Posts by Alexandra Ruffell

As we hit the halfway mark for the year, the Melbourne property mark continues to look healthy for sellers. Buyers are going to need to be on their ‘A’ game to ensure they buy the right home rather than any home.

Vendor expectations have started to creep up, in some cases above buyer expectations, particularly on properties with some concerns, no doubt hoping to capitalise on a good result because buyers are tired and frustrated and ready to buy anything – particularly without competition.

The winter months are traditionally a time of little activity, however, this has certainly not been the case this month, with many big sales taking place both at auction and off-market.

That being said, the next two weeks, (coinciding) with school holidays, will be quiet as most agents take time off to spend with family.

Talking over coffee with Michael Armstrong (Kay & Burton) during the week, he said he has had the busiest June ever which seems to be a general sentiment amongst agents.

There were fewer auctions on the weekend, many areas already quieting down for the holidays.  Boroondara was the exception with a number of big auctions such at 126 Sackville Road Kew, 6a Raven Street Kew and 1A Monomeath Avenue Canterbury all selling over $3million.

Some highlights:

One that faltered:

Off-markets:

Looking ahead, buyers may take comfort knowing that the auctions for mid-late August look to be very healthy ones in terms of numbers with two of the Saturdays potentially offering over 1000 properties to buyers.

Architecturally Speaking: Townhouses

A trend we are seeing in the market is the popularity of townhouses with buyers. This wasn’t really the case a few years back and it does seem that the dream of owning a property with a good-sized backyard to kick the footy around in is fading fast and the position along with a home that it easy to maintain is now an attractive option for families with busy lives.

Some things to look for:

Auction Highlights:

20 Studley Ave, Kew (Jeremy Tyrrell, Ray White), under hammer, $4.58m

I was looking forward to this auction. It last sold early 2014 for just over $3m, and it is landmark local property with fine architectural merit. This would be good gauge of the Kew market, and with at least 7 properties selling in Kew area for around $2.5m and above in June alone.
Auctioneer Jeremy Tyrrell gave a concise, professional spiel in front of around 40 people on the elevated front garden, with the the towering McCutcheom designed home in the background.
Opening with a crowd bid of $3.18m by Bidder 1, Bidder 2 chimed in not long after and literally after about 2 minutes and about 10 bids the property sold for a whopping $4.58m!
The market in Kew is strong right now, and the strategy employed by the buyer (who was was not Asian looking in appearance) was a sound one – bid boldly and confidently, hitting a number with 8 in it each time.
Great result for the vendor, who did not make any major structural changes since they bought the home but was smart in the design of the cosmetic upgrade and the overall internal presentation.

51 Service St, Hampton (Mark Earle, Buxton), passed in $2.1m

Auctioneer, Mark Earle, started the auction by informing the crowd that around 100 contracts had been emailed to potential buyers. We were expecting some excitement!
After the usual slow start, Mark placed a vendor bid of $2m searching for a bidder to present. Eventually one did, offering $50,000, however, once it became apparent that there were not going to be any other bids forthcoming, Mark placed a second vendor bid of $2.1m and passed the property in.

376 & 374 Montague St, Albert Park (John Holdsworth/Shane Siemers, Hocking Holdsworth)

Number 376 went to auction first, a pretty Victorian that has been updated and extended with an architect designed renovation. John Holdsworth was MC in front of a big crowd of nearly 100 people, all keen to see what would happen at this double auction in Albert Park. Unable to secure any genuine bids from the crowd, John was forced to pass the property in on a vendor bid of $2m. Most of the spectators lingered to see what would transpire next door at 374, an un-renovated single-fronted Victorian currently offering three beds and one bathroom. A couple of bidders battled it out to the pass in price of $1.14m, before the property was sold after auction for $1.16m.

Agent Opinion: Do you have an predictions for Spring? With such a strong market in Boroondara, especially Kew, do you see an end in sight for the solid competition?

Peter Vigano (Jellis Craig): “As we are now in winter there are less and less properties coming onto the market, however buyer demand remains constant all year through.  For  any new properties that come onto the market in August in readiness for spring auctions, we expect to see pent up demand and prices continue to rise due to increasing demand due to the shortage of properties available. We are expecting a very busy spring selling season and we cannot foresee the market slowing down anytime soon.”

It appears we are going to leave the first half of the 2015 property market as we entered it in January – low stock levels and a large number of buyers still wanting to buy.

