Melbourne property micro markets: what is selling well?

The market is very quickly splitting into two – the good and the not-so-good. Prices are very quickly reflecting the two splits as well.

In any given week, you’ll read or hear stories about the ‘Melbourne property market’ travelling high or low – prices are going up, or maybe the boom is about to bust. But it is too hard to narrow the Melbourne property market into just one market.

There are a number of micro markets within Melbourne, all travelling at different paces. So what is selling well?

It still comes back to supply and demand. There are still more buyers wanting these three types of properties than there is supply available to buy:

  • Blue chip suburb, A grade land.
  • Ready to move into, fully renovated or new build family homes.
  • Single storey, independent but still easy to lock and leave homes.

Why are these properties holding strong, some even still rising, in a generally falling market?

The quality, single storey, well located home. They’re just not being built any more in volume. Whereas in the ’90s, they were commonly built by developers who were subdividing larger blocks into two, the profit margin is no longer there for builders who have turned their focus to larger developments such as apartments. Find one of these either ready to move into, or not requiring too much additional work (cosmetic only) within 500m of the shops and there are bound to be multiple downsizer buyers interested.

Turn key family homes. Previous generations had the luxury often for one partner to stay at home or work part-time, providing more time to manage larger projects, such as major renovations or a new build. As the market tightens up and interest rates increase, most vendors, unless circumstances require (eg divorce, career relocation etc) tend to bunker down and ride the wave, comfortable that their property is going to suit for a while to come. For those wanting/needing a larger home for their family, the one thing they can’t buy is time as their families grow. Finished homes, in reducing markets where building costs and interest rates are rising, provide more certainty regarding future costs as they don’t need (or require less) additional unquantified money on top of the purchase price.

Land. Over the past 20+ years , many blue chip suburbs (such as Toorak, Malvern and Brighton) have seen the older, original homes replaced with larger, more functional homes to suit modern families. A number of buyers are still looking for the option to build their ‘dream’ home in these locations; however, where there used to be an over-supply of older homes ready to be razed, the numbers are now in shorter supply, particularly as buyers become more aware of what constitutes a good property and why (such as orientation, width, slope, zoning etc). Buyers looking for this option are already prepared to spend large additional amounts of money on the build and often have a bit more flexibility within their budget to push further to secure the property, comfortable in the knowledge that these properties are starting to present less and less.

Examples this week alone include:

Land
5 Masefield Street Sandringham – on a quote of $2.2-2.4 million, one block in from the beach with a north rear sold for $3.05 million.

Downsizer
1 Judd Street Camberwell – on a quote of $2.2-2.4 million (increased to $2.3-2.45 million), single storey, own title on approx. 512sqm, easy walk to Camberwell junction – sold for $2.875 million.

Family home
23 Gray Street Brighton – good building volume in a great local area, sold in the $4 millions.

Should buyers wait for the market to ‘bottom out’?

If you can identify the bottom, maybe. But it’s only a good time to buy at the bottom of the market if the property you want to buy is actually for sale. Buying something just because it is cheap usually results in dissatisfaction because ultimately you’re probably buying something with too many compromises – but ‘hey … it’s cheap’!

In the more recent past, when there has been ‘bad news’ spruiked continuously over the news and in the papers, we have seen stock tighten even further with less homes hitting the net, resulting in less choice for buyers.

Certainly some vendors may want to sell and quickly, particularly if they are not going to be able to manage their mortgage if the interest rates rise significantly. But they still may not be selling the type of property you are after.

If the interest rates go up, say only ½ or 1 per cent, it may not have too much of an impact on the properties in the areas we are looking at. It may just mean one less meal out or one less takeaway per month for vendors.

Of course, if the interest rates go up, say, 2-3 percent over the next 12-24 months, it could be a different story!

We therefore default to our usual practice of helping our clients buy the right home first and foremost that ticks the key boxes they are aiming to achieve, ideally with a longer term hold in mind (at least five years) to weather any fluctuations in the market place.

Buying well can sometimes mean that a property can still increase in value, even if the general market is not.

 

Some of the better properties scheduled for Auction; an architect’s view

2 Kyarra Street Hampton – Jenny Dwyer/Sandra Michael, Belle Property

47 Guildford Road Surrey Hills – Tom Roberts/Carl Sacco, Nelson Alexander

2B Northbrook Avenue Malvern – Adam Cashmore/Ross Savas, Kay & Burton

 

‘Off-market’ Properties:

  • 2-storey family home, 5-3-2, good land, Glen Iris – circa $3.7m
  • Large Edwardian family home, Sackville Estate, Kew – circa $7.5m
  • Weatherboard single fronter, 3-1-1, Glen Iris – circa $1.6m
  • Single level Victorian, looking for updates, Malvern East – circa $3m
  • Partially updated double fronter, Malvern – circa high $2ms
  • Victorian single fronter, 2-1, potential OSP, Armadale – circa $1.7m
  • 2-storey Victorian terrace, 3-2-0, South Yarra, circa $1.9m
  • Pretty, renovated double fronted Victorian, Prahran – circa 1.65m
  • Period family home, in McKinnon Sec zone, Ormond – circa $2.4m
  • Family home, partially renovated, close to beach, Mentone – circa $2.4m
  • Renovated family home, Bay views, Brighton – circa $7m+
  • Modern family home, close to amenities, Brighton – circa $7.5m
  • Brick single fronter, 3-2-1, dated extension, Albert Park – circa $2.6m

 

Auction Spotlight:
24 Glendearg Grove Malvern

John Morrisby heads up the Jellis Craig team at the auction of 24 Glendearg Grove 

Under a group of umbrellas a reasonable crowd looked on to watch this auction.

What was on offer was at home with wonderful bones, a lovely period facade and a preferred western orientation in one of Malvern’s better streets.

Auctioneer John Morrisby open the auction at $3.2 million and it didn’t take long for buyers to enter the fray.

Property ended up selling for $3.4 million. Pretty good value this, however, in the current climate when renovation works are not favourable with the general public, it probably makes sense.

 

Summer Sales Wrap

With the clearance rate hovering around the 70% mark on good auction numbers (over 1,000), the Melbourne property market is still holding firm. There has been a lot of talk about how rising interest rates will affect and bring down market values significantly – however, within the markets we work in and the buyers we represent, we don’t see that happening – at least not yet.

We do concur that bidder numbers, auctions and attendance numbers at open for inspections have dropped since the end of 2021.  The numbers in 2021 were unprecedented and the current market feels more ‘normal’ to us, with the frenetic activity we witnessed last year less likely to be repeated.

