Posts by Alexandra Ruffell

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.

Auction Highlights:

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

 Land sales

17 Gordon Street, Balwyn

 Off Markets

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

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.

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.

 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.

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:

Off Markets

 A few new properties this week:

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.”

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:

 Off Markets:

Some new ones we saw this week:

 Properties we like, scheduled for auction June 4 :

•  32 Hawthorn Grove, Hawthorn – James Tostevin/Hamish Tostevin (Marshall White)
• 5 Gowar Avenue,  Camberwell – Michael & Chris Hingston (Jellis Craig)
• 95 Claremont Avenue, Malvern – Tim & Will Bennison (Jellis Craig)
• 12 Alleyne Avenue, Armadale – Michael Ebeling/Abby Innes (RT Edgar)
• 23 Albert Street, Brighton – Kate Strickland/Gerry Gordon (Marshall White)
• 89 Armstrong Street, Middle Park – Michael Szulc/Geoff Cayzer (Cayzer RE)

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’?”

76 Pridham Street, Prahran (Marshall White), sold after auction above $1.13m

Saturday’s auctions still saw plenty of buyers bidding for homes, however, some vendor expectations are still above the market with many of the auctions we covered passing in and selling afterward – the REIV reporting a clearance rate of 74%. 

Fringe suburbs are taking advantage of the current market with strong results.  Many buyers are entering these areas after missing out several times in different suburbs and with them they are bringing bigger budgets to these areas as seen at 22 Oswald Thomas Avenue, Hampton East (Kate Fowler/Robin Parker, Marshall White) selling for $1.69million with 5 bidders.

Buying a home can be a stressful and time consuming process. It is very normal to want to get off the buyer train and start living again as quickly as possible, however buying something because it stops the searching can quickly wear off, particularly if it is not close to family, work, school etc.   We help our clients by exploring a variety of options to remain focused on their most important goals.

Auction Highlights:

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

https://twitter.com/woledgehatt?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Eauthor

 Land/Major renovation Sales:

Single-fronters

 Single-fronted (that is when you look at the house from the street, you only seen one room) Victorian cottages, often built for workers in Melbourne suburbs are plentiful throughout Melbourne. They are popular for young families, professional couples and downsizers, as they are often built over a single level and well located close to local shops and public transport. Architecturally speaking, like any property type/style, there are some things to look for when buying these homes………

Good competition here! 14 Malmsbury Street Hawthorn (Stuart Evans, Marshall White) sold strongly under the hammer for $1.42m, 5 bidders

 Off Markets:

Quiet properties are still being presented to us on regular basis. Here are a few…..

 Properties we like, schedule for auction May 21:

Auction Spotlight:

Brighton: 15 Hanby (Biggin & Scott) – the happy new owners celebrating after a three way battle. Sold $3.171m

Brighton, 15 Hanby Street (Bill Stavrakis, Biggin & Scott), sold $3.171m, 3 bidders

Auctioneer Bill Stavrakis gave a thorough preamble before asking for an opening bid from the good-sized crowd that had gathered in Hanby Street. It didn’t take long before Bidder 1 chimed in with $2.4m, and Bidder 2 at $2.45m. Bidding continued between the pair and at $2.9m Bill announced he would be selling. At the eleventh hour Bidder 3 entered the competition and despite being a late starter, was the victor in the end – the hammer coming down at $3.171m to a round of applause.

Elwood: 2 Dryden St (Marshall White), sold after auction for an undisclosed amount above $2.355m

Elwood, 2 Dryden Street (Kaine Lanyon, Marshall White), sold after auction above $2.355, 2 bidders

A very convivial atmosphere with neighbours laughing and chatting amongst themselves whilst waiting for the auction to start. Kaine Lanyon was our auctioneer and he stepped out and extolled the many virtues of this rare offering in a quiet Elwood street before calling for an opening bid. Bidder 1 offered $2.125m and we were away. A two-way battle ensued before Kaine passed the property in to Bidder 1 for further negotiations. The home sold to them a short time after for an undisclosed amount.

Agent Opinion:Have you seen a shift in demographics within the Boroondara area in recent times?
Glen Coutinho (RT Edgar Boroondara):“There is certainly a slightly reduced number of off-shore buyers in the Boroondara market but this shortfall has been taken up by domestic buyers.
We are still experiencing strong buyer interest in all price categories.”

