Market Pulse

The auction scene was more of the same this weekend, with strong bidding on many properties and more record prices.

Some highlights:

 Pass-ins:

Land was contested heavily again:

Off market properties have continued to increase in number this week.

Some new options to consider include:

Next weekend is the Queen’s Birthday holiday weekend.  The property market shuts down while focus is diverted to the opening of the ski season. Have a great long weekend and we will be back in a couple of weeks.

Auction Highlights:

16 Stawell St, Kew (Antony Woodley, Marshall White), after auction, $3.35m, 4 bidders

A good crowd of around 80 gathered for the early morning auction of 16 Stawell Street. Auctioneer, Antony Woodley, gave his usual polished performance. A genuine bid opened the day for $2,700,000 with a second bidder joining in immediately. The first bidder was quick to stop with a third taking their place, steady increments quickly taking the price over $3m. It became clear after Bidder 4 asked if it was ‘on the market’ that this was an auction where bidders were competing for the first right to negotiate with the vendor. Bidder 4 eventually achieving that right at $3.3m. The final result $3.35m.

16 Missouri Ave, Brighton, (Peter Kakos, Marshall White), under hammer, $2.21m, 5 bidders

Around 65 people gathered in the front yard and on the footpath outside the property, keen to see what would transpire at auction on Saturday. Peter Kakos was our master of ceremonies and after a thorough preamble, called for an opening bid. Bidder 1 offered $1.75m and we were away. Two bidders took the price to $1.9m at which point Kate Strickland dashed inside to seek instructions from her vendor. Once outside again, Kate gave Peter a smile and a nod and Peter declared that at $1.95m, yes we were selling. By now, Bidder 3 had entered the fray and shortly after Bidder 4 threw his hat into the ring. Bidder 5 chimed in for a while, but it was Bidder 4 who stayed strong throughout, outbidding all the others to become the happy new owner at $2.210m. A great auction.

21 Iona St, Black Rock (Peter Kennett, Hocking Stuart), under hammer, $1.765m, 5 bidders

This beautifully presented home attracted a lot of interest when it went to auction on Saturday. Around 100 people traipsed through the home prior to proceedings to get a glimpse of the house that had featured in a national home magazine, styled by its interior designer owner. Peter Kennett debated whether to hold the auction in the street or the picture perfect backyard, but decided on the latter, which was a great choice as the huge crowd  fit comfortably in the impeccably manicured gardens. “It’s autumn time, it’s auction time and it’s action time,” Peter boomed, and after an extremely entertaining spiel, he called for ann opening bid. A strong offer of $1.4m came from the rear of the crowd. Bidder 2 was quick to reply at $1.425m and a short battle between the two ensued before bidders three and four entered the competition. Jenny Dwyer headed inside to seek instructions from her vendor and once back out, at $1.65m, Peter declared he was selling. Bidder 5 entered the competition and after a great battle, at $1.765m Bidder 1 declared Bidder 5 “can have it,” thus ending a great competition and very entertaining auction.

Agent Opinion: Advice for buyers at auctions over winter

 

John Clarkson (Hocking Stuart): “Buyers, do your homework, attend auctions to watch a variety of styles and don’t be afraid to ask auctioneer if it is on the market!”

With nearly 1000 auctions on the weekend the results for good family homes, good land buys and those appealing to the downsizer market, were good all round.

Some highlights –

Land was contested heavily again:

As we approach winter and the upcoming school holidays, off-markets properties (i.e. those not publicly advertised) are alive and well.

Some examples:

As stock levels start to slow down for winter, buyers may wish to consider whether they want to wait until spring before they buy their new home.

There will be buyers willing to sell quietly during this time, particularly if they have already purchased.

Now is the time to work out how you can best access the properties available for transaction quietly.

We have found the best way is ‘coffee’ catch ups with key agents to find the properties and then the appropriate supporting data to help buyers understand ‘values’ when there is no opportunity for ‘social proof’ (such as other buyers inspecting the home, or bidding at auction) around pricing.

Architecturally Speaking

Island benches

This is high on the wish list of most of most clients we talk to (buying and designing homes), and the homes that tend to sell well often have a great kitchen. The ‘Island bench’ is really important, as it is often the central “communication and social hub” of the home and it helps with the functionality of the working kitchen. Main points to consider:

There was a great island bench in the home we visited this week at 15 Rowell Avenue Camberwell (Nikki McCartky/Glen Coutinho, RT REdgar). (see pic below)

Large, facing north facing windows and acting in part as informal dining area, this works really well and you are really drawn to it’s presence.

Auction Highlights:

1 Russell Street, Toorak (Rob Vickers-Willis, Abercromby’s), under hammer, $3.96m, 5-6 bidders

Pretty as a picture, this well-built brick original home in a quiet Toorak location saw a good crowd gathering for it’s auction. Auctioneer Rob Vickers-Willis and listing agent Jeff Gole conducted proceedings in the private backyard, and around 40 were in attendance. Opening with a genuine offer of $3.1m, the auction clipped along nicely with a string of bids and before too long with at least four bidders pushed the action along to $3.325m, when the property was announced “on the market”. No half-time break was needed, with Rob and Jeff taking bids very quickly and in the end it was a battle of two Chinese families that really upped the ante over the $3.7mark, with one of them winning the day (and the property) at $3.96m. Land was the really key to the success of this property; just over 600m2 and a corner block with no heritage overlay works out to be just under $6,600/m2 – very healthy indeed.

34 Marchant St, Highett (Adam Gillon, Buxton), under hammer $1.435m, 3 bidders

The crowd started gathering long before Adam Gillon took centre stage. First it looked like around 70 people had come to watch the auction but that number quickly grew to 100 and then 150 in the minutes prior to the start of proceedings. The coffee van was a huge hit too and the line only dispersed as Adam started his preliminaries. Calling for an opening bid, a baby wailed:  “Don’t cry,” Adam soothed. “Mum and dad still have a chance to buy it!” Bidder 1 offered $1.1m and we were away. Bidder 2 gave a strong $1.2m and before long, Bidder 3 was in at $1.35m. There was a slight pause and, as if on cue, an elderly cyclist broke the silence, announcing his arrival with the loud ringing of his bell. And as he sped through the middle of the crowd, he gave Adam a high five much to the amusement of the spectators. At $1.41m the home was on the market. More laughs as a metre reader entered the property for sale, “life goes on,” laughed agent Paul Sibley. And with a couple more bids, the home was sold to a young family, the hammer coming down to a massive round of applause at $1.435m.