We have noticed a number of vendors believe (or would like to believe) that the market is still continuing to rise on a weekly basis, however, we also note many of the vendors of this opinion, currently remain home owners awaiting a sale.

Having said that, there have been some very solid results occurring across town.  Some of the more recent sales of great family homes and ‘A’ grade land include:

Some of these include:

  • 17 McKinley Avenue, Malvern – renovated family home high $5millions
  • 12 Soudan Street, Malvern – renovated family home circa $6million
  • 28 Deakin Street North, Hampton – approx. 427sqm, corner block, $5,304sqm
  • 17 Carew Street, Sandringham – only 429sqm approx., selling for an historic high square metre rate of $5,855 for the area

The good quality land and ‘ready to move into’ family homes are still few and far between, resulting in strong competition if priced correctly.

The properties that are struggling a bit more appear to be the homes requiring work, where they are too good to knock down, but no longer practical for current living.

With renovations and building costs escalating more recently, this has been creating quite a lot of angst and confusion for buyers.

Why do we think costs are escalating?  Declining numbers in the workforce, delays due to natural disasters here in Australia (the floods have affected transportation of materials and equipment), escalating material costs due to reduced shipping (i.e. a lot of timber and other building supplies come from overseas) and a real shortage in appliances are amongst some of the reasons. A simple ‘volume build’ house that used to take six months – can now take twelve months or more.

For a long time, we have supported buying a ‘B’ grader that could turn into an ‘A’ grader with a few tweaks or simple renovation, as a good way to enter and get ahead in the Melbourne property market. We still believe that is a good plan, IF you are prepared to live patiently in the house (possibly 2-3 years) until you can find a good builder who can start the work and you have a good understanding of the potential costs of the works to be done.

Two properties that recently failed to sell at auction that are good example of ‘B’ graders that could become ‘A’ graders are 14 Valley View Road, Glen Iris and 7 Finlayson Street, Malvern. Both have the strength of a period façade, supported by reasonable land content, however, they are both dated inside. We think these and homes like these can provide opportunities for buyers, however, the decision needs to be properly thought through and thoroughly researched.

Looking forward, post Easter and school holidays, May is normally a very strong time in the Melbourne market, however, with the upcoming federal auction we may see a pause or slowdown until buyers and sellers are confident they know where the country is heading.

Depending on the outcome, there could be a few solid weeks of listings and auctions, however, June is broken up again with the Queen’s Birthday long weekend, followed by the mid-year school holidays which commence again on June 24th.  We could see quite a stop/start period coming up, keeping some confusion or uncertainty for all parties navigating the market.

Off markets? We are hearing increasing numbers of homes around quietly for sale and whilst some can be good opportunities, many are overpriced and/or not really for sale and a lot of time can be spent chasing something that was never available in the first place.

There is an element of romance for buyers who relish in the chance to say they bought an ‘off market’ home.   Most are really old-fashioned ‘private sales’ without the media advertising or board, just with a ‘fancy name’ to make it sound more appealing.

We say, buying the right home (regardless of the method of sale) is always a better decision.

 

A ‘B’ Grader looking to be turned into an ‘A’ Grader; an architect’s view & concept

14 Valley View Road, Glen Iris – John Morrisby/Bree Scott, Jellis Craig

 

‘Off market’ or ‘pre-campaign’ Properties:

  • Lower maintenance downsizer property, great location to amenities, Sandringham – circa $4m+
  • Period home with Heritage Overlay requiring renovation, ~800sqm, Brighton – circa high $4m
  • Beach Road luxury townhouse, 4-3-3 with basement, Sandringham – circa $3.7m
  • Single level downsizer, walk to amenities, Brighton – circa mid $2m
  • New home site, near Golden Mile, ~680sqm – circa $5m
  • Large modern family home, walk to schools/shops – circa $7m+
  • Renovated period family home on approx. 600sqm, Malvern East – circa high $2m
  • Pretty, renovated single fronted 3 bed home with OSP, Prahran – circa $2m
  • Updated period home, 3-2-2, close to amenities, Armadale – circa $4m+
  • Townhouse style standalone home, near Central Park, Malvern East – circa $3m
  • Double fronted Victorian, 4-3-2, Armadale – circa high $4m
  • Luxury home with multitude of mod-cons, 3-3-2, Prahran – circa $3.5m
  • Two storey terrace home, 3-4 beds, Middle Park – circa $3.4m
  • 1930s large family home on over 1,000sqm, Kew – circa $6m+
  • Single level family home on over 700sqm, Glen Iris – circa $2.7m

 

Bidder numbers thinning out but market still solid

With about six ‘auction’ weeks now completed in 2022, the Melbourne property market has performed well. Clearance rates are circling the 70% mark, with solid numbers of around 1000 properties up for sale each week. That said, it does seem to us that the ‘steam’ we witnessed back in October / November has come off; whereas then there may have been 4-5 bidders at or above the sellers level, now there seems to be 1-2. If you were a seller during that time, we believe you picked your timing well. Price quoting? We feel the ranges are tighter now and selling results are more commonly in line with or just above the top of the quote, whereas this wasn’t the case in late 2021. Perhaps recent industry and government commentary on underquoting may have had an effect also.

This is causing some properties to fall between the cracks and sell at a level that, on reflection, some would say is really good buying – “gee, I wished I turned up for that”.

Having a plan as a buyer and a good understanding of what you are buying within a local context is really important.

Best performed properties by far are the quality new or really well renovated or presented ones, where buyers can move in straight away and get on with life.

3 Parkside Street Malvern and 2 Ardoyne Street Black Rock represent good examples of this, selling for record highs in the last week or so. The top end is healthy also, with a few sales well over $15m taking place. There is money still around, no doubt about that. With some ‘big’ properties coming on the market publicly over recent days in metro, regional and peninsula Melbourne, vendors no doubt have some confidence.

The properties that do seem to be suffering are the dated or poorly maintained ones and the high current cost of renovations and building work has significantly discouraged many buyers. Supply of materials, fittings and fixtures has been delayed over recent months due to the pandemic and also environmental issues. Most architects and engineers we talk to are quite busy, yet builders are stretched with staff resources and, in many cases, not taking on any more work for 2022. As a buyer, if you can buy one of these and be prepared to live in it as-is for the short-to-mid term, you could do very well. Many of these properties continue to be offered off-market or listed quietly.

Numbers at open for inspections have been ok – certainly not the crazy numbers seen pre-pandemic and also during the time when limits through the property where restricted and queues formed. One could say numbers currently are ‘normal’. Agents and buyers alike would be content now that a normal rhythm is in play.

