Market Pulse

Although there was an increase in the number of properties for buyers to choose from last weekend, there was no obvious reduction in the number of bidders vying for properties this week – many auctions had three or more bidders.

With some properties now selling for significantly more than they were only one or two years ago, (eg. 20 Studley Avenue selling for around a million and a half dollars more this year than the previous sale approximately 18 months ago),

There were examples where vendor expectations were starting to creep beyond the market, such as 24 Byron Street, Kew – three bidders, passing in for $2,030,000 (selling after for an undisclosed amount).

August is likely to see a steady flow of new properties hitting the net providing comfort for buyers in the shorter term. However school holidays start again in mid September and if you haven’t found the home you want before early September, there will be another fairly lengthy spell until November when the flow will improve again –  due to school holidays and two public holiday weekends (AFL final and Cup Day).

Other results:

With increased interest buyer in development sites, 41 Atkins Street Kew sold for $4.325m – three units on approximately1000sqm all sold as one. This follows the recent sale of 12 Stawell Street Kew (3 units around $4,500sqm).   Two similar offering for investors/buyers are 16 Oakleigh Street, Oakleigh East (Andrew Boyce, Hodges) auctioning on 29th August and one coming up in Hawthorn East.

There are still a number of properties selling quietly or before auction. Peter Vigano (Jellis Craig) sold 1b Marlborough Street quietly off-market in the mid $3m’s. Rob Vickers-Willis & Jeff Gole (Abercromby’s) sold 53 Vincent Street Glen Iris $2.5m pre-auction.

The auction of 888 Riversdale Road Camberwell didn’t necessarily live up to the hype on the weekend (sold on the 8th day of the 8th month, the number eight of course having good fortune according to Chinese culture), selling for $1,440,000 (or about $2,300sqm – which is fairly normal in the context of this current market, for what it was).

Auction Spotlight:

9 Bamfield Street, Sandringham (Danny Corcoran/Bill Jowett, Buxton), under hammer, $1.565m, 4 bidders

With a huge crowd of around 90 people, multiple bidders & rapid-fire bidding throughout, this was a cracker auction all round. The spectators spread themselves out across and down the street – auctioneer Bill Jowett did a great job managing the bidding from all directions! A strong opening bid of $1.3m came from the crowd. Bidder 2 came in not long after at $1.31m and Bidder 3 at $1.35m. Bidding between the three continued before Bidder 4 entered the fray. More bidding, no half-time break and no “on the market” question, but when bids started trickling in at firstly $5k, then $2,500 increments, Bill announced that he would be selling to the highest bidder. The hammer finally came down at $1.565m to a round of applause from the appreciative crowd.

98 Orlando St, Hampton (Peter Kennett/Jenny Dwyer, Hocking Stuart), under hammer, $2.85m, 2 bidders

The first of the ‘non-identical’ twins – a pair of newly constructed townhouses just metres from Hampton beach – was how Peter Kennett described the property on offer to the massive crowd of over 120 people. Peter asked if there was a game on at the MCG because “everybody seems to be here instead!”  After a dig at Carlton & Collingwood, and some subsequent chuckling from the crowd, a vendor bid of $2.5m kicked off proceedings and Bidder 1 chimed in $2.525m. Bidder 2 entered soon after and at $2.6m, Peter & Jenny Dwyer ducked in to speak to their vendor. Back outside, some more bidding and at $2.71m Peter announced he would be selling. More bidding and at $2.85m the hammer came down to cheering and clapping from all in attendance.

100 Orlando St, Hampton (Peter Kennett/Jenny Dwyer, Hocking Stuart), after aution, $2.59m

The second, and slightly smaller townhouse but still featuring spectacular bay views, 3 bedrooms, pool, basement garage and luxury appointments, went to auction just minutes after its next door neighbour. The spectators that had remained after the previous auction wondered in earnest whether the under-bidder would be successful the second time round. We didn’t have to wait long to find out. Peter was quick to start the contest, opening with a vendor bid of $2.4m. Our under-bidder tabled $2.425m and, with no one else in contention, Peter quickly passed the property in – “Let’s go buy a house,” he enthused as he ushered the family of four inside. Sold after auction for $2.59m.

Agent Opinion: How are prices in your area compared to this time last year?

Stuart Evans (Marshall White): “I believe prices in Boroondara have increased by 10-15% in the last 12 months. Buyer demand for quality family homes is as strong as I have ever experienced. “

A solid auction weekend overall, considering it was the first weekend back with numbers.