17 Willansby St, Brighton (David Hart, Buxton), under hammer, $1.67m, 10 bidders

With 17 Willansby Street selling last week with 5 bidders for $1,230,000, there was much anticipation around 6 Willansby which offered approximately 200sqm more land and a larger, original cream brick home.
Starting with a fairly low initial bid of $1,100,000, auctioneer David Hart quickly placed a vendor bid of an extra $100,000, and moments later a second bidder entered the competition with another rise of $100,000 to $1,300,000. From here, the bids continued in quick succession – 10 bidders in total – and a final price of $1,670,000.

Agent Opinion: Tips for selling and buying in the winter months

David Gillham (Noel Jones, Camberwell): “Winter is statistically the best time to sell,of course avoiding the June /July school holidays when buyers tend to chase the warmer climates in North Queensland and onto farther destinations.We find the lack of good property around seems to pump the prices of any property placed on the market at this time, simply the supply and demand  imbalance comes to the fore. Don’t be frightened of the weather, buyers will bid in the snow if they love a property enough,it is the economic climate that prevails and we all know how strong that is at the moment.”

The Melbourne property market doesn’t appear to be showing any signs of slowing down. With the number of new properties hitting the internet set to slow down as the market heads into the mid-year ‘hibernation’ around school holidays, bidder numbers have intensified, particularly for certain properties such as single level homes, larger family homes and new home sites.

Speaking to Jack Bongiorno in our travels over the weekend, he pointed out that Marshall White has had almost identical auction numbers (754/755) this year compared to last. The big difference between the two – increased buyer interest which has resulted in:

However, we attended 15 auctions over the weekend with only six selling under the hammer.   Of the nine that passed in, only 4 have sold.  This may be an indication that vendor expectations are starting to increase.

While prices overall are strong and bidding depth solid, there are still some good buying opportunities out there;

The two markets which have been attracting great interest for many months are the downsizing market and those looking for good land to develop (featuring mainly Chinese buyers particuarly in Boroondara).

New home sites:

Single-fronters:

Downsizers :

We are hearing of many younger buyers (looking for larger homes for their growing families) starting to lose confidence in this climbing market.

There are still good opportunities for younger families.  Understanding what to look for is the best way to start:

The second is to stick with the brief.   Often young families will ‘spread their wings ‘ to include many suburbs, rather than focusing on the one or two that suit best. This can lead to “not seeing the forest for the trees” stress levels increase, and good opportunities can be missed.

Auction Highlights:

76 Tivoli Road, South Yarra (Jeremy Fox, RT Edgar), bought after for an undisclosed amount, 2 bidders

The sun was shining and the crisp Autumn leaves were fluttering in the breeze as Jeremy Fox stepped out into Tivoli Rd in front of around 50 people. With the imposing Victorian as the impressive backdrop, Jeremy praised both the home and its location before asking for an opening bid. Initially looking for $4m, Jeremy then suggested $3.8m. Bidder 1 was quick to jump in at this level, as was Bidder 2 (a prominent agent on behalf of his client) who offered strong counter bids each time Bidder 1 raised the bar. At $4.35m, Jeremy headed inside to talk to his vendor. Upon his return, he told the crowd we were close to the reserve, but with no more bidding, the property was passed in for further negotiations. Bought after auction for an undisclosed amount.

76 Wattle Rd, Hawthorn (Nick Franzmann, Marshall White), under hammer, $4.75m

One of the last auctions of the day (3.30pm), and this was always going to be a big one. Where in inner Melbourne can you buy just under 1800m2 of regular-shaped land with a good period home? The answer: 76 wattle Rd Hawthorn. And sad is this is to say, this property had no Heritage Overlay, so it could be possibly be pulled down. Nicholas Franzmann is the listing agent and is well supported by his team – he continues his 2015 run of listing and selling good-sized properties in Boroondara. Auctioneer Antony Woodley has the perfect setting for this auction in the tranquil front yard, and about 80 onlookers are keen to see what transpires. Opening with a “cheeky” crowd bid of $2m, Antony was keen to counter that with a vendor bid of $3.8m and take bids from there. Several minutes passes by then bidder one comes to the fore with a $50,000 rise. At a slow pace, the auction rambles on and is announced on the market at $4.386m about 25 minutes later, with two other bidders patiently taking part. The auction is strung along with lengthy pauses and minimal $1K bids at times, and finally it sells for $4.75m, almost $400K over reserve with two chinese parties in the end fighting it out. I look down at my watch and the time is 4.20pm – what a marathon! Good result though for the vendors, they should be pleased with their agent’s efforts here today and throughout the campaign.

33 Elm Grove, Brighton (Steve Smith, Marshall White), under hammer, $2.3m, 6 bidders

Even before the auction began you could feel the depth of interest, with large numbers gathering inside the front garden around the driveway and spilling into the street. No sooner had auctioneer, Peter Kakos, completed his spiel an opening bid of $1.615m was heard. The low start was just that – a start. From here the bidding started, with 2, 3, 4 and 5 bidders increasing the bids, sometimes by $20k, sometimes by $50k or more. At many stages the buyers were so keen, amounts were being offered by multiple bidders at the same time. The property was announced on the market at $2.060m and bidders bid strongly to around $2.2m where things started to slow down. Here Bidder 6 entered the competition, walking away the new owner for $2.3m.

Agent Opinion: Are people waiting until Spring to sell, or are vendors preferring to sell quietly now?

