Alexandra Ruffell, Author at WoledgeHatt

You Can Still Buy. Here’s How

By Alexandra Ruffell | 29 August 2016

It appears that the prices we have been experiencing for the past 18 months are here to stay – at least for the quality properties. For many, prices may seem a touch out of reach.

WHAT ARE THE CHOICES FOR BUYERS?

Just buy something, without fully considering whether it’s functional for your needs
Keep waiting for the perfect home
Borrow more money
Wait for the market to change
Recalibrate

Let’s analyse these options:

Just buy something

At least you’re in the market! But what if the home doesn’t work for you, the floorplan isn’t functional, you didn’t consider zoning, or you can’t build/renovate the way you want to? Will the market still be where it is now? Will the market increase another 10% or more – enough to cover the 5.5% stamp duty, advertising costs, agents’ costs, moving costs etc – to warrant starting again? And that’s only the financial cost – there’s the emotional drain too.

Wait for the perfect home

What if ‘the perfect home’ never presents? Worse still, when you finally find the property that ticks every box, it’s highly likely that this ‘perfect property’ will appeal to many others as well. How are you going to maximise your chances of being the buyer? Some properties are selling anywhere from $500k to $1m above reserve prices. How far will your budget stretch?

Wait for the market to change

Many current buyers have never experienced a flat market. It’s good to remember that prices can fall as well as increase. Some people may think this be beneficial for buyers. Perhaps not. Noone likes to lose money, particularly if their home is their largest financial asset, so most homes for sale are likely to be owned by reluctant sellers. Divorce, job loss or health concerns can be some reasons that these buyers are forced to sell. Stock choice may dry up even more.

Borrow more money

What if the interest rates go up? Let’s say by 2%. Potentially that is an increase of 50% on a 4% mortgage – can you meet another 50% on top of existing repayments?

Recalibrate

Many of our clients have had to face the realisation that they can no longer consider properties that they want to buy in the area in which they would like to live.

WHAT SHOULD YOU BE RECALIBRATING? WHAT DOES IT MEAN TO RECALIBRATE?

Essentially, there are four possibilities to consider: price, property, position or a combination of all three.

We’ll consider each of these elements in detail:

Price

It would be great if we could all adjust our purchase price capabilities. However, deep in debt is not a position you want to be in if the market changes.

If you are a buyer with two or three small children, your family costs are yet to reach their peak. As the children become teenagers (even without school fees), the costs of groceries, other extra-curricular activities such as sport and music lessons, clothing, and friend’s birthdays, just to name a few, can be enough to affect even the best budgets.

Property

Perhaps we should just buy whatever is available in the suburb we want to live in.

There’s no benefit in staying in your ideal location however, if the house is falling down around you or the floorplan doesn’t work. If you don’t have the funds to rectify the issues, this can lead to internal stresses.

Imagine three smaller children, now teenagers, trying to harmoniously share the only bathroom in the home! Or the teenagers having to study in the same room that is used for cooking or watching television. Emotional needs of families are very important too.

Position

This includes location. Moving a few more suburbs out may be the answer.

Many agents love ‘out of area’ buyers, so remember, they are acting for the vendors, trying to get their client as much money as possible. Many of these ‘out of area’ buyers have paid record prices in areas they are not familiar with. Properties can appear ‘cheap’ in comparison to where they were originally considering. Bear in mind what might happen if the market drops and you need to move. In a down market, once record prices can quickly become record losses.

On the flip side, an extra two stops on the train will go unnoticed if you know you are going to be coming home each day to a happy family and a home that works.

Smart buyers make good, well-considered decisions. Being prepared is important. Talking to a buyer advocate will help.

There are still many opportunities to buy good homes – particularly in off-market transactions. Some are even selling within 24 hours of becoming available.

You will need to be fully informed of values, comparable sales and do your due diligence on the specific house. If you wait too long, another buyer may snatch the property up.

That being said, you don’t want to rush things without the necessary due diligence or you may wind up paying well above what makes sense to the open market.

There is no right or wrong answer.

Whatever you choose, it’s important that you are comfortable with your decision and the property and location works for you.

Getting it wrong can be a stressful and costly decision.

Posted in Architectural Advice

August 20, 2016

By Alexandra Ruffell | 22 August 2016

37 Claremont Avenue, Malvern (Hugh Tomlinson/James Tomlinson, auctioneer Jack Bongiorno – Marshall White). Big crowd and big result here, with the property selling approximately $500K over reserve for a very solid $3.553m.

Unless stock levels increase, low interest rates and lack of choice are likely to drive strong clearance rates through to Christmas. The REIV clearance rate was 75% and although there was more choice than last week, stock is down approximately 25% on the same time last year.

Auction Highlights:

This weekend saw strong results for properties offering short term living with good flexibility to renovate or rebuild down the track.

3 Hudson Street Hampton (Sam Harrison/Bill Jowett, Buxton) – approximately 603sqm with west rear – $1,830,000

5 Wattle Grove Hawthorn (Désirée Wakim/Hamish Tostevin, Marshall White) – approximately 310sqm with south rear – $1,855,000

37 Claremont Avenue Malvern (Hugh Tomlinson/James Tomlinson, Marshall White) – approximately 696sqm with north rear – $3,553,000

Land Sales:

13 Smith Road Camberwell (Walter Dodich, Kay & Burton) – approximately 635sqm with west rear – $2,177,000 or $3,428sqm

13 Euston Road Malvern (Andrew McCann, Jellis Craig) – approximately 504sqm of cleared land, north rear – $2,605,000 or $5,168sqm

7 Naroo Street Balwyn (Bronwyn Lucas/Tim Penhalluriack, Noel Jones) – approximately 584sqm, east rear – $1,801,000 or $3,083sqm

33a Durrant Street Brighton (Jason Gill, Hodges) – approximately 408sqm with north east rear – $1,532,000 or $3,754sqm

Off Markets:

Large land, family home with pool and court, Bayside – $3-3.5million
Modern family home, north rear, Sandringham – high $2millions
Renovated brick period home, Armadale – circa $4million
Updated period home Hawthorn East – $1.7m
Period home needing a renovation, Gascoigne Eatate Malvern East – $2.8m
Modern townhouse Brighton East – $2.5m plus
Basic period home with 20 year old rear extension – Glen Iris – $1.6m

Properties we like for auction on September 3

Auction Spotlight:

Brighton: 135 Head St (Marshall White) sold for $2.015m

135 Head Street, Brighton (Stephen Smith, Marshall White), sold for $2.015m, 4 bidders

As chilly as it was on Saturday morning, a big crowd gathered in Head St for the auction of number 135. Stephen Smith was our auctioneer and after a succinct preamble, called for an opening bid. Bidder 1 came in quicky at $1.68m, whilst Bidder 2 came in shortly after. The home was on the market at $1.86m – soon there were four bidders in the mix and the price continually rose until a sale price of $2.015m was achieved.