Although holidays are on the minds of many agents, there are still plenty of ‘off-market’ properties transacting quietly.

Late July and August is looking OK in terms of auctions/new properties on the market, yet we don’t think the supply will be enough to satisfy the depth of buyers.

Some highlights:

Off-markets:

Land results:

There were a couple of quiet land sales transacted in Martin Street, Brighton this week (Stefan Whiting, Buxton).

Two inner city double storey properties sold on Saturday, both for $1,710,000.  Comparing the two:

Auction Highlights:

Carlton North, 588 Rathdowne St, (Tom Roberts, Nelson Alexander), passed in $1.62m, 1 bidder

An unusual looking property this one, but it works for this part of inner Melbourne and with Rathdowne Village a short walk away, the offering is very appealing. Internally the home offered a lot of accommodation and was light and bright, yet tired in places. The big plus was the garage at the rear, which is very hard to find in this area. Auctioneer Tom Roberts (Nelson Alexander) gave a good preamble and dodges some passing traffic along the way, with listing agent James Keenan by his side. Opening with a vendor bid of $1.6m, the crowd of 30 or so looked at little disinterested and then a few minutes later a couple offered $1.62m and the property passed in to them. Sold after for $1,750,000, which was a good result for buyer and seller alike.

Middle Park, 273 Richardson St (David Lack, Biggin & Scott), under hammer, $1.71, 4 bidders

With dark clouds looming overhead and rain threatening the early morning auction, a small crowd gathered around auctioneer, David Lack. An opening bid of $1.4million started proceedings, and although the crowd was lacking in numbers, 4 bidders pushed past the reserve of $1.64m, where David announced that the property was selling. The hammer finally falling at $1.71m.

Malvern East, 23 Finch Street (John Bongiorno, Marshall White), under hammer, $4.53m, 2 bidders

A large crowd gathered in the pretty front yard of this brick period home in the Gascoigne Estate, while children frolicked in the last remaining autumn leaves on the ground. John Bongiorno gave a thorough preamble and tabled a vendor bid of $4m straight out of the gate. Bidder 1 offered $4.12m and Bidder 2 came in shortly after. At $4.42m, Bidder 1 said he would bid again if the home was on the market. With that, Jack headed inside to speak with his vendor. Back outside, Jack announced the home was indeed on the market and Bidder 1 quipped “are you ready for that bid yet?” which brought some chuckles from the crowd.  A battle between the two bidders ensued before the home sold to Bidder 1 for $4.53m.

Agent Opinion: Are buyers paying a premium price for land purchases that come with approved plans?

Kate Strickland (Marshall White): ‘Broadly purchasers will see plans in different levels of desirability based on their objective when buying the land. If there are plans for townhouses and they are wishing to build a family home then they are not going to add any value to the time, effort and dollars that have been outlayed to secure the plans and often permits. If the plans and permits are approved for what the prospective buyer is wanting to create, then they will definitely see the value and often push the price higher based on the ease and comfort of the process ahead. International buyers are falling into this category as they are wishing to begin demolition and build immediately at settlement.’

At the risk of sounding like we are repeating ourselves, this weekend was another strong auction weekend in the $1m+ Melbourne property market. This trend should continue for good properties, attracting multiple bidders and strong prices before things quieten down for the June/July school holidays and the usual winter hiatus.

The Melbourne property market saw an almost 80% clearance rate for the nearly 800 homes auctioned.

Three years ago, in 2012, the same weekend had a clearance rate of only 55%, with just 550 homes to choose from.

The frustration for many buyers is continuing and this is now coupled with the downturn in stock.

For vendors wanting to sell their homes, around half prefer to sell first, ensuring they know exactly how much money they can spend on their next purchase.  The other half prefer to buy first so they have something they can move straight into, avoiding the concerns of renting or multiple moves.

Whilst the market is strong, which should encourage vendors to sell, the lack of stock and continued increasing prices (which is starting to feel like a weekly phenomenon) does not provide the encouragement that their next home will be found easily and a period of time ‘out of the market’ may mean they can no longer afford what they thought they could.

Standout auction results this weekend included:

Some of the better off-markets this week include:

Architecturally Speaking: Kitchen Design

We were asked during the week how important the kitchen is within the home. Our response was simple: it is very important, perhaps the most important room, as it is the social ‘hub’ of the home. No longer regarded as ‘just a place to cook and prepare meals’. More than ever it is a conversation place for friends and family where quality time is spent. Can you overcapitalise?   In the areas we buy for clients, we think it is hard to, but of course you need to be clever how you go about the design and material selection.