The next six weeks (taking us up to Easter/ Anzac Day) will be another good test for the market, with good supply coming on and buyers having good choice.

Looking toward the longer term, with both federal and state elections set to take place this year, the months preceding them could see another period of not much happening publicly and with tight stock levels. We could see June/July quiet like it once traditionally was, as winter kicks in and families plan holidays, although the overseas variety may still not be as it was pre-pandemic. As a buyer there is some choice now, but that may not be the case in the latter part of 2022. With borders opening and more expats coming home and internationals wanting to call Australia home, demand could outweigh supply.

 

Some of the better properties on the market; an architect’s view

21 Cawkwell Street Malvern – Kevin O’Brien/Dawn Meyer, Jellis Craig

48 Ludstone Street Hampton – Richard Slade/Misty White, Buxton

 

‘Off-market’ Properties:

  • Victorian single fronter, 2-1-0, north rear, Prahran – circa $1.25m
  • Period home needing renovation, north rear, approx 740sqm Malvern East – circa $3.8m
  • Renovated Californian Bungalow, pool, north rear, Malvern East – circa $4m
  • Semi attached art deco, approx. 410sqm, north rear, Malvern East – circa $1.6m
  • Renovated Victorian double fronter, approx. 380sqm, Armadale – high $3ms
  • Contemporary TH, 3-2-2, approx. 210sqm, Prahran – circa $2.1m
  • Two storey attached TH, 3-2.5-1, renovated, Prahran – circa $1.4m
  • Renovated family home, approx. 1,200sqm, pool, basement, Kew – circa $7.5m
  • New home site, approx. 640sqm, east rear, Glen Iris – circa $1.75m
  • 4-5 bed townhouse w pool, walk to amenities, Sandringham – high $2ms
  • Two storey 80s home, approx. 760sqm, west rear, Brighton East – circa $3m
  • Golden mil penthouse, 3-3-2 w. rooftop, Brighton – circa $5.2m
  • Semi attached bungalow, updated, 3-2-2, approx. 300sqm, Elwood – circa $2m+

 

Auction Spotlights:

62 Central Park Road Malvern East

Kevin O’Brien had a good crowd but was made to work hard at 62 Central Park Road.

 

One of the few prime positions facing Central Park, although at the cost of a south rear. 62 Central Park Road Malvern East delivers a pretty brick single level Edwardian, more than comfortable in its current state while offering opportunity to improve over time.  The rear garden could be considered a little tight for some families, although there is of course ample parklands for play across the road.  The quote was raised during the campaign due to the level of interest from $5.0-5.5m to $5.35-5.885m.

A decent crowd spread around the front garden and verandah as Kevin O’Brien represented Jellis Craig to call the auction. As happens at so many auctions, he was met with silence after the preamble, eventually placing a vendor bid of $5.5m to start proceedings.  One bidder emerged but lacked competition to get the ball moving. Following a short break, Kevin was back out and successfully coaxed a second bidder from the crowd.  Back and forth bids now swiftly raised the offer to $5.85m. At this point bidder two asked if the home was on the market and after a quick check with the vendors it was announced to be. Bidder two hesitantly placed another bid followed confidently by bidder one.  He remained the successful purchaser for $5.89m.

 

368 Glenferrie Road Malvern

Justin Long heads up the Marshall White team at the auction of 368 Glenferrie Road Malvern

 

Lovely original brick dwelling in Malvern within a heritage overlay, and a good crowd of around 40 people turned out to watch this auction.

Auctioneer Justin Long opened with lowish vendor bid of $3.9m which after some time was advanced by a $50,000 increase from bidder 1..

Not long after bidder 2 joined in, and the auction was away. Along came bidder 3 several hundred thousand on and bidder 1 was out.

Property was announced on the market at around the $4.5m mark, and while it looked like bidder 2 had won the day in came bidder 4 who eventually bought the home at $4.665m.

Good result for buyer and vendor alike here and campaign was well run by Fraser Cahill and Richard MacKinnon.

2021: a year in review

2021 has been one of the fastest moving years we have experienced in real estate. It wasn’t just a fast rise in the property prices; the entire process was fast.

Many properties were selling within the first week of inspections, some on the first day if contracts were available. A number of them didn’t even make it to advertising. Who would have thought so many people would be prepared to buy, sight unseen, what is arguably the largest purchase of their lives.

Zoom auctions dominated and they were seven days (evenings if mid-week) a week.

Buyers needed to be ready to buy before they had even seen the property if they wanted to maximise their chances of buying.

With private inspections dominating the second half of the year, agents found themselves spending sometimes six-plus hours at a property offering 10-15 minute private inspections back to back.

Quotes were a topic of discussion again.

Buyers started to discover that very few quotes were relevant. Many were merely marketing to get buyers through the door, and the end result was so far removed from the quote it could have been for an entirely different property.

A level of panic buying set in and, regardless of value, some buyers, if they had deep pockets, were prepared to spend it all. For some lucky vendors (particularly those who had already bought), the gains were equivalent to a first division lottery win.

We found stock remained relatively low all year. One could argue that there were a lot of properties on the market. There were if you were wanting apartments and townhouses; however, good quality family homes were few and far between. We think this is a trend that will continue into 2022.

Although the market was good for sellers, sellers usually became buyers and many were nervous to sell if they hadn’t already purchased their next place.

There was a slight shift in December. Finally, most Victorians were free to catch up with family and friends, head away on holidays and shop for Christmas.

Some buyers decided to press pause until 2022. At the same time, some vendors decided their properties had gone up an additional 10% (or more in some cases) than the week before!

All of a sudden, the 80% and 90% clearance rates we had experienced for most of the year lowered, coinciding with the reduction in the number of ‘hot bidders’ on properties. Where it had been common to see four or five bidders with strong bidding capacity, there were now only one or two parties.

Do we think this means the market is dropping? No, at least not for the homes we buy – those being homes with good fundamentals in convenient lifestyle locations for our clients to live in.

Steadying? Perhaps.

The property market historically has never continued to rise indefinitely without some correction; however, as more new apartments and townhouses are being built there are less traditional homes left.

A new year means time for new plans and more often results in fresh buyers entering the market.

Even with the tightening by lenders and possible interest rate rises expected in 2022, the combination of additional Australians returning from overseas posts, vendors holding their homes longer and the number of families wanting to buy long-term properties, are likely to result in some properties still outperforming the market.

However the market returns in 2022, we are hopeful that next year won’t be interrupted by lockdowns and the normal four-term cycle will resume providing some structure and stability for the upcoming year.