Camberwell: 13 Smith Road (Walter Dodich, Kay & Burton), sold for $2.177m

13 Smith Road, Camberwell (Walter Dodich, Kay & Burton), sold for $2.177m

A really good crowd and a genuine buzz for this auction. The house was basic and most would be looking at this property for it’s land value only….635sqm with prized north facing rear aspect yet a big key I think was its width at just over 17m. Listing agent Walter Dodich did a great job with this campaign and didn’t have to look too far for bidders, with an opening bid of $1.5m called out quite quickly from the crowd.
The bids flowed from here, with the property announced on the market at $1.66m and selling under the hammer for a very, very strong price of $2.177m (or around $3,400/sqm mark if you placed no value on the house).
Six bidders in all took part in proceedings but there could have easily been another six that just didn’t get the chance to bid. I must say I was a little surprised by this result…….the vendor should be very pleased indeed.

Sandringham: 91 Sandringham Road (Buxton), sold after auction for $2.25m

91 Sandringham Road, Sandringham (Peter Hickey, Buxton), sold after auction $2.25m, 2 bidders

The auction of this pretty, fully-renovated period home on a prominent Sandringham corner attracted a crowd of around 45 people on Saturday. Peter Hickey stepped out into the manicured gardens and called for an opening bid. All was quiet so Peter tabled a vendor bid of $1.95m to kick-start proceedings. Bidder 1 entered the contest at $2m, and Bidder 2 at $2.02m. A two-way battle ensued with the property passing in at $2.15m before selling after auction for $2.25m.

Agent Opinion: “What is the current status of the property market in the Bayside area and where do you think it is headed from here?

Sam Gamon (Chisholm & Gamon): “We are in one of the most positive and buoyant markets I’ve seen in the past 15 years that I’ve been selling property, and we are anticipating a very active Spring selling season. There have been some tremendous results in the market, especially in family homes and we’re also seeing unprecedented demand for single level properties that suit downsizers. This was evident with an auction we recently had in Addison St Elwood where we had strong bidders for a ground-level period apartment with its own garage and garden. The lack of available stock is noticeable but the demand is unwaning, particularly given the low interest rate environment which is allowing buyers to upgrade and leap frog into more expensive properties. Some of our opens are seeing large numbers of attendees – upwards of 30 groups at some open homes. Land in bayside is scarce and the demand is high so we see values in Bayside continuing to increase in the coming years. The relaxed village atmosphere near the bay makes it a highly sought after area.”

Posted in Market Pulse

August 13, 2016

By Alexandra Ruffell | 15 August 2016

27 Haynes Street Highett, Richard Slade / Buxton. Sold for $1.58m – 4 bidders

With a hint of spring in the air on Saturday, the REIV clearance rate picked up a little more to 81%, although from another smaller sample size of only 486 auctions. The talk with agents is all about listings…..or the lack thereof. In the coming weeks, we will see the auctions number increase, with September 24 and October 29 looking to be the biggest – although numbers are still likely to be lower than in previous years.

Some other insights:

Property land rates for owners in many councils (Boroondara in particular) have spiked recently to the tune of 30-50% in some cases, keeping pace with the recent lift in property process. This has come as bit of shock to many home owners – particularly the elderly.
With many buyers finding it hard to upsize into the next property, renovations are becoming more popular as an option, and councils are struggling to keep up with the influx of planning applications.

Auction Highlights:

19 Currajong Avenue Camberwell (Debbie Silk/David Gillham, Noel Jones) – for those who like the French-Provincial inspired style of home, this was hard to fault . On good land and a good precinct – on the market at $4,350,000 with four bidders – $4,44m
10 Oak Street Hawthorn (Richard Winneke/Campbell Ward, Jellis Craig) – a nicely renovated double-fronted brick Victorian on 687sqm. Although a slow start to the auction, it still sold well – $3.225m
7 Morey Street Camberwell (Jack Stean/James Tostevin, Marshall White) – a well renovated two-storey 1930s house on 580sqm with north facing rear – sold for an undisclosed amount around $2.3million

Land Sales:

42 View Street Mont Albert (Mark Read/Dan Song, Jellis Craig), a great parcel of land – 943sqm – $2.2million or $2,333sqm.
44 Wilson Street Highett (Tom Davidson/Andrew Campbell, Buxton), basic house on 596sqm – $1.36million or f $2,281sqm (if you placed no value on the house)
12 Wahroogna Road Murrumbeena (Cedric & Maria Newbond, Woodards) – 707sqm south facing rear. Ideal new home site in terms of size – $1.42m or $2,008sqm.

Off Markets:

Well renovated double-fronted home in Prahran – early $2millions
Townhouse in Prahran – mid $1millions
Two-storey lock-and-leave option, South Yarra – circa $2million
Basic house, Glen Iris – $1.6million
Updated semi-detached house with double-garage in Elwood – circa $1.5m

Properties we like, scheduled for auction August 27:

Auction Spotlight:

Malvern East: 43 Kerferd Road (Marshall White) sold for $2.305m

43 Kerferd Road, Malvern East (Jack Bongiorno, Marshall White), sold for $2.305m, 6 bidders

A good-sized crowd gathered to watch the auction of this beautiful Edwardian on a prominent corner of the prized Gascoigne Estate. Jack Bongiorno stepped out and gave a thorough preamble before tabling a vendor bid of $1.7m to kick-start proceedings. In all, there were 6 bidders vying for the home – at $2.13m Jack announced that the reserve had been met, and at $2.305m the hammer came down to a very happy purchaser.

