Archive for March 2017
March 25, 2017
Hot Hampton market: a big crowd sheltered in the shade, where two young families bid for a property in Avondale St.
Those expecting the Melbourne property market to fall or flatten out will continue to wait, with yet another strong market performance this weekend. Under the weight of big numbers again, the strong inner Melbourne market held firm, with an REIV reported clearance rate of 82%. With nearly a third of the year gone, 2017 is shaping up to perform as strongly, if not even more so, than last year.
We have seen an increase in the number of pass-ins; some were sold afterwards and others are still waiting for buyers to rise to the vendor expectations, which agents suggest are on the rise. Next weekend is the last of the bigger auctions for a few weeks, as 8th April falls in the middle of the school holidays. The Anzac holiday shouldn’t provide as much disruption this year, as it falls on a Tuesday.
Buying before auction
We are seeing more homes bought before auction. While this can be a good strategy for creating certainty, it can also be a costly one. You may pay $50,000, $100,000 or even more than any other buyer would have been prepared to pay.
Buying beforehand can help provide certainty if you know your offer is at a level where the vendor will sell. Generally, in this market, most offers will need to be at the vendors’ ‘dream’ price to stop the auction and the market is starting to show that some vendor price expectations are now well above the buyers’.
While an auction can be stressful, if you are going to venture into unchartered territory at levels otherwise not seen before, it may help in the following days, weeks and months afterward to know that someone else was also willing to pay nearly that price.
Auction Highlights:
The well-renovated homes in good locations continue to perform well. As an owner, if you make smart decisions when renovating, the money spent on a good architect and/or a good builder can all come back to you when you decid to sell.
- 42 Guildford Road Surrey Hills (Hamish Tostevin, Kathy Malcolm, Marshall White) – 730 sqm with a well-renovated two-storey Californian Bungalow, yet south facing rear and some block slope, last sold, unrenovated for just under $1.4m back in July 2011 – now $3,273,000
- 54 Aberdeen Road Prahran (Carla Fetter, Jellis Craig) – a lovely feel internally and some clever touches, south facing rear and limited car-parking off the street, sold in 2013 for $850,000 – now $1.66m
- 41 Charles Street Prahran (Darren Lewenberg/Grant Samuel, Kay & Burton) last sold unrenovated back in 2013 for $1.29m – now $2.16m
Well-positioned, good-quality period homes (ripe for improvement rather than replacement) were also well contested.
- 10 Derby Street Camberwell (Geordie Dixon/Richard Earle, Jellis Craig) – approx. 1,134sqm, with a graceful brick Italianate home, set a new record for the street – sold in excess of $4.5m
- 8 Elmie Street Hawthorn (Chris Daly/Richard Winneke, Jellis Craig) – approx. 767sqm, Victorian home, although block had some slope issues – sold above $3.5m
- 8 Talbot Street Hampton (Patrick Liston/ Richard Slade, Buxton) – approx. 864sqm, dated but neat single level timber home, very livable and could be easily improved with some basic tweaks – sold just under $3m
It was also great to see the ‘Blott House’ (7 Allambi Road Chirnside Park), designed by arguably the best Melbourne architect of all time, Robin Boyd, bought by a buyer appreciative of the style rather than a developer appreciative of the land. Long live the King.
‘Land’ Sales:
- 1 Potter Street Black Rock (Stephen Wigley/Ange Saralis, Hodges) – approx. 1,361sqm, north facing rear near the beach, yet an irregular shaped block with a few challenges – $2.61m or nearly $2,000sqm
- 1 Mangarra Road Canterbury (Scarlett Hang/Nick Ptak, Marshall White) – approx. 502sqm, interestingly, last sold in 2015 for $1.6m before auction – $1.82m or about $3,500sqm
- 23 Kinane Street Brighton (Robin Parker/Kate Fowler, Marshall White) – approx. 1,279sqm, north rear – $5.53m or $4,323sqm (if you placed no value on the house)
Off-Market Properties:
Still quite a few of these around, here are just a few we have been privy to in recent weeks:
- Modern home with basement parking – Malvern – $8.5m
- Well renovated period home with great car garaging – Camberwell – circa $2.5m
- Dated yet good-sized separate titled townhouse with ground floor bedroom and secure car garaging – Camberwell – $2m
- Three-year-old double-storey modern home with prized north facing rear – Bentleigh – $2.5m
- Good-sized double-storey period home in an A-grade position needing cosmetic work – Hampton – $2.2m
Auction Spotlight:
8 Talbot Street Hampton
Mark Earle of Buxton Sandringham got his exercise reaching bidders spread along Talbot Rd Hampton.
