Market Pulse

15a Dixon St Malvern (Kevin O’Brien, Jellis Craig) opened at $1.6m, on the market at $1.8m and sold under the hammer for $1.97m. Two bidders, fast auction.

The market is continuing to roll along at a steady pace.   As the end of year closes in the competition to buy is still strong, particularly for properties close to good private schools or those within renowned public school zones. 5 Prince Street, Hampton (Jenny Dwyer, Hocking Stuart), a ‘volume’ build family home sold for $2,100,000.

There are still some good options for buyers auctioning in December and many of which should attract spirited bidding come auction day.

In areas of good supply (perhaps even over supply), the market seems to be slowing a little. Maybe some vendors are even getting a little ahead of the market. Balwyn North for example, according to REIV records, saw 11 properties up for auction on the weekend with only 5 of these sold – a clearance rate of only 45%.

Auction Highlights:

Downsizer Properties:

Demand continues to strengthen for quality downsizer offerings – single storey homes close to amenities.

On a different note, in Hawthorn East there were four properties auctioned on the weekend and all were purchased within the last two years. Although they didn’t all sell, they all had bidding above their earlier sale prices.

Off-markets:

Auction Spotlight:

Malvern East: 16 Westgarth St (Damien Davis, Jellis Craig), passed in $3.125m, 3 bidders

26 Westgarth St, Malvern East (Damien Davis, JC), passed in $3.125m, 3 bidders

This pretty Federation style home is situated on a leafy street described aptly by auctioneer Damien Davis as a “Plane Tree Tunnel.” Around 70 people crowded around to see what would transpire and Damien called for an opening bid. All remained quiet, so Damien suggested an opening of $2.8m to kick-start proceedings. Still quiet, so he tabled a vendor bid at this amount. Silence ensued so Damien headed inside to refer to his vendor. Back outside and he was rewarded with bids from 3 interested parties who each entered the competition with a succession of $25k increments. The price eventually reached $3.125m, and Damien passed the property in for further negotiations. The home remained for sale at the time of publishing.

Hampton: 36 Avondale St (Steve Tickell, Hocking Stuart), sold after auction $2.53m, 2 bidders

36 Avondale St, Hampton (Steve Tickell, Hocking Stuart), sold after auction $2.53m, 2 bidders

Beautifully presented Californian bungalow in one of Hampton’s most prized streets – Steve Tickle was our auctioneer, assisted by Jenny Dwyer and Will O’Brien. An opening bid of $2.2m came from a gentleman in the crowd, however everyone else remained silent so Steve headed inside to refer to his vendor. Back outside and Bidder 2 entered the competition with a $25k rise. A second half-time break at $2.44m and with no further bidding on the day, the property was subsequently passed in. The home was sold after auction for $2.53m.

Agent Opinion: With only 3 weeks for campaigns to start (auction date 19th December), will there be a late rush?

James Tostevin (Marshall White): “I’m not anticipating a late rush of auctions on December 19^th, at this stage. The market remains strong however, many vendors are basing their price expectations on results from 2 to 3 months ago, which is not in line with current market conditions.”

Armadale: 12 Denbigh Rd (Anthony Grimwade, RT Edgar), passed in $3.775m, 1 bidder

Off the back of Cup weekend, we saw quieter auction activity with a smaller sample size and some lesser quality properties on offer. The clearance rate according to the REIV was 71%, which is still quite healthy.

With Christmas not far away, stock numbers are slowing.  Unless vendors are prepared to shorten their campaigns, there are only three more weeks where we are likely to see new properties advertised for auction – this would take us to the 19th December. Agents are starting to talk of upcoming auctions for 2016 and ‘off-market’ properties, quietly for sale now.

Brighton East: 22 Shasta Ave (Halli Moore, Buxton) passed in $2.325m, 2 bidders

Auction Highlight:

Land sales:

Off-markets:

Sold before auction:

Auction Spotlight:

Glen Iris: 17 Clyde St (John Morrisby, Jellis Craig), sold $1.92m, 4 bidders

17 Clyde St, Glen Iris (John Morrisby, Jellis Craig), sold $1.92m, 4 bidders

About 60 people were in attendance for the auction of this basic period home on about 650m2 with north facing rear and two-storey flats to the eastern side. Representing basically entry level into this area, Auctioneer John Morrisby gave a good preamble and then looked for an bid of $1.5m.  Listing agent Ian McLennan scouted the crowd for bidders and before long three were in play, seeing the property to be announced on the market at $1.826m. Not long after Bidder 4 timed her run late and needed only two bids to buy the property under the hammer for $1.92m – good tactic this. Sometimes it works, sometimes it doesn’t!