Malvern East: 33 Emo Road (Marshall White) sold for $2.08m

33 Emo Road, Malvern East (Daniel Wheeler, Marshall White), sold for $2.08m, 4 bidders

Maybe 70 people lined both sides of Emo Road to get a glimpse of the auction action at number 33 – Daniel Wheeler was our auctioneer and, after extolling the virtues of the house and its location, called for an opening bid. Bidder 1 offered $1.6m and we were away. Eventually, three more bidders joined the contest and the price rose steadily in $20k increments. At $1.72m Daniel advised he would be selling, with Bidder 4 taking the keys at $2.08m.

Agent Opinion: What is the current status of the property market in your area and where do you think it is headed from here?

Jeff Gole (Abercromby’s): “The market in the Malvern, Malvern East and inner Glen Iris areas (or simply put, Stonnington ) went through a quiet period in June/July. This was mainly due to a lack of stock, school holidays and the lead up to the Federal Elections although any sales during this period produced excellent results.
Now that schools are back and people are returning from holidays, with the election behind us, we are entering an active period as we head towards the Spring selling season. Good properties are still in short supply but confidence is up and there is no doubt that quality properties in popular locations are attracting high levels of demand. With even lower interest rated expect to see some strong results as we head into the 2nd quarter of this financial year.”

Posted in Market Pulse

August 6, 2016

By Alexandra Ruffell | 8 August 2016

Watching, watching…. crowds were solid and bidders plentiful at the auctions we attended on the weekend.

There were plenty of bidders at the auctions we attended on the weekend. It seems that as the weeks go by buyer interest levels increase, yet their price points are discerning.

Clearance rates were again solid with the REIV reporting 77%, although still on low numbers – there were only 562 auctions across Melbourne compared to 945 for the same weekend last year.

Of note, we also saw more pass-ins, suggesting that vendor expectations are continuing to increase. While spring is not far away, there doesn’t seem to be a huge influx of properties coming, and there may not even be a ‘late charge’ in 2016.

Of course, we will have to wait and see.

Auction Highlights:

139 Linacre Road, Hampton (Andrew Campbell, Buxton) – ‘Hamptons’ style family home at the Bluff Road end of Linacre – with three bidders, passed in at $2.401m, selling after for $2.52million
1 Edward Street, Sandringham (Kate Smith/Warren Smith, Hocking Stuart) – with four bidders, passed in at $2.5million. The property last sold in 2001 for $1.58million (after passing in at $1.55million). It has had a good cosmetic upgrade since then.
37 Barkly Avenue Armadale (Lachie Fraser-Smith/Jessica Beckham, Jellis Craig)
Renovated two bedroom single-fronted Victorian with good block width in popular location. No car-park. Bought for a strong price of $1.93m – 4 bidders and $210,000 over reserve.

Land Sales:

1a Mair Street, Brighton (Lisa Comben/David Hart, Buxton), 583/sqm – $2.6million – home liveable, but all about the land overlooking football ground and bay. $4,459/sqm – this last sold in 2002 for just over $1m.
9 Victoria Avenue Canterbury (Rebecca Edwards/Scott Patterson, Kay & Burton) bought for $4.11million – 4 bidders and $610,000 over reserve. Although a liveable home, this was bought for land and given its size of 847/sqm, that works out to be $4,855/sqm. A very solid result. In a lesser location, at 2 The Ridge (similar land size) sold 18 months ago for $1m less.

Off Markets:

Double fronted home on good land, Middle Park – above $4m
Land in Balwyn High School Zone – $2m
Tidy single-fronted brick Victorian with north-facing rear, South Yarra – circa $1.5m
Architect-designed residence – Ivanhoe – $2.5m
Updated timber home – Prahran – $2.5m
Modern home in Studley Park Kew – mid $2m’s

Properties we like for auction on August 20

Auction Spotlight:

Hampton: 139 Linacre Rd (Buxton) sold after auction $2.52m

Hampton, 139 Linacre Road (Mark Earle, Buxton), sold after auction for $2.52m

A huge crowd ambled through this impeccable, newly built Hamptons-inspired home to get a glimpse of what was on offer, before Mark Earle took centre-stage ready to commence proceedings. The 100 or so spectators lined both sides of the street as Mark asked for an opening bid, and was rewarded with an offer of $2.1m from Bidder 1. Bidding between three keen parties ensued until the price reached $2.401m, and Mark passed the property in to Bidder 3 for further negotiations. The home sold soon after for $2.52m

Hampton: 84 Thomas St (Buxton) sold after auction, undisclosed

Hampton, 84 Thomas Street, (Halli Moore, Buxton), sold after auction undisclosed above $2.125m

A slightly smaller crowd than the previous auction at Linacre Rd, but still good-sized and attentive as Halli Moore began proceedings. Calling for an opening bid, Halli was met with the all too common silence, so he placed a vendor bid of $1.9m instead. A second vendor bid of $1.95m was needed to prompt Bidder 1 into action, the home eventually passing in at $2.125m and selling a short time later for an undisclosed amount.

Surrey Hills: 7 Empress Rd (Marshall White), sold $1.91m

Surrey Hills, 7 Empress Road, (Hamish Tostevin, Marshall White), sold for $1.91m

Pretty double fronted Edwardian and auctioneer Hamish Tostevin gave a spirited preamble in front of a good crowd of around 150 people. Hamish opened on a vendor bid of $1.65m, but it didn’t take long for a professional bidder to up the ante at $1.7m. Enter Bidder 2 and the auction clips along nicely. At $1.88m the half-time break is taken, and when bidding kicks off again shortly after the property is announced on the market at $1.9m. Another bidder enters the fray yet bidder 1 wins the day at $1.91m. Interestingly as the crowd departs an auction board is hammered into the soft ground in front of house next door – it will interesting to see what transpires there in the coming weeks.

Agent Opinion: “What is the current status of the property market in your area, and where do you think it is headed from here?”

Glen Coutinho (RT Edgar Boroondara): “The Market is gearing itself for a busy spring season – with the election and school holidays out of the way, people are just getting on with selling and buying. There is a slightly reduced Chinese Market but we are confident the local buyers will take this up. Stock levels are very strong and this should provide a solid spring market .”

