Posts by Alexandra Ruffell

Good properties sold well on the weekend but stock levels remain low and buyers may need to fight harder for the better homes.

Under the weight of numbers, the Melbourne property market held up well, with the REIV reporting a 73% clearance rate at 6pm on Saturday.

Numbers at auctions were healthy, we felt, and the good properties sold very well, with multiple bidders, and the prices continue to rise.  With lower stock levels, buyers are fighting harder for the better ‘completed’ homes, good renovation options and well-located land opportunities.

Vendors hoping buyers might continue paying ‘A’ grade prices for ‘B’ and ‘C’ grade properties (as they were earlier this year) may need to adjust their price expectations if they want to see ‘sold’ stickers on their boards, as the gap between the goodies and those that are overpriced (and/or have been advised by agents they will get high prices) or with issues begins to grow. As always though, the price quote and skill of the agent/agency remains all-important.

Highlights:

Of note, there were 20 reported homes sold last week over $4 million, many with multiple bidders – some of the bigger ones include:

• 2 Elwood Street Brighton – over $5,500,000
• 33 Grant Street Malvern East – $6,125,000
• 10 Russell Street Camberwell – toward $5,500,000
• 25 Munro Street Armadale – $6,050,000
• 82 Argyle Road Kew – $5,800,000
• 3 Wandeen Road Glen Iris – $5,355,000

‘Land’ Sales:

Some of the better properties, due to auction on November 18

64 Mason Street South Yarra – Nathan Waterson/Andrew MacMillan (Jellis Craig)

5 Lorac Avenue Brighton – Andrew Campbell/Ben Veith (Marshall White)

22 Burns Street Elwood – Nick Jones / Torsten Kasper (Chisholm & Gamon)

14 Harts Parade Hawthorn East – Nick Elmore / Tim Mursell (Hocking Stuart)

‘Off-market’ Properties:       

Off market properties are around in volume at the moment, but they aren’t necessarily priced to sell:

• Larger townhouse, Malvern East – over $4,500,000
• Single fronted home, Hawthorn East – early $2millions
• Family home, Brighton – $4,500,000
• Renovated, well located smaller home, North Brighton – early $3millions
• 90s home, good land, Glen Iris – high $2millions
• Family home, Malvern East – early 3millions

Auction Spotlight:

54 Lucas St Brighton

David Hart from Buxton led the auction, which gave the new owners a solid family home in one of the best streets in Brighton East.

This home offers comfortable family living, although looking for a freshen-up, with four ensuited bedrooms, combined with formal and informal living zones. The home is positioned well on the 654sqm block, allowing for opportunities to add an entertaining area and potentially a pool (STCA) positioned to catch the afternoon sun within the good-sized south-rear garden.  As a mortgagee auction, David Hart from Buxton had clear instructions from the NAB to sell at a certain level. An optimistic opening bid of $1.8m and then $1.9m was quickly followed by a vendor bid of $2.4m to bring proceedings to a more acceptable level. A third and fourth bidder soon joined in, before some retreated. Bidder 3 tried to seal the deal with a larger jump, which brought the property on the market at $2.7m and was eventually successful at $2.71m.

10 Russell Street Camberwell

Hot price and hot auction: 10 Russell St sold for well in excess of half a million dollars over reserve.

Under the canopies of pretty plane trees in Russell Street stood a solid crowd of around 100 people for this auction, which was clearly going to be a good one. The house ticked a lot of boxes and got the formula right with a lot of bedroom accommodation (six toilets would you believe!), a pretty facade and an A-grade Tara Estate location. Auctioneer Sam Wilkinson gave a concise, no-nonsense preamble and it didn’t take long for crowd participation here after the initial ‘beautiful’ $4m vendor bid. Two bidders back and forth at $50K bids, and the property was declared on the market at $4.75m. Bidder 3 joined in later around the $5m mark but bidder 1 prevailed, buying the property under the hammer for $5.35m. Hot price and hot auction – vendor must be very pleased. Not a bad return after buying the home unrenovated in late 2008 for around the $1.5m mark.

Spring auction season in full swing. Securing the good properties is still hard for uneducated buyers.