Wishing everyone a wonderful holiday period with their families, a Merry Christmas (for those who will be celebrating) and a safe and happy New Year.

Market again on hold but strong results prevail for good properties

The rollercoaster continues for the Melbourne property market.

Buyer demand remains strong and outweighs market supply.

Interest rates remain low, job security for the majority remains positive. Household saving amounts continue to build for some.

Clearance rates have been reported as high over recent weeks, with some big results selling well above the top of quoted range:

  • 14 Kanowna Street Hampton – modern two-storey home – $4.775m
  • 38 Manning Road Malvern East – $4.716m – two-storey home, undisclosed in the mid-to-high $4ms
  • 5 Kooyongkoot Road Hawthorn – basic home on 541sqm, undisclosed, in the high $3ms
  • 93 Sandringham Road Sandringham – renovated single-storey weatherboard, 563sqm – $2.93m
  • 25 Hume Street Armadale – Neil Clerehen designed home, undisclosed in the low $4ms
  • 28 Stanley Street Canterbury – land 753sqm, west rear, undisclosed in the low $4ms
  • 9 Dixon Street Malvern – modern two-storey home, a little dated, mid $4.5ms
  • 21 Alexandra Street South Yarra – undisclosed, almost $3m

As independent buyer advocates, we are constantly asked what is happening and what is about to happen.

Due to Government Lockdown Restrictions in Victoria, the only attendance currently allowed at properties are those (such as a final inspections) legally required to facilitate a move in or out of a sold or tenanted property.

This is in variance with other states, notably NSW where one-on-one inspections can take place. Many agents and industry bodies in Victoria are calling for this. We will have to wait and see what transpires on that front.

In the meantime, any potential properties coming up for sale can only be appraised and inspected virtually, assuming there is a vendor or tenant living in the property to facilitate a home walkthrough via Facetime, Zoom or a similar platform.

Other preparation required for a sale such as photography, copy and staging (unless in place prior to 5th August), is also on hold and cannot be undertaken during the lockdown.

Whilst this is no doubt terribly frustrating for some buyers and sellers (particularly those with a more pressing need to buy/sell), unlike other industries where transactions and sales may be lost, the property market goes into a form of ‘hibernation’ and when it re-opens picks up where it left off.

Vendors and buyers should be confident that this is the case, as we find it difficult to believe there are many buyers out there willing to transact hundreds of thousands of dollars or millions of dollars, to buy something sight unseen when there are so many things that can go wrong.

Many properties that were listed pre the recent lockdown and had a handful of inspections, have had an opportunity to sell either privately or via auction virtually (ie through Zoom or similar online portals) on or before the scheduled auction dates, if the agent and/or vendor felt there were good enough interest levels.

Those that have not yet sold are possibly because they have not had enough market exposure (ie limited inspections/limited interest) or unrealistic vendor expectation.

We are expecting more properties to come to market as Melbourne reopens, although it could take a week or so for advertising to take effect, given the lag time between opening and getting homes photographed and staged.

A number of properties may sell quickly and quietly during this time. Being ready and ‘buy fit’ will ensure you don’t miss an opportunity if the ideal property is available.

As to the future? It’s hard to predict, of course, however, we are hearing talk of:

  • shorter auction campaigns (possibly only a week or two, rather than three) and an increase in the number of open times within the shorter time frame. At this stage, it appears auctions will still the preferred choice of sale. The benefit for buyers is this process offers greater transparency and, for vendors, the buyer cannot cool off.
  • more off-market opportunities.
  • more private sales rather than auctions.

If we don’t open up for some time, will we see more virtual inspections offered and purchased without a physical inspection? We think this will be less likely to gain traction.

As one of the biggest purchases people make in their lives, this could be an extremely risky and expensive decision if you get it wrong. Consider:

  • How can the true sense of light and space be experienced?
  • Will overlooking windows from adjoining properties be shown?
  • What about senses of smell – how could you tell if dampness/mould was an issue?
  • Then of course there is also the gut feel or ‘feel’ factor, which most would acknowledge is critical in the purchasing process.

If you would like help to be in a winning position when Victoria reopens, let us show you our tried and tested purchase framework which makes sure you stay ahead of the market so you can buy your ideal property.

Winter selling. Why not?

It has been an uncommon mid-year/school holiday break.

Where the property market normally shuts down, it has continued throughout this winter break to allow for interrupted campaigns to conclude (as a result of our last lockdown).  In addition, we have also seen new listings popping up on the net daily, rather than waiting for holiday makers to return from their winter getaways.

Some trends have continued, others have picked up and we have seen some new ones emerging:

  • Generational and lifestyle homes are continuing to attract strong interest from multiple parties prepared to pay new record prices for the prize.
  • Single vendor one bedroom apartment blocks are becoming common on the real estate sales websites.
  • A good number of properties generally for sale (including family homes) on the real estate sites at the moment. It feels like far more than normal for this time of year and yet at one auction on the weekend, the auctioneer mentioned ‘there won’t be any choice for buyers until Spring (which isn’t too far away now), so buy now.’
  • We are also starting to see an increase in the number of two-bedroom units and apartments for sale (many of them ‘off market’), as more landlords are required to update properties to meet minimum rental standards, and many tenants are opting for larger properties to rent, as working from home becomes the new norm.
  • Very strong market demand for single level renovated period homes (ie 24 Kerferd Street Malvern East, 50 Wattle Valley Road Canterbury, which sold recently for very strong prices well in excess of $5m).

One trend, which may have been more understandable and forgivable earlier in the year before the market’s sudden rise, is the number of properties being advertised without any, or with irrelevant, comparable properties and what seems to be a low quote.

The number of homes sold over the past six months has been solid and we think (for most properties) there should be more than enough relevant sales to provide a reliable SOI. As an example, a small, three bedroom unit in Ormond quoted $800-880,000 sold very competitively for $1,156,000 last weekend – almost 45% above the bottom of the quote. There were five buyers of $1,000,000 and three over $1,100,000.

Interestingly, we don’t seem to have the same difficulty when preparing and providing our price analysis for clients.

All too often we hear ‘the vendor is a seller in the range’ which leaves us wondering whether they are receiving the right advice from their agents or underselling themselves.

There’s no excuse anymore. Buyers should expect to see more accurate quotes for the second half of the year. That said, they should always be prepared to do their own independent research.

We are also noticing a trend, post each lockdown, where frustration levels from both buyers and sellers are increasing, along with some ‘Covid fatigue’ which we think is affecting some decision-making processes.