Posted in Market Pulse

July 30, 2016

By Alexandra Ruffell | 1 August 2016

17 McKinley Avenue, Malvern (Sally O’Connell / Andrew Hayne Marshall White) – A really big crowd at this auction, 5 bidders over $4.5m!

Good results – although still on low numbers! Many of the better homes that were auctioned on the weekend had the luxury of selling in isolation (i.e. no similar homes competing against them), allowing buyers to focus all their attention on the one property.

The next two weekends will still see lower numbers across the board, with the 20th looking like the first weekend that there will be greater choice for buyers.

Auction Highlights:

13 Clarence Street, Malvern East (Brendan Allen/Marcus Chiminello, Marshall White) – tidy period home with excellent car accommodation – $2,490,000
83 Charles Street, Prahran (Carla Fetter/David Sciola, Jellis Craig) – an unrenovated version of 93 Charles which sold earlier this year for $2.18million – $1,500,000
18 Kanowna Street, Hampton (Jenny Dwyer, Hocking Stuart) – well kept, older style renovated weatherboard on approximately 725sqm – $2,130,000
1 View Court, Brighton (Graham Black/Campbell Cooney, Hodges) – two storey townhouse on small, irregular land – circa $2million

The single storey down-sizer market is continuing to strengthen:

2a Hurlstone Street, Brighton East (Tom Davidson/Bert Stewart, Buxton) – 2 bedroom unit east of the Nepean broke the $1m – $1,014,000; and
6b Glenmore Crescent, Black Rock (Romana Altman/Rebecca Beacall, Buxton) – 3 bedroom (with split level) – $1,620,000
1a Cloverdale Avenue, Toorak (Anthony Grimwade/Tim Wilson, RT Edgar) single level home – yet dated, with great access to north light. Sold for an undisclosed amount circa $3million

Land Sales:

117 Stanhope Street, Malvern (Genevieve Hoyle/Andrew McCann, Jellis Craig) – predominantly land, 670sqm approximately, northerly orientation – $2,777,000 or $4,144sqm
34 Alfred Street, Kew ( Geoff Hall, Kay & Burton) – predominantly land, 781sqm approximately, south rear – $3,065,000 or $3,924sqm. Of note, 24 Alfred – smaller land (706sqm) with better home, and on the north side, sold for $3,250,000
23 Gowar Avenue Camberwell (Mark Pezzin/Natalie Hall, Jellis Craig) – 724sqm north rear sold for just over $2million

Off Markets:

Basic home on 800sqm, Camberwell – circa $3,250,000
Pretty weatherboard Victorian, Brighton – mid $2millions
Renovated period home, Surrey Hills – circa $2million

Properties we like, for auction August 13

Auction Spotlight:

Hampton: 18 Kanowna (Hocking Stuart) sold for $2.13m

18 Kanowna Street, Hampton, (Jenny Dwyer, Hocking Stuart), sold $2.13m

Scott McElroy was auctioneer at the auction of this pretty, updated Californian bungalow in a quiet Hampton street. The crowd huddled around as Scott gave a thorough spiel and called for an opening bid. Bidder 1 chipped in straight away, with an offer of $1.7m. Bidder 2 came in shortly after and a two-way battle ensued before the home was announced on the market at around the $2.09m mark. Bidding continued in$5k increments until the hammer came down at $2.31m to a round of applause from the 60 or so people that had gathered.

Black Rock: 22a Arakaringa (Hocking Stuart) sold after auction for $1.888m

22a Arkaringa Crescent, Black Rock (Kate Smith/Warren Smith, Hocking Stuart), sold after auction $1.888m

A brisk morning start didn’t slow Peter Kennett down – he was as entertaining as ever as he introduced the property for auction. After a thorough preamble, and a lot of laughs from the crowd of around 40 people, Peter called for an opening bid. Unable to secure one, he tabled a vendor bid of $1.75m but when all remained quiet, he ducked inside to refer to his vendor. A second vendor bid of $1.8m was put forward but with no genuine bids on the day, the property was passed in. It sold a short time after for $1.888m.

Agent Opinion:“Have you seen any changes to the market pre and post school/winter holidays? Do you expect the new FIRB and vendor sales over $2m tax rules to have any impact?”

Andrew James (Hocking Stuart): “Post school holidays, we are seeing some big crowds at auctions. With the Federal Election over, school holidays ceasing and Spring just around the corner, buyers are feeling more confident. Plus, bidding interest is being boosted by a lack of quality housing stock. Hocking Stuart’s clearance rate has been above 75 percent for the last two weeks, signposting strong buyer interest. With that said, open for inspection attendance hasn’t been as strong as auction turn outs have, however quality properties in sought after locations continue to attract interest. Foreign buyers in the mid-market have been more subdued as a result of new taxes and regulations, but international buyers looking in the top end of town remain largely undeterred. All of these factors are pointing to a solid Spring market, with a boost in volume and clearance rates.”

Posted in Market Pulse

July 23, 2016

By Alexandra Ruffell | 25 July 2016

3 West Court Camberwell 688m2 irregular block very comfortable house….Duane Wolowiec (Marshall White) works the crowd to get a good result post auction for his vendor. 3 bidders and property sold for an undisclosed amount over $1.5m.

With talk of holidays and warm escapades now behind us, the anticipated return to the market has not been disappointing. Although only a small number of homes were auctioned on the weekend, bidders were keen to demonstrate their interest. We saw quick starts and very few vendor bids at most of the auctions we attended.

Auction Highlights:

179 Fenwick Street, Carlton North (Jim de la Harpe, Biggin & Scott) approximately 202sqm, a pretty double fronted Victorian ready for the next update, on the market at $1.4million sold for $1.73million
58 Champion Street, Brighton (Graham Black, Hodges) has been sold three times in the last 5 years with only minor/cosmetic updates each time. In 2011 it sold for $1.4million after passing in at auction and selling later, in 2014 it sold for $1.91million before the scheduled auction date and on Saturday it sold again for $2.64million.
3 West Court, Camberwell (Wolowiec/Evans, Marshall White) one of the few to pass in, even with 3 bidders, sold after for $1.53million. Of note, this sold only nineteen months ago before auction for $1.3million.