Stefan Whiting (Buxton, Brighton): “Vendors have traditionally waited until the popular Spring period to sell, however they have become more educated and realised that selling during Winter can give them an advantage as there is less selection available for buyers. During the cooler months there is limited supply but buyers continue to look, therefore we see a similar dollar value in Winter as we do in Spring.”

The strong results continued again this week, with bidder numbers in force at most auctions, and, in the main, well exceeding vendor expectations.

The two markets we see as particularly strong are:

1. those looking for land to knock-down and re-build; and
2. downsizers looking for single-level, updated homes close to local shops.

Kew was particularly strong:

Some other big land results – both with the same land size (613sqm) in two of Melbourne’s best postcodes.

Two downsizer properties (well presented, single level, close to shops) that sold at auction:

Some Bayside sales of note:

Not all properties are making it to auction day – some sold beforehand (mid-week) for very solid prices.

Many people we talk to can’t believe that in this market the vendor would sell before auction. Selling before doesn’t mean that the results are not strong or that the buyer does not have to fight it out with other bidders. Such scenarios can present as boardroom auctions, best offers in, one offer only, or last man standing, to name a few. In this market (as in any), your best chance to be the buyer is in the preparation, research and planning.

Architecturally Speaking – Brick v Timber

Brick vs timber wall construction is a common discussion point with buyers………At the end of the day, it is very much a personal choice.

We don’t think it affects capital growth as such, but definitely some buyers will not look at timber homes (particularly people from Europe), as they consider it inferior and very different from what they used to traditionally.

In nutshell, the pros and cons of the two systems are:

Timber

Brick

Auction Highlights:

26 Goldthorns, Kew (Jellis Craig), under hammer, $2.715 million

Beautifully presented, this original clinker brick two-storey home couldn’t have looked much better for its auction. What a beautiful home this is…….and the features inside are divine if you are lover of the art deco style. Hope others see its beauty too. Yes, it is bit dated for 2015 living but nothing a good architect couldn’t address. A really good crowd of well over 100 people lined the kerb across the road as auctioneer Steve Abbott gave a concise preamble, with listing agent Belinda Anderson on the ready by his side to record the bids. Quoted originally as “over $2m”, this was always going to attract good buyer interest, especially given the huge result a stone’s throw away at 66 Campbell Road of $3.050m only a few weeks ago. Steve looked for an opening bid and a cheeky one of $1.8m was called out. Steve patiently took the bid, yet this was trumped by bidder 2 with a $2.3m call, which is much more in line with the market sentiment. Bidder 3 then joined in and bidding clipped along. At around the $2.5 million mark, the property was announced on the market and, at $2.675 million, it looked to be sold to bidder 2 until a new bidder came in at $2.7 million. Bidder 3 countered this bid at $2.71 million but bidder 4 (a Chinese family with a sharp eye for good land) offered a counter which the agent believed was $2.75 million. Alas, this is not what the bidder meant – they meant $5,000 not $50,000 – so the bidding is taken back to $2.715 million, which, at the end of the day, is enough to buy the property. No heritage overlay to this home seems not quite right, but that was what ultimately got the strong result here -$3100m2 used to be Sackville Ward prices – this part of Kew is really popular at the moment.

15 Bridge St, Hampton (Peter Kakos Marshall White), under hammer, $3.1 million, 3 bidders

With grey clouds threatening, the auction of 15 Bridge St was held in the front yard with around 70 people huddled under the carport or around the perimeter of the garden. Auctioneer Peter Kakos spent a fair amount of time describing the upside for this property, one of only a few visible larger family homes currently for sale in Hampton. After calling for an opening bid, one was received almost immediately at $2.1 million. Peter very quickly increased the price with a vendor bid of $2.5 million and the real auction began. Three parties pushed the price to $3.1 million, where the property was announced on the market. However, to the relief of the successful bidder, there was no further bidding and the property was bought for $3.1 million.

6 Nicholls Road, Ormond (Mark Staples, Hocking Stuart), passed in $1.935 million, 3 bidders

The pretty period facade of this Ormond home gives little indication to the modern transformation within. Set on 920sqm of land, it was always going to be interesting to see what happened at auction on Saturday. Auctioneer Mark Staples stepped out into the street, in front of around 80 people, and didn’t hesitate before jumping into the preliminaries. Calling for an opening bid, he was offered $1.8 million and we were away. A vendor bid at $1.88 million saw Bidder 1 come back at $1.89 million before Bidder 2 entered the fray at $1.9 million. Bidder 3 offered $1.92 million, before the home was eventually passed in at $1.935 million for further negotiations.

Agent Opinion: What is your advice for young families buying into the current market?

Julian Augustini (Hodges): ‘Buy in the best location that you can for your budget. You can always improve a home over time, but location is key for lifestyle and future capital growth.’

The market sizzled this weekend, and the weather (fine and mainly clear) and auction numbers (relatively low compared to the next few weeks) definitely helped.

On Saturday crowds were really healthy and two late afternoon auctions in Boroondara were testament to this – 424 Auburn Road Hawthorn and 57 Broadway Camberwell – both conducted by James Tostevin (Marshall White).

The Broadway auction was one of the biggest we had seen numbers-wise – with well over 400 people in attendance. Thank goodness for the expanses of parkland across the road where the auction was conducted. The result? Solid. Sold under the hammer for $6.35m and on the market at $6.0m.

Some standout results –

The coming weeks look particularly healthy, and picking up the Weekly Review this morning reinforces this as there were 175 pages of advertised properties! How much further can this market go and is there an end in sight?  These are just some of the comments we are hearing out there.

With low interest rates, buyers still out numbering supply and a low Aussie dollar, those who are not prepared to pay a ‘street record’ for a home or a price they think is too much could be ‘searching’  for a little while longer yet.  The key is making sure it is the right property to avoid the need for an early re-sale, which could potentially be quite costly (both emotionally and financially).

Architecturally Speaking – Downsizers

This is a market that is gathering more and more momentum as people are living longer, healthier and retiring earlier. The large family home is too big now the children have left and hard to maintain properly.

We are finding the following points really important to this buyer groups.