Welcome back to our newsletter and the last quarter of 2017. The real estate market has returned with signs of continuing strength: there were good numbers through Saturday’s opens and some queues for the better homes. The weekend of 28^th October is usually a high-volume auction weekend and the results are likely to provide direction for the remainder of the year. There is a mixed variety of homes on offer – some tick most of the PPP boxes; however, there are also a number with some compromises (ie tricky floorplan, orientation, slope, location concerns). Depending on where the buyer focus lands, we may see a mix of stronger results along with some pass-ins – particularly if vendors have high expectations.

The increased volume could result in a number of homes also being sold before auction.  The opportunity for certainty can be comforting for buyers, but research and caution should remain. Waiting until auction day could save you a lot of money.

We have noticed mixed results when comparing the sold price with the quoted price range provided at the beginning of a campaign. More often than not, agent selection for similar properties has so far been accurate, but the results have been more varied. At the start of this year, it was considered normal for most properties to sell above the quote range.

But recent results are far more mixed: some homes sell well above the range (although usually with reserves at similar levels), some sell accurately within the range, and an increasing number are selling below the quote range, including some of our highlighted properties this week.

The takeaway message for buyers is that just because quotes are far more accurate, it doesn’t follow that the outcome will be predictable. While the quote can be a guide, understanding smaller nuances within the market, such as precinct demand, buyer demand, property competition, and impact re zoning regulations, may help avoid the disappointment of missing a home that has sold within your range.

Highlights:

‘Land’ Sales:

‘Off-market’ Properties:

Some of the better properties coming up for auction: an architect’s view

2 Elwood Street Brighton – Robin Parker/Kate Fowler (Marshall White)

21 Albion Street South Yarra – Walter Dodich/Zoe Ho (Kay & Burton)

1 Ardene Court Hawthorn – James Tostevin/Sally O’Connell, (Marshall White)

4 Keats Street Sandringham – Jenny Dwyer/Stephen Tickell (Hocking Stuart)

Auction Spotlight:

 39 Llaneast Street Armadale 

James Tomlinson led the Marshall White team for the successful auction of 39 Llaneast St Armadale.

This home is an Edwardian waiting for a thorough renovation. Additional touches to an already strong offering include that it is well positioned in the cul-de-sac part of the street with good 11m frontage, as well as side ROW to off street parking.

This auction was a family affair, and the Tomlinson clan, plus more from the Marshall White team, had a good-sized crowd to work with at the auction. Following an opening vendor bid of $1.6m by James, a couple of bidders steadily moved things along to bring the property on the market at $1.88m. With a third bidder engaged in vying for the property, bidding continued and finally settled at $1.895m for a very happy-looking young couple.

Demand remains strong for properties in good locations and with excellent potential.

28 Connell Street Hawthorn

The Fletcher family was made to work hard at the late afternoon auction of 28 Connell St Hawthorn, which passed in at $1.75m.

A pretty façade portrays the potential for this freestanding Victorian home in one of the best positioned streets in Hawthorn. Extended previously, the home is now ready for its next renovation (within its heritage overlay parameters). This overlay, combined with the existing extension, may have held prospective purchasers back at auction time.

Mark Fletcher from Fletchers Real Estate led the auction, with support from father Rob, brother Gary, and the rest of the team, in front of a crowd of about 60. With the usual silence greeting the auctioneer once the call was made for bidding, Mark was forced to place a vendor bid of $1.7m to start proceedings. A bid of $1.75m was eventually received, which saw a short break for discussions with the vendors. No further offers could be extracted from the crowd, so the property was passed in at this level. The property remains on the market.

Negotiation with the agent doesn’t just happen on auction day. Kristen talks to Geordie Dixon, a newly made director and a proven performer at Jellis Craig Hawthorn.

The market has shown signs of fragmentation over the past month.

There is no doubt the good properties are still being hotly contested (and continue to create new price records) and this is likely to continue while there is a shortage of quality family homes and smaller single-storey homes for buyers to choose from. However, should the property be problematic in some way, or have a high vendor, or a combination of both, the buyers are showing discernment. The quoted price is all important to these selling.

There is additional pressure on the agents now to get the quote right. We have been through a number of good homes that haven’t had the volume of buyer inspection expected. Many buyers still think they need to add 10-20% or more to the quote and are avoiding the properties altogether.

Buyers should remember that the quote is only one piece of the puzzle. There are some good opportunities for buyers at the moment if they know how and where to look.

Of interest also is the increasing number of homes sold before auction, leaving some buyers disappointed if they aren’t prepared to move quickly. This week in particular there were a very healthy number of ‘bought befores’. As a buyer, this can be good way to go, so long as you are comfortable in your mind of ‘value’. In this scenario, you could quite easily pay several hundred thousand dollars over what you may need to at auction day if you have not thought through your strategy.