Deepdene: 16 Barnsbury Road (Steve Abbott/Peter Vigano, Jellis Craig), sold $6.36m

Saturday was the first big test for the market since Easter confirming good properties and realistic vendors are still attracting multiple bidders and achieving solid, and sometimes very strong, results.  With around 100 more properties auctioning than the same weekend last year, the REIV reported clearance rate was 76% (noting approximately 15% had yet to be reported).

Stock levels are starting to replenish with many agents advising their offices have had good new listings for late May/early June in the last fortnight.  This should hopefully provide comfort to buyers who have recently missed out or still can’t find something that suits their needs.

Auction Highlights:

 Land Sales:

 Land is still selling well, many buyers prepared to pay strong prices to succeed, with the understanding the property still requires a large injection of additional funds to renovate or replace.

 Off Markets:

Properties we like, schedule for auction May 21:

Auction Spotlight:

Armadale: 60 Stuart St (Kay & Burton) sold for $4.825m

Armadale, 60 Stuart Street (Gowan Stubbings, Kay & Burton), sold $4.825m

Around 100 people flooded Stuart Street to see what would transpire at the auction of this renovated period home on approx. 865sqm of Armadale land. Auctioneer Gowan Stubbings called for an opening bid but all was quiet so he tabled a vendor bid of $3.6m to kickstart proceedings. Bidders 1 and 2 entered the fray and some quick bidding ensued before a third party joined the competition. At $4.325m Gowan announced he would be selling and the price continued to rise until it reached $4.825m – the hammer coming down with a hearty round of applause from the appreciative crowd.

Hampton: 18 Retreat Road (Buxton) sold for $2.54m

Hampton, 18 Retreat Road (Mark Earle, Buxton), sold $2.54m

Mark Earle stood on the elevated deck of this Hampton home in front of a huge crowd of around 100 people. A great family atmosphere with children playing, parents chatting and all in attendance eagerly awaiting the start of proceedings. Calling for an opening bid, a strong offer of $2.3m came straight from Bidder 1. Mark joked with a young boy in the crowd about convincing his dad to bid – and was happily surprised when the father in question raised his hand and joined the bidding. A two-way battle ensued before the hammer came down to Bidder 1 at $2.54m.

Agent Opinion:“What are your thoughts on supply vs demand in Stonnington at the moment? Do you think the status quo will change in the near future?”

Philippe Batters (co-owner, Williams Batters, South Yarra): “This would have to be one of the most peculiar markets that I have seen in 44 years of real estate in South Yarra. We have a great number of people interested in buying, but the supply is simply not there. I don’t believe the upcoming election has had an impact, but we have definitely reached a point of inertia. It is a very, very strange situation that is occurring not only in South Yarra, but all areas within a 4 mile radius of the city. I do think it will loosen up, but at the moment we are seeing an unusual period of inertia.”

Sandringham: 108 Abbott St (Mark Earle, Buxton), passed in $1.5m

The weekend saw only a small number of properties auctioned and although the realestate.com.au clearance rate was 70%, many home were ‘b’grade at best.

We have another slow weekend coming up with another long weekend, incorporating Anzac Day, and then we will very quickly be into the thick of things as April 30 is going to be very busy with many good quality properties to choose from.  This will be the first post-Easter test to see whether the perceived buyer interest translates into actual sales.

Auction Highlights:

34 Middle Crescent, Brighton – Peter Kennett/Stephen Tickell (Hocking Stuart) however, was anything but average.  For many the ‘crescents’ symbolises ‘blue chip’  Brighton, centrally located between Church Street and Bay Street shops with both Brighton and Firbank Grammar amongst the curves.

Offering approximately 830sqm land and a north westerly rear orientation, the property offered a comfortable family home that could be lived in as is, further updated of replaced to make way for a new build.

On the market at $3.6million, the property sold for a very solid $4,375,000, or $5,271sqm (see report below).

Our analysis of 34 Middle Crescent, Brighton

4 Ardene Court, Hawthorn  – Peter Vigano/Sally Morrison (Jellis Craig). Italianate Victorian in a good central Hawthorn location, 1257m2 on relatively flat land and great scope for improvement/renovation.