On the buying side of things, it can be really hard as a downsizer in this market for the following reasons:

Auctions – it all sounds simple to just turn up at auction and bid to level and stop, but many people don’t do that or they haven’t anticipated what may happen and the best laid plans can turn pear-shaped quickly.

Value – what is the property really worth? Often in this market the vendor’s expectation do line up pretty close with the agent quote but that isn’t necessarily where the market is. It can be helpful to know, in advance, where other buyers see value on the property?

Access to off-market homes can be hard (many are sold at the end of rental periods and do not present overly well, but that can be easily fixed!).

Protection of Privacy – often a much higher property dollar-wise has been sold, therefore your financial position can be exposed.

Emotional support – this often is  a very stressful process, and spending time before the auction undertaking proper due diligence and formulating plans can be invaluable. A trusting relationship with an experienced and independent adviser through the whole process can make all the difference.

Auction Highlights:

57 Broadway, Camberwell (James & Hamish Tostevin, Marshall White), under hammer, $6,350,000, 4 bidders

A late afternoon auction, and there was a serious buzz at this property. Although quietly listed some months back, when we attended the first open there were huge numbers through and this was always going to be big auction, crowd-wise. Parking in Stanhope Grove about a hundred metres away was a clever move, as Broadway was gridlocked with so many cars and people it must have been frustrating for those who tried to park in position that on any other day would have been easy. Auctioneer James Tostevin (Marshall White) decided to conduct the auction in the park across the road – this was a smart move as this was the perfect setting for such a large crowd (well over 400 people). As the sun streamed through the autumn leaves, James opened the auction on vendor bid of $5.2m and it did take a bit to get going. At $5.65m and with the help of some good bidding by a few bidders, the auction stopped and the bid was referred. James and team returned a few minutes later and when the auction recommenced the property was announced on the market at $6.0m. It sold not long after for $6.35m. A result that was solid, but not huge, one has to say with four bidders in all fighting it out.

86 Park St, South Yarra (Andrew Macmillan, Jellis Craig), $3,500,000, 3 bidders

A quiet start, which saw auctioneer Andrew Macmillan table a vendor bid of $2,500,000 to prompt some genuine bidding. However the quiet start wasn’t indicative of the result, as three keen bidders took the price to $3,100,000 when the home was announced on the market. Some more bidding ensued before the hammer came down to a round of applause at $3,500,000.

6 Prentice St, Elsternwick (Bill Stavrakis, Biggin & Scott), under hammer, $1,670,000, 4 bidders

Quite a crowd gathered along Prentice Street to see Bill Stavrakis auction the pretty, renovated home at number 6. After a thorough preamble, to which Bill joked he had practiced all morning, he asked for an opening bid. All was quiet so he tabled a vendor bid of $1,450,000 to kickstart proceedings. And kickstart it he did! Bidder 1 came in at $1,500,000 and bidders 2 and 3 were quick to join the competition. At $1,600,000 Bill said “we are in the selling zone” before Bidder 4 jumped in and Bill headed inside to refer to his vendor. Back outside and the home was on the market at $1,655,000. Some more prompting from Bill, and some more bids from the crowd, and the home was bought for $1,670,000.

Agent Opinion: How is the market going for this time of year (i.e. Post Anzac Day) as opposed to the same time last year?

“Post Anzac Day, the market has continued to show terrific depth of buyers in most segments which is noticeably different from this time a year ago – in fact the dollar volume of property we’ve turned over at our firm is up by around 15% on the corresponding period last year. In particular the top end continues to show enormous strength and the number of substantial family homes we’re transacting both publicly and off-market in our markets of Stonnington, Boorondara and Bayside has been as busy as we’ve seen for some time (and perhaps ever!). Looking ahead we can see really good supply in May and into the first half of June and some great quality amongst those.”

 While April has been quiet on the auction front, plenty has still been happening in the world of Melbourne real estate.

 As expected, there have been a number of quiet buying opportunities.

Some of the better off-markets we have visited:

The numbers at open for inspections have been healthy. We visited the first opens of the two Malvern properties and these should be very well supported by the market.

 

Some bigger April sales of note –

Once Anzac Day has passed, the focus well and truly turns to May and this looks to be a busy time. May has five Saturdays this year, and the latter two should be huge in terms of auction numbers.

 In terms of interesting home architecturally, two we visited this week worth mentioning:

19 Kooyongkoot Road Hawthorn (James Scarff/Robert Ding – Marshall White)

Locals would know this property well. It is very different and designed by renowned local architects Roger Wood & Randall Marsh. Looking a bit like an ‘upturned boat’, this an edgy modern home that has a monochrome internal palette and an understated façade. We really liked it – will others?

26 Woodside Crescent Toorak (Darren Lewenberg / Michael Armstrong). Decades on, Wayne Gillespie-designed homes continue to draw attention from astute buyers, as they are classically designed, light and bright and the room proportions still work. While livable now, this could be easily updated to suit 2015 trends, and the location is a good one.

Properties recycled:

Interesting to see 20 Studley Avenue & 52a Molesworth Street Kew back up for sale, not long after they sold. Both are marketed ‘quietly’ on the internet by Chinese agencies. Is the vendor pressured to sell or are they simply looking to capitalise on a very buoyant market?

 3 Arthur Avenue, Brighton was represented for auction on Saturday after passing-in last year, selling above $2.5m (Stefan Whiting/Andrew Campbell, Buxton).

4 Stewart Street, Brighton (Jason Gill, Hodges) has sold circa mid $3m after trying to sell last year unsuccessfully.

Auction Highlights:

 46 Gardiner Parade, Glen Iris (Damien Davis, Jellis Craig), passed in, $2.1m, vendor bid

A great house to entertain in: around 80 people comfortably fit on the deck and around the pool as they waited for Damien Davis to start proceedings.

The large, renovated home is on a large allotment of around 902sqm, according to Mr Davis, and sits proudly in its corner position, surrounded by parklands, while established hedging allows for ultimate privacy.