Some ‘bought befores’ of note:

• 16 Downes Avenue Brighton (Kate Strickland/James Redfern, Marshall White). Large family home on big land (approx. 923sqm), ready for next update or potential new build site – sold before auction – undisclosed amount over $4m.
• 11 Urquhart Street Hawthorn (Richard Winneke/Campbell Ward, Jellis Craig). Solid original home that had been renovated in the past and in tasteful order. Undisclosed price around $3.9m.
• 8 Hansen Street Kew (Stuart Evans/Duane Wolowiec, Marshall White). Generous block of 745sqm approx. with a neat MCM house – south-facing rear and slope considerations – undisclosed price around $3m.
• 6 Newbay Crescent Brighton (Alex Schiavo/Nathan Berrill, Kay & Burton). Approx. 712sqm, west-facing rear, convenient spot between Bay Street shops and the beach – sold before auction $3,560,000 or $5,000/sqm.
• 129 Peel Street Windsor (Guy St.Leger/Tom McCarthy, Biggin & Scott). Approx. 328sqm, north-facing rear and generous frontage. Sold for a very healthy $2,056,000 or $6,268/sqm if you placed no value on the house.
• 5 Stoke Avenue Kew (Sophie Su/Daniel Williams, Marshall White) – $5,580,000. Period reduction builder-spec home, 927sqm approx. north rear.

With limited auctions until after the Grand Final, we will return with our updates in mid-October. October 28 is shaping up as a very big auction weekend for buyers and sellers alike, with these properties to go online to the public in two to three weeks’ time.

Happy holidays, if you’re managing an opportunity to escape the lingering cold, and ‘Go Tigers’!

Auction Highlights:

‘Land’ Sales:

‘Off-market’ Properties:

Auction Spotlight:

27 Wheatland Rd Malvern

In front of a good crowd of 60-plus, five bidders vied for the rights to the keys for 27 Wheatland Rd Malvern, where Justin Long from Marshall White led the auction.

This property is a desirable offering with its direct access to Milton Gray Reserve at the north rear. The home itself is a classic Edwardian at the front with a comfortable, yet dated extension at rear, offering solid scope to take this home to the next level with a future renovation (STCA). Obviously many could see the potential and were keen participants in the auction held by Justin Long from Marshall White. Immediately starting with a vendor bid of $2.7m, three bidders quickly brought the offer to $3.05m, at which point the question was asked if the property was on the market. Returning from a vendor discussion with the answer of ‘not quite yet’, the auction resumed to swiftly hit the desired level at $3.1m. This news brought in bidder four, who was, however, unable to keep pace once bidder five joined. This left bidder one and five to fight it out alone, with bidder one the eventual victor, securing the property for $3.4m. A strong result, well above vendor expectations.

27 Sandringham Rd Sandringham

David Picking from Hocking Stuart was made to work hard at the auction of 27 Sandringham Road Sandringham, securing a sale with post-auction negotiations.

This is a pretty timber Edwardian, looking for the next renovation, in a sensational location. There was, however, buyer uncertainty with the development due to take place along the north rear boundary. David Picking from Hocking Stuart held the auction on behalf of the team and got things started with a vendor bid of $1.5m. It was slow going, with two bidders going up first in $10,000s and then in $5,000s. At $1.55m, David went inside to confer with the vendors, who were not prepared to part with the property at this level. No further bids could be teased out of the bidders once at $1.575m and the property was passed in at this level. Post-auction negotiations managed to secure the sale for $1.61m.

Within the Castlefield Estate, an almost triangular 900sqm block at 22 Avelin St Hampton delivers an unconventional home built around a central courtyard with spa. The property passed in on a vendor bid of $3.1m and is now for sale for $3.35m with Buxton Real Estate.

There were some strong results on the weekend for the good properties (ie well renovated or new, with pretty facades and/or located in good streets).

For instance, 50 Bamfield Street Sandringham (Jenny Dwyer, Hocking Stuart) – a very conveniently located home close to the station, shops, primary schools and beach on approx. 722sqm and a renovation since it was last purchased (improved but not perfect) – sold for $2,7m.