The good properties were well contested, and those over priced or with concerns (perhaps a combination of both) were left on the shelf.

There have been reports that the number of homes sold this winter is up approximately 20%.   This has been largely due to a number of buyers still wanting and canny vendors capitalising on this.

The good news for buyers who haven’t bought, is that there are some very good properties coming up.  Many of which will hit the internet this week. Two highlights are in the Gascoigne Estate (Malvern East).  Good family homes, tastefully designed and renovated.

Off-markets:

A tale of two properties – land, house, lifestyle – and the advantages of both:

21 Haydens Road, Beaumaris

20 Reed Street, Albert Park

Both sold on the weekend, for almost identical amounts, in the higher $2millions.

21 Haydens, a convenient location to the Concourse shopping centre, a few hundred metres to the beach and a west facing rear.  Approximately 683sqm with a, near new, large Lowe Construction family home and pool utilising most of the land. Concerns – the road is a local traffic thoroughfare, particularly during the day and the bus stop, complete with seat, is directly out the front.

20 Reed Street, 424sqm, two street frontages, a well positioned period home with a large back yard, one block back from the beach and an easy walk to both Albert Park and Port Melbourne. Concerns – further money will need to be spent on the property as the home will require a major renovation at some stage.

Both homes offer a variety of lifestyle opportunities, however, Reed is likely to offer better capital growth opportunities given the land size and proximity to the city.  The bulk of the purchase price for Reed in the land, with a nominal amount for the home, whereas Haydens was as much, if not more, about the house with a more evenly split ratio between house and land in the purchase price.

Historically, land has been the driving factor in increased property prices with the buildings depreciating over time.  As families become more time poor, proximity to the city will become more desirable for buyers.  Whereas, once, Albert Park was limited for schooling options, this is no longer the case with both primary and secondary schools close by, and new ones, such as Haileybury College, opening in the city as early as next year.

Whilst the property prices may be very similar today, there is likely to be a growing gap between the two in the future.

Next weekend will be the 8th of August, and there are plenty of auctions. Given the heavy numbers, buyers should consider buying before, but this strategy is not that easy if you are emotionally attached and/or have not done it before.

Auction Snapshot:

14 Wilmot St, Malvern East: (Mark Staples, Hocking Stuart), under hammer, $1.555m, 3 bidders

A good sized crowd of around 80 people lined both sides of Wilmot Street as Mark Staples took centre stage alongside Steve Burke for the auction of number 14. Bidding was fast and furious and after opening at $1.2m, it didn’t take too long for the home to be on the market at around the $1.42m mark. Three parties took the price to $1.555m before the hammer came down to a round of applause. A quick, rapid-fire auction.

52 Littlewood St, Hampton: (Christian Hegarty, Buxton), after auction, undisclosed above $2m, 1 bidder

The threat of rain looming above, along with the brisk morning air, didn’t deter the 50 or so people that had gathered to see what would transpire at the auction of this large, modern family home in Hampton. Christian Hegarty was our auctioneer and after a succinct preamble, he called for an opening bid. As the crowd huddled around, Bidder 1 offered $1.8m. Christian then tabled a vendor bid of $1.9m before the property passed in to the lone bidder at $1.95m, before selling after auction for an undisclosed amount above $2m.

5 Warriston Street, Brighton, (Peter Kakos, Marshall White), under hammer, $2.010m

A good crowd, closer to 100 gathered to watch Peter Kakos auction 5 Warriston Street. Whilst the competition was enough to engage, he managed to include some humour and fun to an otherwise serious situation.

The successful bidder started and finished and was bold in his bidding, the first bid at $1.65million. A second bidder presented immediately, however, he was in and out quickly, before the third joined in. On the market at $1.78million, things started to slow as the numbers approached $1.9million, eventually selling for $2.010m.

Not that much of a surprise really – this area of Brighton has been providing good value for buyers, (e.g. The two sales earlier this year at 6 and 17 Willansby Street, ) particularly considering properties with similar proximity to shops and transport on smaller land further south ( 1 Mildura Ave, Sandringham and 4 Orlando Street, Hampton) both sold recently over $3,000 sqm, with less desirable houses. Even 3/49 Abbott Street, Sandringham, 465sqm – but still one of three units – sold for over $2,900 sqm and still needs a good cosmetic renovation.
When considering the area to buy, it pays to understand what is happening beyond the immediate market you are looking in.

