Archive for May 2019

With the election and most other distractions out of the way, buyers and sellers can now focus on the remainder of 2019, although not until after the mid-year holidays.

It was interesting to witness the difference one weekend made to change the sentiment in the market place. On Monday, doom and gloom had definitely been replaced by optimism and positivity.

Of the agents we spoke to, they were consistent, commenting on the increased number of homes they had been invited into to appraise. Buyers will be hoping a number of these will turn into homes for sale when the market resumes in late July after the Winter school holidays.

Saturday also fared well. It was one of the larger auction weekends for the year, with 700 auctions reported and the clearance rate came in at a respectable 64%, which suggests we are heading into a more normal market.  Actually, each weekend in May has been over 60%, albeit on small volume.

Buyers inspecting homes remains consistently steady.

For the time being, they may need to focus on the remaining stale stock, much of which could still provide good opportunities for buyers if vendors have adjusted their price expectations.

During this difficult time, getting in contact with WolegeHatt Buyers Advocates can assist you in navigating the market and finding the one.

Some of the better properties coming up for Auction before the holidays: an architect’s view

We often talk about turning a ‘B’ Grader into an ‘A’ Grader. The position and solid fundamentals at 37 St Georges Road Elsternwick present such an opportunity in our opinion.  A concept worth considering, going to Auction 1 June 2019.

37 St Georges Road Elsternwick – Angelos Stefanis/Sven Fisher, Biggin & Scott

25 Wills Street Kew – Campbell Ward/Richard Winneke, Jellis Craig

14 Kintore Street Camberwell – Grayson Rayner/Doug McLauchlan, Marshall White

5 Berwick Street Brighton – Stefan Whiting/Danielle Harvey, Buxton

18 Wave Street Hampton – Robin Parker/Kate Fowler, Marshall White

“Off-market” properties

• Period home, dated extension, opportunity to improve, Malvern East – high $3m
• Renovated single fronter in Domain Precinct, South Yarra – high $2m
• Renovated single level family home on approx. 780sqm, Malvern East – mid $2m
• Downsizer, 2 living zones, good north orientation, Armadale – circa $3.4m
• Period home with tennis court and pool, Brighton Beach – over $7m
• Updated Californian Bungalow, single level, Hampton – circa mid $2m
• Dated family home, ROW garage & studio above, Sandringham – circa mid $2m
• Original brick home on good sized land of approx. 700sqm, Brighton East – early $2m
• Large renovated Edwardian home on approx 680sqm, Middle Park – over $8m
• Renovated 3 bed, period home, north rear, OSP, Hawthorn East – over mid $1m

Auction Spotlight:

12 Royal Crescent Armadale

John Bongiorno had a good-sized crowd to work with at the successful auction of 12 Royal Crescent Armadale.

The sun was shining on the offering at 12 Royal Cres Armadale – a brick Victorian on a little under 600sqm in comfortable condition, yet offering excellent scope to improve. This is an example of how a home with solid credentials, including its prime position to Armadale amenities, is able to attract a good depth of buyers.  The auction attracted a large crowd on both sides of the street, with the Tomlinson family and John Bongiorno heading up the Marshall White team.  Opening with a vendor bid of $3m, two bidders slowly took the offering to $3.15m. After a short break to chat to the vendors, the home was not yet on the market.  A new bidder entered the action, reducing bids to $10,000. Just when it seemed like the property would be passed in $3.22m, an offer scraped in at the last second. Suddenly there was a new lease on life as two of the now four bidders went back and forth in rapid fire with hardly a breath.  John could only state the home was now definitely on the market when a slight pause occurred at $3.46m.  The home sold under the hammer, undisclosed, slightly above this level.

14 Long Street Elsternwick

Phillip Kingston played to the audience at 14 Long St Elsternwick, trying to entice out more bids.

A Sunday auction in Elsternwick, the coffee van out front and a good scattering of neighbours and interested parties, set the stage for Phillip Kingston to head up the Gary Peer team at 14 Long Street. A pretty Victorian façade, north rear and an extension done some time ago, deliver a solid family home ready for the next generation. Proximity to Glen Huntly and Glen Eira Road shops, trams and stations further enhance the offering.

