Market Pulse

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

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

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

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

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

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

Properties we like, scheduled for auction on April 30:

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

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

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

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

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

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

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

Auction highlights:

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

Land Sales:

Off-markets:

Auction Spotlight:

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

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

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

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

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

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

Properties we like, scheduled for auction:

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

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

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

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

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

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

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

New Quoting Laws:

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

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

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

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

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

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

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

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

Auction Highlights:

Land Sales:

Townhouse Sales

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

Off-markets:

Auction Spotlight:

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

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

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

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

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

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

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

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

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

Properties we like, scheduled for auction on March 19:

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

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

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

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

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

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

 Observations:

 Auction Highlights:

Land Sales:

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

Off-markets:

Auction Spotlight:

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

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

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

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

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

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

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

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

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

Properties we like, scheduled for auction this coming weekend:

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

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

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

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

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

Hampton: 30 May Street (Robin Parker, Marshall White) – strong result, sold under the hammer with 5 bidders

Saturday was the first of the bigger auction weekends for the quarter and for sellers it was a good one. The REIV reporting a clearance rate of 77%, up 2% on the same weekend last year, although numbers were down with around 100 less properties to choose from.

The shortage in stock seems to be the ongoing discussion point with buyers … there just isn’t enough of the right properties (quality family homes and/or good downsizer options) to satisfy the demand.

Observations:

Vendors in traditional ‘fringe’ suburbs such as Brighton East and Glen Iris (particularly Brighton East, east of the Nepean and Cummins Road and Glen Iris, north of the Monash) are taking advantage of the current market .

Brighton East had 9 reported auctions – 8 sales, 1 pass in. Three of the bigger ones in the abovementioned precinct were:

Glen Iris had 9 reported auctions and sales – three of the bigger ones in the precinct above were:

Land/major renovations were still in demand with strong results in Kew and Elwood.

Brighton: 197 Church St (David Hart, Buxton): after auction, undisclosed above $3.25m

Off-markets:

Auction Highlights:

Glen Iris: 17 Ferndale Road (Daniel Wheeler, Marshall White), sold under the hammer $2.41m

17 Ferndale Road, Glen Iris: Daniel Wheeler (Marshall White), under hammer, $2.41m, The sun was shining and the stage was set for this auction; a period home in the Hill and Dale precinct of Glen Iris. Whilst liveable and rentable, most would look at this property as a potential new home site and it had the added benefit of  a north—facing rear.  Importantly it backed on to Ferndale Park, and these offerings have certainly gained popularity with buyers in recent months (and a really strong sale in nearby Wallis Ave last week). Auctioneer Daniel Wheeler gave a no-nonsense preamble and looked for an opening bid, which came reasonably quick from the crowd at $1.6m. It was not too long after that the property was announced ‘on the market’ at $1.7m and then crept steadily in the $2m’s, selling strongly for $2.41m. Great result here for listing agent Zali Reynolds and co-agent Jason Brinkworth. Most at the auction would note that the property next door is listed for upcoming sale with Damien Davis of Jellis Craig, which is a new home on similar land, so it will be interesting to see what the vendor’s expectations are.

Hampton: 44 Kingston St (Chris Carrington, Nick Johnstone), sold under the hammer $1.922m, 5 bidders

44 Kingston Street: Chris Carrington (Nick Johnstone), under hammer, $1.922m, Quite a high number of people wandered down from nearby May Street to watch this Nick Johnstone auction in Kingston Street. Chris Carrington was our auctioneer and after the Domain coffee van drove away, he called for an opening bid. Bidder 1 offered $1.5m and we were away. A total of 5 bidders competed for the property, with bids coming fast and strong. Eventually bidding slowed to $1,000 increments, selling to a very happy Bidder 3 for $1.922m

Properties we like, scheduled for auction this coming weekend:

Agent Comments:“How has the year started compared to last year?”

Stewart Lopez (Kay & Burton): “As usual, the market has started strongly after the break. A shortage of listings is driving strong sales at all price points, in particular with ‘off market’ transactions.”

Five bidders battled it out at 13 Rosemary Road, Beaumaris (O’Brien Real Estate) on Saturday. The home sold for $1.475m in front of a big crowd of around 90 people

Welcome back to the 2016 Melbourne Property Market and thank you for reading our weekly Market Pulse. We will continue this throughout the year during key auction weekends. We hope you find it both enjoyable and helpful.

2016 has started as expected, with no real surprises or changes to the 2015 market.