Armadale: 5 Barkly Ave (Kevin O’Brien, Jellis Craig) passed in $1.85m

5 Barkly Ave, Armadale, Kevin O’Brien (Jellis Craig), passed in $1.85m, 1 bidder

A colourful ice-cream cart offering free frozen treats brightened up a rather gloomy Spring morning. Kevin O’Brien was mindful of the ominous weather too, and gave a fast-paced preamble to ensure that proceedings weren’t interrupted by rain. Calling for an opening bid, but met with the usual silence, Kevin tabled a vendor bid of $1.75m to get things underway. After a half-time break, Bidder 1 offered to meet Kevin’s vendor bid, which Kevin accepted before tabling a second vendor bid of $$1.775m, and then a third of $1.85m. With no more bidding on the day, the property was passed in and remained for sale at the time of publishing.

Middle Park: 150 Canterbury Rd (Greg Hocking), passed in $3.5m

150 Canterbury Road, Middle Park (Greg Hocking, Greg Hocking Holdsworth), passed in $3.5m

Greg Hocking, assisted by John Holdsworth, stepped out onto Canterbury Rd in the early afternoon sunshine in front of a crowd of around 30 people. After a succinct preamble, Greg asked for an opening bid but, unable to secure one from the quiet crowd, tabled a vendor bid of $3.5m to kickstart proceedings. Inside for a half-time break, Greg returned and did his utmost to encourage bidding. Unfortunately the crowd remained silent and Greg was forced to pass the property in.

Architectural Insight: Swimming Pools

Should we have a pool or not? Is it worth buying a home with a pool even if we don’t need one yet? These are some common questions and when looking at a property with a pool, there are some key things to look for:

Often buyers do not want a pool and will not look at properties that have them. These can be good opportunities for buyers, as you can easily remove and/or fill them in – at a cost of course. While this is not that simple, it is possible and certainly worth considering.

Agent Opinion:“The lead up to Christmas is looking to be much of the same as it was before Melbourne Cup Weekend. Do you think that the market will change after Christmas, or do you expect it to stay the same?”

Julian Augustini (Hodges): “Spring stock levels heading into the latter part of the year are solid but there is not an oversupply. I would expect that if a 70% success rate maintains across Melbourne until the end of the year, then a positive market will flow through into 2016. “

Malvern: 67 Wheatland (Jack Bongiorno, Marshall White), sold $2.555m, 2 bidders

The ‘biggest’ auction weekend for the year passed the test, with an overall clearance rate of 71% suggesting the state of the market overall is still quite strong, although under the weight of record numbers the market showed some signs of pegging back.

Buyers are starting to demonstrate discernment for properties such as those with privacy or noise issues and those where a lot more (yet to be quantified) money may be required to improve the property.

For some auctions on the weekend, two buyers were at higher levels than the rest of the crowd, providing good outcomes for vendors. With one of each of those buyers having now purchased, this may have an impact on future results for some properties.

Whilst the number of bidders can be used as a guide to help qualify buyer depth, where the bidding starts can also impact the numbers. Sometimes a higher starting point can eliminate interested parties. Therefore, a full understanding of the market can be helpful. Two bidders, does not necessarily mean only two people wanted the property, it means that only two people were interested at the declared levels.

A reduction in the number of buyers with capacity to spend a little more, may not necessarily mean that overall buyer depth has dropped. For vendors who are willing to meet the market, the market may still be there. Time will tell.

From our observations there is still strong competition for the following:

Very good crowd in leafy Central Park Rd, Malvern East. John Morrisby (Jellis Craig) 3 bidders, bought for $3,055,000.

Auction results:

Land sales:

We are still seeing a number of properties selling before auction. This can still be a good strategy to buy your new home, however, it will help to have a good understanding of values. Where you may believe you are offering an enticing price to avoid competition on auction day, you may also now be the only buyer and good agents recommending vendors accept offers in these instances rather than allow the buyer to see they may be the only buyer on auction day.

With Cup weekend looming the market will take its last mini break with a final run to Christmas.

We have seen a lot of homes purchased over the last fortnight, and many of the successful purchasers will now have homes to sell, replenishing the recently depleted stock numbers.

This should hopefully provide a good number of properties for buyers to consider right up until Christmas as most of these buyer/sellers will be wanting to sell before the long summer break to minimise any exposure to changes in the market place.

 Auction Spotlight:

Malvern: 50 Glendearg Grove (Andrew Hayne, Marshall White), after auction undisclosed, 3 bidders

50 Glendearg Grove, Malvern, Andrew Hayne (Marshall White), sold after auction undisclosed, 3 bidders

Close to 100 people gathered to see what would transpire at 50 Glendearg Grove – a pretty renovated period home on approximately 750sqm near shops, cafes and station. Andrew Hayne was our auctioneer and after a thorough preamble, called for an opening bid. Bidder 1 offered $2.4m and Andrew promptly tabled a vendor bid of $2.6m. Bidder 1 accepted the challenge and bidders 2 and 3 soon entered the competition. Bidding continued until the price hit $2.95m when Andrew passed the property in for further negotiations. Sold after auction for an undisclosed amount.