This was the third sale in 10 years for this home – it sold in 2007 for $2.2m (as a nearly new home with three large living areas including formal dining, but only three bedrooms), again in 2013 for $1.84m (with the shine of new now gone, a south-facing rear and a polarising façade) and again last weekend in a more buoyant market with some renovations to create a more flexible floorplan and a fourth bedroom.

One of the bigger questions for buyers is where are all the ‘good’ properties?

Looking at the last couple of auction weekends before the school holiday break, it has been hard for us to find the good properties in any kind of volume.

With the lack of ‘good’ supply and still very solid numbers of buyers in the market, we expect to continue to see properties sold; however, we may also see more homes bought beforehand, or sold afterward (in post-auction negotiations), as the depth for homes that are not quite right may not be there. If you are considering buying beforehand, you may wish to check you’re not the only buyer for the property, or the only one at the vendor’s dream price. It certainty can be a good opportunity, but the dollars are also important.

Looking further forward, talk among the selling agents is that October 27 (the one before Derby Day weekend) is shaping up as the next big weekend after the holidays. We have already seen a number of homes advertised for this weekend, some with notations ‘if not sold beforehand’ attached, encouraging buyers to buy now and beat the crowd … but what if there’s no crowd to beat at the buy before price?  Are you better to wait until auction?

Buying a property in Melbourne is not easy, particularly right now when quality stock is so tight. Patience is even more important, and we are encouraging all of our clients to focus on good fundamentals and the things you can’t change or easily ‘buy’.

You can’t renovate every home (some are just tricky or not cost effective). For example, tricky issues to fix include:

• The home is poorly positioned on the block, with limited rear yard space, often with large ‘unusable’ front yard space.
• Poor or no car access. Don’t trust an ad showing a ROW: try driving the car down the lane – will you/can you actually use it?
• Serious structural faults to original building bones.
• Limited access to natural light and/or poor rear orientation.
• Unremarkable facades.
• If there’s privacy issues from the neighbouring properties, landscaping isn’t always an option.

What makes a good property? Assessment is all important and buyers should be objective.

Highlights:

‘Land’ Sales of note:

Auction Spotlights:

 27 Closeburn Avenue Prahran

More than 100 people came to 27 Closeburn Ave Prahran and saw a huge result at the auction led by Gowan Stubbings from Kay & Burton.

The pretty period façade at 27 Closeburn Ave Prahran hides the well executed, contemporary renovation and extension within. The home delivers a practical single level floor plan with easy inside-out living for the coming warmer months.  Gowan Stubbings led the Kay & Burton team for the auction, receiving an opening bid of $2.7m, before quickly getting to $3.02m, at which point everyone stopped and stated they’d ‘wait until he went inside, thanks’. Left with no other option, Gowan went and spoke to the vendors, only to report that they were close but not yet on the market. Bidder 1 responded with a big bid to bring it to $3.1m, where the other bidders again asked if it was now on the market. With a laugh, Gowan said ‘Good question’, ran inside and was quickly out again with the good news that it was. This brought out a flurry of intense bidding and it was a testament to the quality of the home that four bidders fought for the property. Bidder 1 was eventually the last one standing, made to dig deep to secure the property for a strong $3.52m, and a healthy $420,000 above the vendor’s expectations.

 31 Margarita Street Hampton

The crowd enjoyed late afternoon sun while watching Mark Earle and the Buxton team achieve a strong result at 31 Margarita St Hampton.

This Carter Grange home with some low ceilings upstairs and in the kitchen was carried to a strong result with its ‘A Grade’ location. The home sits on approx. 754sqm of land, enjoys the afternoon sun from its west rear orientation, as well as rear access to Bolton Ave for quick beach access. More than 80 people squeezed through the home before settling along the street to watch the action. Following the usual preamble and rules, the size of the crowd did not mean more opening bidders. Mark Earle from Buxton Real Estate was forced to kick-start the auction with a vendor bid of $3.3m, followed by another one of $3.4m. This finally brought out the two parties keen to lay their hands on the keys and it was an entertaining battle between the two until the end. Loud spoken bids of 10k and 40k alternated to bring the property on the market at $3.6m, before slowing slightly and eventually settling at a solid $3.77m. When you consider that the same size ‘land’ next door sold for $1.875m just two years ago, the vendors should be very pleased.