Slowish start with a vendor bid of $2.9m, then an opening bid chipped in at $2.95m. As it looked like the property would be passed in at this level, the auction started to gather some pace and auctioneer Steve Abbott announced the property on the market at $3.3m. Property sold strongly under the hammer for $3.95m, $650,000 over reserve. Vendor must be happy……

Off markets:

Properties we like, scheduled for auction April 30:

Auction Spotlight:

Brighton: 34 Middle Crescent (Peter Kennett, Hocking Stuart), strong result of $4.375m – over $5000sqm

34 Middle Crescent, Brighton, Peter Kennett (Hocking Stuart), sold $4.375m, 5 bidders

A cracker auction with a huge crowd of nearly 200 people in attendance, all waiting with bated breath to see what would become of this rare offering of a 1960s architect designed home on approximately 830sqm in a premier Brighton locale. Peter Kennett gave a thorough preamble before asking for an opening bid. Bidder 1 offered $3m and we were away. Bidding came fast and strong – in total there were five parties vying for the property. At $3.6m the home was on the market and bidding continued – with some humorous moments, thanks to Bidder 5 who disappeared for a moment before coming back and took the keys to the home with a successful bid of $4.375m. An entertaining and nail-biting auction with an extremely strong result at over $5000sqm.

Prahran: 43 Highbury Grove (Marshall White), sold $1.651m, 6 bidders

43 Highbury Grove, Prahran, Fraser Cahill (Marshall White), sold $1.651m, 6 bidders

First Marshall White here for good local agent Fraser Cahill and he couldn’t have asked for better property, setting and crowd in many ways.
There was a buzz at this auction and rightly so – the house was good one offering great potential in an underrated Prahran street – Highbury Grove.

Opening on a vendor bid of $1.4m, Fraser looked for his first bidder and that came quite quickly. Soon after there was good competition from a few bidders and the auction was well and truly off and running. The property was announced on the market at $1.535m and at that point the auction found another gear – with five bidders at this point having a go. At $1.635m the auction looked over and just before the Fraser called “sold” up popped Bidder 6 who was standing in front of him. A very risky move………why do some people do this? After some deliberation the auction reopened and one of the original bidders eventually won out on the day at $1.651m – much to the delight of the crowd who I think really hoped he got it as he was a good bidder and took things in good spirit.

Agent Opinion: “It seems that most agents are saying that stock levels are tighter than they were last year. Are you seeing more buyers in the market per property for sale, or less. Is demand increasing at a faster rate than supply ?”

Sam Gamon (Chisholm & Gamon): “Buyers, buyers, buyers but where are the houses? The bayside region as a whole is statistically showing dramatically reduced stock levels and the buyers seem to be multiplying. Last weekend we launched some new campaigns. We are marketing a house above $2.5m that saw 43 groups attend the first open, followed by 25 groups the following day. The same weekend we launched a $1.3m home and also had over 40 groups attend the first open. These numbers are staggering. Buyers are thick on the ground and decisive. Some of them have been looking for only a few weeks but we’re consistently seeing some faces time and time again. Last weekend we sold a home for over $2m where the couple had been looking for 12 months. We did an assessment on our under bidders recently. Our Black Rock office for example has 65 under bidders looking for properties in various price segments. If you’re a vendor looking to sell there has never been a better time. It’s a market crowded with buyers where your home can shine.”

Melbourne’s second quarter for the 2016 property market officially kicked off on Saturday.

With no auctions of note, this provided us with the opportunity to inspect many of the ‘first’ opens for new campaigns.  Recent media reports around ‘underquoting’ or ‘market volatility’ didn’t appear to have dampened buyer spirits either – many homes had buyers gathering even before the scheduled open time.

We would still consider stock levels fairly low, particularly for the more in-demand properties:

The first big weekend of auctions is April 30.  Thorough research of ‘the right’ information, will ensure buyers spend time looking at the appropriate/affordable properties. Remember the selling agent is there to extract as much money out of buyer(s) as possible to maximise the sale price for their client – the vendor.

It can be disheartening for buyers to spend 2-3 weeks waiting for their preferred property to auction, to find they miss out on not only this property but also other suitable homes that have now sold.