Malvern: 67 Wheatland Rd (Jack Bongiorno, Marshall White), sold $2.555m, 2 bidders

67 Wheatland Road, Malvern, Jack Bongiorno (Marshall White), sold $2.555m, 2 bidders

Not quite as big a crowd as the previous auction in Glendearg Grove, but still impressive as around 70 people lined the street to watch proceedings. Jack Bongiorno took centre stage and tabled a vendor bid of $2m straight out of the gates to kickstart the bidding. Bidder 1 came in at $2.05m, Bidder 2 at $2.075m and at $2.47m Jack went inside to speak with his vendor. Back outside and the reserve has been me – bidding continued, with Jack professionally extracting every last bid out of both bidders. The hammer finally coming down at $2.555m to a round of applause.

Agent Opinion: There was an expectation that there was always going to be a late run this year, with a surge close to Christmas. Is that the case, or do you think that stock levels are lower than expected?
Tim Derham (Abercromby’s): “There has been an increase in listing activity  in the marketplace in the lead up to Christmas. Stock levels remain high for November which is consistent with our expectations but will taper off come early December. There are a significant number of highly qualified buyers keen to buy this side of Christmas.”

Hampton: 29 Thomas Street (Campbell Cooney, Hodges), strong auction – big crowd of 100 – sold $2.43m

While there has been intensified talk in the media for the last week about the property market crashing, we didn’t see any evidence of that on Saturday, particularly for the well-positioned, good properties.

Some agents are claiming a reduction in numbers at opens, but with the great weather upon us and many properties to look at (often opening at the same time as competing properties), this may be one explanation for the perceived drop.

With another big weekend of auctions and quality properties next weekend, a similar result could see us continue with this market through to Christmas.

Auction results:

Land sales:

Sold before auction:

With multiple bidders and results often well above the quote price, should buyers just pay more? Click Here to read our thoughts.

Auction Spotlight:

Hawthorn: 20 Elgin St (Kay & Burton), sold $1.86m

20 Elgin Street, Hawthorn (Walter Dodich, Kay & Burton), sold $1.86m

A pleasant morning greeted 80-100 people for this auction, in a popular West Hawthorn location. Auctioneer and listing agent Walter Dodich gave a no-nonsense preamble and got straight into proceedings without too much fuss. The home at 20 Elgin Street was located on the corner, and thus the crowd was well spread out, but Walter and supporting agents Geoff Hall and Andrew Jose did not miss any of the bidders. Opening at $1.4m, three bidders took part in the action seeing the property come on the market at $1.65m and sell strongly not long after for $1.86m.  Key pluses to this property; single level, car garaging, free-standing brick home and this well appeals to downsizers, couples, singles and small families.

Toorak: 4 Landale Road (Marshall White) sold $2.792m, 3 bidders

4 Landale Road, Toorak, Justin Long (Marshall White), sold $2.792m

Justin Long showed the patience of a saint at this Toorak auction, which lasted a good 45 minutes and featured well considered & last minute bidding – as well as big and small increments from each of the three bidders – throughout proceedings. An opening bid of $1.8m came from the crowd and two additional bidders were quick to join the action. Inside at $2.5m and Justin returned to advise that the reserve had been met. Bidder 2 eventually pulled out of the race, while bidders 1 and 3 battled it out for at least another 30 minutes – Bidder 1 strategically slowing down the bidding and then offering $1k rises, while Bidder 3 fluctuated between big and small bids in an attempt to throw off his opponent. With each small increment, after Justin called it down three times (each time!), the crowd sighed – it seemed the auction would never end! Justin was professional throughout and managed to extract every last bid from both parties, right up until the hammer came down at $2.792 to Bidder 1. The crowd applauded – most seemed amazed at how long the auction actually was!

Sandringham: 141 Abbott Street (Buxton), after auction $1.73m

141 Abbott Street, Sandringham, Mark Earle (Buxton), after auction $1.73m

The sun was blazing by early afternoon – just in time for the auction of this Sandringham property in a popular family locale. Mark Earle stood in front of a crowd of around 65 people and extolled the virtue of this large family home on a prominent corner block. Opening on a vendor bid of $1.55m, Mark looked for $20k rises. Unable to secure one, he offered a second vendor bid of $1.6m and subsequently passed the property in with no genuine bids on the day. The home was sold after auction $1.73m.

Agent Opinion: “We have seen a big trend in down-sizers. Port Phillip has always been a good down-sizer area – have you seen any changes in the demographics in this area of late?”

Damian O’Sullivan (Marshall White, Albert Park): “Our market place has always been a big draw card for the ‘down-sizers’ who cherish the low maintenance lifestyle and village atmosphere that typifies Albert Park, Middle Park and surrounds. The down-sizers have been particularly active of late as they look to acquire a home for the new year and beyond as the finish to the school year looms and their ‘empty nester’ status becomes a reality. We find that the down-sizers are often simply returning to the neighbourhood they once enjoyed before having to move to other areas such as Stonnington and Booroondarra which offer more family sized accommodation and an abundance of choice in terms of schooling.”

