August 15, 2015
With another clearance rate around 80% last weekend, all the signs suggest the market is continuing to roll along steadily. Over the next four weeks the number of properties being auctioned will continue. If vendor expectations can be managed, the current statistics suggest there will still be buyers wanting when the market shuts down again for more school holidays.
- 95 Rowell Ave Camberwell (Gillham/Silk, Noel Jones) a large home on just 585m2, bought after auction, $3.2m after passing in for $2.99m. The increased popularity of this area, particularly for homes with good Feng Shui principles, continues to grow.
- 7 Black Street Brunswick (Susnjara/Taylor, Collin Simms), a warehouse conversion in a very convenient location –$1.82m. Selling for $1.31m back in 2011, an almost 40% increase supports the growing trend for ‘lock and leave’ options close to the city.
- 37 Lynch Street Brighton (Andrew Campbell, Buxton). Auctioneer David Hart played the crowd well achieving a strong result at $3m. A single storey home ticking boxes for families and the downsizer market (except perhaps weak off street parking), the home also appealed to the Chinese buyers. A similar offering and location at 2 Tracey Crescent (no pool) sold earlier this year for $2.65m suggesting that the interest for single storey homes is growing.
- 17 Tramway Parade Beaumaris (Gregory/Parker, Marshall White). An entertainer’s house on approximately 970sqm was bought closer to $4m. Whilst it is becoming a little more common to see results over $2million in Beaumaris, $4million is not. It was only just over a year ago we were marvelling at similar results for special homes 15 minutes closer to the city (eg. 41 Binnie Street, Brighton East, 923sqm which sold for $4.02m, April 2014)
- Land in ‘fringe’ Camberwell continues to climb with a strong result at 18 Webster Street Camberwell (Redfern/Sutherland, Marshall White). 640sqm, north rear and basic Art Deco home. $1.8m or around $2800sqm.
- 26 Chesterfield Malvern (Jeremy Fox, RT Edgar) sold last week for $4.4m.
- A renovated family home on 635sqm. Perhaps a hybrid between a townhouse and larger family home, given the smaller courtyard/pool back garden.
- Off the back of a recent sale (level 6), another ‘raw’ apartment in Robin Boyd’s Domain Park Flats (South Yarra) sold on the weekend for $1.72m (Dean Gilbert, Marshall White) – (level 16)
Often the ‘quiet’ properties present when the market is less active, such as school holiday periods.
We are currently experiencing an increase in ‘off market’ options.
With continuing hype from the our media about the ‘Melbourne property bubble’, it appears some vendors may be wishing to capitalise on the current market, rather than risk taking their property to auction later this year, just in case there is some truth to the media stories.
Speaking with Jenny Dwyer, (Hocking Stuart) office is experiencing a spike in property appraisals. Nick Johnstone (Nick Johnstone Real Estate) agrees. “Yes definitely. Lots of people want to get in before they think (the market) will come off. I don’t think it will come off though!”
- Renovated period home in Hawthorn East – $3m
- Unrenovated original period home in Kew – $2.6m
- Lock-and-leave period home in South Yarra – $2.5m
- Malvern East renovated period home – circa $4-4.4m
- Larger land with period home requiring updating, Armadale circa $4m
4 Central Park Rd (Andrew McCann, Jellis Craig), under hammer, $2.34m, 3 bidders
There was a hint of spring in the air as auctioneer Andrew McCann walked onto the sunny front yard for this 2pm auction. A good crowd listened to his measured and considered preamble and the auction commenced with a solid $2m opening crowd bid. There was good bidding at a steady pace for a few minutes with two extra bidders, then the property ultimately sold under the hammer for $2.34m. This represents a very sold result indeed, with a renovated product on bigger land next door (#4a) selling in October last year for around $20.000 more.
The Gascoigne Estate is one on Melbourne’s most renown precincts, and given.
4 Central Park Road is a great opportunity for renovation that would work well.
- Challenges of the property :
South Facing Rear (Limited access to natural light in the rear yard and future open plan living areas, and shadows will be cast in the backyard)
Facade is basic, and does lack some street appeal (compared to others)
Limited access (but probably just OK) down the side of the house for car garaging
- Key pluses of the property :
Good land size, and the block is relatively flat
House bones are original and proportions of the main rooms in which you would need to keep are generous
Location. This area and the ‘Central Park Rd’ address will protect and justify the capital improvement spend, as there are many $3,4 and 5m homes in the area.
Below represents a potential design option, keeping the building footprint compact (maximising the backyard area), providing good bedroom separation (main down and secondary rooms upstairs) and having a blend of formal and informal living areas). This design is of course subject to required council approval.
2 Davies St, Brighton East (Russ Enticott, Hodges), under hammer, $1.59m, 4 bidders
The crowd seemed to grow steadily throughout this Brighton East auction & eventually around 50 people huddled around to watch Russ Enticott in action. Russ went through the usual preliminaries and highlighted the home’s great location before asking for an opening bid. An offer of $1.25m came from a gentleman to his right before Bidder 2 tabled $1.27m. Bidder 3 was in at $1.3m and strong bidding continued before Bidder 4 offered $1.51m. Julian Augustini headed inside to refer to the vendor – without breaking Russ’ momentum – and at $1.57m Russ announced we were on the market. A young couple directly opposite our auctioneer was the winner on the day, taking the keys to the home at $1.59m.
110 Mitford St, Elwood (Torsten Kasper, Chisholm & Gamon), after auction, $1.59m, 1 bidder
Spread out on all four corners of the street, the crowd of around 50 waited quietly for auctioneer Torsten Kasper to begin proceedings. Torsten extolled the many highlights of the home – its fantastic location, an easy walk to just about everywhere. A vendor bid of $1.5m kicked off the auction before Bidder 1 chipped in $1.52m. After some silence from the crowd, Torsten headed inside to refer to his vendor. Back outside, still silence, and the property was passed in to the sole bidder for further negotiations. Bought a short time after for $1.59m.
Agent Opinion: How are stock levels looking as we head towards the September school holidays and beyond?
Richard Winneke (Jellis Craig): It appears that September/October 2015 will possibly be a little quieter than the previous year for properties to choose from. However, August is certainly much busier than in years gone by.