Some of the better properties coming up for auction: an architect’s view

42 Llaneast Street Armadale – Andrew Hayne/Michael Martin (Marshall White)

9 Barrington Avenue Kew – Richard Winneke/Nicholas Brown (Jellis Craig)

4 The Avenue Hampton – Andrew Campbell/Michael Paproth (Marshall White)

38 Carters Avenue Toorak – Mark Wridgway/James Paull (RT Edgar)

‘Off-market’ Properties:

Tim Derham led the Abercromby’s team for the successful auction of 16 William St South Yarra: the north side of a stately Victorian in a central location, which sold for $7.01m.

We thought this week was a little hit and miss when it came to results. Some suburbs, such as Kew and Hampton, saw strong results and high clearances (Kew 100% and Hampton 87%), while others struggled to reach the 50% mark (Beaumaris 50%, Hawthorn 50% and Brighton 57%).

We think it’s safe to say that, for many of these pass-ins, price was a contributing factor.   Some vendors are factoring in the price ‘they want/need’ rather than considering the price the ‘market is willing to pay’.  However, it could spark a trend toward a steadier, or more cautious, market.

The new quoting laws are providing continued confusion for some buyers.  One auction on the weekend was originally quoted $1-1.1m on the Statement of Information (increasing to $1.05-1.15m during the campaign). At the auction, bidders were asking if the property was on the market yet.  The auctioneer took the opportunity to remind buyers that there had been other properties in the suburb selling at much higher prices. The property was finally announced ‘on the market’ at $1.285m, well above the original Statement of Information.

In general, however, we have seen a trend toward agents making a solid effort to provide more accurate quotes for properties. However, it can still be confusing for buyers who do not understand that vendors are not required to have their reserves within this range.

Some additional information buyers may wish to consider when it comes to price could include:

• How many buyer groups does this home appeal to?
• What if there are limited comparable properties available to consider?
• What are the motivations of the buyer?
• How many other similar properties are available for consideration?
• Ask agents if any properties have sold since the Statement of Information was prepared.

Adam assessing the home and in discussion with listing agent Rae Tomlinson from Marshall White at the open for 24 Manning Road Malvern East.

The AFL preliminary final is on 23 September, which also lines up with the end of the school term, and that weekend is shaping up to be a higher volume auction weekend.

We have noticed an increased number of evening/twilight auctions in the lead-up to this date and there may also be increased opportunities to buy beforehand, potentially freeing the day up to attend football functions and/or leave for holidays.

As a buyer, you may wish to consider a strategy for this:

• What are the motivations if wanting to sell/buy beforehand?
• Are you the only buyer?
• Are there multiple buyers?

Highlights:

‘Land’ Sales:

 ‘Sold Before’ Auctions

Auction Spotlight:

19 Rossfield Avenue Kew

Five bidders saw the positives in this property, which sold for a healthy $2.325 million.

This property had a lot going for it: convenient location, generous width (compared to depth) and a house (or any future house) that sits nicely up from the street. Auctioneer Walter Dodich gave his usual, no-nonsense preamble (how refreshing) and kicked the auction off with a vendor bid of $1.7m. It didn’t take too long before bidders one and then two came into play. At $2.15m, Walter paused the auction to seek (or maybe clarify) instructions from the vendor and, upon arrival, declared the property on the market. This only further enhanced interest from bidders, with another three coming in to play. With ‘mind calculations’ going into overdrive the property eventually sold to the opening bidder (who clearly wasn’t going to let this property pass him by) for a very healthy $2,325,000.

36 Airlie Avenue Prahran

Andrew James and the Hocking Stuart team performed well at 36 Airlie Ave Prahran, which sold solidly above reserve for $2.325m.

This well-presented period home in a prime location was always going to bring out keen buyers. Being the north one of the pair, with OSP and good width to the block, only added to its appeal.  Once the auction was started by Andrew James from Hocking Stuart, an opening offer of $1.9m was followed by swift bidding before stalling slightly at $2.07m. A chat with the vendors did not yet bring the property onto the market, but a third bidder joined in anyway. His regular requests on whether it was on market were finally rewarded at $2.17m, which brought on a surge of bidding between bidders two and three. The rest of the auction was an entertaining battle of the two bidders going up in alternating $1000 and $5000 increments.  The wife of bidder three let out an enthusiastic whoop when he was eventually able to secure the property for $2.325m. 

