4 May 2019
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, 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.
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
- 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
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.