Kew: 60 Edgevale Road (Richard Winneke, Jellis Craig), auctioneer Campbell Ward, sold after $2.552m

The Melbourne property market kicked back into gear on the weekend, and aside from a small break coming up again in three weeks time (Derby Day/Melbourne Cup weekend) the market should have a very steady run into Christmas.

Although the overall number of homes auctioning on Saturday was lower, we saw good competition and multiple bidders at the auctions we attended.

We will see increased numbers and some good quality homes over the next fortnight, which will help gauge where the last quarter for 2015 is heading.

Auction highlights:

Land Sales:

New off-markets:

Auction Spotlight:

Canterbury: 15 Parlington St (Heather Elder, Marshall White), sold after auction undisclosed

15 Parlington St, Canterbury, James Tomlinson (Marshall White), sold after undisclosed

A crowd of around 100 gathered for this auction, in leafy Parlington Street Canterbury, which is not far from many private schools and the Burke Road shops. This was going to be an interesting auction; while the house had plenty of character and had been well maintained, it could be bulldozed and a demolition permit had even been recently granted to pull the house down. Nearby in The Ridge there had been several strong land sales well over $3000/sqm, so that should underpin demand. This block was 696sqm here which was OK, yet it sloped down to the rear which is not ideal for building new and something Chinese buyers do not overly like. With listing agent Heather Elder not far away, auctioneer James Tomlinson gave a considered preamble and kicked proceedings off with a vendor bid of $2m. Bidder 1 entered after some time for a $20K rise. The pace was slow for this auction, and eventually the property passed in for $2.3m with 4 bidders taking part. Sold after auction for an undisclosed price in the vicinity of $2.4m, which feels about right in the current market.

Brighton: 2 Peacock St (John Clarkson, Buxton), sold $1.84m

2 Peacock St, Brighton, John Clarkson (Buxton), sold $1.84m

John Clarkson always provides entertainment at his auctions and 2 Peacock was no exception.  With realistic vendors, this home was always going to have competition, particularly in the ever increasing ‘downsizer’ market.  Although dated and offering limited outdoor space, this James Rigney designed townhouse had excellent proportions, a large double garage and a downstairs bedroom/bathroom combination.   Four bidders quickly pushed the price to $1.65million, where it was announced ‘on the market’, selling for $1.84million.

Prahran: 65 Greville St (Jack Bongiorno, Marshall White), sold $2.529m

65 Greville St, Prahran, Jack Bongiorno (Marshall White), sold $2.529m

Just metres from the bustling Chapel Street shop & restaurant scene, the auction of this home attracted a crowd of around 70 people initially, but grew beyond that as plenty of passers by stopped to see what would transpire. Jack Bongiorno was our auctioneer and he stood in front of the crowd and gave a succinct preamble, praising the many virtues of the double-fronted home on a large, north facing block. “Move in before Christmas and the only decision you’ll have to make is where to put the Christmas tree,” he said before tabling a vendor bid of $2m to kick-start proceedings. All remained quiet so Jack headed inside for a quick referral. Back outside within minutes, Bidder 1 chimed in at $2.025m and Bidder 2 at $2.05m. Bidder 3 came in soon after with a $10k rise. At $2.455m Jack headed inside again and announced that the home was now on the market. Bidding between bidders 2 and 3 continued slowly in $1000 increments – Jack’s enthusiasm, professionalism and patience never wavered. The hammer finally came down at $2.529m to a round of applause from the appreciative crowd.

Agent Opinion: “Have there been any noticeable changes in sentiment from buyers/sellers since the school holidays?”

Nick Johnstone (Nick Johnstone Real Estate): “Not really – we are seeing the normal spring surge, buyers are chasing property aggressively if they are priced right. The change I am seeing is that people are reluctant to sell before they buy & are petrified about being “out of the market”. In recent years we have seen downsizers selling and then struggling to get back in the market.”

53 Jordan Malvern (Marshall White), sold after auction

The increase in properties for sale this weekend did nothing to dampen the current trend – the good properties sold well.

Although the auction action will slow down for a few weeks for school holidays, agents and buyers are preparing for the late spring market which is to run right up to Christmas (except, of course, for a brief pause on Derby Day/ Melbourne Cup weekend).

Auction highlights:

Land Sales:

New off-markets:

Auction Spotlight:

33 Finch St, Malvern East (Jellis Craig)

33 Finch St, Malvern East (Andrew MacMillan, Jellis Craig), sold $5.23m, 4 bidders

An expected big crowd for this trophy home in one of Malvern East’s best streets. Auctioneer Andrew MacMillan got things underway really quickly and offered a no – nonsense preamble, which was a really good call.
The auction opened swiftly with an opening bid of $4.6m and in no time has announced on the market at $5.035m with only two bidders taking part. Not long after a further three bidders came into play and the property sold under the hammer for $5.23m.