Whilst there will still be more stock coming up, it is worth considering there are still only 5-6 weeks before the window for new campaigns closes again for the June/July school holidays.

Properties we like, scheduled for auction on April 30:

Highett: Vendor Advocate Andrew Stuart in action – 21 Marshall Ave, Highett (JP Dixon). Sold for $1.455m

Saturday was a record breaking auction day for the month of March in Melbourne with over 1700 auctions called.  On Saturday evening only 1455 of these had been reported to the REIV with a 75% clearance rate, the remainder perhaps hoping to be sold after before reporting in.

The talk at the moment is all about stock – or the lack thereof.  In the key areas we focus in (Stonnington, Bayside, Boroondara and Port Phillip councils), agents are all in agreement that stock for late April/May is likely to be less than the last couple of years.

With very little stock presenting until mid-April, buyers may find opportunities with some of the current ‘passed-in’ properties, however, it is important to keep in mind your property goals and ensure these are met before buying something just because it is available, cheap or convenient.

Whether stock levels will improve as we move into winter (which can sometimes be low anyway) is yet to be determined.  This may result in further pressure for buyers all vying for the same, limited, stock.

We have seen a number of good quality ‘off market’ properties for sale this year for buyers to consider.  Where we bought less than 20% of homes for clients last year ‘off market’, we have purchased close to 40% this year.  There are still some good properties out there, they are just a little harder to find.

Off market properties can often be sold in isolation (i.e. one lone buyer/no social proof), which can sometimes lead to buyers paying well above ‘market’ value for properties.  Great for vendors, however, not so great for buyers if they find their circumstances change unexpectedly and they need to sell.  Having a good understanding of the area, the relevant results and why and the property’s flexibility (different buyer groups the property may appeal to and different uses) can help.

Auction highlights:

Focusing on properties offering specific appeal for ‘downsizers’ – single storey, off street parking, walking distance to shopping precincts/transport, this weekend continued with good results:

Land Sales:

Off-markets:

Auction Spotlight:

Windsor: 39 Duke St (RT Edgar) sold for $4.85m

39 Duke Street, Windsor (Mark Wridgway, RT Edgar), sold $4.85m

A huge crowd gathered outside the historic former “Red Lion Hotel” – converted into an incredible family residence with five bedrooms, three bathrooms and rooftop garden, deck and pool just metres to cosmopolitan Chapel Street. When the last of the crowd wandered out of the home and into the street, Mark Wridgway started proceedings and called for an opening bid. With the rumble of the Formula 1 cars in the background, an offer of $3.6m came from the crowd. Bidder 2 entered the competition and bidding from here on came thick and fast. By the time Mark declared the property on the market at $4.325m, there were four bidders in the mix. At the eleventh hour, Bidder 5 entered the fray and bidding continued steadily until the hammer came down at $4.85m to a round of applause from the appreciative crowd.

Malvern East: 19 Bates St (Jellis Craig) sold after auction in the early $3ms

19 Bates St, Malvern East (John Morrisby, Jellis Craig), sold after auction in the early $3ms

With a striking green canopy enveloping Bates St, auctioneer John Morrisby stepped out before the crowd of around 50 people and delivered a succinct preamble before asking for an opening bid. All was quiet, so John tabled a vendor bid of $2.8m. Bidder 1 jumped in at $2.825m, and then Bidder 2 with another $25k rise. At $3m, John headed inside to refer to his vendor, and with no further bidding on the day, the property was passed in for further negotiations. It sold soon after for an undisclosed amount.

Properties we like, scheduled for auction:

Agent Opinion:“With so many holidays and interruptions in the first quarter, we have seen low stock levels across the board. Do you anticipate there will be an increase in stock levels after the Easter break/school holiday period?”

Bill Stavrakis (Biggin & Scott): “As a result of the low interest rate environment and the liquidity in the local market (Glen Eira, Bayside, Port Phillip, Stonnington and Boroondara) we are seeing many purchasers acquire property and hold their current home and add it to their real estate portfolio’. On the other hand there is also the ‘ passive buyer’. The segment of the market that wants to either upgrade or downgrade and currently owns their own home and will only sell if and when they purchase. Now the problem there is that they can’t find a suitable home to purchase and as a result they are not listing theirs on the market? Far from ideal. Kind of a ‘chicken and egg’ scenario.”