After calling for an opening bid in the vicinity of $2.1m, but unable to secure one from the crowd, Mr Davis instead tabled a vendor bid at this amount.

Despite his best efforts, Mr Davis was forced to pass the property in at this level shortly after.

43 Surrey Road, South Yarra, Lachie Fraser-Smith (Jellis Craig), under hammer, $1.7m, 4 bidders

The quiet start to this auction was no indication of how it would end! Auctioneer Lachie Fraser-Smith went through the preliminaries enthusiastically but was met with silence from the 50 or so people that had gathered to watch, so he tabled a vendor bid of $1.2m in the hope of kick-starting proceedings.

This had the desired effect, and soon there were four bidders vying for the prize. At $1.5m, Mr Fraser-Smith announced that the reserve had been met and after a long battle – and some heckling from a small child across the street – the hammer came down to the happy new owner at $1.7m, almost $1m more than its previous sale in 2002.

8 Normandy Road, Elwood (Peter Kennett, Hocking Stuart), passed in, $3.55m, vendor bid

The always entertaining Peter Kennett stood front and centre extolling the many virtues of this Elwood home that was built circa 1916 and last sold by Hocking Stuart to the current vendor 25 years ago.

With the beach at one end of the street, and the vibrant Ormond Road shopping strip at the other, the home on more than 1000sqm had attracted a good size crowd of around 55 people.

Opening on a vendor bid of $3.4m, Bidder 1 offered $3.5m before a second vendor bid of $3.55m was tabled. The property was passed in with no further bids on the day.

Architectural Insights: The Power of Light

Natural light is critical: it really makes a house a home. As humans, we need light to survive, and in the day-to-day living within a house it can really affect your emotional state of mind. A ‘happy’ house is one that is often described as light and bright, and these often perform the best in terms of capital growth and resale.

In Melbourne, passive solar design is a very important consideration, given we live within a temperate climate. While things can get quite hot in summer, the winters can be cold and any opportunity to capture natural warmth into a home is well rewarded.

When we talk about orientations of property, ‘north facing’ is often brought up as a key plus to a property. By this, we are referring to the orientation of the rear, and this is often where the private living areas (internal and the external) are located and where the home is mainly lived in during daylight hours. In simple terms, having windows with a northern orientation means that the sunlight can enter directly, hence accentuating the sense of light and passive solar gain.

A well-designed home will try and take advantage of as much access to direct natural daylight as it can and that is often in the forefront of the minds of architects and good building designers.

When inspecting a home, one should always take a good amount of time observing light and natural warmth levels, particularly in the kitchen and informal living spaces. If artificial lights are needed during daylight hours (and often agents will have these turned on, to improve the house appearance), then there is a good chance that the spaces will be seriously challenged for natural light, and you will need to rely on turning on lights for most of the day. This can significantly raise energy costs but, perhaps more importantly, it can seriously impact on the light, warmth and feel of the space.

The ‘quality of life’ difference between a south-facing rear home and north-facing rear home (if the layout is similar) can be huge. One recommendation we often make to buyers who are looking at south-facing rear homes is spend time in the rooms that front the street (ie those with north-facing windows) and then compares your feelings when spending time in the rear section sections of the house (with south-facing rear windows). The difference is often profound!

Agent Opinion: Off-market activity now and looking forward

Richard Winneke (Jellis Craig): “In quieter times(ie school holidays), and moving into winter, we will – and have already seen – an increase in off-market sales in particular in Boroondara. I would advise buyers to have a contact at all leading agencies and a contact with leading buyer advocates to ensure they are not missing out on the quiet ones.”

The market for the first quarter is closing as it started – strongly with more buyers than sellers for most properties.

Saturday was the last weekend before much of the Melbourne property market shuts down for Easter, school holidays and Anzac weekend.

There are a few auctions scattered spasmodically throughout April, however, most agents have advised vendors with family homes to wait until May to auction their homes.

This will be the last time we see auction numbers like this for at least a month, with April being interrupted by Easter celebrations, school holidays and the 100th anniversary of Anzac Day.

The break will provide an opportunity for many buyers to reflect on their choices and make adjustments where necessary.

Adjustments might include:

Or perhaps:

We have successfully helped buyers purchase what they want, where they want, within their budget by creating strategies for both advertised and ‘quiet’ properties.

Vendors may also use this time to adjust.  John Bongiorno, Marshall White, says he has already seen vendors getting excited by past results and increasing their reserve prices.

Where properties this quarter have sold well, it has often been multiple buyers bidding ‘to buy’ the property.  Meaning the vendor was happy to sell and the highest bidder was definitely going to be successful.

A change may see more pass-ins and some adjustments to buyer confidence.  Trusting the information both buyers and sellers receive, that is specific to their focus property, will help parties achieve the outcomes they want.

On a different note, Chinese national interest remains strong for the right properties, spurred on by a weaker Australian dollar. This quarter saw an influx of mainland Chinese buyers moving to Bayside.

Speaking with directors Nick Johnstone (Nick Johnstone Real Estate) and Stefan Whiting (Buxton) they confirmed that approximately 50% of the homes sold in Brighton this month were bought buy Chinese buyers.   Kate Strickland (Marshall White) confirmed that 30% of purchases in March were by Chinese.

Some hot auctions included:

Auction Highlights:

20 Hillcrest Avenue Kew, Peter Batrouney (Jellis Craig), passed in, $5.0m VB

With the market sizzling in recent weeks in Kew, this auction of this property was always going to be an interesting one. Chinese Nationals have been huge players at auctions, and traditionally they prefer properties which do not have Heritage Overlays, are not near cemeteries and are of a modern style – all the things that this property is not.

What this is though is a substantial landmark c.1850 original family home which had modernised on generous land over 1400m2 in one of Kew’s quieter streets.

At 3pm the setting was almost picture perfect with clear skies, mild weather and breathe of wind as auctioneer Peter Batrouney gave a spirited preamble (and interesting history lesson, always good to hear) in front of a 100-strong crowd (with few Chinese) in the scenic front garden.  A few metres away listing agents Geordie Dixon and Tom Ryan were on the look out for bidders.

