

May 7, 2016

By Alexandra Ruffell | 9 May 2016

76 Pridham Street, Prahran (Marshall White), sold after auction above $1.13m

Saturday’s auctions still saw plenty of buyers bidding for homes, however, some vendor expectations are still above the market with many of the auctions we covered passing in and selling afterward – the REIV reporting a clearance rate of 74%.

Fringe suburbs are taking advantage of the current market with strong results. Many buyers are entering these areas after missing out several times in different suburbs and with them they are bringing bigger budgets to these areas as seen at 22 Oswald Thomas Avenue, Hampton East (Kate Fowler/Robin Parker, Marshall White) selling for $1.69million with 5 bidders.

Buying a home can be a stressful and time consuming process. It is very normal to want to get off the buyer train and start living again as quickly as possible, however buying something because it stops the searching can quickly wear off, particularly if it is not close to family, work, school etc. We help our clients by exploring a variety of options to remain focused on their most important goals.

Auction Highlights:

19 Glendearg Grove, Malvern (James & Hugh Tomlinson, Marshall White) – same owner for 60 years and a former boarding house for spinsters, this house had plenty of character and good bones. No doubt the advice of a good architect will be sought soon…..3 bidders, $2.930m

15 Hanby Street, Brighton (Elizabeth Lopez, Biggin & Scott) – Modern home on narrow block of land, good position and layout was quite good – 3 bidders $3.171m

51a Hawthorn Grove, Hawthorn (Zali Reynolds / James Tostevin, Marshall White) – north facing block with a solid home in one of Melbourne’s best residential streets – 3 bidders, $4.260m

15 Reno Road, Sandringham (Mandy Engelhardt / Steve Tickell, Hocking Stuart) – Sandringham, east of Bluff Road, a 5 bedroom home with north rear, however, pool and yard facing south at the front – $1.84million

For more details of the auctions we covered on Saturday, see our twitter feed:

https://twitter.com/woledgehatt?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Eauthor

Land/Major renovation Sales:

81 Richardson Street, Albert Park (Scott O’Halloran/Oliver Bruce, Marshall White) – 315sqm land with heritage overlay, north facing rear and ROW – $3.16million or $10,031sqm

389 Barkly Street, Elwood (James Paynter, RT Edgar) – 885sqsm land with heritage overlay (building with 4 units), north rear and dual frontage – $4.5million or $5,084sqm

16 Kardinia Road, Glen Iris (Glen Coutinho / Dale Edgcumbe , RT Edgar) – 725sqm, sold in March 2015 for $1.527m – one year on $1.75million

140-142 Station Street Carlton North (Denis & Ryan Pagan, Pagan RE) 352sqm – $1,800,000 (or $5,110/sqm)

Single-fronters

Single-fronted (that is when you look at the house from the street, you only seen one room) Victorian cottages, often built for workers in Melbourne suburbs are plentiful throughout Melbourne. They are popular for young families, professional couples and downsizers, as they are often built over a single level and well located close to local shops and public transport. Architecturally speaking, like any property type/style, there are some things to look for when buying these homes………

Block width is all-important – 4 metres is just too narrow – 7 metres is very wide and a real luxury. Look for 5.5-6m.
Chimneys can add character but they can also take up valuable space inside the home. Make sure these are structurally in good order
Look for good clearance under the house as the timber floor will need to ‘breathe’ and access may be required for heating, restumping etc.
Check planning overlays with an architect and/or council planning departments to se what may or may not be able to be done in terms of future renovation work
If the property has car access from the rear, how easy/safe is this to use

Good competition here! 14 Malmsbury Street Hawthorn (Stuart Evans, Marshall White) sold strongly under the hammer for $1.42m, 5 bidders

Off Markets:

Quiet properties are still being presented to us on regular basis. Here are a few…..

4 bedroom family home, close to everything – Malvern – mid $3millions
Unrenovated single storey townhouse – Brighton – early $1millions
Nearly new large family home with pool – Sandringham – mid $3millions
Single-fronted, single level Victorian – Kew – early to mid $1millions
Basic home with good land content and limited planning controls – Hawthorn East – high $2ms

Properties we like, schedule for auction May 21:

Auction Spotlight:

Brighton: 15 Hanby (Biggin & Scott) – the happy new owners celebrating after a three way battle. Sold $3.171m

Brighton, 15 Hanby Street (Bill Stavrakis, Biggin & Scott), sold $3.171m, 3 bidders

Auctioneer Bill Stavrakis gave a thorough preamble before asking for an opening bid from the good-sized crowd that had gathered in Hanby Street. It didn’t take long before Bidder 1 chimed in with $2.4m, and Bidder 2 at $2.45m. Bidding continued between the pair and at $2.9m Bill announced he would be selling. At the eleventh hour Bidder 3 entered the competition and despite being a late starter, was the victor in the end – the hammer coming down at $3.171m to a round of applause.

Elwood: 2 Dryden St (Marshall White), sold after auction for an undisclosed amount above $2.355m

Elwood, 2 Dryden Street (Kaine Lanyon, Marshall White), sold after auction above $2.355, 2 bidders

A very convivial atmosphere with neighbours laughing and chatting amongst themselves whilst waiting for the auction to start. Kaine Lanyon was our auctioneer and he stepped out and extolled the many virtues of this rare offering in a quiet Elwood street before calling for an opening bid. Bidder 1 offered $2.125m and we were away. A two-way battle ensued before Kaine passed the property in to Bidder 1 for further negotiations. The home sold to them a short time after for an undisclosed amount.