We’d like to take this opportunity to wish everyone a safe and happy Easter. With the market slowing down for the school holidays, we will be back with another edition of Market Pulse in a few weeks.

Sandringham: 11 Cowper Street (Dwyer/Tickell, Hocking Stuart), sold after auction for an undisclosed amount above $2.5m

We saw strong numbers again on the weekend and the formula is a fairly simple one – demand is well in excess of supply, particularly for quality homes close to amenities.

There is some discernment for properties with issues (eg. main roads), particularly if vendors have high expectations.  However, if you are a buyer looking to buy in Melbourne right now, the task is a fairly tough one.

With over a thousand auctions on Saturday (REIV data reported 1041 auctions and 74% clearance), crowds were really strong, particularly for the better properties and our photos really capture that.

New Quoting Laws:

Last week’s media was focused new legislation to crackdown on underquoting.

Whilst this is a win for many buyers, it is also important to remember the quote is only one part of the equation.

Price is ultimately determined by opinions – the vendor and the buyer(s) which can be influenced by a number of factors including:

Often when starting the sell/buy process – the vendor wants ‘as much as they can get’ and the purchaser wants ‘to pay as little as possible’.

A transaction, however, can only take place when the two parties meet.

In real estate, it is an accepted fact that if you want to sell your house well, you engage the services of a selling agent to market the property and provide advice and feedback to help the vendor make an informed decision about the price they ultimately want to sell their home for on auction day.

Agents can provide a lot of information for buyers too, however, the agent is engaged and paid by the vendor to obtain the best price they can for their vendor.

It is important for buyers to undertake their own independent research and maybe engage professional services of their own to be in the best position to buy the property, particularly as the news may impact current processes and strategies, for example will there be more offers before auction now and what constitutes an offer?

Auction Highlights:

Land Sales:

Townhouse Sales

Modern, low maintenance townhouses are in demand, particularly if they have good downstairs bed/bath combinations:

Off-markets:

Auction Spotlight:

Malvern East: 4 Kerferd Street (Abercromby’s) sold for $4.68m

4 Kerferd Street, Malvern East (auctioneer Rob Vickers-Willis, listing agent Emma Pierson, Abercromby’s), sold for $4.68m, 2 bidders

A beautiful, early Autumn Saturday and the auction of 4 Kerferd Street attracted a huge crowd of around 150 people. Rob Vickers-Willis was our master of ceremonies and after calling for an opening bid, was rewarded with a strong offer of $4m. A quick-fire auction, that saw the home on the market at $4.52m, eventually selling for $4.68m. A solid result, continuing a good run for properties in the Gascoigne Estate which in the past two weeks alone has seen $16m sale worth of real estate transactions for quality family homes.

5 Nelson Street, Sandringham (Julian Augustini, Hodges), sold for $2.655m, 5 bidders

Sandringham: 5 Nelson St (Hodges) sold for $2.655m with 5 bidders and huge crowd of over 100 people

Nelson St was overflowing with people and crammed with cars prior to the start of this auction! Well over 100 people had gathered to watch proceedings, with auctioneer Julian Augustini at the helm. After delivering a succinct preamble, Julian called for an opening bid and a strong $2.4m came from the crowd. This did not deter the competition, as another four bidders entered the fray, quickly taking the price to $2.445m with Julian announcing that the property was indeed now selling. A flurry of bids and the hammer finally came down at $2.655m to a thrilled family, with a round of applause from the appreciative crowd.

Hampton: 42 May Street (Marshall White) sold for $1.535m with 4 bidders

42 May Street, Hampton (Robin Parker, Marshall White) sold for $1.535m, 4 bidders

The auction of this home on a high, prominent Hampton corner attracted a crowd of around 75 people, who gathered in the front garden and along the fence to get a glimpse of the action. Robin Parker was our auctioneer and he called for an opening bid. Bidder 1 was quick to reply with an offer of $1.2m before Robin countered with a vendor bid of $1.3m. Bidders 2 and 3 joined the contest and at $1.4m Robin headed inside to refer to his vendor. Back outside and we were advised that the reserve had not quite been met, but we were close. Bidding continued until the sale price of $1.535m was reached.