Peter looked for an opening bid, but with none forthcoming, opened with a vendor vid of $4,900,000. This did little to encourage the crowd, and after a few minutes the half-time break was taken. The Jellis Craig team returned to happily announce they had revised instructions on the vendor’s reserve and the auction recommenced. Another vendor bid was announced at $5,000,000 and still no interest from the crowd so the property passed in at this figure, with a reserve later published at $5,650,000.

Overall quite a good property this one and in the hands of a very good agent so it should sell soon.

51 Fourth St, Beaumaris (Steve Tickell, Hocking Stuart), after auction, undisclosed above $2.025m, 1 bidder

The 50 or so onlookers were ushered through the home and onto the large deck overlooking the sparkling pool – the scene was almost set for a party!

Auctioneer Steve Tickell stepped out too, and after a thorough preamble, highlighting the home’s many attributes (and deciding that the house was in Beaumaris, not Black Rock as some assumed), asked for an opening bid.

All remained silent so Steve tabled a vendor bid of $2m to kick-start proceedings.

A genuine offer came from Bidder 1 of $2.025m before the property was passed in for further negotiations.

The home was bought shortly after for an undisclosed amount.

Agent Opinion: What are stock levels like in Port Phillip at the moment, and whether the school holidays have as much impact on campaigns/sales as other areas?

Kaine Lanyon (Marshall White): “Stock levels have been satisfactory over the last 3-5 weeks but it certainly now appears the numbers are drying up. Whether this is due to the Easter break, I can’t be 100% sure.Generally speaking I have never felt that in Port Phillip that school holidays has as much impact from s slowing down point of view compared with say Bayside &/or Stonnington & Boroonodara. Let’s hope for all concerned that the new wave of listings comes soon as the results should be speaking for themselves.”

There is still time to enter our footy tipping competition. Go to www.footytips.com.au and sign in to WoledgeHatt Footy Tipping for your chance to win $500.

We’d like to take this opportunity to wish everyone a happy Easter and if you’re lucky enough to be going away, safe travels.

For the really good properties, the auction market really sizzled today. Words such as ‘frightening and scary’ are strong ones, and they were being bandied about. And next week one would have to say the overall quality of offerings steps up yet again……

Two examples of properties that couldn’t sell last year, but did this year-

Some other highlights – 

The common thread to many auctions on the weekend – Chinese buyers.

It seems the desire for the Chinese to buy large new homes close to good schools has moved south to Bayside. We attended the auction of 3 St James Mews, Brighton on Saturday which demonstrated this.

A fairly bold vendor bid by auctioneer, Peter Kakos (Marshall White), started the auction at $2,950,000. We say this because the previous highest reported sale in the street (which is located on the old Brighton Technical School site) was $2,000,000.

Three Chinese families were involved in the auction, however, bidding was fairly controlled until the property was announced on the market at $3,275,000.

Intensity increased after this announcement with the hammer knocking down to the successful purchaser for $3,550,000. This was the first time the property had been re-sold since 1995 where it was purchased for $350,000, an increase 10 times the original purchase price.

Quiet Sales:

Conventional Saturday auctions are not the only mode of selling and selling well, as Jock Langley (Abercromby’s) sold two Hawthorn properties 10-12 Kooyongkoot Rd and 21 Shakespeare Grove for around $9m and mid $7m this week also.

As a buyer in the market you need to think outside the square, and relationships with agents (not just one within the agency) is the key.

Some off-markets this week –

The PPPs

The market has moved up quickly this year, taking another leap into unchartered territory for the first quarter of  2015.

With the market so hot at the moment, many buyers may be starting to feel like it’s ‘all too hard’.

Stock levels are similar to last year, however the number of buyers in the market place has increased.  The added pressure of a low Australian dollar is making it even more difficult to compete with international buyers and expats.

To maximise your chances of buying a home that will work, it is increasingly necessary to understand what it is you are trying to achieve.  For some it may be about the PPPs:

Whilst there is uncertainly around these things, it is far more certain that you won’t be buying something soon, or something that will work for you.

Once the ‘most important’ factor has been identified, additional flexibility around the other two Ps is the key to success at the moment.

For many, price is the least flexible of the three, however, buying a large home 10 kilometres further out than your preferred location, could become problematic, particularly if the children have to attend a school where you wanted to live.  10 kilometres is only 10 minutes on the weekend or the middle of the night, however, in school or peak-hour traffic, it can very easily escalate to 45-60 minutes and become quite taxing on the family lifestyle.

We help our clients work through different scenarios and provide property options and strategies to maximise buying a property that meets their most important goal.

Auction Highlights:

2a Dryden St, Canterbury, Antony Woodley (Marshall White), under hammer, $2.7m, 7 bidders

The setting couldn’t have been better for this auction as the sun was shining and the there was not a breath of air.

The vendors couldn’t have planned it better as they had renovated to sell (spending $340,000 as owner builders, according to the section 32) after buying the property almost two years ago for just over $1,200,000.

Campaign agents Duane Wolowiec and Stuart Evans roved the strong crowd of well over 100, and had everything perfectly in position for auctioneer Antony Woodley, who gave a spirited and well-measured preamble. There was a real buzz at this auction, and this was going to going to go strong, you could feel it.

The auction opened with a low bid of $1,850,000 (not sure why) and it didn’t take long for multiple parties (mainly Chinese) to get into the thick of things well and truly and take this person over.

At $2,530,000 the property was formally announced on the market and clipboards were going everywhere, with the Duane and Stuart helping to explain to bidders where the bidding was at. In the end the property was sold for $2,700,000 – a very, very solid result one must say.

10 Monaro Rd, Kooyong, Warwick Anderson, (RT Edgar), under hammer, $4.5m, 2 bidders

Around 60 people gathered along the footpath opposite and in front of the property up for auction as auctioneer Warwick Anderson went through the preliminaries. Calling for an opening bid, Warwick briefly paused while a few noisy cars roared down the street before tabling a vendor bid of $4.4m to kick-start proceedings.