Some of the better properties coming up for auction: an architect’s view

11 Urquhart Street Hawthorn – Campbell Ward/Richard Winneke (Jellis Craig)

2/173 Walsh Street South Yarra – Sam Goddard/Ada Taylor (Abercrombys)

27 Wheatland Road Malvern – James Tomlinson/Hugh Tomlinson (Marshall White)

7 Wandsworth Road Surrey Hills – Tim Heavyside/Harley Toyle (Fletchers)

‘Off-market’ Properties:

46 Karma Ave Malvern East changed hands only for the second time since completion c1924. Four bidders delivered Daniel Wheeler from Marshall White a quick outcome, selling for $2.03m, in front of a large crowd in the winter sunshine.

The market clearance rate climbed back up on the weekend – to nearly 80% – and, for many buyers, the search continues.

Some market insights for buyers to consider:

• Since changes to the quoting laws, we are seeing more properties selling in and, in some cases, below the quoted range.
• We are still seeing some Statement of Information statements devoid of comparable sales (ie none) or the wrong (lower priced) comparable sales put forward.
• Buyers still are struggling with value on properties.
• Good offerings coming on, with 16 September shaping up as a bigger auction weekend; however, we still think current buyer demand outweighs the supply.
• We are hearing that money is getting harder to obtain from banks, with buyers saying that they are being asked for more financial information for applications.

Architectural advice

Offering an architectural advice service as part of our business, we get a lot of enquiries from clients/buyers etc re ‘north v south’ rear orientation. Helping helped people assess / design / renovate homes for around 20 years now, we’ve seen the awareness of this issue change: not many people understood this in the 1990s, but buyers are certainly very aware of it in 2017.

Last week, a buyer called us asking for our insights to improve a home with a south-facing rear that they had recently bought. Have we made a mistake in buying that? they asked.

Well, maybe. A north-facing rear is best if you desire and value access to direct sunlight in your rear open plan living areas, which can be paramount for a long-term family home.

A clever design can sometimes overcome some of these issues of a south-facing rear, but not always.

Characteristics of a north-facing rear:

• Direct access to natural light in the rear informal living areas – warm ‘yellow’ light,
• No, or limited, shadowing to backyard area from the house, which can be very important in winter and, if a second-storey extension is proposed, have less impact on neighbours.
• Renovation and heating/cooling costs are invariably lower, due to the positive benefits of passive solar gain.
• The quality of light into the home is certainly more pleasant and has a positive effect on those living in these homes, and scientific tests have proven this.
• More desirable to buyers for the above reasons, which can positively impact on your future financial outcomes,

Characteristics of a south-facing rear:

• No, or limited, access to natural light in to the rear informal living areas.
• Shadowing to backyard area can be very significant in winter, particularly if the home has a second-storey extension.
• Renovation work can be more expensive, as high-grade glazing/insulation may be needed to combat heat loss in the home to meet mandatory energy rating requirements.
• Less desirable to buyers. Right or wrong, some people just won’t look at south-facing rear properties.
• Rear of property is cooler in summer, due to indirect access to the sun and shadowing.
• Light is more even and consistent, albeit cool or ‘grey’. This is why many art studios like this orientation, but families don’t live in studios.

As a post-script – don’t also trust the floor plan orientations as depicted on advertising – we find this is invariably wrong. As a buyer, you need to do your own research with regard to this (which is not that hard, given most information can be found on Googlemaps).

Highlights: 

‘Land’ Sales:

Some of the better properties coming up for auction: an architect’s view

• 139 Cole Street Brighton –Jason Collie/Barb Gregory, Marshall White 
• 2 Chaucer Crescent Canterbury – Richard Winneke/Chris Daly, Jellis Craig
• 36 Airlie Avenue Prahran – Andrew James / Lauchlan Waterfield, Hocking Stuart
• 595 Canning Street Carlton North – Tom Roberts/Janine Ballantyne, Nelson Alexander

 ‘Off-market’ Properties:

• Land, Brighton – mid $3millions
• Good land, quiet location, 20-year-old home, Toorak – over $6m
• Large land, family home with pool and garaging, Camberwell – $5m+
• Victorian terrace with 1 OSP, South Yarra – $2.7m
• Good land, home needing work, Malvern East – mid $2millions
• Well located townhouses, Brighton – circa $1m 

Auction Spotlight:

28 New Street Armadale

Fraser Cahill and the Marshall White team secured a strong result for the vendors of 28 New St Armadale, selling the property more than $200k over reserve.