Trends:

Auction Highlights:

33 Hastings Rd, Hawthorn East (Dave Oster, Kay & Burton), under hammer, $3.55m, 3 bidders

Selling for just over $2.4m back in 2011, this was always going to be an interesting auction.
Auctioneer Scott Patterson didn’t need to wait too long for a crowd bid – it came at $2.8m and pretty quickly the auction gathered pace. Bidder 1 didn’t look too strong and petered in the $3ms with bidders 2 and 3 fighting it out. Property was announced in the market at $3.3m and then sold strongly at $3.55m.  Great result for listing agent Dave Oster, vendor should be very pleased!

9 Margarita St, Hampton (Nick Johnstone), under $2.45m, 2 bidders

The auction of the Californian bungalow on good sized land in coveted Margarita St, drew quite a good sized crowd when it went to auction on Saturday. Nick Johnstone gave a thorough preamble highlighting both the home and the location’s many assets before calling for an opening bid. Bidder 1 gave a strong $2.2m followed by $2.225m from Bidder 2 – both buyer advocates. Nick said there would be no half-time break and at $2.35m he announced that ‘by the way we are selling!’ Interestingly, there were a couple more sizeable bids after the home was announced on the market, before the hammer came down to Bidder 1 at $2.45m.

28 Vickery St, Bentleigh (Craig Williamson, Buxton), under hammer, $2m, 3 bidders

Coffee machine, big crowd, big five bedroom family home in the McKinnon Secondary College zone – all signs pointed to a good auction at 28 Vickery St on Saturday. And we weren’t disappointed. Auctioneer Craig Williamson stepped out into the street and gave a thorough preamble before calling for an opening bid. Bidder 1, just to his left, gave a strong $1.74m and we were away. Bidder 2 was up for the challenge and entered the bidding at $1.76m. A couple more bids between the two ensued before we were hit with a ‘killer’ bid from Bidder 2 at $1.9m. Bidder 1 backed down but it was here that Bidder 3 entered the competition. At $1.96m Craig announced he would be selling. The price crept up slowly and methodically in a two-way battle before the hammer came down at $2m to a round of applause from the appreciative crowd.

Agent Opinion: Are blocks of land that are selling with plans and permits getting a premium price?

Daniel Bradd (Kay & Burton): “Regardless of the state of the market, properties offered with plans and permits do attract premium prices as they negate the time delays and holding costs associated with the planning process provided that what is approved is actually feasible from both a resale and construction cost prospective. In the current market however, those properties offering redevelopment potential, particularly in council’s new ‘Growth Zones’ or areas unencumbered by heritage controls, whether for single home or multiple dwellings, are attracting premium prices without permits as opportune buyers attempt to capitalise on the increased demand for new properties across all price points.”

A shortened Market Pulse from us this week as there were only a very few auctions due to the Queen’s Birthday weekend. Numbers at opens were down and expectedly so given many people were away. That said, there are some good properties up for sale right now.

A feature auction of the weekend was 9 Bringa Avenue Camberwell:

Opening with a vendor bid of $2.7m, auctioneer Peter Vigano (Jellis Craig) gave a no-nonsense preamble for this auction, where a solid crowd of around 100 turned up to see what would transpire. Not long after the start, bidders 1 and 2 went into battle and the property was announced on the market at just over the $3m mark. Enter Bidder 3 shortly after and the heat picked up. Sitting down and a bit deflated, our original bidder looked gone and the auction went up a level, with Bidder 2 winning the day at $3.316m. This was a telling result and a good indication of the market right now, as we remember next door (no.11) selling strongly last year for $2.56m. That had a similar land size yet a slightly lesser home.

‘Off market’ properties are alive and well right now.  A few of the better ones we have been through this week include:

Good properties we visited this week that should attract solid competition:

Architecturally Speaking:

Many people who have recently bought are taking the next step and commencing renovations earlier than originally planned.  With money currently affordable, the increased property prices have provided the additional equity to start works early.

If you like where you live, the option to renovate (if done well and cleverly) may be a great solution, as the price jump to the next property is becoming prohibitive for many.

As always, it is really important to buy a home with excellent flexibility as it provides the opportunity to do this this and it gives you options –  for example it could be better for young singles/couples to buy a 600sqm unrenovated, smaller home, that can easily be upgraded, than a glitzy, modern-finished townhouse with small land content and no option to extend or improve.