Following his customary vivacious pre-amble, Phillip needed to place a $2.4m vendor bid after he was greeted with silence.  Eventually one of his boxes of chocolates could be handed over when a bid of $2.45m was placed. When nothing further was forthcoming, Phillip countered with another vendor bid of $2.5m, stating it would be his last if the next bid was $50k. Bidder 1 tried for $25k, but was pressured to go the full $50k to avoid another vendor bid. A break in proceedings did not inspire further parties to join in, so the home was passed in at $2.55m.  The property sold afterwards for an undisclosed amount.

With the second quarter for 2019 now well underway, it feels like we are entering a two-tiered market.

What do we mean by that?

There’s the old stock that has been around, some of it since 2018, which is either over-priced, has issues, or possibly a combination of both.

Then there’s the new stock. If it is a property in short supply and it has been correctly priced, then the numbers through opens have been very solid.

Over the past fortnight, two properties come to mind where inspection attendance has been particularly strong.

The key: both properties had scarcity factor.

• 1/95 Roslyn Street Brighton – a fairly original, single-storey home within easy walking distance to schools, Church Street shops and the station, quoting $1-1.1 million. Offering three well separated bedrooms, two bathrooms and a separate living area to the meals/kitchen area, the home has enough space to suit multiple buyer groups, including downsizers, younger couples/singles, and smaller families.
• 56 Cloris Avenue Beaumaris – a ‘mid-century’ Beaumaris home that has been sympathetically updated to retain original features and feel.  Over the space of two scheduled opens on Saturday, the property saw more than 100 groups through the home.

What are the properties that we think are in short supply at the moment?

• Single-level townhouses close to shops/transport
• Fully renovated family homes close to schools and other amenities
• Liveable entry-level homes close to shops/station

There are, however, still some good properties that have been around all year (some even longer). We think, in many cases, the price has been the problem. The original hope of an above-market price has set up the opportunity to buy these properties below market value if/when the vendors become more motivated to sell.

Some vendors who are prepared to accept the market have been pleasantly rewarded with fierce competition from buyers and above reserve results.

We are, however, heading into another area of uncertainty with a looming election later this month.

If numbers through the doors can provide a guide for the future, while some may be only looking or wanting to take advantage of the current market, there are also a growing number of genuine buyers needing to relocate, upgrade or downsize regardless of the market sentiment.

A buyers advocate can assist you to find the home within budget and with the required amenities. Get in touch with the team at WoledgeHatt today.

Some of the better properties scheduled for Auction on 18 May; an architect’s view

75 Repton Rd Malvern East – John Morrisby/Matthew Coombs, Jellis Craig

19 Sargood St Toorak – Justin Long/Fiona Counsel, Marshall White

17 Eleanor St Ashburton – Zali Reynolds/Antony Woodley, Marshall White

145 Male St Brighton – Ross Walker, Buxton

“Off-market” Properties:

• Renovated two-storey 4 bed, 3 bath Edwardian, North Brighton – circa $2.3m
• Single level brick Edwardian on approx 400sqm, Malvern East – circa $1.4m
• Brick Edwardian, single level, approx. 606sqm, Malvern East – circa $3.2m
• Victorian double fronter looking for renovation, Balaclava – circa $1.7m
• Two-storey brick family home on approx. 331sqm, Glen Iris – circa $2.2m
• Dated family home on approx. 924sqm with 22m frontage, Brighton East – circa $2.6m
• Renovated semi-attached two-storey, backs onto park, Armadale – circa mid $2m
• Edwardian double fronter, neat with opportunity to value add, Ascot Vale – early $1m
• Freestanding, townhouse-style home, near shops and trains, Hawthorn – high $1m

Auction Spotlight 

38 Service St Hampton offered comfortable living in a well maintained, relatively original blonde brick home, but could be seen as a land opportunity as well (approx. 577sqm).

Although having a south rear, the main living areas soak up the sunlight on the northern side of the home. Position was the key for this home, only 600m from the bustling Hampton St shopping precinct and a minute more to trains. The home is situated in Neighbourhood Residential Zone 3, three homes beyond General Residential Zone (more suited to development).

With the limited number of auctions on offer over the weekend, plus its prime position, a reasonable crowd of around 40 came to see Nick Renna and the Jellis Craig team in action, despite the average weather conditions.

Nick opened proceedings with a $1.5m vendor bid, bringing three bidders in throughout the course of the auction. While needing to work the crowd for the outcome, the auction did see good competitive bidding.  The home eventually sold to bidder one for $1.731m, delivering a $3,000 per square metre result – which we think is about right.