Behind the pretty Edwardian façade, this property delivers grand room proportions on a single level with OSP into the rear courtyard. The benefits of its proximity to amenities comes with the danger of significant development over the rear fence along High St. This did not seem to deter potential buyers, with four bidders vying for the keys. Fraser Cahill from Marshall White opened the auction with a vendor bid at $1.36m, which drew out two bidders, who went back and forth strongly before slowing at $1.51m. After a quick consultation with the vendors, the property was announced on the market at this level, bringing in two new bidders. One of the early bidders was not going to give up though and finally outlasted the competition to secure the property for $1.726m.  A solid result, which received a round of applause from the 60+ crowd, which included plenty of neighbours.

39 Crisp Street, Hampton

Auctioneer Stephen Tickell oversaw a slow start to this auction, but four bidders joined in to buy this property, which sold for $2.5m.

Located in the growth zone, where parts of the street have already seen apartment development, this well located ’70s home on the north side of the street had appeal for both residential home owners and developers.

Auctioneer Stephen Tickell saw a slow start to the bidding, as buyers cautiously started to show their hand, initially needing to place a vendor bid of $2.1m over the first genuine bid of $2m.  In the end, the bidding was spread evenly between four bidders who all jumped in and out of the competition at various stages, until at $2,375,000, a large bid increase to $2.5m was made by bidder two (a developer) and announced on ‘the market’ to be sold.

The larger bid was successful, with the property selling at $2.5m, or $3,987sqm.

As more homes are sold around Melbourne to developers, it raises concern for remaining residents about whether to stay or leave the area. For those selling, sometimes the ‘land value’ is at a much higher rate than properties outside the zone, as can be seen with 2a Gillies Street Hampton (which sold before auction, but was scheduled for last Saturday as well).  On larger land (approx. 780sqm) around the corner but outside the zone this sold for under $3,000sqm, or around $1,000sqm less than Crisp St.

Campbell Ward (Jellis Craig) directs traffic and bidders at 5 Connell Street Hawthorn. Quick-fire auction – opened $1.7m, on the market at $1.74m and bought for $1.857m.

We are noticing fewer numbers through the open for inspections, although this could be blamed as much on the weather as any market changes. For the better properties though, which are well marketed, numbers are still healthy.

These numbers do, however, coincide with the new quoting rules on advertised prices,  perhaps suggesting that if the expected/desired outcome by the vendor is above the buyer’s preferred buying range, the buyer may choose not to inspect the property at all. This could have a flow-on effect on bidder numbers.

We have noticed less buyer interest from overseas buyers of late and, in particular, from China (which, as foreign buyers, reportedly buy eight out of every 10 Australian homes). With the banks tightening up lending and further restrictions here and abroad from government, this is certainly having an effect. Migration agents are also confirming their frustrations with respect to this.  This could be comforting for local home buyers.

Highlights:

Land Sales:

Auction Spotlight:

34 Kerferd Street Malvern East 

A good crowd gathered to watch this auction but unfortunately for auctioneer James Tomlinson there were no bids and the property passed in on a vendor bid.

On approximately 736sqm, this single-storey home had been thoughtfully renovated and offered great garaging options. Being single storey, the home does cover a fair bit of the land with only a pool and meals area in the courtyard style of garden at the rear making it a low maintenance option.

Unfortunately for auctioneer, James Tomlinson, there were no bidders present and the property was passed in on a vendor bid of $3m.

4 Kendall Street Elwood 

This auction, led by Kaine Lanyon from Marshall White, was entertaining for the large crowd.

This is a pretty brick Victorian family home, more than comfortable to live in as is, but with good scope to extend and improve further. The north-facing rear garden, good width to the block and off street parking are added bonuses for a property in this location.

The home had been available off market before the winter break for offers over $3m.  Following a quick paint and freshen-up, the property has now gone through a full auction campaign with Marshall White. Kaine Lanyon started off proceedings with a vendor bid of $2.5m before two bidders quickly moved things along, slowing only as pricing neared the $3m mark. Just when we thought a result was imminent, a third bidder jumped in and spurred everyone on again. Bidder 1 looked down and out several times, only to dig a little deeper and try another time. Having progressed in $1k, $2.5k and $5k increments from the $2.9millions, it was an entertaining game of cat and mouse that eventually saw bidder 3 come out on top, buying the property for $3.175m. Expected result, we believe.