A crowd of 50-plus spread far and wide along Talbot Street to remain in the shade, while witnessing Mark Earle from Buxton successfully auction this property. The home offers comfortable family living as is, or further opportunity to expand and refresh the period features, all set in 860sqm of private gardens. The proximity to amenities and schools certainly made the property appealing to young families, who bid strongly to secure the property for $2.926m, after exceeding the $2.75m reserve.
11 Retreat Road Hampton
Neighbours cheered to welcome the new family to Retreat Road at the end of the auction held by Stephen Wigley from Hodges.
A well-presented single-level family home delivering multiple living zones, good bedroom separation and a low maintenance garden with pool. Stephen Wigley from Hodges worked up a sweat in the humid afternoon, encouraging 4 bidders vying for the property. After announcing the property on the market at $2.17m, two families pushed the final result to a solid $2.245m.
Agent Opinion: As an expert who has worked in the suburbs of Kew and Hawthorn for many years, have you lately seen a change in buyer demographics (ie where they are are coming from)? How is this affecting price?
Richard Winneke, Director, Jellis Craig Hawthorn: There is no doubt there has been a shift! We are currently seeing many buyers moving from the inner north, including Kensington, Maribyrnong and Brunswick, as well as the outer east, including suburbs such as Templestowe, Doncaster & Donvale. It does not seem to be having a direct impact on price other than just adding more buyers to the pool.
March 4, 2017
Big crowds, strong results: for good properties, the Melbourne property market continues to boom.
Strong. That is the word that best describes the Melbourne property market right now and, with underbidders at most properties, the ‘in demand’ properties (family homes and downsizers in particular) show no signs of slowing in the immediate future. While interest rates remain low and overseas arrivals (including returning Australians) stay high, there just is not enough supply of the right homes to satisfy the demand.
It seems at the moment that, irrespective of any negative aspects the property or surrounds may have, some buyers are prepared to just keep bidding to secure the property, with new records being set weekly across Melbourne.
Perhaps this is a good decision if you can guarantee that you won’t be impacted by any changes in the market or family changes that may occur in the future. While we believe it is important for our buyers to understand what might happen at auction and the levels they may need to consider, we also discuss the levels that may put them at future risk. Stop limits are just as important, particularly if the property is not an ‘A’ grader.
Of note, there were multiple homes that achieved above $4m on the weekend
- 4 Osborne Court Hawthorn
- 684 Orrong Road Toorak
- 22 Leura Grove Hawthorn
- 2 Monomeath Ave Canterbury
- 52 The Avenue Prahran
- 45 Victoria Street Sandringham
- 10 Crest Avenue Deepdene
- 31 Mathoura Road Toorak
- 6 Webb Street Brighton
- 137 Yarrbat Avenue Balwyn
- 1-3 Palm Grove Balwyn
As we approach the Labour Day weekend, the market will take a mini-break, with minimal auction activity (and agents will catch their breath). All eyes look forward to another big auction weekend on March 25.
For those wanting to buy in the Port Phillip council area, however, March will be interrupted again with the running of the Grand Prix.
Auction Highlights:
Auction numbers were solid on the weekend. There was no shortage of bidders for the good properties.