The value of a good architect as always is hard to quantity in dollar terms.

The auction scene was more of the same this weekend, with strong bidding on many properties and more record prices.

Some highlights:

 Pass-ins:

Land was contested heavily again:

Off market properties have continued to increase in number this week.

Some new options to consider include:

Next weekend is the Queen’s Birthday holiday weekend.  The property market shuts down while focus is diverted to the opening of the ski season. Have a great long weekend and we will be back in a couple of weeks.

Auction Highlights:

16 Stawell St, Kew (Antony Woodley, Marshall White), after auction, $3.35m, 4 bidders

A good crowd of around 80 gathered for the early morning auction of 16 Stawell Street. Auctioneer, Antony Woodley, gave his usual polished performance. A genuine bid opened the day for $2,700,000 with a second bidder joining in immediately. The first bidder was quick to stop with a third taking their place, steady increments quickly taking the price over $3m. It became clear after Bidder 4 asked if it was ‘on the market’ that this was an auction where bidders were competing for the first right to negotiate with the vendor. Bidder 4 eventually achieving that right at $3.3m. The final result $3.35m.

16 Missouri Ave, Brighton, (Peter Kakos, Marshall White), under hammer, $2.21m, 5 bidders

Around 65 people gathered in the front yard and on the footpath outside the property, keen to see what would transpire at auction on Saturday. Peter Kakos was our master of ceremonies and after a thorough preamble, called for an opening bid. Bidder 1 offered $1.75m and we were away. Two bidders took the price to $1.9m at which point Kate Strickland dashed inside to seek instructions from her vendor. Once outside again, Kate gave Peter a smile and a nod and Peter declared that at $1.95m, yes we were selling. By now, Bidder 3 had entered the fray and shortly after Bidder 4 threw his hat into the ring. Bidder 5 chimed in for a while, but it was Bidder 4 who stayed strong throughout, outbidding all the others to become the happy new owner at $2.210m. A great auction.

21 Iona St, Black Rock (Peter Kennett, Hocking Stuart), under hammer, $1.765m, 5 bidders

This beautifully presented home attracted a lot of interest when it went to auction on Saturday. Around 100 people traipsed through the home prior to proceedings to get a glimpse of the house that had featured in a national home magazine, styled by its interior designer owner. Peter Kennett debated whether to hold the auction in the street or the picture perfect backyard, but decided on the latter, which was a great choice as the huge crowd  fit comfortably in the impeccably manicured gardens. “It’s autumn time, it’s auction time and it’s action time,” Peter boomed, and after an extremely entertaining spiel, he called for ann opening bid. A strong offer of $1.4m came from the rear of the crowd. Bidder 2 was quick to reply at $1.425m and a short battle between the two ensued before bidders three and four entered the competition. Jenny Dwyer headed inside to seek instructions from her vendor and once back out, at $1.65m, Peter declared he was selling. Bidder 5 entered the competition and after a great battle, at $1.765m Bidder 1 declared Bidder 5 “can have it,” thus ending a great competition and very entertaining auction.

Agent Opinion: Advice for buyers at auctions over winter

 

John Clarkson (Hocking Stuart): “Buyers, do your homework, attend auctions to watch a variety of styles and don’t be afraid to ask auctioneer if it is on the market!”

With nearly 1000 auctions on the weekend the results for good family homes, good land buys and those appealing to the downsizer market, were good all round.

Some highlights –

Land was contested heavily again:

As we approach winter and the upcoming school holidays, off-markets properties (i.e. those not publicly advertised) are alive and well.

Some examples:

As stock levels start to slow down for winter, buyers may wish to consider whether they want to wait until spring before they buy their new home.

There will be buyers willing to sell quietly during this time, particularly if they have already purchased.

Now is the time to work out how you can best access the properties available for transaction quietly.

We have found the best way is ‘coffee’ catch ups with key agents to find the properties and then the appropriate supporting data to help buyers understand ‘values’ when there is no opportunity for ‘social proof’ (such as other buyers inspecting the home, or bidding at auction) around pricing.

Architecturally Speaking

Island benches

This is high on the wish list of most of most clients we talk to (buying and designing homes), and the homes that tend to sell well often have a great kitchen. The ‘Island bench’ is really important, as it is often the central “communication and social hub” of the home and it helps with the functionality of the working kitchen. Main points to consider:

There was a great island bench in the home we visited this week at 15 Rowell Avenue Camberwell (Nikki McCartky/Glen Coutinho, RT REdgar). (see pic below)

Large, facing north facing windows and acting in part as informal dining area, this works really well and you are really drawn to it’s presence.

