February 13, 2016
Welcome back to the 2016 Melbourne Property Market and thank you for reading our weekly Market Pulse. We will continue this throughout the year during key auction weekends. We hope you find it both enjoyable and helpful.
2016 has started as expected, with no real surprises or changes to the 2015 market.
Our early observations reveal:
- Very well attended open for inspection (particularly for large family homes) and some quality properties on offer over the next few weeks
- Stock levels appear a bit light on, agents are certainly confirming this at opens
- Limited new stock until after Easter as March is broken up with the Labour Day weekend and an early Easter
- The appearance of a number of ‘new’ buyers entering the market … although has yet to be qualified with the first of the bigger auction weekends starting next weekend
- An increase in the number of ‘off-market’ properties available
There was really only a light scattering of auctions this weekend. Early results were positive with the REIV reporting a clearance rate of 77% across Melbourne. A common thread amongst some on offer were they were dated homes with good land content and functional townhouses
- 20 Smith Road, Camberwell (Nick Franzmann, Marshall White) – well sized original home on approximately 814sqm, south rear, opposite a T-intersection – although passing in for $2.105m, sold after for $2.18m.
- 4/100 Tooronga Road, Malvern East (Lauchlan Waterfield, Hocking Stuart) – functional three bedroom townhouse with two courtyards. Very big crowd, opened at $1.1m, on the market at $1.2m, sold under the hammer for $1.353m.
- 17 Banks Avenue, Hampton (Justin Follett, Follett & Co.) – pretty, double-storey weatherboard townhouse sold less than 2 years ago for $1.385m, passed in at $1.625m, selling after for $1.66m.
- larger period home, renovated about 30 years ago – Glen Iris (Stonnington) – $1.9m
- single-level updated period home, good off-street parking – Brighton – early $2ms
- larger modern home, low maintenance garden – Beaumaris circa $1.8m
- large land, older home, good street – Armadale, over $4m
- 90’s renovated Edwardian terrace, Carlton Nth, early $1ms
- single level two bedroom art deco home with great garaging, Hawthorn East, early-to-mid $1ms
- great warehouse conversion in Windsor, early $2ms
- basic home in Elwood, no heritage overlay, corner block over $1.3m
10 Wallis Avenue, Glen Iris (Daniel Wheeler, Marshall White), sold $2.205m, 5 bidders
Dated single level home, but it was all about the land here. With mature trees at the front and rear of the block which may be difficult to remove (STCA), the property did have good width and most importantly it backed on to Ferndale Park, a point which was not lost on buyers and the very good-sized crowd of well over 100 people. Opening with a low cheeky crowd bid of $1.3m, the bidding soon went up to $1.75m and the property was called on the market by auctioneer Daniel Wheeler. That only seemed to warm bidders up and with five of them fighting for this property it sold well above reserve for a whopping $2.205m (or $3,083sqm). Interesting to note next door (no.8) sold for $1.441m around two years ago. Very professional auction by Daniel (he didn’t miss a bidder, was courteous to the crowd and didn’t skip a beat), and he was well supported by co-agent Clare Maloney – they make a good team
13 Rosemary Road, Beaumaris (Byron Kerr, O’Brien Real Estate), under hammer, $1.475m, 5 bidders
Quite a crowd gathered in Rosemary Road for the auction of number 13 – a three bedroom, three bathroom family home surrounded by tropical gardens. Around 90 people lined the street on both sides and enjoyed a coffee from the mobile coffee cart. Byron Kerr was our auctioneer and after an enthusiastic and succinct preamble, he called for an opening bid. A yell of $1m came from the crowd and we were away. Bidding came from all directions – with five bidders in total. The home was sold for $1.475m to a hearty round of applause from all those in attendance.
17 Banks Avenue, Hampton (Troy Ellis, Follett & Co), sold after auction $1.66m
Banks Avenue was very tranquil – a reasonable sized crowd of around 30 people had gathered to see what would transpire at the auction of number 17 and they chatted quietly as they awaited the commencement of proceedings. Auctioneer Troy Ellis took centre stage and gave a thorough preamble before asking for an opening bid. The crowd remained silent so Mr Ellis tabled a vendor bid of $1.55m. A second vendor bid of $1.625m was put forward but with no further bidding on the day, the property was passed in. It sold later for $1.66m.
Properties we like, auctioning this week:
17 Rowen Street, Glen Iris (Rae Tomlinson/Anthony Reis, Marshall White)
- north-facing rear, very well renovated original clinker brick home, functional floor plan, opposite Liston Reserve
30 May Street, Hampton (Robin Parker/Kate Fowler, Marshall White)
- walking distance to shops, trains and schools, good bedroom separation, large north facing family room
197 Church Street, Brighton (Stefan Whiting/Gary Yue, Buxton)
- northerly facing rear, large land, good garaging (for a Victorian), great options to further improve
7 Invermay Grove, Hawthorn East (Campbell Ward/Jacinta Tatti, Jellis Craig)
- popular family location, wide block, great options to further improve
25 Alfred Street, Kew (Judy Balloch/Geoff Hall, Kay & Burton)
- north facing rear, well-renowned Kew street, great hill position, well-located pool, flexibility (live-in, renovate or rebuild)
Auction Opinion: “How have you seen the start of the year compared to last year?”
Tim Derham (Abercromby’s) “Stock levels for quality family homes are down as compared to last year. If open for inspections are an indication then this market will continue from where it left off in 2015.”