Footnote: You might be interested to check out the winners of the recently held 2015 Houses Awards. Click Here for photos & details of some really stunning homes.

With only a small number of $1m+ auction numbers this weekend, the results didn’t tell us too much.  Unless we see either a big increase in stock levels, or a sudden drop in the number of buyers looking to purchase, the next few months are likely to be more of the same.

The current feeling is that stock levels will not satisfy buyer demand, and this will keep the market healthy.  Mainland Chinese interest also remains strong for the ‘right’ properties, and this is having a big effect in the inner Melbourne market prices.

We have seen a trend this year in the increased demand for properties on smaller land.  Buyers appear to be more willing to compromise on their garden size to be closer to shops, stations and schools.

We believe this has been brought about by a number of factors:

Two key sales this weekend:

Not everything sold on Saturday:

Off-market talk continues, and it appears to us that if you a buyer over $2m then there could be a lot more choices off-market or privately than just those advertised on the internet.

Architecturally Speaking

What makes a good townhouse?

We get this question a lot, and when you walk a good townhouse, you just know they are going to be well received by the market.  1 Trafalgar Street Mont Albert (listed by Stuart Evans, Marshall White), is testament to this. Of course nothing is ever perfect (some may not like the style of this home, and think it lacks a deeper, consolidated courtyard area), yet here are ten quick points that make this a great property:

Unsurprisingly renowned local architect Michael Monkton designed this, and 14 years on it still works, and works very well. Many people struggle with the cost of a good architect, but it really can be money very well spent which comes back to you in spades when it comes time to sell.

Auction Snapshot:

101 Manning Road, Malvern East (Adam Cashmere, Jellis Craig), under hammer, $2.16m, 5 bidders

Well over 100 people turn up for the auction of this brick Edwardian home, which boasts 707m2 of north facing rear land, yet it is located on a T-intersection and lacks covered car-parking or potential for it.  Auctioneer John Morrisby offers a warm welcome (which is appreciated, given the stiff winter chill) and gives a spirited preamble, and listing agent Adam Cashmore is ready to take down the bids. John duly opens the auction up at with a vendor bid of $1.7m, which is a good move just to kick things along, and not long after a bidder in the crowd cordially obliges with a $25K rise. Not long after bidders 2 and 3 join in and the auction clips along nicely. The property is announced on the market at $2.030m, and then it starts to pull up at the $2.1m mark, selling under the hammer for $2,160,000. 5 bidders in all here fought things out, and the result was not a ‘flyer’ but ‘about right’.

36 Ferncroft Ave, Malvern East (John Morrisby, Jellis Craig), passed in, $3m, 3 bidders

A crowd of around 75 gathered to see what would occur at the auction of this huge piece of Malvern East land, on a corner near Hedgeley Dene gardens – approximately 1263sqm selling with plans and permits for three dwellings. John Morrisby was our auctioneer and the spectators, including one or two developers/investors, huddled around him as he began proceedings. A low opening of $2m came from the crowd. John thanked the bidder for his offer, but quickly tabled a vendor bid of $2.5m in response. Bidder 2 offered $2.6m before John headed inside for a quick referral. Back outside, John tabled a second vendor bid of $2.8m before Bidder 2 offered $2.85m. Bidder 3 entered the competition with a $25k rise and after a couple more bids, the property was passed in to Bidder 3 at $3m.

Winter in Melbourne. Traditionally not a great time for selling property as gardens are dormant and many people are focused on other activities such as school holidays, overseas adventures and the football.

In terms of new trends, we are seeing a growing section of the market (in particular the family home buyer) moving away from larger blocks of land in favour of  functional, well-designed homes in close proximity to the shops and transport.  As a result, we are starting to see big variances in the suburb dollar/sqm rates depending on the land size, orientation and location.  For example, 1 Mildura Avenue, Sandringham (which has been bought as a new build site) recently sold for over $3,000 sqm, a figure more commonly seen in Brighton.  More than ever, if you are a buyer in this market having a greater understanding of where the market ‘sees’ the value of the property will be all–important.

While there has been plenty of talk in the media about the market pulling back over recent weeks, we and many others think the market is still travelling strongly.  Traditional supply and demand market indicators are still suggesting that the demand to buy is greater than the stock levels available to choose from.

Whilst auction numbers are down, predominantly as a result of the holiday period,  there have still been some strong results.