Land Sales:

46 Nicol Street Highett (Engelhardt/Renna, Hocking Stuart) – approximately 587sqm, original timber home – $1,275,000 or $2,172sqm
35 Vautier Street Elwood (Torsten Kasper, Chisholm & Gamon) – approximately 410sqm with original heritage home – $2,120,000 or $5,170sqm

Off Markets:

Land, good position, west rear, Armadale – early $4millions
New build, large family home, Malvern – early $3millions
New build, large family home, Black Rock – circa $4m
Unrenovated, single fronted home, Fitzroy – early $1millions

Properties we like for auction August 6:

Auction Spotlight:

Brighton: 58 Champion (Hodges) sold for $2.64m

58 Champion Street, Brighton (Sam Paynter, Hodges) sold for $2.64m, 4 bidders

The glorious winter sunshine beamed down as a large crowd huddled in the backyard of this 4-bedroom home on a sprawling lot in one of Brighton’s prized streets. Sam Paynter was our master of ceremonies and after calling for an opening bid, was rewarded with an offer of $2.3m. A total of four bidders joined the competition and at $2.5m Sam announced the reserve had been met. Bidding continued steadily until the price reached $2.64m and the hammer came down to a round of applause.

Albert Park: 22 Greig Street (Greg Hocking) sold for $3.755m

22 Greig Street, Albert Park (Greg Hocking, Greg Hocking Holdsworth) sold, $3.755m

Just moments before Greg Hocking took centre stage, the heavens above opened sending people running to their cars for umbrellas and coats. The rain didn’t dampen sprits however, and after a vendor bid was tabled to kick-start proceedings, multiple bidders entered the competition and took the price to $3.755m before the hammer came down.

Agent Opinion: “Have you seen any changes to the market pre and post school/winter holidays? Do you expect the new FIRB and vendor sales over $2m tax rules to have any impact?”

William Chen (Jellis Craig, Balwyn): “We can certainly see a great change after the school holidays. The number of buyers that have come through the inspections are better than before the holidays. The auction clearance rate for JC group last Saturday was 83%, however the stock is still very low compared to last year. The impact of the $2m plus tax rule will be limited – it only regulates the seller when paying taxes – it does not apply to buyers.”

Posted in Market Pulse

June 18, 2016

By Alexandra Ruffell | 19 June 2016

Middle Park: 319 Richardson St (Greg Hocking Holdsworth) sold $3.63m

With the first half of the year almost over and only one more auction weekend to go, Saturday’s auctions continued as expected – some strong results for the good quality homes and we saw multiple bidding at all the properties we attended. Perhaps we were following the good ones!

Of note, we thought the bidding in general was more considered, even on those properties with 4 or 5 bidders involved. If the property was not quite right or not priced right, however, vendors were left disappointed.

Auction Highlights:

Two in Harold!

82 Harold Street, Middle Park (Ada Taylor/Warwick Anderson, RT Edgar) – auctioned first – approximately 225sqm and needing renovation – $2.005m or just under $9,000sqm
76 Harold Street, Middle Park (Simon Carruthers, Cayzer RE) – approximately 288sqm, also ripe for renovation – $2.36million and just over $8,000sqm

Land Sales:

11 Kerferd Street, Hampton (Nick Johnstone, Nick Johnstone RE) – 568sqm corner block (with a little bit cut out of the south east corner) had 5 bidders although it started slowly, the pace picking up once the property was announced on the market at $1.5million – bought $1.61m or $2,834sqm

10 Howard Street, Glen Iris (Will & Tim Bennison, Jellis Craig) – 858sqm and although with a classic 1980s home, still advertised with a land box, sold for an undisclosed amount toward the mid $2millions or around $2,800sqm

5 Central Avenue, Black Rock (Nick Jones, Chisholm & Gamon) – 624sqm, 2 bedroom clinker brick home – $1,440,000 or $2,307sqm

Off Market:

Modern family home, Hampton – early $2millions
Large renovated home on good land, Toorak – $6m+
Renovated single fronted home, South Melbourne – early $1millions

Auction Spotlight:

Sandringham: 46 Sims St (Jenny Dwyer/Steve Tickell, Hocking Stuart), sold for $3.42m

46 Sims Street, Sandringham (Jenny Dwyer/Stephen Tickell, Hocking Stuart)

A crowd of around 100 gathered both indoors and under the large alfresco area to watch four bidders fight for this well-positioned, modern family home. On the market at $3.21m, the successful purchasers (and no doubt vendors) delighted with their new home, the final result – $3.42m

Prahran: 22 Kelvin Grove (Daniel Wheeler/Justin Krongold, Marshall White), sold $3.33m

22 Kelvin Grove, Prahran (Daniel Wheeler/Justin Krongold, Marshall White)

Despite the chilly weather, a good sized crowd of about 65 people lined both sides of the street, to see what would transpire at the auction of this renovated Edwardian. Daniel opened on a vendor bid of $2.8m before Bidder 1 chimed in with at $25K rise. Bidder 2 entered the contest soon after and some quick bidding ensued before Daniel announced the home was on the market at $3.25m. A battle between the parties continued until the hammer came down at $3.33m.

Hampton: 11 Kerferd St (Nick Johnstone), sold $1.61m, 5 bidders

Agent Opinion: ‘Have the public, school and Easter holidays throughout the first half of 2016 interfered with flow and momentum in the property market? How have the first 6 months of 2016 compared to the same time last year? Do you expect to have a more settled second half year? Or more of the same?’

James Tostevin (Marshall White): ‘School and public holidays have certainly been a factor, especially in the first quarter as Easter was so early. Having said that, it is both surprising and a little puzzling as to why more people aren’t selling given the real estate market is still incredibly strong overall and there are some terrific prices being achieved for our vendor clients. There is still a considerable number of buyers very motivated to buy if they see the right property, a few too many people are in the “we will sell once we buy” category and that definitely impacts on the number of properties coming on to the market.