Bidder 1 joined in at $4.425m and Warwick searched the crowd for more. Bidder 2 offered a strong bid of $4.5m before our auctioneer headed inside to refer to his vendor.

Back outside and Warwick informed us he was now selling. With no further bids, it was a breeze to the finish line for Bidder 2 who took the keys to the door at $4.5m.

27 Royal Ave, Sandringham, Mark Earle (Buxton), under hammer, $2m, 3 bidders

What an entertaining auction, starring Mark Earle and two sets of bidders who kept the crowd laughing and mesmerized throughout proceedings! Held in the spacious backyard of this Sandringham home, around 50 people made themselves comfortable as they listened to Mark extol the virtues of both the two-storey home and its location.

Calling for an opening bid, Mark was met with silence so he instead tabled a vendor bid of $1.6m. Bidder 1 came in at $1.62m and Bidder 2 joined in shortly after.

We had a brief cameo from Bidder 3, but in the end it was a comedic double act with bidders 1 and 2 stealing the show from our master of ceremonies with their witty replies and easy banter. The price crept up slowly and the curtain eventually came down at $2m to a round of applause from the appreciative audience.

Good floor plan flow

When looking to buy a home, floor plan flow is really important. If rooms are arranged in an awkward way, then the functionality and livability of the home can be seriously affected. Pokey corners, dark spaces and cramped passageways often result, and this can affect the safety of those who inhabit or visit the home.

It is much better to walk past a room rather than through it, and generally speaking the direction path through a home from the front to back should involve as few turns as possible.

When visiting homes to buy, try not to be ‘tricked’ by the way the way furniture (which is often hired) is laid out and take particular notice as to what may be omitted. Often dining room tables are taking out of open plan living areas (so where would you eat casually?) and/or there is only one couch (so where would the rest of the family sit?).

Imagine your own furniture in the home, and the way in which you would live in it.

This is really important, and you may be prudent to take a few room measurements on site and scribble on the floor plan in a considered way at home fitting in your own furniture and family needs.

Maybe the house has a lot of ‘wasted’ space!

Of course renovation changes can always be adopted, but the trickier the plan the more costly this is to do.

Agent Opinion: Are vendors excited by the market at the moment? Are they wanting to wait until May to start an auction campaign or are many keen to sell privately during April?

Andrew Hayne (Marshall White, Armadale):

“There is a real combination of the two at the moment. Some vendors will wait until after May, if it is the right property, while others are choosing to sell off-market. There has been a lot of interest for campaigns after Easter, so we anticipate that May will be very busy.”

 

28 Rowland St, Kew, Dave Oster (Marshall White), under hammer, $3,840,000, 8 bidders

There was a real buzz at this auction, and fair enough. Prime Sackville Ward land – just under 1000m2 of it in a really good part – Rowland Street.

With s south facing rear aspect and the church located across the road (not ideal for many cultures, namely Chinese) this property did have its shortcomings.

While it was unusually quiet for a Grand Prix Saturday afternoon (I could always remember hearing the F1’s buzzing around in Boroondara – not now though as they have changed the engines), auctioneer Dave Oster got the auction underway at $2.5m and it didn’t take too long to get going.

With a string of bidders in the early $3m’s, Dave announced the property on the market at $3.5m and it was largely then a battle between two Chinese families, placed either side of experienced Marshall White agent Robert Ding with clipboard in hand, writing down the bid increments.

A elderly local gent came in quite late and ended up winning the day at $3.84m – which was a strong result. 8 bidders in total here and well conducted auction by Dave who kept pace perfectly and conducted himself very respectfully in front the big crowd of well over 100 people.

354 Williamstown Rd, Port Melbourne, Frank Callaghan (Frank Gordon), under hammer, $1,010,000, 4 bidders

A midday auction and the sun was burning down on the backyard of 354 Williamstown Road. The 40 or so onlookers sought shade where they could leaving the hottest spot in the yard for auctioneer Frank Callaghan to conduct proceedings.

Frank stayed cool and calm despite the heat, fielding bids from four bidders in all corners of the sunny yard. The house itself is a blank canvas waiting for some rejuvenation. The recent sale of a completely refurbished ‘Bank House’ nearby shows the potential of this style of house.

Bidding opened at $800,000 and at around the $930,000 mark, Frank announced that there was no reserve and we would be selling.

Some more bidding ensued before the hammer came down to a very pleased Bidder 4 at $1,010,000.

65 Claremont Ave Malvern, John Bongiorno (Marshall White), under hammer, $2,510,000, 2 bidders

With a crowd in excess of 100, auctioneer John Bongiorno, didn’t have to work too hard for an opening bid, with two bidders jumping in immediately.

If there were other parties planning on bidding, they never got the chance.

On the market at $2,200,000 the property eventually sold for $2,510,000, in excess of $4,000 sqm.

Architectural Concepts: 19 Marlborough Ave Camberwell 

The Golf Links Estate in Camberwell had a very distinctive uniform style – and it had a real charm. If you are lover of the English style (that is to say brick homes, with tiled roofs, timber windows and cottage gardens) then you will like this precinct of Camberwell.

This home has many pluses, and great bones for renovation and extension, which are:

While very liveable in its current form, the central kitchen, dated utility areas and lack of a bathroom to the first floor are obvious weaknesses for modern day living in this house presently.

While a bigger scale renovation could easily be created, the response below looks to keep the first floor envelope and only extend back the rest of the house in a small way. It is in a way spending as little as possible to achieve a functional plan and helping to avoid overcapitalisation.

Agent Opinion: With the timeframe for campaigns before Easter now passed, what are the selling plans for May?

Glen Coutinho (RT Edgar Boroondara)

“Most pre Easter auctions are now locked away. Vendors are now planning campaigns starting after Easter and the school holidays,
with the start date being the first Saturday in May. Subsequently the last two Saturdays in May will be big auction days.”

 

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There was a buzz in the air today – and with so many auctions scheduled, the market overall performed well for sellers.