Our early observations reveal:

There was really only a light scattering of auctions this weekend. Early results were positive with the REIV reporting a clearance rate of 77% across Melbourne. A common thread amongst some on offer were they were dated homes with good land content and functional townhouses

Auction Spotlight:

Off-markets:

Auction Highlights:

Glen Iris: 10 Wallis Avenue (Daniel Wheeler, Marshall White), sold $2.205m, 5 bidders

10 Wallis Avenue,  Glen Iris (Daniel Wheeler, Marshall White), sold $2.205m, 5 bidders

Dated single level home, but it was all about the land here.  With mature trees at the front and rear of the block which may be difficult to remove (STCA), the property did have good width and most importantly it backed on to Ferndale Park, a point which was not lost on buyers and the very good-sized crowd of well over 100 people. Opening with a low cheeky crowd bid of $1.3m, the bidding soon went up to $1.75m and the property was called on the market by auctioneer Daniel Wheeler. That only seemed to warm bidders up and with five of them fighting for this property it sold well above reserve for a whopping $2.205m (or $3,083sqm).  Interesting to note next door (no.8) sold for $1.441m around two years ago. Very professional auction by Daniel (he didn’t miss a bidder, was courteous to the crowd and didn’t skip a beat), and he was well supported by co-agent Clare Maloney –  they make a good team

Beaumaris: 13 Rosemary Road (Byron Kerr, O’Brien), under hammer, $1.475m, 5 bidders

13 Rosemary Road, Beaumaris (Byron Kerr, O’Brien Real Estate), under hammer, $1.475m, 5 bidders

Quite a crowd gathered in Rosemary Road for the auction of number 13 – a three bedroom, three bathroom family home surrounded by tropical gardens. Around 90 people lined the street on both sides and enjoyed a coffee from the mobile coffee cart. Byron Kerr was our auctioneer and after an enthusiastic and succinct preamble, he called for an opening bid. A yell of $1m came from the crowd and we were away. Bidding came from all directions – with five bidders in total. The home was sold for $1.475m to a hearty round of applause from all those in attendance.

Hampton: 17 Banks Avenue (Troy Ellis, Follett & Co), after auction $1.66m)

17 Banks Avenue, Hampton (Troy Ellis, Follett & Co), sold after auction $1.66m

Banks Avenue was very tranquil – a reasonable sized crowd of around 30 people had gathered to see what would transpire at the auction of number 17 and they chatted quietly as they awaited the commencement of proceedings. Auctioneer Troy Ellis took centre stage and gave a thorough preamble before asking for an opening bid. The crowd remained silent so Mr Ellis tabled a vendor bid of $1.55m. A second vendor bid of $1.625m was put forward but with no further bidding on the day, the property was passed in. It sold later for $1.66m.

Properties we like, auctioning this week:

Auction Opinion: “How have you seen the start of the year compared to last year?”

Tim Derham (Abercromby’s) “Stock levels for quality family homes are down as compared to last year. If open for inspections are an indication then this market will continue from where it left off in 2015.”

Brighton: 14 Vaucluse St (Peter Kennett, Hocking Stuart) sold $1.87m

Saturday was almost the finale for 2015 and spirited bidding continued for the better properties. There is only a scattering of auctions now before Christmas is upon us.

Although the number of bidders was still quite healthy, it does seem that buyers, sellers and agents alike are looking forward to a break now – it has been a big year for the property market.

2015 Snapshot

Auction Spotlight:

Land sales:

Auction Highlights:

Hampton: 9 Bolton Ave (Mark Earle, Buxton), sold $2.47m

9 Bolton Ave, Hampton (Mark Earle, Buxton), sold $2.47m, 5 bidders

A brisk 9.30am start and there was a huge crowd lining Bolton Ave, all keen to see what would happen at the auction of this north-facing block of approximately 725sqm in one of Hampton’s most desirable streets. Mark Earle was our auctioneer and, with a strong Buxton presence, delivered a thorough preamble before calling for an opening bid. Before he had even finished his sentence, an opening came from our first bidder at $1.9m. We quickly had two bidders competing and at $2.2m Mark announced he would be selling. This spurred three more bidders to enter the fray – bidding continued steadily until we reached the sale price of $2.47m.