There are definitely fewer properties on the market – we have similar levels of enquiries and number of buyers at open for inspections, the majority of auctions have spirited bidding, the biggest difference is that too many vendors have read favourable media reports about the market and have been unrealistic about their expectations. Some agents have provided advice relating to price which has given some vendors false hopes, whilst there are a vast number of Asian buyers still in the market, the number of overseas buyers who don’t have permanent residency has certainly been reduced largely due to decisions by the Australian government.nI expect more of the same, the astute vendor will really be conscious of the timing of their sale.’

Please note this will be our last Market Pulse before the school holiday break and traditional winter hiatus. We will return when auction numbers increase, in late July.

Posted in Market Pulse

June 4, 2016

By Alexandra Ruffell | 6 June 2016

Armadale: 12 Alleyne Ave (Ebeling/Anderson, RT Edgar), sold $2.47m, 4 bidders

It was another strong weekend with the REIV reporting a 76% clearance rate from the 747 reported results, demonstrating the market is still buoyant.

We are seeing strong results in fringe suburbs. Many suburbs that rarely saw seven figure results only 1-2 years ago are now reporting $1m plus sales consistently.

9 Widdop Crescent, Hampton East (Kylie Charlton, CharltonKing) – 635sqm ripe for development, with original red brick home, west rear, local arterial, opposite commission flats – $1,081,000 or just over $1,702sqm

1 Leopold Street, Burwood (Russell Wheeler/Luke Banitsiotis, Woodards) – 760sqm ready for extension/redevelopment, north rear, with new builds either side – $1,101,000 or circa $1,450sqm

Auction Highlights:

37 Godfrey Street, Bentleigh (Nick Renna/Leanne Potter, Hocking Stuart) – quality construction and buyers were prepared to pay for it – that and it was ‘in the McKinnon High zone’, 4 bidders, passed in $2.63m – sold after $2.7m

3 Plant Street, Malvern (Iain Carmichael/Genevieve Hoyle, Jellis Craig) – new ‘reproduction’ modern home, almost 500sqm, 3 bidders $3.46m

32 Hawthorn Grove, Hawthorn (James Tostevin/Hamish Tostevin, Marshall White) – updated single level period home, signature Melbourne street, sold for an undisclosed amount after passing in for $5.75m

89 Armstrong Street, Middle Park (Michael Szulc/Geoff Cayzer, Cayzer RE) – 414sqm, solid original home with good rear access – $3.95m

1 Caroline Street South, South Yarra (Nathan Waterson/Simon Dale, Jellis Craig) – 220 sqm, single storey period home with some minor changes since last selling in 2011 for $953k, almost doubled – $1.82m.

For details on the auctions we covered Saturday, see our twitter feed HERE:

Land sales

17 Gordon Street, Balwyn

17 Gordon Street, Balwyn (James Tostevin/Michael Wood, Marshall White) – 907sqm north rear, classic local street (has been very popular more recently with Chinese buyers) – $2.33m or $2,568sqm. Of interest a property sale in November 2015 at 75 Gordon (admittedly with a better house) sold for around $3,460sqm – almost $1,000 more a square metre

62 Maud Street, Balwyn North (Maurice Di Marzio/Adrian Stefanetti, Hocking Stuart) –1070sqm, south rear – $2.6m or $2,429sqm

89 Radnor Street, Camberwell (Ryan Key/Tom Ryan, Jellis Craig) – 696sqm, east rear – $1.987m or $2,854sqm – a similar $sqm rate to next door which sold last weekend

10 Meredith Street, Sandringham (Christian Hegarty/Romana Altman, Buxton) – 975sqm, fringe Sandringham (east of Bluff Road), south rear opposite park – $1.804m or $1,850sqm

Off Markets

Some of the new un-marketed properties (ones you won’t find on the web or email alerts) this week:

Renovated period home – Hawthorn East – $3.5m
Large period home with great car garaging – South Yarra – high $2ms
Double storey Victorian overlooking parkland – South Yarra – $6.5m

Properties we like, scheduled for auction June 18

Auction Spotlight:

Armadale: 12 Alleyne Ave (Ebeling/Anderson, RT Edgar), sold $2.47m, 4 bidders

Armadale: 12 Alleyne Ave (Ebeling/Anderson, RT Edgar), sold $2.47m, 4 bidders

A good crowd of 80 here for this auction, in nearby Alleyne Aveue, Armadale. The house itself we felt was a beauty…..freestanding and of a late Victorian/early Edwardian era, with solid bones and well presvered original features (as you would suspect givcen the owner had lived here since 1950). With No.5 (across the road) selling for $2.9m before auction a number of weeks ago (that was north facing with a garage), value was underpinned and this home always going to have a good supply of healthy admirers. Auctioneer Warwick Anderson gave an insightful brief spiel and kicked the auction off with not too much fuss, which was great. With listing agent Michael Ebeling by side, Warwick conducted proceedings nicely with four bidders in all taking part in it. The property opened at $2.0m, was announced on the market at $2.35m and sold under the hammer for $2.47m. Well done to the lucky buyer, they have bought well here.

Bentleigh: 37 Godfrey Street (Potter/Renna, Hocking Stuart), sold after auction for $2.7m

Bentleigh: 37 Godfrey Street (Nick Renna/Leanne Potter, Hocking Stuart), sold after auction $2.7m, 4 bidders

More than 100 people gathered in front of this architect-designed home in Bentleigh. Nick Renna took centre stage and delivered a thorough preamble before asking for an opening bid. Bidder 1 offered $1.9m, which Nick accepted but quickly tabled a vendor bid of $2m over the top. Bidder 2 was quick to enter with a $25k rise, bidders 3 and 4 joined the contest not long after. In the end, it came down to a two-way battle and $2.51, Nick ducked inside to refer to his vendor. Back outside and we hadn’t yet met the reserve. Bidding continued until the price reached $2.63m, at which Nick passed the property in for further negotiation, selling the home soon afterwards for $2.7m

Sandringham: 10 Meredith St (Altman/Hegarty, Buxton), sold for $1.840m

Sandringham: 10 Meredith Street (Christian Hegarty/Romana Altman, Buxton), sold for $1.804m, 4 bidders

With lush green outlooks over the reserve opposite, this home on a generous 975sqm attracted a good sized gathering of around 75 people, with many developers dotted throughout the crowd. Christian Hegarty was our auctioneer and after a succinct preamble, called for an opening bid. All remained quiet, so Christian tabled a vendor bid of $1.4m to kickstart proceedings. Bidder 1 joined in soon after, with bidders 2 & 3 almost coming in at exactly the same time as eachother. At $1.55m, the home was announced on the market and with three in it, the price continued to rise. At $1.64m, Bidder 4 joined the competition. Gentle increments ensued until the sale price of $1.804m was reached.

