Market Pulse

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

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

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

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

Of course, we will have to wait and see.

Auction Highlights:

Land Sales:

 Off Markets:

Properties we like for auction on August 20

• 1-3/12 Stawell Street, Kew (James Tostevin/Charlie Tostevin, Marshall White)
• 46 Hope Street, South Yarra (Nathan Waterson/Andrew MacMillan, Jellis Craig)
• 30 Bolton Avenue, Hampton (Andrew Campbell, Sonja Sendin, Buxton)
• 18 Grant Street, Malvern East (Rae Tomlinson/James Tomlinson, Marshall White)

Auction Spotlight:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Auction Highlights:

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

Land Sales:

Off Markets:

Properties we like, for auction August 13

• 10 Oak Street, Hawthorn (Richard Winneke/Campbell Ward, Jellis Craig)
• 33 Emo Road, Malvern East (Daniel Wheeler/Justin Krongold, Marshall White)
• 15 McGregor Street, Middle Park (Arthur Apostoleros/David Seeber, Buxton)
• 43 Kerferd Street, Malvern East (Rae Tomlinson/Hugh Tomlinson, Marshall White)

Auction Spotlight:

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

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

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

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

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

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

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

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

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

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

Auction Highlights:

Land Sales:

 Off Markets:

Properties we like for auction August 6:

• 84 Thomas Street, Hampton (Halli Moore/Lisa Comben, Buxton)
• 35 Motherwell Street, South Yarra (Sally O’Connell/James McCormack, Marshall White)
• 7 Brook Street, Hawthorn (Nick Whyte, Nelson Alexander/Mark Pezzin, Jellis Craig)
• 27 Alice Street, Malvern (Andrew Luke/Genevieve Hoyle, Jellis Craig)

Auction Spotlight:

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

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

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

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

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

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

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

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

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

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

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

Auction Highlights:

Two in Harold!

Land Sales:

Off Market:

Auction Spotlight:

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

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

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

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

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

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

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

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

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

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

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

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

Auction Highlights:

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

 Land sales

17 Gordon Street, Balwyn

 Off Markets

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

Properties we like, scheduled for auction June 18

Auction Spotlight:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Off Market or Private Sale/Pre Market

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

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

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

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

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

 Land sales

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

 Townhouse sales

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

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

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

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

Off Markets

 A few new properties this week:

Auction Spotlight:

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

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

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

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

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

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

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

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

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

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

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

 Land sales:

 Off Markets:

Some new ones we saw this week:

 Properties we like, scheduled for auction June 4 :

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

Auction Spotlight:

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

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

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

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

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

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

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

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

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

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

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

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

Auction Highlights:

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

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

 Land/Major renovation Sales:

Single-fronters

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

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

 Off Markets:

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

 Properties we like, schedule for auction May 21:

Auction Spotlight:

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

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

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

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

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

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

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

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

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

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

Auction Highlights:

 Land Sales:

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

 Off Markets:

Properties we like, schedule for auction May 21:

Auction Spotlight:

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

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

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

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

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

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

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

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

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

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

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

Auction Highlights:

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

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

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

Our analysis of 34 Middle Crescent, Brighton

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

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

Off markets:

Properties we like, scheduled for auction April 30:

Auction Spotlight:

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

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

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

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

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

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

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

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

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