Auction Highlights:

1 Russell Street, Toorak (Rob Vickers-Willis, Abercromby’s), under hammer, $3.96m, 5-6 bidders

Pretty as a picture, this well-built brick original home in a quiet Toorak location saw a good crowd gathering for it’s auction. Auctioneer Rob Vickers-Willis and listing agent Jeff Gole conducted proceedings in the private backyard, and around 40 were in attendance. Opening with a genuine offer of $3.1m, the auction clipped along nicely with a string of bids and before too long with at least four bidders pushed the action along to $3.325m, when the property was announced “on the market”. No half-time break was needed, with Rob and Jeff taking bids very quickly and in the end it was a battle of two Chinese families that really upped the ante over the $3.7mark, with one of them winning the day (and the property) at $3.96m. Land was the really key to the success of this property; just over 600m2 and a corner block with no heritage overlay works out to be just under $6,600/m2 – very healthy indeed.

34 Marchant St, Highett (Adam Gillon, Buxton), under hammer $1.435m, 3 bidders

The crowd started gathering long before Adam Gillon took centre stage. First it looked like around 70 people had come to watch the auction but that number quickly grew to 100 and then 150 in the minutes prior to the start of proceedings. The coffee van was a huge hit too and the line only dispersed as Adam started his preliminaries. Calling for an opening bid, a baby wailed:  “Don’t cry,” Adam soothed. “Mum and dad still have a chance to buy it!” Bidder 1 offered $1.1m and we were away. Bidder 2 gave a strong $1.2m and before long, Bidder 3 was in at $1.35m. There was a slight pause and, as if on cue, an elderly cyclist broke the silence, announcing his arrival with the loud ringing of his bell. And as he sped through the middle of the crowd, he gave Adam a high five much to the amusement of the spectators. At $1.41m the home was on the market. More laughs as a metre reader entered the property for sale, “life goes on,” laughed agent Paul Sibley. And with a couple more bids, the home was sold to a young family, the hammer coming down to a massive round of applause at $1.435m.

17 Willansby St, Brighton (David Hart, Buxton), under hammer, $1.67m, 10 bidders

With 17 Willansby Street selling last week with 5 bidders for $1,230,000, there was much anticipation around 6 Willansby which offered approximately 200sqm more land and a larger, original cream brick home.
Starting with a fairly low initial bid of $1,100,000, auctioneer David Hart quickly placed a vendor bid of an extra $100,000, and moments later a second bidder entered the competition with another rise of $100,000 to $1,300,000. From here, the bids continued in quick succession – 10 bidders in total – and a final price of $1,670,000.

Agent Opinion: Tips for selling and buying in the winter months

David Gillham (Noel Jones, Camberwell): “Winter is statistically the best time to sell,of course avoiding the June /July school holidays when buyers tend to chase the warmer climates in North Queensland and onto farther destinations.We find the lack of good property around seems to pump the prices of any property placed on the market at this time, simply the supply and demand  imbalance comes to the fore. Don’t be frightened of the weather, buyers will bid in the snow if they love a property enough,it is the economic climate that prevails and we all know how strong that is at the moment.”

The Melbourne property market doesn’t appear to be showing any signs of slowing down. With the number of new properties hitting the internet set to slow down as the market heads into the mid-year ‘hibernation’ around school holidays, bidder numbers have intensified, particularly for certain properties such as single level homes, larger family homes and new home sites.

Speaking to Jack Bongiorno in our travels over the weekend, he pointed out that Marshall White has had almost identical auction numbers (754/755) this year compared to last. The big difference between the two – increased buyer interest which has resulted in:

However, we attended 15 auctions over the weekend with only six selling under the hammer.   Of the nine that passed in, only 4 have sold.  This may be an indication that vendor expectations are starting to increase.

While prices overall are strong and bidding depth solid, there are still some good buying opportunities out there;

The two markets which have been attracting great interest for many months are the downsizing market and those looking for good land to develop (featuring mainly Chinese buyers particuarly in Boroondara).

New home sites:

Single-fronters:

Downsizers :

We are hearing of many younger buyers (looking for larger homes for their growing families) starting to lose confidence in this climbing market.

