Archive for November 2017
25 November 2017
Kristen and Adam analysing the properties available in the lead-up to Christmas.
Saturday was only the third weekend since the market resumed for Spring where we saw the number of properties auctioned exceed 1000. Of the 1275 properties reported to the REIV at 6pm on Saturday, the clearance rate was 69%.
This is also the first clearance rate dip under 70% for the same time period. The market has definitely lost some of the ‘heat’ we saw earlier in the year. That being said, the quality/flexibility of the home will also have a big influence on the outcome and if it ticks the key boxes (great position, flexible floorplan and ready to move in), buyers need to be prepared for strong competition. This weekend, the overall quality was average.
Vendors who think that buyers who need to buy something before the end of the year will pay ‘anything’ may need to reconsider or they will still be ‘owners’ of their homes as they move into 2018.
Where the market is generally slowing at this time of year and new properties start to dribble onto the internet, we have been surprised to see new listings still in volume. Add the ‘off market’ homes to the pool and buyers can see choice. With choice comes discernment.
As we move into 2018, if the choice remains, then we may start to see a return to a more ‘steady’ market place with more differentiation between the quality homes and the rest.
Highlights:
- 10 Hampden Road Armadale (Mark Ridgway/Justine Harris, RT Edgar) – large land (approx. 1210sqm), although an ‘L’ shaped block, in the growth zone with no overlays – $7.8m
- 10 Empress Road Surrey Hills (Zali Reynolds/James Tostevin, Marshall White) – updated, single storey, timber period home with north-west-facing rear – $2.9m
- 11 Munro Avenue Armadale (Carla Fetter/Iain Carmichael, Jellis Craig) – well positioned brick Edwardian ready for its next renovation – undisclosed toward the mid $4m range
- 6 Oak Street Hawthorn (Sam Wilkinson/Rebecca Edwards, Kay & Burton) – single storey Victorian, near the river – $4,010,000
‘Land’ Sales:
- 54 Brandon Street Glen Iris (Karl Fitch/Tony Doh, Hocking Stuart) – approx. 645sqm, west rear – $1.9m or $2,945sqm
- 11a Capella Street Balwyn (Jeremy Desmier/Erin Loudon, Fletchers) – approx. 703sqm, west rear (quite close to the freeway) – $1,590,000 or $2,261sqm
- 165 New Street Brighton (Matthew Gray/Scott Hamilton, Buxton) – approx. 611sqm with approx. 540sqm a conventional shape, the rest ‘a bit extra’ across half of the back, west rear – $2,340,000 or $3,829sqm
- 54 Second Street Black Rock (Dan Dyason/David Thomson, Thomson RE) – approx. 631sqm, corner block with 18.29m frontage – $1,675,000 or $2,654sqm
Properties we like from an architect’s perspective, auctioning before Christmas:
26 Edward Street Sandringham – Adam Saunders/Romana Altman, Buxton
12 Cole Street Brighton – Myles Howell/Barb Gregory, Marshall White
39 Ryeburne Avenue Hawthorn East – Campbell Ward/Chloe Quinn, Jellis Craig
37 Motherwell Street South Yarra – Mark Harris/Nicholas Brooks, Marshall White
‘Off-market’ Properties:
- Period home, north-facing rear, Surrey Hills – $2.4-2.5m
- Modern town house, South Yarra – circa $2.5m
- Single storey family home, Hampton – mid $2m
- Large land holding, Hampton – over $6m
- Family home with pool, South Yarra – mid $4m
- Town house, Caulfield North – circa $1m
- Replica period home, Prahran – high $2m
- Basic home, basically land, Ashburton – $2.1-2.3m
Auction Spotlight:
76 Hawksburn Road South Yarra
Daniel Wheeler from Marshall White working the crowd to entice a bid for 76 Hawksburn Rd South Yarra. The property passed in on a vendor bid of $1.6m.
This property is a pretty, renovated two-bedroom Victorian home. The opened-up rear delivers easy inside-out flow to the low maintenance courtyard. While there is no OSP, the home is well positioned to Toorak Rd and Chapel St, almost eliminating the need for a car. The property should appeal to downsizers and there were several in attendance for the auction. Daniel Wheeler from Marshall White worked hard to lift the crowd, after starting proceedings with a vendor bid of $1.6m. The property had been marketed with a range of $1.6-1.76m, so this opening was no surprise, but no-one was prepared to meet the vendor expectations at this stage. The home in now available for sale at $1.785m.
51 Hawksburn Road South Yarra
Auctioneer Mark Wridgway of RT Edgar conducts a professional, no-nonsense auction and brings the hammer down at $2.261m.
A neat townhouse, well-designed by architectural draftsman Brett Gilbert, the south side of the pair. Position is a convenient one, and that underpinned the package well. A modest crowd looked on here in hot conditions, and respite was taken under every available tree. Opening with a crowd bid of $2m, the auction clipped along at an even pace in mixed bidding increments. Announced on the market at $2.23m, bidding started to falter and the property sold to bidder two for $2.261m. Good result for buyer and seller.