Properties we like, scheduled for auction on March 19:

Agent Opinion: “Do you think more vendors are  starting to get ahead of the market?”

Daniel Wheeler (Marshall White): “Vendors have been patiently waiting to see how the market would respond after a summer period of no auctions and negative commentary in relation to the economy. What we have seen early in 2016 is the sheer lack of property available for sale resulting in buoyant auctions conditions, which are meeting vendor’s expectations; and in some instances exceeding them.”

Please note that due to the Labour Day weekend, there will be no Market Pulse next week. We will be back with more updates the following weekend, March 19.

14 Kerferd Street Malvern East – Listing Agent John Manton (Marshall White) looks on as the bids fly – 3 bidders

 It was another solid auction weekend with the REIV reporting a clearance rate of 78% from the 1083 reported auctions held across Melbourne.   Of note, numbers are still down on the same weekend last year, with approximately 400 fewer auctions.  This is one of the contributing factors supporting the current strong results.

Next week there are more scheduled auctions, however, whilst there may be more choice for buyers, we feel the depth of quality stock is not as high as it was last weekend.

 Observations:

 Auction Highlights:

Land Sales:

Land is still performing well with record results being recorded for two in Toorak, although comparing a couple of suburbs with similar offerings, buyers are starting to show some discernment.

Off-markets:

Auction Spotlight:

Glen Iris: 21 Netherlee Street (Mark Wridgway, RT Edgar) passed in $2.92m

21 Netherlee Street, Glen Iris (Mark Wridgway, RT Edgar), passed in $2.92m

One of the first auctions of the day, and a quiet crowd of around 30 gathered to watch proceedings with Mark Wridgway at the helm and Justine Harris assisting. This property was a really good land holding, with a north-facing rear, appealing primarily to developers. An opening bid of $2.6m came from the crowd but despite 3 bidders entering the contest, the property was passed in at $2.92m. We believe RT Edgar had an offer of over $3m after proceedings, but the property remained for sale at the time of publication.

Hampton: 19 Karoola Road (Hodges), passed in for $1.87m

19 Karoola St, Hampton (Stephen Wigley, Hodges), passed in $1.87m

A decent sized crowd of maybe 45 lined Karoola St, opposite Stephen Wigley and the Hodges team, and waited quietly for the auction to begin. Stephen gave a succinct preamble and called for an opening bid. All remained quiet, so he tabled a vendor bid of $1.8m to kick-start proceedings. Bidder 1 offered $1.82m, but after a second vendor bid and a final offer of $1.87m from our sole bidder, the property was passed in and remained for sale at the time of publication.

Black Rock: 16 St Andrews Court (Mark Earle), sold for $2m

16 St Andrews Court, Black Rock (Mark Earle, Buxton), sold for $2m

The tranquil and leafy St Andrews Court, aptly named as it runs along the 14th fairway of Royal Melbourne Golf Club, is a pretty little pocket of beachside Black Rock – a secluded cul-de-sac where suburbia feels a million miles away! Auctioneer Mark Earle stood in front of the large crowd and extolled the many virtues of the home and indeed its location, before calling for an opening bid. Bidder 1 offered $1.5m, and although low, this was accepted by Mark before Bidder 2 entered the fray at $1.6m. The price rose quickly and at $1.85m, Mark said he would be selling. In total, a four bidders vied for the property, with two battling it out to the end result of $2m.

Properties we like, scheduled for auction this coming weekend:

Agent Opinion: Are you seeing more buyers getting professional advice to try and gain an edge when purchasing a property?”

Peter Vigano (Jellis Craig): I have seen an increase in buyers seeking professional advice from advocates.  As buyers are becoming more time poor and agents transacting off market, advocates are able to give buyers more opportunities to secure properties.

Sandringham: 13 Bamfield (Mark Earle, Buxton), sold after auction $1.55m

Please note that due to Labour Day weekend there will be no Market Pulse on March 14. 

The AFL footy season is almost upon us. We will be running our annual Footy Tipping competition – it’s free to enter and lots of fun. Details on how to enter coming soon!