- 22 Leura Grove Hawthorn East (John Morrisby/Sally Morrison – Jellis Craig) – a good-feel home, tastefully renovated, in a coveted Hawthorn East street – undisclosed above $4.5m
- 16 Foam Street Hampton (Robin Parker/Kate Fowler – Marshall White) – last sold for $1.26m in 2012, add a practical renovation on a good block size in a well loated street (close to shops/station) – $3m
- 96 Hambleton Street Middle Park (Oliver Bruce/Nick Hoo – Marshall White – neat double fronted home –$2.956m
‘Land’ Sales:
The land only market is particularly hot across Melbourne. From our observations, developers/builders are very busy. Buyers, too, are feeling comfortable to build a new house rather than wait for something established, which is a hot market in itself.
- 10 Neave Street Hawthorn East (Steve Burke/Margot Dawson – Hocking Stuart) – approx. 828sqm, north rear – $3.35m or around $4,050sqm
- 35 Rose Street McKinnon (David Jane/Michael Egan – Century 21) – approx. 828sqm, west rear, desired position on McKinnon Hill – $1.985m or around $2,400sqm
- 51 Victory Boulevard Ashburton (Natalie Hall/Michael Hingston – Jellis Craig) – approx. 679sqm, east rear – $1,575m or just over $2,300sqm
- 108 Bamfield Street Sandringham (Scott Hamilton/Brydie Hamilton, Buxton)– 480sqm Sold for $1,551m or just over $3,200/sqm.
If you design smart and build well you can do well is this market.
Of course, enlisting the services of a good architect really helps.
Take this example: 14 View Street Hawthorn (Architect, Steve Domoney – Agents, Richard Winneke/Campbell Ward – Jellis Craig) sold a few weeks ago at a mid-week auction for an undisclosed amount over $5.7m after being purchased before auction in May 2015 for $2.1m.
From an architect’s eye, this is what we thought of the property:
Auction Spotlight:
31 Mathoura Road Toorak
Jeremy Fox from RT Edgar delivered an entertaining and successful auction at 31 Mathoura Rd Toorak.
About 100 people gathered to watch the auction of this well designed, light, modern family home. With the road temporarily blocked to cars by development further down the street, auctioneer Jeremy Fox from RT Edgar had a broad stage to interact with the audience who thronged both sides of the street. After an opening bid of $3.75m, four bidders pushed offers past the reserve of $4.1m. Joking with the bidders to entice further offers, the home was eventually knocked down for $4.115m to a round of applause from the crowd.
133 Head Street Brighton
Andrew Hayne in action at 133 Head Street Brighton – quick-fire auction, property sold under the hammer for $2.905m. Listing agent Fiona Ansell-Jones.
There was a serious vibe at this auction and fair enough – the property had a lot going for it: Edwardian facade, practical floorplan and prized north-facing rear aspect. A good crowd of about 120 attended, and a lowly bid of $2.2m (was this real?) got the auction started. It didn’t take too long for a further two parties to take place in the bidding and the property was announced on the market in the $2.6 millions. Faltering in the $2.8 millions, the two bidders went back and forth and the home eventually sold for $2.905m – a very solid result, it must be said.
Auctions we like, scheduled for March 25
6 Seymour Avenue Armadale – (Gowan Stubbings/Julia de Campo, Kay & Burton)
10 Derby Street Camberwell – (Geordie Dixon/Richard Earle, Jellis Craig)
66 Tivoli Road South Yarra – (Justin Long/Mark Harris – Marshall White)
9 Southey Street Sandringham – (Stephen Wigley/Cain Malthouse, Hodges)
Agent Opinion: As an agent who has worked in Brighton for many years, what do you see as the fastest growing market in Bayside at the moment?
David Hart, Director – Buxton Brighton: Without doubt, land. Week in, week out we need to re-calibrate Brighton and Brighton East land prices as new benchmarks are set. Anything in a convenient position, with room to build either a single home or multiple dwellings, is creating amazing competition. We had a recent land value property of 613sqm in Arthur Ave where the vendor wanted it sold quickly. After a week on the market, we had nine buyers register their interest to attend an informal midweek twilight auction, where it sold for $400,000 over reserve.