So it’s all great for sellers? Well not really … where things can go wrong for vendors is if they overrate the home that they have within the current marketplace. The difference between an A grade property and a C grade one is considerable, and buyers are becoming more aware of this as they become more educated within the marketplace.

The costs for a mistake both emotionally and financially can be substantial, and life is too short (we think) to live in a dark, miserable home.

Finally, it will be interesting to see whether the extended lockdown in NSW, including the shut down of the real estate market, influences the decisions for overseas buyers wishing to return to Australia by diverting their focus to Melbourne and therefore adding to the buyer demand. And when the world does return back to some form of ‘normal’ life in the coming years, will the popularity of a safer island country go from strength to strength?

 

Some of the better properties on the market; an architect’s view

34 Stirling Street KewNicholas Franzmann/Nikki van Gulick, Marshall White

19 Pellew Street SandringhamLana Samuels/Marty Fox, Whitefox

                                                                                     

‘Off-market’ Properties:

  • Victorian family home, approx. 800sqm, Hawthorn – circa $5.5m
  • Family sized Californian Bungalow on good land, Camberwell – circa mid $4m
  • Extended semi-attached Art Deco, Prahran – circa $2m
  • Renovated Victorian home on over 900sqm, Hawthorn – circa $9m
  • 70s style home on approx. 540sqm, Camberwell – circa $3.25m
  • Updated single level Edwardian, Armadale – circa $4m
  • 1930s family home on good land, north rear, Armadale – circa mid $7m
  • Edwardian single storey home, approx. 350sqm, Hawthorn East – circa $2.2m
  • Single level Edwardian, approx. 560sqm, Malvern – circa mid $4m
  • Well renovated, 4 bed, Californian Bungalow, Malvern – circa mid $5m
  • Block of 12 one-bed apartments, approx. 705sqm, Armadale – circa $6m
  • Renovated double fronted Victorian, Windsor – circa $2.4m
  • Golden Mile Edwardian duplex, approx. 490sqm, Brighton – circa high $2m
  • Renovated Edwardian, approx. 900sqm, Brighton – circa $8m
  • Family home with good land, Hampton – circa mid $4m
  • Large modern family home, walk to amenities, Sandringham – circa $5m
  • 1920s with modern renovation/extension, over 900sqm, Aberfeldie – circa mid $4m
  • Fully renovated Victorian, over 600sqm, Essendon – circa mid $3m

 

Auction Spotlight:

Nick Johnstone working the crowd at the successful auction of 18 Champion Street Brighton

 

The single level home at 18 Champion Street Brighton has been renovated and is well oriented to maximise light.  The size of the secondary bedrooms may have held back families with growing children, so the home was possibly more suited to the downsizer market looking for a comfortable move in option, where the grandkids can still visit. The home was quoted $2.6-2.85m.  An opening bid of $2.8m started the auction with two bidders swiftly bringing offers up to $2.9m, where bidder one started to show some hesitancy. Without stopping proceedings, instructions were sought by an agent and the home was called on the market at $2.985m. While both buyers clearly wanted the keys, bidder two showed strength and confidence, outlasting the opposition and securing the property for only a small amount more.

Are things the same or are they different?

So much is the same, and yet many things are now different and could have an impact on the future direction of the property market:

  • Some banks have started to increase their fixed term interest rates.
  • Increases in stamp duty coming into effect (yet to be approved by the Victorian Parliament).
  • Increases in land tax coming into effect (yet to be approved by the Victorian Parliament).
  • Future building work costs are likely to increase due to a shortage of materials, skilled tradespeople and labourers.
  • Changes to the Residential Tenancy Act are now in place.

The second quarter results have been solid, with strong clearance rates consistently over 80%. There are some continued unexpectedly strong results: some compared to the quotes, which are often still based on 2020 comparable properties, and others where buyers have decided they’ve had enough and are prepared to spend more to get off the merry-go-round of inspections and auctions.

Current trends:

  • The finished product is still in high demand – stock levels remain low and many buyers don’t have the time, skill or inclination to tackle renovations.
  • Some homes are seeing fewer inspection numbers. Is this because there are fewer buyers, some quotes are more accurate or are some properties just not in demand?
  • Apartment blocks (one owner of the land and all the apartments) seem to be coming up for sale on a weekly basis at the moment; for example 37 Hope Street South Yarra (17 one-bedroom apartments) had been in the one family since 1986. Sitting on approx. 462sqm, it had flexibility for buyers as a new home site, boutique apartment or to update it as it is. Quoted $5.5-6m, it sold in excess of $6.6m at a mid-week auction.
  • Off market properties are increasing, particularly for homes that have been rented for a period of time and are needing work.
  • Many properties are selling before the scheduled auction date, although the majority of these are still competitive (often just bringing the auction date forward).
  • Some vendors have raised their expectations above current market prices.
  • Quotes are more confusing than ever for buyers – some are now very accurate and some are still absurdly low and buyers can be missing opportunities because they are relying on the quote too much to make decisions.
  • Many vendors have decided to hold off selling because they’re not sure what they can buy.
  • There are also a number of agents who have said they already having listings for Spring – if supply increases, this could further temper the current.
  • Some homes (usually the move-in nothing-to-do homes) are still attracting four, five or more bidders, while others are now seeing only one or two. As buyers for these homes thin, the clearance rate may start to drop as more homes have the potential to pass in if the reserves are not met.

What does all this mean for buyers still wanting to buy? We think it could create a little more uncertainty generally. Price increases are likely slow down and current levels will become the new normal. Methods of sale, away from auction, particularly for poorly presented homes, may increase.

When do we think these changes may become more noticeable? Probably after the mid-year holiday break. Most schools will have two or three weeks holiday across late June/July and historically agents have taken the opportunity to recharge before the Spring market returns.

Although, perhaps like Easter, there may not be a definitive break and auctions will continue across the holidays.

Highlights:

  • 9 Margarita Street Hampton – Jenny Dwyer/Steve Tickell (Belle Property) – renovated period home with pool, good street, approx. 770sqm, west rear, quoted $4.2-4.5m, sold for $5,050,000.
  • 11 Kingsley Street Camberwell – Campbell Ward/Cameron Edgoose (MarshallWhite) – single storey (comfortable but could be further improved) period home with pool, approx. 710sqm east rear, quoted $2.9-3.1m, sold for an undisclosed amount circa $4m.
  • 6 Gray Court Beaumaris – Campbell Cooney/Greg Ward (Hodges) – approx. 994sqm, south rear, large family home (circa 2000 in pretty original condition), quote $2.6-2.86m, sold for $3.36m.
  • 48 Kerferd Street Malvern East – John Morrisby/Sarah Sharp (JellisCraig) – approx. 682sqm, period home ready for next renovation/extension, quoted $2.6-2.86m, sold for an undisclosed amount over $3.8m.
  • 16 Cavendish Place Brighton – Chris Hassall/Todd Dixon (Buxton) – approx. 602sqm, solid brick, circa ’70/’80s home in original condition, ready for renovation or rebuild. Quoted $2.0-2.1m, sold for an undisclosed amount over $2.65m.