53 Jordan Malvern (Marshall White)

53 Jordan St, Malvern (John Bongiorno (Marshall White), after auction above $2.625m, 2 bidders

The crowd was buzzing as Jack Bongiorno stepped out to begin proceedings. He encouraged the 80 or so people to move into the front yard, but most of the spectators decided to stay out in the street. This didn’t deter Jack in the slightest and, after a thorough preamble,  he tabled a vendor bid of $2.4m and we were away. Two bidders took the price to $2.625m where the property was promptly passed in. The home sold not long after proceedings for an amount above that.

48 Claremont Malvern (Jellis Craig)

48 Claremont, Malvern (Lachie Fraser-Smith, Jellis Craig), sold, $2.946m, 3 bidders

There were quite a few familiar faces at this auction, with many of the crowd from the earlier auction in nearby Jordan St venturing down to watch proceedings here. The crowd wasn’t quite as big – perhaps around 60 – but the spectators huddled around auctioneer Lachie Fraser-Smith, indicating there was a fair bit of interest. Bidding opened at $2.6m and before long there were three bidders in the mix. At $2.8m Lachie announced he would be selling and the price trickled upwards in small increments to the eventual sale price of $2.946m to a round of applause from those that had gathered.

Agent Opinion:“Are vendors waiting for the late spring market to sell (ie. After the school holidays) or are they preferring to sell quietly now  if they can?”

Désirée Wakim (Marshall White): “Yes, historically, vendors do prefer to wait for the school holidays to finish before placing their homes on the market, and this year is no different. However, whilst there is a slight lull in the market, there are a few owners who are trying to capitalise on our tremendous market conditions to sell quietly if they can to avoid the traditionally competitive Spring Market.”

Brighton: 8 Elm Grove (Peter Kakos, Marshall White), under hammer, $3.185m, 3 bidders

Amidst news this week of faltering share markets and the Australian dollar dropping below 70 cents against the US dollar, our observations saw the good offerings (and some not so good), continue to perform well.

Auction highlights:

The downsizer market stepped up another notch on the weekend.

This was evidenced clearly at 16 Courang Road Glen Iris (Jason Brinkworth/Fiona Ansell-Jones, Marshall White) on Saturday. Selling as land in April 2012 for $1.15m, a single storey new home with clever floorplan (see plan below) sold for $2.92m with spirited bidding from five parties.

Just around the corner at 165 Glen Iris Road (Zali Reynolds, Marshall White), a smaller (period) version of this also sold strongly, circa $1.6m.  Smaller land, no rear yard, busier street, yet it was built on a single level and had secure car garaging – the perfect formula for downsizers.

Read more about downsizer properties in Architectural Insights (Click Here)

Land Sales:

The quieter sales continue:

64 St Vincent Place, Albert Park.  A two-storey ROW terrace (on about 139sqm) sold for $2.95m (Marshall White One) after selling only three years earlier in the mid $1.7millions.

New off-markets:

Auction Spotlight:

Hampton: 43 Ludstone St (Robin Parker, Marshall White), under hammer, $1.809m, 4 bidders

43 Ludstone Street, Hampton (Robin Parker, Marshall White), under hammer, $1.809m, 4 bidders

A slight drizzle didn’t deter the crowd of around 70 or so people that had gathered to watch the auction at 43 Ludstone Street. Robin Parker stepped outside and asked the crowd to huddle closer. After a thorough preamble, he asked for an opening bid and got one straight away from a lady to his right at $1.5m. Bidder 2 was quick to enter the contest before bidders 3 & 4 took up the challenge. A battle ensued before the hammer came down at $1.809m to a round of applause.

Elwood: 64 Dickens (Tony Pride, Pride RE), sold $1.372m, 4 bidders

64 Dickens Street, Elwood (Tony Pride, Pride RE), under hammer, $1.372m, 4 bidders

With the beach at the end of the street, it was timely the sun decided to shine for the auction of 64 Dickens Street.  After an entertaining pre-amble by Tony Pride and opening vendor bid of $1,100,000, two bidders took the price into the early $1.2millions, Tony using the opportunity for a half time break.  Upon his return, two more bidders decided to join in, the eventual result $1.372million.

South Yarra: Not everything sold this weekend. 29 Palermo St (Gerald Delany, Kay & Burton), passed in $3.4m, 2 bidders

29 Palermo Street, South Yarra (Michael Armstrong/Gowan Stubbings, Kay & Burton), passed in, $3.4m, 2 bidders

Around 100 people lined the street outside this “wow” South Yarra property – architecturally designed over three levels featuring a spectacular elevated glass pool. Gerald Delany was our auctioneer and after accepting an opening bid from advocate David Morrell at $3.2m, Gerald surprisingly tabled a vendor bid straight over the top at $3.25m. Inside to refer to his vendor, Gerald returned and the bidding continued in $25k increments before the home was passed in at $3.4m. It is currently still for sale.