As the holidays draw to an end, a number of campaigns commencing Saturday were well attended.

A number of ‘off-market’ homes have also continued to present throughout the holiday period:

With the Spring market now approaching, buyers are anticipating good levels of new property coming on to the market. August  8th is shaping up to be the first big auction weekend, post holidays.  With the ‘double 8’ date, competition could be strong as buyers (particularly Chinese) bid to purchase on this ‘lucky’ date.

Auction Highlights:

10 Lagnicourt St, Hampton (Rowan Thompson, RT Edgar), under hammer, $1.685m, 4 bidders

A sunny midday auction in the front yard of this Californian bungalow in the sought after Castlefield Estate. The crowd of around 70 clambered for a spot in the sun as auctioneer Rowan Thompson stood on the front veranda and went through the preliminaries. A vendor bid of $1.4m opened proceedings, before Bidder 1 joined in at $1.42m. Bidder 2 offered a $20k rise and after a quick succession of bids, the home was announced on the market at $1.52m. Bidders 3 and 4 entered the competition and the bids crept up slowly until the hammer came down to a very happy Bidder 4 at $1.685m.

6.1/193 Domain Rd, South Yarra (Anthony Reis, Marshall White), after auction, undisclosed above $1.525m

A brisk clear winter day greeted myself and about 100 others for the auction of this landmark ‘untouched’ South Yarra apartment on Domain Road, designed by renowned local architect Robin Boyd. Back in May this building featured as part of Melbourne’s “Exemplary Apartments” open day and rightly so. Here interiors are arranged with small-windowed service rooms on the south, while living areas and bedrooms take great advantage of sweeping views and light to the north with curtain walls of floor to ceiling glass and random balconies. “Domain Park’ is a local icon, these apartments do come up every so often, and whenever they do there is always good interest. Yet the company share title structuring, low ceilings and often dated internal fit-outs do deter many buyers, so the ‘interest’ is mainly from locals or diehard Boyd fans (like me). Auctioneer Marcus Chimenello and listing agent Anthony Reis conducted the auction in the park across the road – which was a great setting (and a very logical one). Marcus gave a good intro, then looked for bids. After it was clear there were none forthcoming, a vendor bid of $1.5m was placed. This did little to excite the crowd, and the vendor was referred to (luckily they were standing in the park and not back in the apartment!) and after a few minutes the auction resumed. Eventually, a crowd bid of $1.525m was offered, and that is where the auction pulled up and passed in. Sold after for an undisclosed price.

6 Fenton Ave, Kew (Nick Whyte, Nelson Alexander), under hammer, $2.35m

A residential property with 726sqm of land in the heart of Kew? In this market, which has been very well supported for some time now and mainly bought by Chinese families, such a property should sell well, even though this is a cold winter’s day. But there is a catch. This home is an original one needing upgrade work and is deemed ‘contributory’ by local council, so effectively it cannot be knocked down.  Given this, such properties traditionally have had limited appeal. ‘Would this be the case today?’ I pondered – along with about 80 others who had gathered to watch proceedings. Auctioneer Duncan McPherson energetically gave a quick spiel, and then paused for questions. An older man put up his hand and asked if the property was in a heritage overlay and if the house could be pulled down, which was no doubt a tactic to put other buyers off.  Duncan responded promptly and professionally reiterating a lot of what he said in his preamble and after too much fuss, the auction was off and running. Opening with a bid of $1.9m, the auction took a bit to get going until Bidder 2 entered the fray, asking a few times if the property was on the market in the early $1.9ms. It wasn’t then, but was at $2.0m and two new Chinese parties started playing now for keeps and the property sold under the hammer for $2.35m. A strong result, but in this market not a totally crazy one. The landscape is changing though for what the Chinese are starting to buy, and it seems in this market that other than properties that defy good feng shui principles, then any property is good enough to buy.                                                                                                                      

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

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

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

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

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

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

Some highlights:

One that faltered:

Off-markets:

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

Architecturally Speaking: Townhouses

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

Some things to look for:

Auction Highlights:

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

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

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

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

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

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

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

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

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

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

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

Some highlights:

Off-markets:

Land results:

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

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

Auction Highlights:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Standout auction results this weekend included:

Some of the better off-markets this week include:

Architecturally Speaking: Kitchen Design

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

Trends:

Auction Highlights:

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

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

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

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

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

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

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

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

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

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

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

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

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

Architecturally Speaking:

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

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

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

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