Agent Opinion: “Have the public, school and Easter holidays throughout the first half of 2016 interfered with flow and momentum in the property market? How have the first 6 months of 2016 compared to the same time last year?m Do you expect to have a more settled second half year, or more of the same?”

Peter Kennett (Hocking Stuart): “This year has been very interrupted from the get go. March long weekend, Grand Prix and Easter all fell within March. This of course was soon followed by school holidays. This was then followed by the Anzac Day long weekend, so yes it has been one of the most interrupted starts to a year that I have seen in 30 years of selling homes in the bayside. Obviously this is very hard for both agents and vendors to plan a program for. This has culminated in a real shortage of stock, which coupled with the lowering of interest rates, has kept prices on the rise at Auctions. Then of course there was constant speculation of an election and now we are in the middle of one of the longest campaigns ever. There is no doubt that the market in general peaked late last year, except for well-located A grade properties. There are so many different parts to the real-estate market and all have a different pace at the moment – A-Grade prime position properties are still breaking records and will continue to do so, given the current high employment, cheapest interest rates and still some Chinese buyer influence, B-Grade properties are still doing ok, B-minus are only price driven now. Apartments are a totally different game. Small blocks of older style in prime spots are gold, signature larger developments in prime spots are ok and big developments in C to B-grade locations are falling in price rapidly and will continue to do so. Our Brighton office is well up on turnover on last year, due mainly to the buy-in of Nick Renna and Mark Staples and their four other shareholders. I genuinely believe that after the school holidays and the election, we will see a normal market throughout the remaining six months.”

Please note this will be our last Market Pulse before the school holiday break and traditional winter hiatus. We will return when auction numbers increase, in late July.

Posted in Market Pulse

May 28, 2016

By Alexandra Ruffell | 30 May 2016

A solid clearance rate again – 74%, although stock levels are down and we are seeing more discernment regarding price for some properties. 62 Campbell Street Kew – (auctioneer Antony Woodley, Marshall White) passed in $4.005m, 3 bidders

Although the cold weather is kicking in, the sentiment at auctions and the Melbourne property market in general is still warm.

We saw a good number of homes auctioned on the weekend, however, the numbers are still down about 15% on the same time last year and results are healthy with the REIV reporting a clearance rate of 74%.

Off Market or Private Sale/Pre Market

The words ‘off market’ appear to be the modern replacement used to describe listed properties for sale, where the vendor wants to sell their home privately or want to ‘test the water’ before a full blown auction campaign.

Many email alerts to buyers are now headed ‘new off market opportunity’.

There is something special about knowing about an ‘off market’ property compared to a ‘private sale’ or ‘pre-auction property’ – it suggests you are receiving a special opportunity that other buyers haven’t had.

If you are considering an ‘off market’ opportunity, thorough due diligence and a good understanding of the process will help ensure you buy well.

For details of the auctions we covered on Saturday, see our twitter feed HERE:

Land sales

Demand for good land is still solid, with developers and building companies actively participating in the market. Some neighbours are still banding together in growth land corridors so that their properties can be consolidated for multi-residential development, taking advantage of the recent directives from government to promote development in key areas and retain neighbour character in other areas.

91 Radnor Street Camberwell (Peter Vigano/Sally Morrison, Jellis Craig) – 698sqm with a liveable, rentable home, bought after auction – $2.03m or around $2,900sqm. Next door is auctioning on Saturday – although a lesser home. Prices here seem to be holding fairly steady – last year 57 Bowen Street sold for $2.33m – slightly larger land, lesser house and a better part of the street comparatively.

54 Baker Parade Ashburton (Cameron Edgoose/Daniel Wheeler, Marshall White) -large land holding in a good location, 859sqm with a 20m frontage – circa $1.7m or around $2,000sqm.

21 Wolseley Grove Brighton (Greg Costello/Rowan Thompson, RT Edgar) – 694sqm corner block, north rear – $2.405m or $3,465sqm.

54 First Avenue Kew (Todd Braggins/Duane Wolowiec, Marshall White) – 650sqm and although a south facing rear, it is a good side of the street due to block slope – $2.003m or $3,081sqm.

Townhouse sales

Quality townhouses in good locations remain desired in the market place, however where there is an oversupply in a precinct or the quality of the finish and/or layout is not up to buyer expectations, these can remain for sale for some time. As a townhouse buyer, it is easier to make a mistake if you buy the wrong townhouse.

111 Stokes Street Port Melbourne (Michael Sculz/Simon Carruthers, Cayzer RE) – sold in July 2014 for $1.75m, on the weekend – $2.16m

59 Staughton Road Glen Iris (Bryan & Chris Cain, J.A Cain RE) – a new Metricon build – $1.802m

59 Staughton Road Glen Iris (JA Cain) & 111 Stokes Street, Port Melbourne (Cayzer)

From an Architect’s Eye – What makes a good townhouse?

Increasingly we are getting briefs from our clients to buy townhouses. Some important things to consider when searching for a townhouse include:

Proportions – what room sizes and ceiling heights make for a good space? 2.4m ceilings are too low
Fit-out and fixtures – does it match suburb expectations? Over spec-ed may have as many negative implications as under
Is there a premium for a downstairs bed/bath combination? How much less is a property worth without one?
Garaging and security is important
Private courtyard area – is this balanced with the size of the home?
Location – what amenities is it close to?
Additional expenses – are there body corporate fees or additional insurances?