Brighton: 14 Vaucluse St (Peter Kennett/Tamara Whelan, Hocking Stuart), sold $1.87m, 2 bidders

14 Vaucluse St, Brighton (Peter Kennett, Hocking Stuart), sold $1.87m, 2 bidders

Peter Kennett is always entertaining, and this auction was no exception! Around 50 people lined the quiet cul-de-sac to see what would transpire at number 14 – a single storey in a convenient pocket of Brighton. Peter kick-started proceedings with a vendor bid of $1.65m and after some gentle encouragement, Bidder 1 entered at $1.67m. Bidder 2 chimed in at $1.69m and we had a two-way battle on our hands. At $1.85m, Peter headed inside to refer to his vendor and upon his return he announced he would be selling. The hammer came down a short time after at $1.87m to a round of applause.

Hawthorn: 9 Fairmount Road (Glen Coutinho, RT Edgar Boroondara), sold after auction undisclosed

9 Fairmount Road, Hawthorn (Glen Coutinho, RT Edgar Boroondara), sold after auction undisclosed, 3 bidders

Pleasant Saturday December afternoon for this auction. Sitting out the front of the home is a coffee van – you can always count on RT Edgar (Boroondara) for that at their auctions…it is a nice touch and cleverly it reserves space for the auction team as it drives away.  I along with about 50 others are entertained by auctioneer Glen Coutinho’s pre-auction spiel – it is very Australian I like to think, being good humoured and never tending to go on for too long. Opening with a bid of $2.5m, Glen enjoys friendly banter with the crowd and gets a few laughs along the way to see bidding from 3 parties. The property passes in for $2.7m then sells for an undisclosed amount shortly afterwards.

Agent Opinion – 2015 in Review

John Bongiorno (Marshall White): “Overall, when we look back on the year that has just passed, it would have to be said that the Melbourne real estate market has had a fabulous year. Low interest rates, a steady economy, strong demand both locally and internationally, have all been factors that have seen such a positive impact across the board. The year has finished off extremely strongly with, again, demand clearly outweighing supply which, looking at the crystal ball for 2016, can only be viewed in an optimistic light.”

Christmas Wishes

This will be our last Market Pulse for 2015. Thank you for all for your support!

We would like to wish everyone a happy and safe holiday period. We are looking forward to returning mid-January next year.

Malvern: 46 Jordan St, Malvern (Justin Long, Marshall White), sold $2.8m, 3 bidders

Saturday was the first auction day for summer and some results were a little patchy. Whilst we still saw solid results for good homes, there were quite a few pass-ins particularly for properties on some of the busier streets of Bayside – 106 Abbott Sandringham, 14 Highett Hampton, 8 Carpenter Brighton, 176 Cochrane Brighton and 37 Male Brighton.

Balwyn North again had a lower than Melbourne average clearance rate, a contrast compared to mid-year when most properties were selling.

Hawthorn East was solid with good results at 5 Harold Street (Stuart Evans/McGregor, Marshall White), 20 Invermay Grove (Parker/Murphy, Hocking Stuart) and 6 Rosslyn Street (Sutherland/Ptak, Marshall White).

One of the trends we have seen this year has been the offering of multiple dwelling properties on one title – 111 Tennyson Street Elwood, 41 Grandview Grove Prahran, 3 Corsewell Close Hawthorn, 41 Atkins Street Kew to name a few.

Two more sold last week – both were older (c1920/1930) apartments:

Auction Spotlight:

Land sales:

Off-markets:

Auction Highlights: 

East Melbourne: 1-4/95-97 Simpson St (Biggin & Scott), sold $3.121m

1-4/95-97 Simpson Street, East Melbourne (Andrew Crotty, Biggin & Scott), sold $3.121m, 3 bidders

A really good crowd of about 150 turned out with the auction of the 95 year old apartment block of four in East Melbourne.  According to auctioneer Andrew Crotty it took 15 years to get this listing, and he gave a spirited yet concise preamble. Opening with a bid of $2.1m, it didn’t take too long for this to reach well beyond $2.5m with two bidders. Not long after bidder 3 came in to play and bidding stated to slow down with a serious of smaller bids between bidders 2 and 3. At $2.888m a mini-break was taken and instructions were checked with the vendor. Shortly after the property was announced on the market and the bidding continued in fractured amounts. At $3.121m the property sold to bidder 3 – a really big result yet given the rarity of offering and close proximity to the CBD, no doubt the purchasers would be very pleased.

Brighton East: 2 Alford St (Buxton), sold $1.62m

2 Alford Street, Brighton East (Jack Johnstone, Buxton), sold $1.62m, 3 bidders

Jack Johnstone confidently stepped out on to Alford St as though he’d been auctioning for years! The 65 or so people in the crowd were treated to a thorough and entertaining preamble before Jack launched in to the formal part of the auction – the search for bids. Bidder 1 was quick to join in with an opening bid of $1.2m. Bidders 2 and 3 entered the fray not long afterwards and after a flurry of bids, Jack announced we were selling at $1.4m. The avalanche of bids continued until the hammer came down to the delighted new owner at $1.62m.