 

 

Some of the better properties scheduled for Auction the first weekend of June; an architect’s view

23 Gladstone Parade Elsternwick – Bill Stavrakis/Angelos Stefanis, Biggin & Scott

33 Dorrington Avenue Glen Iris – Hamish Tostevin/Justin Krongold, Marshall White

 

‘Off-market’ Properties:

  • Family home, weatherboard, approx. 690sqm, Beaumaris – circa $2.2m
  • Brick single fronter, 2-1-1, approx. 170sqm, East Melbourne – circa mid $2m
  • Two storey terrace, 3-2-1, busier road, East Melbourne – circa high $1m
  • Single level, 5-bed family home, ~960sqm, Brighton East – circa $4.4m
  • Edwardian family home, single level, pool, Malvern East – circa early $4m
  • Gascoigne Estate, Federation home, ~540sqm, Malvern East – circa mid $5m
  • Single level Victorian, approx. 930sqm, Toorak – circa mid $8m
  • Fully renovated family home w court & pool, ~1860sqm, Hawthorn – circa $14m
  • Corner land site, approx. 657sqm, Camberwell – circa mid $2m
  • Victorian single fronter, scope to improve, ~120sqm, Prahran – circa $1.3m
  • Period home needing major reno, Heritage overlay, Glen Iris – circa high $1m
  • Edwardian brick single fronter, approx. 306sqm, Caulfield North – circa $1.7m
  • Double fronted cottage, approx. 233sqm, Richmond – circa early $2m

 

Auction Spotlight:

Chris Hassall in action at the successful sale of 16 Cavendish Place Brighton

 

16 Cavendish Place Brighton attracted a large crowd, who were here perhaps not only for the coffee van, but also the opportunities on offer for this original, yet neatly presented, ’70/’80s solid brick home. The property is ready for an update or potential rebuild on the approximately 602sqm of east rear land. Commercial properties along the north boundary could have held back potential buyers, but the numbers on auction day seemed to show differently. Perhaps the flexibility of the office space or potential self-contained unit at the front of the home enticed a broader range of buyers. The property had been quoted $2.0-2.1m. With the crowd spread far and wide on both sides of the street, the opening offer of $2.5m surprised many and immediately put the property on the market. Four further bidders joined proceedings swiftly, before most stepped out again almost as quickly. The final two continued to push for the keys, with the home eventually selling for an undisclosed amount over $2.65m.

Traditional buying seasons blurred as market remains hot

It has been an interesting two weeks. For the first time since we can remember, we have attended auctions on the middle and last weekend of the ‘Easter’ holidays, as well as a number of new campaigns showing their first inspection at the start of the holidays, rather than the end.

For those who may be less familiar, the Melbourne market is usually broken into four quarters, defined by the school holidays. But this year that seems to have been put aside and, while auction numbers were lower than the last couple of weeks in March, they were considerably higher than we would normally expect. 

According to the REIV, this weekend had 907 auctions reported, with a clearance rate of 86%.  Compare this to the same weekend last year, with only 149 auctions held and you can clearly see the change in holiday activity.

With May this year featuring five Saturdays, the auction selling system for sellers is well catered for. At the end of this period, we should get a good understanding of where things are at. 

Selling a home can be expensive (advertising, staging, storing of furniture etc). In the past, agents and vendors have been reluctant to auction properties or commence new campaigns while much of their target market is on holidays. It appears that this year, the agents were either confident that no one was going away or there were enough buyers around that even if some were away there were enough remaining to create a competitive marketplace.

After attending some of the first opens and auctions (with inclement weather), we can confirm that this was correct. Many properties had large crowds and/or queues to inspect.

Buyer numbers are still increasing.  Two main reasons why (we think) are:

A number of local residents are coming to the realisation that even if they don’t want to work from home, it may be forced upon them. With a number of larger corporations restructuring or making plans to sub-let their floorspace, employees who were working from home in makeshift spaces (ie bedrooms, kitchen benches or tables etc.) are realising they are going to need a bigger/more functional home as the changes become permanent.

Expats coming back need somewhere to live. Australia is becoming increasingly desirable as other countries battle to get the virus under control. For those who have been living overseas, sometimes for 10 years or more, they are now returning to Australia, often with partners and/or extra children and often with deeper pockets.

Most property inspections we are attending feel more like a party line-up than a home inspection. The streets are lined with parked cars and there are queues (prior to the open time) of people waiting to get in the door.

Many buyers are making decisions out of fear and believe that buying something is better than buying nothing. Money is still ‘cheap’ and looks to remain that way for the foreseeable future. Unless history changes, however, rising markets (at some stage) come to an end and in the event things don’t turn out as planned, buying the wrong property now may cost more than waiting for the right one to come along in the future. 

 

Some of the better properties scheduled for Auction on 8 May; an architect’s view

48 Kerferd Street, Malvern East – John Morrisby/Sarah Sharp, Jellis Craig

1 Wolseley Grove, Brighton – Nick Renna/Andre O’Brien, Jellis Craig

 

‘Off-market’ Properties:

  • Townhouse, renovated, central South Yarra – circa $2.25m
  • Victorian family home on approx. 630sqm, Hawthorn – circa $3.5m
  • Large, renovated, Art Deco on good land, Elwood – mid $4m
  • Californian Bungalow on over 750sqm, north rear, Glen Iris – circa $2m
  • Contemporary home, approx. 1,200sqm, Hawthorn – circa $9.0m
  • Victorian home w. 2 studios at rear, pool, Balaclava – circa $2.4m
  • 2 bed Townhouse with north courtyard, Ripponlea – circa $1.2m
  • Family home in the Castlefield Estate, Hampton – circa mid $2m
  • Contemporary family home, pool, Hampton – circa $3m
  • Updated townhouse, 3-2-1, Windsor – circa $1.3m
  • Single level 3 bed home, prime Brighton East – circa $3.4m
  • Modern family home, tennis court & pool, ~1,300sqm, Surrey Hills – circa $5.3m
  • Development opportunity, Activity Centre, dual access, Highett – circa $1.65m
  • Double fronted Victorian on approx. 400sqm, Prahran – circa $2.85m
  • Californian Bungalow, heading work, over 950sqm, Hampton – circa $3m
  • Large family home, 3 levels, pool, Brighton East – circa $6m
  • Modern family home, very close to beach, Sandringham – circa $4.5m
  • Edwardian home on approx. 1,300sqm, tennis court & pool, Brighton – circa $12m