There are still good opportunities for younger families.  Understanding what to look for is the best way to start:

The second is to stick with the brief.   Often young families will ‘spread their wings ‘ to include many suburbs, rather than focusing on the one or two that suit best. This can lead to “not seeing the forest for the trees” stress levels increase, and good opportunities can be missed.

Auction Highlights:

76 Tivoli Road, South Yarra (Jeremy Fox, RT Edgar), bought after for an undisclosed amount, 2 bidders

The sun was shining and the crisp Autumn leaves were fluttering in the breeze as Jeremy Fox stepped out into Tivoli Rd in front of around 50 people. With the imposing Victorian as the impressive backdrop, Jeremy praised both the home and its location before asking for an opening bid. Initially looking for $4m, Jeremy then suggested $3.8m. Bidder 1 was quick to jump in at this level, as was Bidder 2 (a prominent agent on behalf of his client) who offered strong counter bids each time Bidder 1 raised the bar. At $4.35m, Jeremy headed inside to talk to his vendor. Upon his return, he told the crowd we were close to the reserve, but with no more bidding, the property was passed in for further negotiations. Bought after auction for an undisclosed amount.

76 Wattle Rd, Hawthorn (Nick Franzmann, Marshall White), under hammer, $4.75m

One of the last auctions of the day (3.30pm), and this was always going to be a big one. Where in inner Melbourne can you buy just under 1800m2 of regular-shaped land with a good period home? The answer: 76 wattle Rd Hawthorn. And sad is this is to say, this property had no Heritage Overlay, so it could be possibly be pulled down. Nicholas Franzmann is the listing agent and is well supported by his team – he continues his 2015 run of listing and selling good-sized properties in Boroondara. Auctioneer Antony Woodley has the perfect setting for this auction in the tranquil front yard, and about 80 onlookers are keen to see what transpires. Opening with a “cheeky” crowd bid of $2m, Antony was keen to counter that with a vendor bid of $3.8m and take bids from there. Several minutes passes by then bidder one comes to the fore with a $50,000 rise. At a slow pace, the auction rambles on and is announced on the market at $4.386m about 25 minutes later, with two other bidders patiently taking part. The auction is strung along with lengthy pauses and minimal $1K bids at times, and finally it sells for $4.75m, almost $400K over reserve with two chinese parties in the end fighting it out. I look down at my watch and the time is 4.20pm – what a marathon! Good result though for the vendors, they should be pleased with their agent’s efforts here today and throughout the campaign.

33 Elm Grove, Brighton (Steve Smith, Marshall White), under hammer, $2.3m, 6 bidders

Even before the auction began you could feel the depth of interest, with large numbers gathering inside the front garden around the driveway and spilling into the street. No sooner had auctioneer, Peter Kakos, completed his spiel an opening bid of $1.615m was heard. The low start was just that – a start. From here the bidding started, with 2, 3, 4 and 5 bidders increasing the bids, sometimes by $20k, sometimes by $50k or more. At many stages the buyers were so keen, amounts were being offered by multiple bidders at the same time. The property was announced on the market at $2.060m and bidders bid strongly to around $2.2m where things started to slow down. Here Bidder 6 entered the competition, walking away the new owner for $2.3m.

Agent Opinion: Are people waiting until Spring to sell, or are vendors preferring to sell quietly now?

Stefan Whiting (Buxton, Brighton): “Vendors have traditionally waited until the popular Spring period to sell, however they have become more educated and realised that selling during Winter can give them an advantage as there is less selection available for buyers. During the cooler months there is limited supply but buyers continue to look, therefore we see a similar dollar value in Winter as we do in Spring.”

The strong results continued again this week, with bidder numbers in force at most auctions, and, in the main, well exceeding vendor expectations.

The two markets we see as particularly strong are:

1. those looking for land to knock-down and re-build; and
2. downsizers looking for single-level, updated homes close to local shops.

Kew was particularly strong:

Some other big land results – both with the same land size (613sqm) in two of Melbourne’s best postcodes.

Two downsizer properties (well presented, single level, close to shops) that sold at auction:

Some Bayside sales of note:

Not all properties are making it to auction day – some sold beforehand (mid-week) for very solid prices.

Many people we talk to can’t believe that in this market the vendor would sell before auction. Selling before doesn’t mean that the results are not strong or that the buyer does not have to fight it out with other bidders. Such scenarios can present as boardroom auctions, best offers in, one offer only, or last man standing, to name a few. In this market (as in any), your best chance to be the buyer is in the preparation, research and planning.

