25 November 2017
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.
- 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
- 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:
- 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
76 Hawksburn Road South Yarra
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
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