Agent Opinion: “Are vendors increasing inquiry, but not necessarily wanting a full campaign? Are many people preferring to consider an off-market approach?”

Steve Burke (Hocking Stuart): “We have been amazed at some recent results. Off-markets are definitely on the rise. However, the question always arises as to whether the off-market sale price was at the optimum level or not. Auctions are, I think, the best way to sell. They are transparent & you can always sell before or after.”

Armadale: 2b Erskine St (Marshall White), after auction above $4.95m, 2 bidders

Bidders were not deterred by the cold or rain on Saturday with many auctions again seeing multiple bidding and strong results above reserve.

The talk during the week about oscillating share prices and a lowering Australian dollar appeared to have little impact on buyer interest over the weekend, particularly for the goodies.

There were a number of homes ‘bought before’ this week, particularly in Bayside.

Whether this is an anomaly or a new trend, time will tell. Perhaps with only one buyer or one standout buyer prepared to pay more than everyone else, agents saw the opportunity to sell well and the vendors were listening.

‘Smaller Land’ Auction Highlights:

Clever renovations / updated homes sold well:

New off markets this week: 

Auction Spotlight:

Malvern East: 39 Coppin St (Marshall White), under hammer, $4.46m, 5 bidders

39 Coppin St, Malvern East (John Bongiorno, Marshall White), under hammer, $4.46m, 5 bidders

A crowd of well over 100 braved the cold to watch the auction of 39 Coppin Street.  With the inspection buzzing prior to the start of the auction, John Bongiorno didn’t need to talk the property up – it spoke for itself.  Opening with a vendor bid of $3.6million, three bidders quickly took the price to $4.31million, where the property started to slow.  After adjourning for a half-time break, the property was announced on the market where two more parties joined in, the final result a solid $4.46million.

Hawthorn: 47 Victoria Rd (Andrew MacMillan, Jellis Craig), under hammer, $2.63m, 6 bidders

47 Victoria Road Hawthorn East (Andrew MacMillan, Jellis Craig), under hammer, $2.63m, 6 bidders

An icy chill was in the air for this 1pm auction, and auctioneer Andrew MacMillan did his best to warm up the very good-sized crowd of around 120 people which flooded Victoria Road (a central part of Hawthorn East). The auction started “like all others” with a vendor bid by Andrew of $2.2m, and it did take a while for crowd bidding to come about, but it did with nominated, modulated rises.
A long auction which finished at 1.30pm, the property was announced on the market at $2.51m and had good bidding depth from 6 bidders, selling for a very solid $2.63m.

Armadale: 2b Erskine (Marshall White), after auction undisclosed above $4.95m

2b Erskine Street, Armadale (John Bongiorno, Marshall White), after auction, undisclosed above $$4.95m, 2 bidders

Jack Bongiorno held proceedings under the soaring glass ceilings of the conservatory style dining/living area of this stunning Victorian home in front of a large crowd of close to 100 people. Jack didn’t waste any time and, after a thorough preamble, tabled a vendor bid of $4.7m, looking for $50k rises. Bidder 1 offered $4.75m and after some silence, Jack ducked out to speak with his vendor. Back within minutes, Jack told the crowd that we were now at the business end so if you want to bid, bid now. Bidder 2 offered $4.8m and with some more back and forth bids, the home was eventually passed in at $4.95m before selling after auction for an undisclosed amount.

Brighton: 2a Emily (James Paynter, RT Edgar), passed in, $3.525m, 1 bidder

2a Emily St, Brighton (James Paynter, RT Edgar), passed in $3.525m, 1 bidder

This architect designed home was a striking visual surprise at the end of the long driveway, tucked away discreetly behind a pretty period home close to Church St. After inspecting the home, around 70 people waited eagerly as James Paynter took centre stage – quite literally as he stood on the driveway’s turntable! Looking for a “nice, easy open”  – but unable to secure one from the crowd – James instead tabled a vendor bid of $3.3m. A second vendor bid did little to excite the reserved crowd, so James headed inside for a half-time break. Back outside, he asked a potential buyer if he wanted to bid. “Not ready yet,” was the reply. James joked that perhaps he should just keep vendor bidding until he reached a level the bidder was comfortable at, which drew some laughs from the otherwise silent crowd. Just as James was about to pass the property in, a gentleman offered $3.525m which secured him the right for post-auction negotiations.

Agent Opinion: “Are you seeing more offers before auction, are you recommending them and are the vendors accepting them?”

David Hart (Buxton, Brighton): “We are certainly seeing more buyers trying to take properties off the market prior to auction. From our perspective it needs to be an absolutely “auction stopping offer” before we recommend our vendor accepts it. As long as we contact every single buyer who has inspected the property to ensure there isn’t a better offer available before closing the sale, our vendors are invariably following our advice.”