Elwood: 8 Joyce St (Chisholm & Gamon), sold $2.53m

8 Joyce St, Elwood (Torsten Kasper, Chisholm & Gamon), sold $2.53m, 6 bidders

The quiet tree-lined Joyce Street was buzzing as the crowd eagerly awaited the start of the auction at number 8. Torsten Kasper took centre stage and after a thorough preamble called for an opening bid. All remained quiet so Torsten tabled a vendor bid of $1.9m to kickstart proceedings – and kickstart it, he did! Bidders 1,2 and 3 entered quickly and took bidding to $2.02m. Bidder 4 put forward a ‘knock-out’ bid of $2.2m and soon after Torsten advised that the reserve had been met and we were selling. In total there were six bidders – the hammer finally coming down at $2.53m to a round of applause and a very relieved new owner!

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Brighton: 50 Asling St (David Hart, Buxton), sold $4.13m, 6 bidders

Saturday’s auction results demonstrated that 2015 is going to finish the way it started. On a record number of properties available for auction, the market saw a reported 66% clearance rate. The overall sentiment from buyers is still positive for the $1m plus market.  Although there were a few properties sold beforehand at higher levels, the highest result on Saturday was 34 McKean Street Fitzroy North (Stephens/Laferia, Nelson Alexander), a renovated warehouse by renowned Melbourne architect Kerstin Thompson for an undisclosed price in the high $4millions.

34 McKean Fitzroy – a great example of why it pays to get a good architect

Interest is now turning to 2016. The first quarter is likely to be short and sharp – Easter (Good Friday) falls early on the 25^th March. Vendors who have run out of time to auction this year should feel confident that buyer interest will continue next year and for those vendors whose properties have ‘passed in’ recently there may still be good opportunities to sell before Christmas with a number of under-bidders still wanting.

Auction Highlights:

Land sales:

Off-markets:

Talk and activity is increasing with respect to off-markets and 2016 pre-markets.

Auction Spotlight:

14 Bateman St, Hampton (Robin Parker, Marshall White), after auction $2.6m, 4 bidders

As Robin Parker started his preamble, a black Maserati purred down the street and grinded to a halt outside number 14 Bateman. The crowd of around 35 watched intently and admired the car before Robin resumed his preliminaries and called for an opening bid. Bidder 1 offered $2.1m and we were away. Bidders 2 and 3 entered soon after and at $2.525 Robin ducked inside to refer to his vendor. Back outside, he advised us that he wasn’t quite at reserve and the property passed in soon after at $2.555m. Sold after auction for $2.6m.

Hampton: 14 Bateman St (Robin Parker, Marshall White), after auction $2.6m, 4 bidders

25 Ash Grove, Malvern East (John Morrisby, Jellis Craig), sold $2.54m, 4 bidders

A big crowd of around 85 people line Ash Grove to see what would happen at number 25. John Morrisby was our auctioneer and after a succinct preamble called for an opening bid. All was quiet so he tabled a vendor bid of $1.825m to kickstart proceedings. In the end we had three bidders in the mix, and as an unreserved auction, the home eventually sold for $2.54m to a big round of applause.

Malvern East: 25 Ash Grove (John Morrisby, Jellis Craig), sold $2.54m, 4 bidders

Agent Opinion: Following on from the Domain article this week, is the market still strong for all properties, or are you noticing some changes in the amount of buyers, their interest and competition for the A Graders, B Graders & C Graders in  your area?

Sam Gamon (Chisholm & Gamon): “The question really comes down to houses v apartments because we’re seeing a two-speed market and have been for about 6 -8 weeks. Houses are attracting huge competition and generally have an abundance of buyers whereas apartment interest is slackening off unless it’s suitable for downsizers as owner occupier properties, has a high level of finish or a significant point of difference such as Art Deco features, house-like proportions or generous outdoor areas. Quality is the key in both market segments and we are feeling the B and A-grade homes are finding less attraction in the market place. Buyers are probably being a little less forgiving so it’s important for vendors to place significant emphasis on their presentation and pricing. You don’t get a second chance to make a first impression so make it count. “Attraction” properties generally always go well and we have huge demand for those top tier houses, townhouses and apartments. The market is currently carrying some historically high stock levels which means buyers are likely to be more discerning. Consider selling your home in December or mid-January when there is potentially less available.”

