5 August 2017
Despite the lack of stock, the clearance rate for auctions was solid this week. Stonnington Council hit the ground running with the three biggest results, after a noticeably quieter weekend last week: 9 Avalon Road Armadale (closer to $6m), 32 Balmerino Avenue Toorak (circa $4.5m) and 2 Netherlee Street Glen Iris (high $3m).
Stock (or lack thereof) is still a major discussion point in the industry, with many agents having few or no listings. More and more buyers are reluctant to sell first before they buy. While we expect to see good property options in the next month or two, it is not likely to be enough to satisfy the buyer depth in the market right now, and this could result in a flurry of activity at the end of the year (post Melbourne Cup).
The amount of development around Melbourne is hard to ignore right now, and this too is having an impact on buyer decisions. The planning landscape changed drastically last year with significant rezoning changes, and this is starting to have an impact on land sales. While some areas are more protected (ie leafy Boroondara streets), development in other parts is being more actively encouraged (ie fringes of Glenferrie Road/Burke Road, Malvern Road). As always, pro-active due diligence by the buyer (ie independent town planning or architectural advice) is critical.
- 9 Avalon Road Armadale (Peter Bennison/Mark Harris, Marshall White) – large family home with basement on approx. 699sqm – undisclosed in the high $5m range.
- 20 Sussex Street Brighton (Russ Enticott/Nick Johnstone, Nick Johnstone Real Estate) – after selling well in 2012 for $2.27m (our last quiet time in the market), five years on, this unchanged home sold for $3.1m.
- 46 Imbros Street Hampton (Julian Augustini/Romana Preston, Hodges) – renovated timber period home with pool but no carport/garaging on approx. 596sqm sold before auction – $3.325m.
- 2/9 Kardella Street Malvern East (Mario & Mark Butera/ Woodards Thornbury) – five bidders over the announced reserve of $1.3m – sold for $1.505m. A dated villa with money to be spent, location was very good and this type of property is very popular in the market right now, as many downsizer-buyers are preferring their own clear title rather than sharing heavy body corporate fees and walls/floors/ceilings etc. with others. Looking for good capital growth? Buy one of these.
- 75 Brougham Street Kew (Leon Gouzenfiter/Jarrod Martin, Garry Peer) – smaller renovated home on only 215sqm approx. Sold for $1.632m.
- 55 Nicholson Street South Yarra (Daniel Joyce/Nathan Waterson, Jellis Craig) – ’80s two-storey home, with a nice feel and, with some basic touches, could really be something – sold for $1.799m.
- 32 Balmerino Avenue Toorak (Justin Long/Nicholas Brooks, Marshall White) – approx. 650sqm with easterly rear, close to Toorak Village – circa $4.5m and over $6,800sqm
- 44 Park Crescent Kew (Steve Burke/Charlie Blanchard, Hocking Stuart) – approx. 705sqm with south-easterly rear – $1.782m or approx. $2,500sqm
- 7 Tarakan Avenue Ashburton (Michael Millington/Mark Lawson, Jellis Craig) – approx. 647sqm with east-facing rear – $1.74m or $2,689sqm
- 30 Lawrence Street Brighton (Lisa Comben/Halli Moore, Buxton) – approx. 780sqm, south-westerly facing rear with original ’80s home, between Church Street and Bay Street shops – $3.05m or $3,910sqm
- 49 Peate Avenue Glen Iris (Clayton Smith/Rebecca Scanlon, Jellis Craig) 1000m2 – sold for $2.9m or $2,900/sqm
- 28 Hambledon Road Hawthorn (Jason Brinkworth/Duane Wolowiec, Marshall White) 511sqm – sold for just under $3.2m or around $6,200/sqm
Some pass-ins of note:
- 111 Rowell Avenue Camberwell (also sold in 2014 for $2m, has since been renovated), passed in to one buyer $3m, asking now $3.275m
- 23 Keats Street Sandringham, passed in vendor bid $3.2m – asking now $3.5m. Last sold as land in 2014 for $1.41m.
‘Off Market’ Properties:
- Large family home on good land, convenient location, Malvern East – $3-3.5m
- Dated family home, good position, Brighton – high $3m range
- Large renovated period family home – Glen Iris – circa $4.5m
Some of the better properties coming up for auction: an architect’s view
9 Avalon Road Armadale
The auction of this substantial and classically elegant Armadale property drew a crowd of 100-plus to participate and observe proceedings. While the home delivers good family living across its three levels, 9 Avalon Road is all about its prime location within Armadale.
Once the auction got underway, Justin Long from Marshall White immediately started things off with a vendor bid of $4.8m. Two bidders took it in turns trading a range of smaller and sudden larger bids to outmanoeuvre each other. The home was announced on the market at $5.42m, but both potential buyers were keen to pay well above this level to secure the property. The first bidder was eventually the successful purchaser for $5.84m.
2 Netherlee St Glen Iris
We attended the previous auction of 2 Netherlee St Glen Iris when it was sold for land value in early 2015 for $1.79m, where seven bidders pursued the property because of its location and potential to build well forward on the block. (Market Pulse – Feb 2015)
The new owners have since built a striking family home offering five bedrooms, including an impressive master suite, 3.5 bathrooms and multiple living zones. Even with its south-facing rear, the property delivers good inside out living and has positioned the outdoor entertainment area and pool to capture maximum afternoon sunlight.
Daniel Wheeler and the Marshall White team were back from two years ago to market the new home. They first worked to sell the property off market during the quieter winter months but that did not bring out buyers willing to make an offer at the required level. Taking the property through an auction campaign found successful bidders who were comfortable to pay $3.825m. There were four other interested parties competing, which took the price past the reserve around $3.7m.