Glen Coutinho (RT Edgar Boroondara): “We are actually seeing fewer offers prior to auction as most buyers understand that vendors prefer to go to auction in a hot market. Our recommendations to vendors in this climate is to run the property to auction.”

David Gillham (Noel Jones, Camberwell): “Last weekend we sold 50% of our auctions before,the offers were exceptional and our vendors were keen to sell before as the properties involved were on a main road and a railway line. A great offer should always be considered before auction providing all parties are given the chance to put forward an offer.”

Canterbury: 34 Warburton Rd (Hamish Tostevin, Marshall White), big crowd, opened $2m, sold for an undisclosed amount above $2.5m

Under the weight of greater auction numbers, the clearance rate stayed healthy over the weekend – hovering around 76%.

There was a level of discernment from buyers for properties with concerns, or those with ‘high’ vendor expectations.  The buyers were competitive, but not willing to ‘just keep going’.

Auction Highlights

With some unsettling at the stock exchange last week, it appeared more vendors were willing to accept the ‘bird in the hand’ prior to auction this week.

The off-market numbers continue to increase providing more opportunities for the local market to consider, however buyers need to able to sift through the properties that are really for sale and those that aren’t, and have a good understanding of the values and the process to ensure they buy well.

Hampton: 24B Bateman St (Simon Derham, RT Edgar), opened $1.2m, passed in $1.245m, sold after undisclosed

New this week:

Some areas of the market are starting to experience an increase in property appraisals.  No doubt buyers will be excited at the thought of more properties potentially coming onto the market before the end of the year, however, with the continuing media hype about the Melbourne ‘bubble’ and some shakiness in the stock market, this may be the first sign that the market could be settling, or dare we say it, cooling.

It’s hard to imagine the market cooling yet, and these are early days.  A settled week at the stock exchange could restore any waning confidence.  Of the auctions we attended on the weekend, we saw multiple bidders at every auction.

However, for some vendors, particularly those on busier road or with some other property concerns, the opportunity to sell now may provide additional piece of mind.

Agent Opinion: Do you expect to see an increase in appraisals in the coming weeks?

Kaine Lanyon (Marshall White): “We haven’t seen big, noticeable increases in appraisals (in Port Phillip)..maybe a little up, but it still very much feels like there are low numbers on stock, which should ultimately keep putting upward pressure on prices.”

It is different in Bayside, however. Speaking with Jenny Dwyer, (Hocking Stuart) office is experiencing a spike in property appraisals. Nick Johnstone (Nick Johnstone Real Estate) agrees. “Yes definitely. Lots of people want to get in before they think (the market) will come off. I don’t think it will come off though!”

Sandringham: 47A Vincent St (Steve Tickell, Hocking Stuart), open $1.2m, sold over $1.3m

Auction Spotlight – Some we attended this week:

6 Victory Street, Sandringham (Mark Earle, Buxton), under hammer, $1.69m, 4 bidders

Mark Earle stepped out into the sunshine in front of around 70 people to begin proceedings. With the crowd buzzing & a number of Buxton agents in attendance, there was a feeling of anticipation the air – this should be a good auction! And we weren’t disappointed. Bidder 1 came in strongly with an opening bid of $1.3m. Bidder 2 was quick to counter with an offer of $1.4m. Bidder 3 entered the fray and at around the $1.5m mark, Mark said we would be selling. Some rapid-fire bidding continued, with Bidder 4 joining the contest at $1.61m and the hammer coming down at $1.69m. An entertaining auction with strong bidding and great result for all involved.

Sandringham: 6 Victory St (Mark Earle, Buxton), under hammer, $1.69m, 4 bidders

33 Middle Crescent, Brighton (Peter Kakos, Marshall White), after auction, undisclosed above $5.1m

A big crowd flowed through the huge, 5 bedroom home on nearly 1150sqm before proceedings began in the lush front yard. Auctioneer Peter Kakos described the home as “prime Brighton real estate” before tabling a vendor bid of $5m straight off the bat. Bidder 1 offered $5.1m and after some prolonged silence, Peter headed inside to speak with his vendor. “I’m happy to take a gentle $50k rise,” he encouraged upon his return, but when all remained quiet, Peter passed the property in for further negotiations. Sold after for an undisclosed amount.

Brighton: 33 Middle Crescent (Peter Kakos, Marshall White), after auction, undisclosed above $5.1m

6 Medhurst St, Sandringham (James Wardrop/Hodges), under hammer, $1.295m, 3 bidders

A beautiful Spring-like day, and around 50 people lined Medhurst St to watch proceedings. James Wardrop was our auctioneer and after a thorough preamble, called for an opening bid. Bidder 1 kicked things off, tabling a bid of $1.1m. Bidder 2 joined quite quickly, and at $1.2m James announced we were on the market. Pointing out that all the action was to his left, and trying to encourage some bidding to his right, Bidder 3 (also to his left) joined at the death knoll. The hammer finally came down at $1.295m to the delight of the crowd.