Agent Opinion:Have you seen a shift in demographics within the Boroondara area in recent times?
Glen Coutinho (RT Edgar Boroondara):“There is certainly a slightly reduced number of off-shore buyers in the Boroondara market but this shortfall has been taken up by domestic buyers.
We are still experiencing strong buyer interest in all price categories.”

Posted in Market Pulse

April 30, 2016

By Alexandra Ruffell | 2 May 2016

Deepdene: 16 Barnsbury Road (Steve Abbott/Peter Vigano, Jellis Craig), sold $6.36m

Saturday was the first big test for the market since Easter confirming good properties and realistic vendors are still attracting multiple bidders and achieving solid, and sometimes very strong, results. With around 100 more properties auctioning than the same weekend last year, the REIV reported clearance rate was 76% (noting approximately 15% had yet to be reported).

Stock levels are starting to replenish with many agents advising their offices have had good new listings for late May/early June in the last fortnight. This should hopefully provide comfort to buyers who have recently missed out or still can’t find something that suits their needs.

Auction Highlights:

5 Clive Road, Hawthorn East (Andrew Gibbons/Richard Mackinnon, Marshall White) – renovated timber Victorian home attracted 4 bidders – sold for $2.52m

53 Wrights Terrace (Carla Fetter, Jellis Craig) – cleverly renovated 2 bedroom home with garaging sold strongly with 3 bidders above $1.69m – sold for $1.707m

Land Sales:

Land is still selling well, many buyers prepared to pay strong prices to succeed, with the understanding the property still requires a large injection of additional funds to renovate or replace.

77 Sandringham Road, Sandringham (Romana Altman/Rebecca Beacall, Buxton) – 599sqm corner block with a double cross-over (attractive for developers STCA) and a solid basic home suitable for minor updates, a larger extension renovation or replacement – $1.61m or $2,687sqm
3 Hood Street, Elwood (Sam Gamon, Chisholm & Gamon) – approximately 350sqm land and a dated Californian Bungalow – $1.95million or $5,571sqm
44 Linacre Road, Hampton (Richard Slade, Buxton) – 580sqm corner block with a timber Californian Bungalow to renovate or replace (STCA) – $1.685m or $2,905sqm
7 Brandon Street, Glen Iris (Steve Burke/Tony Doh, Hocking Stuart) – 650sqm and home to a fairly original Art Deco home for renovation/replacement (STCA) – selling for an undisclosed amount over $1.6million – around $2,500sqm

Off Markets:

Period family home – Malvern – mid $3millions
Large renovated home on good land – South Yarra – $7m+
3 bedroom brick home requiring renovation – Canterbury – $2m
Large family home, good lifestyle options and excellent garaging – Surrey Hills – $2.5m
Modern home – South Yarra – around $3.5m

Properties we like, schedule for auction May 21:

31 Avondale Street, Hampton – Steve Wigley (Hodges)
12 Grace Street, Camberwell – Rob Fletcher/Brooke Warwick (Fletchers)
21 Kerferd Street, Malvern East – Rae Tomlinson/Heather Elder (Marshall White)
66 Champion Street, Brighton – Chris Carrington/Nick Johnstone (Nick Johnstone RE)

Auction Spotlight:

Armadale: 60 Stuart St (Kay & Burton) sold for $4.825m

Armadale, 60 Stuart Street (Gowan Stubbings, Kay & Burton), sold $4.825m

Around 100 people flooded Stuart Street to see what would transpire at the auction of this renovated period home on approx. 865sqm of Armadale land. Auctioneer Gowan Stubbings called for an opening bid but all was quiet so he tabled a vendor bid of $3.6m to kickstart proceedings. Bidders 1 and 2 entered the fray and some quick bidding ensued before a third party joined the competition. At $4.325m Gowan announced he would be selling and the price continued to rise until it reached $4.825m – the hammer coming down with a hearty round of applause from the appreciative crowd.

Hampton: 18 Retreat Road (Buxton) sold for $2.54m

Hampton, 18 Retreat Road (Mark Earle, Buxton), sold $2.54m

Mark Earle stood on the elevated deck of this Hampton home in front of a huge crowd of around 100 people. A great family atmosphere with children playing, parents chatting and all in attendance eagerly awaiting the start of proceedings. Calling for an opening bid, a strong offer of $2.3m came straight from Bidder 1. Mark joked with a young boy in the crowd about convincing his dad to bid – and was happily surprised when the father in question raised his hand and joined the bidding. A two-way battle ensued before the hammer came down to Bidder 1 at $2.54m.

Agent Opinion:“What are your thoughts on supply vs demand in Stonnington at the moment? Do you think the status quo will change in the near future?”

Philippe Batters (co-owner, Williams Batters, South Yarra): “This would have to be one of the most peculiar markets that I have seen in 44 years of real estate in South Yarra. We have a great number of people interested in buying, but the supply is simply not there. I don’t believe the upcoming election has had an impact, but we have definitely reached a point of inertia. It is a very, very strange situation that is occurring not only in South Yarra, but all areas within a 4 mile radius of the city. I do think it will loosen up, but at the moment we are seeing an unusual period of inertia.”

Posted in Market Pulse