 

Auction Spotlight:

Matthew Pillios in full flight during the auction of 2 Killeen Avenue Brighton East

 

Immaculately renovated and presented, the single level home at 2 Killeen Avenue Brighton East was always going to be an attractive option for downsizers. Proximity to St Leonard’s College would also bring in smaller families. While Matthew Pillios from Marshall White had plenty of location benefits to talk about, the crowd was hesitant to start things off. After placing a vendor bid of $2.0m, it took some time for a bidder to offer $2.025m. More silence led to a lengthy ‘half-time’ break.  The vendors were clearly hoping for more (the home had been advertised at $1.95-2.1m), but no further bids were forthcoming.  The property was passed in, later selling for $2.265m. A good result for the seller we feel.

 

 

 

Melbourne property market: hot or not?

The Melbourne property market over recent weeks has been particularly strong. We believe one of the reasons is that there is still a great demand and urgency from property buyers to buy, for many reasons: fear of missing out, having a greater appreciation/need of living at home, greater savings and not having much to spend on…. the list goes on. There is a lot of talk out there about there not being enough supply. We feel that supply is not necessarily just the issue but also the high demand from buyers.

Some other key observations:

  • Bank loans are taking longer to process due to resourcing issues.
  • Many people that bought in regional/Peninsula areas are possibly starting to question that move. As employers demand more people return to the office in person, some people are finding the extra travel onerous.
  • While there will be a slight pause for Easter and school holidays, May is looking to be a particularly busy month (there are five Saturdays). With such a good steady run of selling opportunities, will this flush out a lot of the demand? By the end of May, we should know where the market is really standing.

All of the above is predicated on Melbourne not experiencing any significant future Covid-related interruptions.

As you might have read in the media, there have been some very strong results in the past few weeks.

Many homes have sold before auction, more often still with competition. There are some properties out there, however, that have struggled or failed to attract buyers.

As a general rule when out and about, many buyers have decided a good strategy is just add 10-20% to the quote and you’ll be about right.

That is one strategy, but what if the quote is accurate already? Do you add 20% and then make an offer? You could be the only buyer at this level and well above everyone else – or possibly on your own.

While the market is still positive, if vendors don’t get the quote right, or, more importantly, if their expectations are not in line with the market, then they may not see a positive result for their home. For example, here are some pass-ins from last weekend:

  • 16 Mountview Road Malvern – quoted $4.65-5.1m and passed in VB $4.65m
  • 24 Anderson Street Malvern East – quoted $3.8-4.1m and passed in for $4.055m
  • 22 Warley Road Malvern East – quoted $3.25-3.5m and passed in for $3.26m
  • 6 Lileura Avenue Beaumaris – quoted $2.3-2.5m and passed in for $2.42m
  • 20 Benson Street Surrey Hills – quoted $2.6-2.75m and passed in VB $2.6m
  • 20 Fairmont Avenue Camberwell – quoted $2.5-2.75m and passed in for $2.61m
  • 130 Sackville Street Kew – quoted $4.7-4.9m then reduced to $4.5m and passed in for $4.59m

For the type of properties these were, in the context of ‘their’ market, these results did not necessarily surprise us. Vendors need to know how their property fits into the market.  Just because a house around the corner achieved a certain price, it doesn’t necessarily mean that nearby houses will fetch the same.

There were also some very big sales over the last week:

  • 107 Prospect Hill Road Camberwell – quoted $2.7-2.9m, sold just under $3.3m
  • 72 Elgin Street Hawthorn – quoted $1.8-1.98m, sold for more than $2.4m
  • 31 Carson Street Kew – quoted $4.18m, sold for $4.563m
  • 12 Portland Place South Yarra – quoted $2.65-2.7m, sold for $3.34m
  • 42 Toorak Road West South Yarra – quoted $4-4.4m, sold for $5m
  • 11 Davie Avenue Cheltenham – quoted $1.85-1.98m, sold for $2.401m
  • 69 Kerferd Street Malvern East – quoted $2.27m, sold for over $3m
  • 30 Asling Street Brighton – quoted $2.7-2.8m, sold for just under $3.2m

So where to from here?

Easter (and the school holidays) may provide some time for buyers to pause and reflect. The recent results may also instill confidence in some vendors to take the plunge and put their homes on the market.

There could be an increase in homes for first/second time buyers in the market. Changes to the Residential Tenancies Act come into place this week, with landlords and their homes required to meet minimum standards of living for their tenants.

A number of landlords have owned homes for 20, 30, 40 years or more with little or no maintenance to the properties over the years. For some, costs to meet the new standards may be $50-100k or more, of which many may not have the cashflow to fund, possibly resulting in more choices for buyers if they are prepared to do some work. As we’ve found for some of our clients, looking for a B-grader that could become an A-grader could result in greater opportunities in the coming months.

Generally, however, Melbourne and Australia are continuing to prove a great and safe place to live. Expats are still moving back and families are wanting to enjoy their homes with the thought that if we are ever locked down again, at least it will be something a little more comfortable. Stock and interest rates remain low, so possibly things won’t be too different after all. But who really knows?

 

Some of the better properties scheduled for Auction; an architect’s view

 

85 Finch Street Malvern East – Joanna Nairn/Maria Vovos, Marshall White

44 Hawthorn Grove Hawthorn – Sam Wilkinson/Gerald Delany, Kay & Burton

 

‘Off-market’ Properties:

  • Edwardian on approx. 1,300sqm with court & pool, Brighton – circa $11m
  • Timber Edwardian on corner block, Malvern East – circa high $2m
  • Two storey brick Edwardian, 4-3-2, approx. 800 sqm, Malvern east – circa $5m
  • Fully renovated Victorian Terrace, 4-2.5-2, South Yarra – circa $5.65m
  • Brick Edwardian, 3-2-0, approx. 187sqm, Armadale – circa $1.8m
  • Well positioned older contemporary home, approx. 720sqm, Camberwell – circa $2.3m
  • Fully renovated/extended Edwardian w pool, Hawthorn – circa $6m
  • Fully renovated 3 bed home, close to beach, Sandringham – circa $2m+
  • Single level, fully renovated family home, Brighton East – circa $3.4m
  • 3-4 bed period home on approx. 505sqm, St Kilda East – circa $1.8m+
  • Contemporary family home on approx. 772sqm, Brighton – circa $5.75m
  • Large, renovated, family home, approx. 800sqm, Elwood – circa mid $4m
  • Updated 80s family home on over 700sqm land, Brighton – circa high $2m
  • Timber single level Edwardian, pool, Brighton – circa $2.5m
  • Extended period home, looking for update, Brighton – circa mid $3m

 

Auction Spotlight:

Positioned on the corner to Coppin Street, 52 Finch Street Malvern East offers the new owner the opportunity to work with the original front of the period home to create their dream family home (stca), on a good sized block of approx. 811sqm, with a bright north rear aspect.   The front rooms deliver lovely proportions to work with, while the whole rear would benefit from a fresh start.