Sandringham: 6 Medhurst St, (Hodges), under hammer, $1.295m, 3 bidders

9 Armfield Street, Brighton (David Hart, Buxton), after auction, $3.025m, 1 bidder

Standing tall at the end of the street, and abutting Whyte St Park, spectators took a moment to enjoy the views from the top deck before auctioneer David Hart stepped out to begin proceedings. After a succinct preamble, David called for an opening bid. Quiet, so David tabled a vendor bid of $2.65m to kick-start the auction. Bidder 1 offered $2.7m, but with no further bidding on the day, the property was passed in. Bought after auction for $3.025m.

Brighton: 9 Armfield St (David Hart, Buxton), after auction, $3.025m, 1 bidder

Architectural Concept

New houses designed and built some time ago often are purpose built for the owner and therefore it can be hard for new buyers to see potential in them.
Sometimes though with some careful consideration and planning they can be transformed to better suit modern day living. 33 Middle Crescent we thought was one of those offerings.

Challenges of the property :

Key pluses of the property :

Below represents a potential design option,using wasted space to the side of the house and also building over the rear roofline. This design is of course subject to required council approval.

Malvern East: 4 Central Park Rd (Carla Fetter, Jellis Craig), under hammer, $2.34m, 3 bidders

With another clearance rate around 80% last weekend, all the signs suggest the market is continuing to roll along steadily. Over the next four weeks the number of properties being auctioned will continue.  If vendor expectations can be managed, the current statistics suggest there will still be buyers wanting when the market shuts down again for more school holidays.

Auction highlights:

Property observations:

Often the ‘quiet’ properties present when the market is less active, such as school holiday periods.

We are currently experiencing an increase in ‘off market’ options.

With continuing hype from the our media about the ‘Melbourne property bubble’, it appears some vendors may be wishing to capitalise on the current market, rather than risk taking their property to auction later this year, just in case there is some truth to the media stories.

Speaking with Jenny Dwyer, (Hocking Stuart) office is experiencing a spike in property appraisals. Nick Johnstone (Nick Johnstone Real Estate) agrees. “Yes definitely. Lots of people want to get in before they think (the market) will come off. I don’t think it will come off though!”

New off-markets:

4  Central Park Rd (Andrew McCann, Jellis Craig), under hammer, $2.34m, 3 bidders

There was a hint of spring in the air as auctioneer Andrew McCann walked onto the sunny front yard for this 2pm auction. A good crowd listened to his measured and considered preamble and the auction commenced with a solid $2m opening crowd bid. There was good bidding at a steady pace for a few minutes with two extra bidders, then the property ultimately sold under the hammer for $2.34m. This represents a very sold result indeed, with a renovated product on bigger land next door (#4a) selling in October last year for around $20.000 more.

Architectural Concept:

The Gascoigne Estate is one on Melbourne’s most renown precincts, and given.
4 Central Park Road is a great opportunity for renovation that would work well.

Below represents a potential design option, keeping the building footprint compact (maximising the backyard area), providing good bedroom separation (main down and secondary rooms upstairs) and having a blend of formal and informal living areas). This design is of course subject to required council approval.

Auction Spotlight:

Brighton East: 2 Davies St (Russ Enticott, Hodges), under hammer, $1.59m

2 Davies St, Brighton East (Russ Enticott, Hodges), under hammer, $1.59m, 4 bidders

The crowd seemed to grow steadily throughout this Brighton East auction & eventually around 50 people huddled around to watch Russ Enticott in action. Russ went through the usual preliminaries and highlighted the home’s great location before asking for an opening bid. An offer of $1.25m came from a gentleman to his right before Bidder 2 tabled $1.27m. Bidder 3 was in at $1.3m and strong bidding continued before Bidder 4 offered $1.51m. Julian Augustini headed inside to refer to the vendor – without breaking Russ’ momentum – and at $1.57m Russ announced we were on the market. A young couple directly opposite our auctioneer was the winner on the day, taking the keys to the home at $1.59m.

Elwood: 110 Mitford St (Torsten Kasper, Chisholm & Gamon), after auction, $1.59m

110 Mitford St, Elwood (Torsten Kasper, Chisholm & Gamon), after auction, $1.59m, 1 bidder

Spread out on all four corners of the street, the crowd of around 50 waited quietly for auctioneer Torsten Kasper to begin proceedings. Torsten extolled the many highlights of the home – its fantastic location,  an easy walk to just about everywhere. A vendor bid of $1.5m kicked off the auction before Bidder 1 chipped in $1.52m. After some silence from the crowd, Torsten headed inside to refer to his vendor. Back outside, still silence, and the property was passed in to the sole bidder for further negotiations. Bought a short time after for $1.59m.

Agent Opinion: How are stock levels looking as we head towards the September school holidays and beyond?

Richard Winneke (Jellis Craig): It appears that September/October 2015 will possibly be a little quieter than the previous year for properties to choose from. However, August is certainly much busier than in years gone by.