A standout auction we attended was 38 Kooyongkoot Road, Hawthorn (John Manton / Justin Krongold Marshall White), selling almost a million dollars over reserve. With $100K jump bids late in the piece it was quite amazing to watch really, and a similar huge result just around the corner at 3 Kembla Road a few days prior, no doubt the stage was set.

For the good properties and the sensible vendors, auctions of 6 bidders are the norm now rather than 3 bidders.

But not everything is making it to auction. A few sold before auction this week – namely 7a Maling Rd, Canterbury (Stuart Evans Marshall White) and 101 Argyle Rd, Kew (Robert Ding Marshall White) this week. Buyers certainly need to be on their toes, available and ready to buy.

Average properties (those on main roads, with tricky floor plans or having privacy issues) are still struggling though, and buyers in the main are wary. That said, applying a blanket approach to square metre rates on properties doesn’t really work. Understanding the precinct, the selling  history of the property and surrounding homes and ultimately whether it is a good or bad home are important factors to a good buying decision. Planning and preparation are the keys.

Of note in Bayside, 80 Canberra Grove, Brighton East has changed hands three times since 2009.  It was bought on the weekend for $1,849,000 after being purchased less than two years ago for $1,420,000, and before that in 2009 for $1,335,000.

65 Champion Street, Brighton (viewed by most as land only) was bought for $2,700,000, or approximately $2,900 sqm.

Two Up and Two Down

The ‘two up and two down’ topic comes up quite regularly when we discuss homes with clients, but we rarely buy these homes. Why not?

A ‘two up and two down’ home is one with two bedrooms upstairs and two bedrooms downstairs. There are often bathrooms serving each floor, and conventional floor plans of varying styles.

Aside from the conventional four-person family (not as common today as it once was), the majority of families or buyer groups are not that well suited to these homes, as parents generally want good separation from the children’s bedrooms as the family grows. Having two children upstairs and one downstairs doesn’t tend to work and is not desired by many buyers.

Compare this with a floor plan that offers one bedroom downstairs and three bedrooms upstairs. This works for four, five or even six person families, as the parents can live downstairs while the kids can dwell somewhat independently upstairs. It can also work OK when the kids leave home, as the ground floor alone is used and there is less need to clean upstairs or ‘rattle’ around in a larger home.

Beware of ‘the two up and two down’ home. While it may suit you now for a particular stage in your life, it may not in the future and it could limit the potential sellers to a small group, which can affect capital growth.

 Auction Highlights:

38 Kooyongkoot Road, Hawthorn (John Manton, Marshall White), under hammer, $5,085,000, 5  bidders

About 90 in attendance for the auction of this smartly designed (albeit a bit dated) family home in Kooyongkoot Rd Hawthorn.

The action has been really hot in this part of the world lately, I along with many others are keen to see what transpires here.

John Manton (Marshall White) is the auctioneer and he looks for a bid in the mid-to-high $3m’s. He gets it not long after and the auction gets going in moderate amounts with two bidders.

At $4,100,000 the property is announced on the market and the bidding steps up a level. There are not many bids, but I am counting five bidders over $4,500,000 and the bidding is now jumping in $100,000 increments. Now that is a sign of a strong auction!

At $5,000,000 the auction starts to wind down a little in terms of bidding and John (with a very big smile on his face!) knocks the property down at $5,085,000 – almost $1,000,000 over reserve.

Amazing – this result could be a real game changer for the Scotch Hill area and no doubt this auction will be the talk of the town today. Great result for John and co-listing agent Justin Krongold.

35 Ewart Street, Malvern (Jack Bongiorno, Marshall White), under hammer, $2,560,000, 4 bidders

Quite a good sized crowd lined the street as Jack Bongiorno took centre stage. Not wasting any time, Jack tabled a vendor bid of $2m to kick-start proceedings.

Bidder 1 jumped in at $2.025m and Bidder 2 came in soon after. At $2.15m, Jack headed inside to chat with his vendor, and to give the crowd some thinking time. Back outside, Jack advised that we were not yet at the reserve.

Bidder 3 entered the contest at $2.19m and Jack headed inside once more at $2.250m, when the ‘on the market’ question was asked.

Back outside and yes, the home was now selling.

An additional bidder joined in towards the end, albeit only briefly, and the hammer fell at $2.560m to a round of applause from the 70 or so spectators.

Kyarra Street, Hampton:

Kyarra Street has seen two homes sold in as many weeks.  Located centrally between Sandringham Village and Hampton Street, it is walking distance to the beach, shops, stations, restaurants and schools.

You may recall 6 Kyarra Street, (Hodges) a period home with good options to extend, providing options for the home to grow with the family (one of Adam’s options: https://www.woledgehatt.com.au/architectural-concepts-6-kyarra-st-hampton/

6 Kyarra sold well with six bidders for $1,640,000.

12 Kyarra (Hodges) was more than double that – similar land (approx.. 600sqm), same orientation and a real ‘WOW’ house.

Two bidders fought for it, the price settling at  $3,305,000.

Agent Opinion: How does the current market compare to others, in your experience?

Steve Tickell (Hocking Stuart, Brighton):

The current market has a definite 2009 feel about it. Buyers in their droves, not enough properties to satisfy their appetite and bidders walking away frustrated from auctions as properties go well beyond the expected price ranges.

With interest rates at an all time low, real estate consumer confidence as good as its been for some time, and a sense that prices could increase rapidly in the months ahead, there’s no doubt we are in for a hectic first half of 2015!

The hot topic of conversation at the moment is the increasing presence of Asian investors entering the market. Whatever your view, there’s no doubt they are definitely making their presence felt right across Bayside, conspicuous with their spirited bidding at auctions, and in the way they attend open inspections in large family groups. For agents they are a breath of fresh air, their enthusiasm for real estate evident for all to see, their competitive nature and keenness to negotiate a test of one’s patience and skill.

They have certainly added a new dimension to the market place, and made life for real estate agents just that bit more interesting. As if we didn’t already have enough to make life interesting on Saturdays!