Architecturally Speaking – Brick v Timber

Brick vs timber wall construction is a common discussion point with buyers………At the end of the day, it is very much a personal choice.

We don’t think it affects capital growth as such, but definitely some buyers will not look at timber homes (particularly people from Europe), as they consider it inferior and very different from what they used to traditionally.

In nutshell, the pros and cons of the two systems are:

Timber

Brick

Auction Highlights:

26 Goldthorns, Kew (Jellis Craig), under hammer, $2.715 million

Beautifully presented, this original clinker brick two-storey home couldn’t have looked much better for its auction. What a beautiful home this is…….and the features inside are divine if you are lover of the art deco style. Hope others see its beauty too. Yes, it is bit dated for 2015 living but nothing a good architect couldn’t address. A really good crowd of well over 100 people lined the kerb across the road as auctioneer Steve Abbott gave a concise preamble, with listing agent Belinda Anderson on the ready by his side to record the bids. Quoted originally as “over $2m”, this was always going to attract good buyer interest, especially given the huge result a stone’s throw away at 66 Campbell Road of $3.050m only a few weeks ago. Steve looked for an opening bid and a cheeky one of $1.8m was called out. Steve patiently took the bid, yet this was trumped by bidder 2 with a $2.3m call, which is much more in line with the market sentiment. Bidder 3 then joined in and bidding clipped along. At around the $2.5 million mark, the property was announced on the market and, at $2.675 million, it looked to be sold to bidder 2 until a new bidder came in at $2.7 million. Bidder 3 countered this bid at $2.71 million but bidder 4 (a Chinese family with a sharp eye for good land) offered a counter which the agent believed was $2.75 million. Alas, this is not what the bidder meant – they meant $5,000 not $50,000 – so the bidding is taken back to $2.715 million, which, at the end of the day, is enough to buy the property. No heritage overlay to this home seems not quite right, but that was what ultimately got the strong result here -$3100m2 used to be Sackville Ward prices – this part of Kew is really popular at the moment.

15 Bridge St, Hampton (Peter Kakos Marshall White), under hammer, $3.1 million, 3 bidders

With grey clouds threatening, the auction of 15 Bridge St was held in the front yard with around 70 people huddled under the carport or around the perimeter of the garden. Auctioneer Peter Kakos spent a fair amount of time describing the upside for this property, one of only a few visible larger family homes currently for sale in Hampton. After calling for an opening bid, one was received almost immediately at $2.1 million. Peter very quickly increased the price with a vendor bid of $2.5 million and the real auction began. Three parties pushed the price to $3.1 million, where the property was announced on the market. However, to the relief of the successful bidder, there was no further bidding and the property was bought for $3.1 million.

6 Nicholls Road, Ormond (Mark Staples, Hocking Stuart), passed in $1.935 million, 3 bidders

The pretty period facade of this Ormond home gives little indication to the modern transformation within. Set on 920sqm of land, it was always going to be interesting to see what happened at auction on Saturday. Auctioneer Mark Staples stepped out into the street, in front of around 80 people, and didn’t hesitate before jumping into the preliminaries. Calling for an opening bid, he was offered $1.8 million and we were away. A vendor bid at $1.88 million saw Bidder 1 come back at $1.89 million before Bidder 2 entered the fray at $1.9 million. Bidder 3 offered $1.92 million, before the home was eventually passed in at $1.935 million for further negotiations.

Agent Opinion: What is your advice for young families buying into the current market?

Julian Augustini (Hodges): ‘Buy in the best location that you can for your budget. You can always improve a home over time, but location is key for lifestyle and future capital growth.’

The market sizzled this weekend, and the weather (fine and mainly clear) and auction numbers (relatively low compared to the next few weeks) definitely helped.

On Saturday crowds were really healthy and two late afternoon auctions in Boroondara were testament to this – 424 Auburn Road Hawthorn and 57 Broadway Camberwell – both conducted by James Tostevin (Marshall White).

The Broadway auction was one of the biggest we had seen numbers-wise – with well over 400 people in attendance. Thank goodness for the expanses of parkland across the road where the auction was conducted. The result? Solid. Sold under the hammer for $6.35m and on the market at $6.0m.

Some standout results –

The coming weeks look particularly healthy, and picking up the Weekly Review this morning reinforces this as there were 175 pages of advertised properties! How much further can this market go and is there an end in sight?  These are just some of the comments we are hearing out there.