76 River Street South Yarra
A beautiful day for a courtyard auction in South Yarra: Hugh Hardy from Abercromby’s at 76 River Street South Yarra.
18 November 2017
Adam and Kristen in our new Brighton office.
The market is becoming more confusing for buyers.
We are often seeing lower numbers of bidders at auctions; however, if the property is very good or has been quoted low, it is not unusual to see four or five bidders or more, although usually a couple of these fall out of the competition fairly early into the bidding.
Confusion is continuing with regard to quotes, price and value. We are still seeing some properties advertised without the Statement of Information sheet and some properties not being announced ‘on the market’ anywhere near their advertised quotes.
The REIV reported a clearance rate at 70%. This doesn’t accurately reflect the number of homes sold ‘under the hammer’. There are number of properties reported as ‘sold at auction’ that have been passed in on the street and sold afterward in private negotiations. There are also a number of auctions (many that haven’t sold) that aren’t reported at all.
Next weekend, 25 November, is shaping up to be another really big weekend and the run to Christmas, which is only five weeks away, looks to be a frantic one. As well as properties advertised for auction, there are also an increasing number of homes available for private or quiet sale.
Some vendors may be starting to feel a sense of urgency to sell before the long holiday break. Many of the prices asked for these homes are particularly high, with a view that if that price is not reached, the vendor will try again next year. Unless the market surges again strongly when it resumes in 2018, we are not sure the asking prices will be achievable next year either.
Given the high amount of transactions in the past few weeks, there are a number of homes that will come onto the market as successful buyers now look to offload their previous homes. These sellers can provide great opportunities for buyers looking to buy before Christmas, as the vendors may prefer to try and sell quickly, minimising their risk of any market fluctuations that can occur during extended breaks.
Auction Highlights:
‘Land’ Sales:
New office
Our second office is officially open for trade at 5/279 Bay Street in Brighton, making it easier to help our Bayside clients buy their next homes. You can’t miss us: we’re next door to the chemist and not far from the Asling Street roundabout.
If you are in the area, please call in and say ‘hi’.
Some of the better properties, due to auction on December 2
6 Hollingsworth Avenue Hawthorn – Oliver Booth/Abby Innes, RT Edgar
7 St Killian Street Hampton – Jenny Dwyer/Will O/Brien, Hocking Stuart
38 Alice Street Malvern – Tim Derham/Kate Cusack, Abercromby’s
11 Gwendoline Avenue Bentleigh – Gerry Gordon/Ivana Dobro, Jellis Craig
‘Off-market’ Properties:
- Updated period home – Malvern East – high $1millions
- Freestanding modern townhouse – Domain precinct, South Yarra – $3m
- Townhouse – Brighton – $1.98m
- Renovated Victorian home – Hawthorn – high $3millions
- Period home, large land – Hampton – above $6million
- ’60s home – Beaumaris – high $1millions
Auction Spotlight:
64 Mason Street South Yarra
An Andrew Macmillan auction is always an entertaining one, and this was no exception. Although it passed in, this property sold soon after for $3.075m.
A nicely renovated and extended home in a fantastic location was on offer here at 64 Mason Street. Toddlers were able to wander freely in the quiet street as auctioneer Andrew Macmillan gave a concise and very entertaining preamble to the crowd of about 30 people. The auction did open with a crowd bid of $2.7m, but this was fairly quickly countered with a vendor bid of $2.9m. Bidder 2 offered a $20K rise. Bidder 3 joined in soon after, yet the property was passed in to bidder 2 at $3.02m. Not long after, the property sold for $3.075m, which was a solid result, we thought, given next door (an unrenovated version on similar land) sold for $1.85m only a couple of weeks ago. We know architects can be expensive, but…
49 Mills Street Hampton
Robin Parker from Marshall White put on an entertaining auction in the pretty front garden of 49 Mills St Hampton.
A good-sized crowd was drawn to this well renovated original Hamptons-style home. Positioned well to the shopping precinct, schools and transport, plus a good-sized north rear, made this an attractive package for potential buyers. Robin Parker and Kate Fowler from Marshall White welcomed everyone into the pleasant shade of the front garden for the auction. An opening bid of $2.2m was quickly received from a gentleman on the phone before a vendor bid of $2.3m was placed. At this point, all was silent and Robin was made to work hard, including a chat to the man on the phone, but was unable to draw out a bid. Eventually a second bidder came in, and there was a quick discussion with the vendors, followed by a further two bidders, with the price working up to $2.555m. A fifth bidder stepped in briefly for a couple of bids before the final battle between bidder 1 on the phone and bidder 3. The vendors seemed to have higher expectations and the property was eventually passed in to the man on the phone for $2.61m. The home was sold in post-auction discussions for the same price.