Malvern East: 8 Coppin St (John Morrisby, Jellis Craig) passed in $3.5m

There are signs that the buyers are starting to move their focus away from property and onto more pressing deadlines such as Christmas, shopping and holidays. The number of buyers inspecting at opens is starting to slow. That said, the buyers for the good properties are still there. Last week Marshall White sold two large family homes, both over $6million at 53 Hawthorn Grove Hawthorn (Zali Reynolds) and 9 Bates Street Malvern East (Rae Tomlinson).

Last week we looked closely at Balwyn North, which was looking a little over-supplied (and/or) with vendors wanting prices well above the market. The clearance rate last week was 45%. This week there were 16 auctions reported with only five bought, resulting in a clearance rate of 31%. The trend appears to be continuing.

Another property up for sale after being purchased only 14 months earlier for $3.17m was 15 Nevis Street, Camberwell. A large newer home on 722sqm with north rear passed in on a vendor bid of $3.1m.

In keeping with our thoughts of a continuing strong downsizer market, two good properties sold in Kew with Jellis Craig circa $2.5million – 92 Wellington Street (Greg Toogood) and 70 Foley Street (Peter Vigano).s

Auction Highlights:

Land sales:

Off-markets:

Auction Spotlight:

North Melbourne: 35 Little Leveson St (Edward Hobbs, Biggin & Scott)passed in, $1.977.5m

35 Little Leveson St, North Melbourne, Edward Hobbs (Biggin & Scott), passed in, $1.977.5m, 4 bidders

A great crowd of well over 100 gathered in the laneway that is Little Leveson Street in North Melbourne. The offering was a unique one, and not easily repeatable – a classy inner city warehouse conversion close to great cafes (such as the Auction Rooms) and a short walk to the CBD. Auctioneer Edward Hobbs have a brief preamble and then didn’t have to wait too long for an opening bid, which came instantly at $1,770,000. A string of bids followed from three other parties and the property eventually passed in at $1,977,500 and remains for private sale at the time of writing with an undisclosed reserve.

Malvern East: 32 Forster Ave (John Morrisby, Jellis Craig), under hammer $1.87m

32 Forster Ave, Malvern East (John Morrisby, Jellis Craig), under hammer, $1.87m, 4 bidders

Slight drizzle didn’t deter the crowd at this Malvern East auction. John Morrisby was our auctioneer and, assisted by Andrew Luke, stepped out on to Forster Ave and called for an opening bid. Unable to secure one, he instead tabled a vendor bid of $1.5m to kick-start proceedings. One by one, four bidders entered the competition and at $1.69m John announced he would be selling. Bidder 4 was a late entrant but left with the prize when the hammer came down at $1.87m to a round of applause.

Brighton: 25 Meek St (David Hart, Buxton), after auction $2.4m

25 Meek St, Brighton (David Hart, Buxton), after auction $2.4m

Auctioneer David Hart was met with quite a big crowd as he took centre stage on Meek Street alongside Phillip Mellody and Tom Davidson. A vendor bid of $1.95m was tabled before Bidder 1 chimed in at $2m. Bidder 2 offered a $50k rise and bidding continued until the price reached $2.24m and the property was passed in. The home sold after auction for $2.4m.

Agent Opinion: “We are constantly asked how the Melbourne market compares to that in Sydney. Here is an interesting take”

Geoff Hall (Kay & Burton): “Despite some cooling of the market on a national basis, Melbourne is the hottest housing market in the nation, with Sydney in second place over the past quarter.

Whilst the volume of stock is up considerably on this time last year in Melbourne, the number of quality family homes on offer is relatively low. This is the key reason that clearance rates for houses in good locations remains consistent and in excess of 75%.

National dwelling values across the combined capital city index rose 0.2% over the month of October and were up by 1.4% over the quarter and 10.1% higher over the year.

In the latest price data up to the end of October, the annual price growth gap between Sydney and Melbourne has closed coniderably. In the past three months, Melbourne’s home value index has increased 3.1%, easily the biggest among the capital cities, while Sydney’s rose only 1.5%. In annual terms, Sydney is up 15.6% and Melbourne 12.8%. If the current trend continues in a month or two these positions will be reversed.

A survey of property valuers, financiers and market analysts has predicted property prices in Sydney and Melbourne will continue to increase for the next six to twelve months. Around half of the respondents to “The Property Directions Survey”released by the Australian Property Institute, said an upward trend will continue for a further six months. One third of respondents believed the upward trend will last a further 12 months in both Sydney and Melbourne.”