With low interest rates, buyers still out numbering supply and a low Aussie dollar, those who are not prepared to pay a ‘street record’ for a home or a price they think is too much could be ‘searching’  for a little while longer yet.  The key is making sure it is the right property to avoid the need for an early re-sale, which could potentially be quite costly (both emotionally and financially).

Architecturally Speaking – Downsizers

This is a market that is gathering more and more momentum as people are living longer, healthier and retiring earlier. The large family home is too big now the children have left and hard to maintain properly.

We are finding the following points really important to this buyer groups.

On the buying side of things, it can be really hard as a downsizer in this market for the following reasons:

Auctions – it all sounds simple to just turn up at auction and bid to level and stop, but many people don’t do that or they haven’t anticipated what may happen and the best laid plans can turn pear-shaped quickly.

Value – what is the property really worth? Often in this market the vendor’s expectation do line up pretty close with the agent quote but that isn’t necessarily where the market is. It can be helpful to know, in advance, where other buyers see value on the property?

Access to off-market homes can be hard (many are sold at the end of rental periods and do not present overly well, but that can be easily fixed!).

Protection of Privacy – often a much higher property dollar-wise has been sold, therefore your financial position can be exposed.

Emotional support – this often is  a very stressful process, and spending time before the auction undertaking proper due diligence and formulating plans can be invaluable. A trusting relationship with an experienced and independent adviser through the whole process can make all the difference.

Auction Highlights:

57 Broadway, Camberwell (James & Hamish Tostevin, Marshall White), under hammer, $6,350,000, 4 bidders

A late afternoon auction, and there was a serious buzz at this property. Although quietly listed some months back, when we attended the first open there were huge numbers through and this was always going to be big auction, crowd-wise. Parking in Stanhope Grove about a hundred metres away was a clever move, as Broadway was gridlocked with so many cars and people it must have been frustrating for those who tried to park in position that on any other day would have been easy. Auctioneer James Tostevin (Marshall White) decided to conduct the auction in the park across the road – this was a smart move as this was the perfect setting for such a large crowd (well over 400 people). As the sun streamed through the autumn leaves, James opened the auction on vendor bid of $5.2m and it did take a bit to get going. At $5.65m and with the help of some good bidding by a few bidders, the auction stopped and the bid was referred. James and team returned a few minutes later and when the auction recommenced the property was announced on the market at $6.0m. It sold not long after for $6.35m. A result that was solid, but not huge, one has to say with four bidders in all fighting it out.

86 Park St, South Yarra (Andrew Macmillan, Jellis Craig), $3,500,000, 3 bidders

A quiet start, which saw auctioneer Andrew Macmillan table a vendor bid of $2,500,000 to prompt some genuine bidding. However the quiet start wasn’t indicative of the result, as three keen bidders took the price to $3,100,000 when the home was announced on the market. Some more bidding ensued before the hammer came down to a round of applause at $3,500,000.

6 Prentice St, Elsternwick (Bill Stavrakis, Biggin & Scott), under hammer, $1,670,000, 4 bidders

Quite a crowd gathered along Prentice Street to see Bill Stavrakis auction the pretty, renovated home at number 6. After a thorough preamble, to which Bill joked he had practiced all morning, he asked for an opening bid. All was quiet so he tabled a vendor bid of $1,450,000 to kickstart proceedings. And kickstart it he did! Bidder 1 came in at $1,500,000 and bidders 2 and 3 were quick to join the competition. At $1,600,000 Bill said “we are in the selling zone” before Bidder 4 jumped in and Bill headed inside to refer to his vendor. Back outside and the home was on the market at $1,655,000. Some more prompting from Bill, and some more bids from the crowd, and the home was bought for $1,670,000.

Agent Opinion: How is the market going for this time of year (i.e. Post Anzac Day) as opposed to the same time last year?

“Post Anzac Day, the market has continued to show terrific depth of buyers in most segments which is noticeably different from this time a year ago – in fact the dollar volume of property we’ve turned over at our firm is up by around 15% on the corresponding period last year. In particular the top end continues to show enormous strength and the number of substantial family homes we’re transacting both publicly and off-market in our markets of Stonnington, Boorondara and Bayside has been as busy as we’ve seen for some time (and perhaps ever!). Looking ahead we can see really good supply in May and into the first half of June and some great quality amongst those.”