Some of the better properties coming up for auction: an architect’s view

16 Bailey Avenue Armadale – (Andrew Hayne/Fiona Ansell-Jones, Marshall White)

10 Scott Street Canterbury – James Tostevin/David Smith (Marshall White)

69 Greville Street Prahran – (Tom McCarthy/Michael Tynan, Biggin & Scott)

392 Williamstown Road Port Melbourne – (Arthur Apostoleros/Sophie Dobson, Buxton)

‘Off-market’ Properties:

Notable pass-ins

The auction of this property at 2/9 Kardella St Malvern East showed that the villa is back! It sold more than $200,000 over reserve.

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).

Anti-development sentiments gaining force in the traditional ‘suburbs’.

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.

Highlights:

 ‘Land’ Sales:

Some pass-ins of note:

‘Off Market’ Properties:

Some of the better properties coming up for auction: an architect’s view

27 Sir Garnet Road Surrey Hills – Tim Heavyside / Harley Toyle, Fletchers

39 Crisp Street Hampton – Jenny Dwyer / Will O’Brien, Hocking Stuart

28 New Street Armadale – Fraser Cahill / Dean Gilbert, Marshall White

4 Wright Street Middle Park – Simon Gowling / Warwick Gardiner, Greg Hocking Holdsworth

Auction Spotlights:

9 Avalon Road Armadale

Justin Long from Marshall White faced a large crowd for this prestige location auction.

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

The sun shone on Daniel Wheeler from Marshall White as he orchestrated the five bidders vying for this property.

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.

Stephen Tickell (Hocking Stuart) conducting the auction at 41 Imbros Street, Hampton: one of the better properties on offer this weekend.

Welcome back to the second half of the 2017 Melbourne property market.

There was a small selection of homes auctioned this weekend; however, many agencies didn’t have any auctions at all. Of those that did auction, the good properties were competitive with solid results.

We now have a very solid run of uninterrupted auction weekends right through until the third-term school holidays and football finals. Listening to agents over the weekend, there will be some good choices available for buyers both ‘on and off market’.

With interest rates still low, and migration levels still buoyant into Melbourne, a downturn in the market anytime soon doesn’t seem apparent to us.

Highlights:

‘Land’ Sales:

Off Market Properties:

Some better properties coming up for auction: an architect’s view

22 Kingsley Street Camberwell – Hamish Tostevin / Désirée Wakim (Marshall White)

12 Lawrence Street Brighton – Nick Johnstone / Miriam Carraro (Nick Johnstone RE)

19 Airlie Avenue Prahran – Carla Fetter / Andrew McCann (Jellis Craig)

4 Kendall Street Elwood – Michael Paproth / Kaine Lanyon (Marshall White)

Auction Spotlight:

41 Imbros Street Hampton

More than 100 people sheltered from the strong winds in the backyard at the hotly contested auction for this property.

Gathered in the backyard in an attempt to shelter from the increasingly strong winds, 100 or so buyers, neighbours, agents and the like gathered to watch this auction.

Auctioneer Stephen Tickell spent some time discussing the strengths of the property, supported by the vendors’ 41 years of enjoyment in the home.

Looking for an opening bid of $1.9m, this was quickly forthcoming and two parties battled strongly until it was announced on the market at $2.25m. With a brief pause from bidder one, a third and fourth bidder joined bidder two, before bidder one decided to return.

All four bidders were still in the game circa $2.4m; however, the last $100,000 sorted the pack, with bidder one the successful purchaser at a tick over $2.5m.

9 Randolph Hawthorn

Cameron Ingram led the auction team from Nelson Alexander at 9 Randolph St Hawthorn for this successful single-fronter sale.

This house was a prime example of a single-fronted Victorian cottage with strong potential to improve, which have been selling well in this area. The fact that it was attached on the south side has helped the buyer keep pricing to a manageable level. OSP at the front is a bonus, as is the slightly elevated position allowing good light along the north side.  The property last sold in 1996 for $181,000.

A decent crowd of 40-plus people came to watch Cameron Ingram run the auction for Nelson Alexander.  The audience was quiet when it came to the actual bidding and, after placing a vendor bid of $1.2m to start the auction, it almost looked as if the home would be passed in. At the last gasp, a bid was placed and the auction took off with two keen bidders trying to outmanoeuvre each other. Reserve was quickly surpassed at $1.32m and continued strongly to finish at $1.46m for a very happy young couple.

384 Canning Street, Carlton North

Scott McElroy from Hocking Stuart entertained a small crowd, with three bidders, to sell this property post-auction for a pretty healthy $1.69 million.