A large crowd of interested parties and neighbours came to watch or participate in the auction, run by Iain Carmichael on behalf of the Jellis Craig team.  Opening with a vendor bid of $3.1m, two bidders dug deep to secure the property.  The home ended up selling for a solid $3.575m.

Strong market sees record highs

Buyers, sellers, agents, analysts and reporters woke on Saturday morning with an air of optimism as the Melbourne property market hosted the largest auction weekend since the pre-Covid days in early 2020. They weren’t disappointed. Traditionally the end of February is the first big weekend of a new year, as it is four weeks since school resumed and campaigns can run uninterrupted.

There was an 84% clearance rate and some of the highest results we have seen. This is not just compared to pre-Covid; many properties sold at levels higher than the highs of 2017.

Many quotes were smashed, sometimes by more than 20-30%, such as:

  • 62 Kinkora Road Hawthorn – quoted $4.7-5m, selling for $6.55m
  • 37 Gladstone Street Sandringham – quoted $1.9-2.09m, selling for $2.78m
  • 17 Dalmor Avenue Ormond – quoted $1.6-1.7m, selling for $1.967m
  • 58 Alfred Street Prahran – quoted $1.6-1.76m, selling for $2.25m
  • 26 Parslow Street Malvern – quoted $3-3.3m, selling for $3.675m
  • 36 Campbell Street Brighton – quoted $2.9-3.1m, selling for $3.5m

For many buyers, it will be back to the drawing board. For the moment there are three options:

  • Find more money
  • Move to a suburb (or two) further out
  • Be prepared to accept a less comfortable home

With the first option perhaps being the hardest for many buyers, recalibrating the search area and the property non-negotiables may be the best option for success.

We are encouraging our clients to be flexible with the property, with the knowledge that it can become what they want down the track. This isn’t always easy to determine. Having an architect on board certainly makes it easier to focus on the B graders that can turn into A graders. Not all homes can become what you want/need and some can cost a lot more money to achieve the same outcome. Buying well is important – and sometimes passing on properties is important too, as many properties are just not worthy (or possible) of a renovation.

On a brighter note for buyers, many homes currently on the market are likely to see an updated Statements of Information this week. Where it has been hard for agents to find sales within 2km, in the last six months, this is now no longer the case.

This could help buyers make better decisions around their chances of success, as some of the due diligence undertaken requires financial outlay such as contract checks or pest and building inspections with no certainty of success.

We saw many homes on the weekend sell with 3, 4, 5 or more bidders vying for the keys. That would suggest there are still multiple buyers searching for their new home. With the stock levels for ‘the right homes’ still very low, we don’t expect to see much change to the current market sentiment.

Of course if vendors suddenly decide that they want to sell and expect that the market will see 10% plus increases each week, the market could very quickly start to see some more pass-ins, as buyers may not be able to keep up with their expectations.

Open for inspections were also very popular on the weekend, with some agents recording groups of 50 or more on the well-presented and marketed homes. Are stock levels low? Well, not really if you look the numbers; however, the buyer numbers are so great now (i.e. those that still haven’t bought from last year, expats coming back and also many ‘new’ buyers), the demand is certainly outweighing supply.

 

Some of the better properties scheduled for Auction; an architect’s view

11 Lyall Street Hawthorn – Campbell Ward/Peter Vigano, Jellis Craig

6 Lileura Avenue Beaumaris – Errol Driver/Jim Kalogerakis, Hodges

 

‘Off-market’ Properties:

  • Land opportunity, wide north frontage, approx. 682sqm, Toorak – circa $6.6m
  • Fully renovated brick single fronter, 2-1-0, South Yarra – circa $1.2m
  • Art Deco family home, pool, DLUG, fully renovated, Ripponlea – circa mid $4m
  • Renovated single level brick Edwardian, 3-1-1, Prahran – circa $2m
  • Contemporary, dated, family home, approx. 700sqm, Hampton – circa $2.3m
  • Brick period with modern rear, 3-2-2, Elwood – circa $2.3m
  • Land with plans for dual occ or family home, Camberwell – circa $2.25m
  • Golden mile family home on approx. 360sqm, Brighton – circa $3.7m
  • Brick Edwardian semi on approx. 400sqm, Glen Iris – high $1m
  • Modern family home on over 700sqm, Glen Iris – circa $4.7m
  • Renovated 80s family home, Malvern East – circa $4.7m
  • Single level renovated home, Hawthorn – circa early $2ms
  • Gascoigne Estate, family home, two storey, Malvern east – circa $4.75m
  • Updated single level home, Malvern – circa $5m

 

Auction Spotlight:

Halli Moore from Buxton, with joint agent Jenny Dwyer of Belle Property, had a great crowd to work with at the successful auction of 46 Retreat Road Hampton

The home on offer at 46 Retreat Road Hampton ticked many boxes for families looking in the area – a well presented updated home with a good range of spaces. It’s proximity to shops and the suburb’s amenities, coupled well with the park only one door away. As a bonus, the playground is currently undergoing a major redevelopment.

The auction was late in the day, so a buzz of expectation was palpable in the crowd, having seen some strong results at auctions earlier in the day.  The opening bid was placed at $2.3m, matching the lower end of the quote range. From here it quickly went up in $50,000 bids, picked up another bidder, dropped the first and exceeded the reserve of $2.6m. More bidders stepped in, although offers now ranged between $1,000-$10,000.  The home was very nearly knocked down at $2.736m before a bid was placed in the very last second before the contract hit Halli’s hand. This brought forth a flurry of activity, with neither of the last two parties willing to give up the keys to the home.  The property was eventually sold for $2.872m to enthusiastic applause from the crowd. A reasonably strong result for the offering we think.