27 October 2018
We believe the weekend results confirm our previous reports that Melbourne is running a two-tiered market.
The well positioned, correctly priced and increasingly scarce properties are attracting good competition and some strong results (particularly if the property suits the downsizer market), while the remaining homes, those needing work, with not-quite-right floorplans, poor orientation, and/or location issues, struggle to attract any interest, particularly if the vendors have high expectations.
The downsizer market (who, in general, are not as reliant on finance for their purchase) continues to grow and strengthen as more buyers enter the market searching for single-storey homes in the quiet streets close to amenities. Examples on the weekend could be seen at 5 Edward Street Armadale – six bidders, on the market at $1.42m, selling for $1.82m and 8 Gordon Crescent Black Rock – four bidders, on the market at $2.475m, selling for $2.63m.
While quite different in their offering, it was their similarities, which are constantly in demand and short supply, that saw 10 bidders between them where other homes saw none. Both sold well above their respective reserves, which is perhaps the other key to their successful sale – the vendors of both properties had realistic price expectations.
The weekend saw 20 reported homes sell over $3 million, of which over half were in the Stonnington Council. The top end of the market is still travelling well, with many buyers again not as reliant on finance. The bigger issue is finding the stock.
- 248 Richardson Street Middle Park (Simon Gowling/Warwick Gardiner, Greg Hocking Holdsworth) – again, a single-storey home in a quality street, comfortable but could also be further updated, even with no off-street parking, sold for an undisclosed amount comfortably over $3.5m.
- 7 Kingston Street Malvern East (John Morrisby/Matthew Coombs, Jellis Craig) – approx. 941sqm opposite Central Park with an Edwardian looking for its next renovation (STCA in a heritage precinct) sold well, with scarcity again in play. On the market at $4.525m, sold well above reserve for $4.825m.
- 9-11 Ashley Grove Malvern (Richard Mackinnon/Fraser Cahill, Marshall White) – approx. 1651sqm in the growth zone (GRZ10), sold $7.1m or $4,300sqm.
- 4 Moule Avenue Brighton (Nick Johnstone/Joe Doyle, Nick Johnstone Real Estate) – approx. 827sqm with a French Provincial style large family home in the Golden Mile, $6.1m.
- 6 Joyce Street Elwood (Torsten Kasper/Carolyn Clarke, Chisholm & Gamon) – a modern, well located townhouse, $3,215,000.
Some of the better properties scheduled for Auction on 10 November; an architect’s view
57 Mary Street St Kilda West – Adrian Wood/Michael Paproth, The Agency
41 Bamfield Street Sandringham – Richard Slade/Peter Hickey, Buxton
18 Lalbert Crescent Prahran – Darren Lewenberg/Grant Samuel, Kay & Burton
- Art Deco renovation opportunity with north rear, Clifton Hill – circa high $2m
- Converted church hall, large family home, St Kilda West – circa early $7m
- Family-sized Californian Bungalow, Malvern East – circa early $2m
- Fully renovated Californian Bungalow, Malvern East – circa mid $3m
- Edwardian high on the Hill on 890sqm, Sandringham – circa $3m
- Fully renovated family home on 1,045sqm, Hawthorn – circa high $5m
- Within 1800s shell, 2 bed, 3 bath, 3 Garage, Port Melbourne – circa $2m
5 Edward Street Armadale
Even in this market, this auction was going to fire and it certainly didn’t disappoint. Why? Scarcity. And something this market really wants and needs: single level. Good car garaging. No body corporate. Light-and-bright and cleverly architect-designed – well done again Nicholas Day. A healthy crowd gathered (most were here to buy) and there was a real buzz. Bidding started off with a low-ball $1.2m offering – which I thought was a bit silly really, if your goal is to try and buy the home. It didn’t take too long for this auction to take off and the property was announced on the market at $1.42m then sold for $1.82m. Six bidders put their hands up here, but there could have been more had they had a chance to bid. Auction was all over in about five minutes, and I overheard someone use the word ‘crazy’ with respect, but I didn’t think it was really. Good properties in the hands of good agents with realistic vendors tend to always sell – and sell well.
7 Kingston Street Malvern East
On offer here was a solid, original home with healthy bones and excellent potential. Car access via the southern side of the house was generous and there was good opportunity for prized northwest light in the backyard. The renovation could be relatively straightforward and it will be interesting to watch the progress of this property in the coming months/years as it transforms. But the X factor was the location – there are not too many properties which front on to Central Park, but this one did. Auctioneer John Morrisby gave a spirited preamble, and officially kicked the auction off on a vendor bid of $4.15m. Not long after, this was advanced by two bidders in a steady pace of to-and-fro bidding. The property was announced on the market at $4.25m and then sold under the hammer for $4.825m not long after. Well done to the buyer – they have done well.