Off Markets

A few new properties this week:

Smaller period home – Hampton – circa $2m
Well renovated original home – Ashburton – $1.6m
Modern two storey home – Glen Iris – mid $2ms
Modern home in blue chip Balwyn – early $2ms
Classic architect designed townhouse – Toorak mid $1ms

Auction Spotlight:

Brighton: 11 Butler Street (Marshall White) sold $3.571m, 3 bidders

Brighton, 11 Butler Street (Peter Kakos, Marshall White), sold $3.751m, 3 bidders

An entertaining auction from the get-go. Peter Kakos took centre stage in front of a generous crowd of around 60 people. One of the last auctions of the day and the air was starting to feel a little crisp. A vendor bid of $3.4m was tabled to kick-start proceedings, but we soon had two, then three bidders vying for the architect-designed property in the heart of Brighton. At $3.605m Peter announced the home was on the market and a flurry of bids – both big and small – ensued until the hammer came down, eventually, at $3.751m.

Agent Opinion: “We’ve heard from agents in the Eastern suburbs that the market has softened following the changes to FIRB rules. Have you noticed any changes around the McKinnon/Bentleigh areas, in particular the school zones?”

Peter Sinclair (McGrath, Bentleigh): “The mood in the market has changed, no question. The increase in the stamp duty surcharge, the banks shutting the doors to non-resident borrowers, developers struggling with the time it takes to get permits through council and now a Federal election in a month or so creates lots of chatter in the buyer community. McKinnon Secondary College zone is a different beast though; for decades, there has been a force field surrounding this part of the market, just like Balwyn, Glen Waverley etc. It seems bullet proof and is not affected to anywhere near the same extent when there is a market correction. Buyers are looking through the south eastern and eastern corridors for secondary school opportunities; no doubt in the past twelve months, the McKinnon Secondary zone has seen significant price increases because of price increases in surrounding school zones. Even the Bentleigh East section of the school zone, where traditionally prices have been a little lower than other parts of the same zone, has now caught up to Bentleigh, Ormond and McKinnon.”

Posted in Market Pulse

May 14, 2016

By Alexandra Ruffell | 16 May 2016

Prahran: 83 Pridham St (Andrew James, Hocking Stuart), sold $1.555m, 3 bidders

Without wanting to sound the same, the weekend was exactly that! The good properties sold well and those with some concerns or with high vendors, passed in – some selling later, some still available for buyers to consider. For the good properties we saw multiple bidders and strong prices, many well above the announced reserve prices.

The REIV reported a clearance rate of 73% from the 708 auctions reported. While interest rates are low, there does seem to be a bit of uncertainty in the market and some inactivity, maybe due to the pending election. This is a fairly normal.

The market we are in right now is quite a dynamic one. Many transactions are happening quickly and quietly. Timing is important. As a buyer you shouldn’t necessarily expect the campaign to run as advertised as many properties being bought before auction.

However, it can also be important to determine whether you are the ‘only buyer’. Some homes are selling before auction because there is one buyer prepared to pay well above the remainder of the market and an auction may not necessarily provide the best forum to extract the full amount from the buyer. Remember the agent is engaged and paid by the vendor to get the most money for the vendor.

For details on the auctions we covered on Saturday, CLICK HERE to see our twitter feed.

Land sales:

20 Charles Street Glen Iris (Nigel Terrace/Karl Fitch, Fletchers) – 970sqm land with two existing dwellings in GRZ1 zone – $2.3m or $2,446sqm

312 Glenferrie Road Malvern (Sally O’Connell/Andrew Hayne, Marshall White) – 876sqm, corner block in RGZ1 zoning – $4.7m or $5,365sqm

36 Alamein Avenue, Ashburton (David Macmillan/Natalie Hall, Jellis Craig) – 624sqm, opposite Warner Reserve – $1.356m or $2,173sqm

28 Lorne Parade, Mont Albert (Mark Fletcher/Tim Heavyside, Fletchers) – 696sqm (opposite train line) – $1.358m or $1,951sqm

Off Markets:

Some new ones we saw this week:

3 bedroom, 2 bathroom with garage – Hawthorn – $1.4m
2 bedroom, un-renovated single level Victorian cottage – Fitzroy North – $1.1-1.2m
Basic home with very good land content (over 1000sqm) – Beaumaris – $2.5m
Large family home – Kew – $6m plus
Family home, Grace Park – Hawthorn – $4.5m
Basic single level home – Malvern – $1.6m
3 bedroom, 2 bathroom townhouse – Prahran – $1.3m

Properties we like, scheduled for auction June 4 :

Auction Spotlight:

Albert Park: 24 St Vincent Place Nth (auctioneer Jack Bongiorno, Marshall White), sold $7.805m, 3 bidders

Albert Park, 24 St Vincent Place North (Oliver Bruce, Marshall White), sold $7.805m, 3 bidders

A large crowd closer to 200 than 100 had gathered to this two storey Victorian auction for the first time in around 40 years. Auctioneer, John Bongiorno, was in his usual good form, quickly starting proceeding on a vendor bid of $6m. It did appear for a moment that it may have been going to stop there too. However, upon return from the quick half time break, the first bidder made their move offering $6.2m. Proceedings moved very quickly from there as two other bidders joined in. On the market at $7.31m, the three bidders were still comfortably bidding above $7.5million, the property finally selling for $7.805m (over $16,000sqm).

Prahran: 83 Pridham St (Andrew James, Hocking Stuart), sold $1.555m, 3 bidders

Prahran, 83 Pridham Street, (Andrew James, Hocking Stuart), sold $1.555m

With some strong recent sales in this pocket, there was a real buzz at this auction, with around 80 people gathering in the narrow, pretty street consisting mainly of charming cottages. On offer was a tastefully renovated and extended two bedroom home, with a prized north-facing rear. Auctioneer Andrew James didn’t have to look too far for an opening bid, as this came from the crowd at $1.3m. Quick-fire bidding saw this property on the market at $1.391m and sell under the hammer for $1.555m – 3 bidders in all putting their hand up. With an unrenovated version in nearby Wrights Terrace selling for $1.303m last weekend and having a south-facing rear, the result here felt about right.

Agent Opinion:“Are strong prices pushing buyers to fringe areas?”

John Morrisby (Jellis Craig): “There is and always has been a frustration of not being in a position to purchase a property in your preferred location. Has it been heightened of late due to strong(er) prices ? Yes, but this has been one in the same with the lack of offerings, particularly those of quality & sought positions. As core areas experience price increases this will naturally affect the pricing of the fringe areas on a pro rata basis. The question is, when is ‘the eye’?”

Posted in Market Pulse