March 4, 2017
Strong. That is the word that best describes the Melbourne property market right now and, with underbidders at most properties, the ‘in demand’ properties (family homes and downsizers in particular) show no signs of slowing in the immediate future. While interest rates remain low and overseas arrivals (including returning Australians) stay high, there just is not enough supply of the right homes to satisfy the demand.
It seems at the moment that, irrespective of any negative aspects the property or surrounds may have, some buyers are prepared to just keep bidding to secure the property, with new records being set weekly across Melbourne.
Perhaps this is a good decision if you can guarantee that you won’t be impacted by any changes in the market or family changes that may occur in the future. While we believe it is important for our buyers to understand what might happen at auction and the levels they may need to consider, we also discuss the levels that may put them at future risk. Stop limits are just as important, particularly if the property is not an ‘A’ grader.
Of note, there were multiple homes that achieved above $4m on the weekend
- 4 Osborne Court Hawthorn
- 684 Orrong Road Toorak
- 22 Leura Grove Hawthorn
- 2 Monomeath Ave Canterbury
- 52 The Avenue Prahran
- 45 Victoria Street Sandringham
- 10 Crest Avenue Deepdene
- 31 Mathoura Road Toorak
- 6 Webb Street Brighton
- 137 Yarrbat Avenue Balwyn
- 1-3 Palm Grove Balwyn
As we approach the Labour Day weekend, the market will take a mini-break, with minimal auction activity (and agents will catch their breath). All eyes look forward to another big auction weekend on March 25.
For those wanting to buy in the Port Phillip council area, however, March will be interrupted again with the running of the Grand Prix.
Auction numbers were solid on the weekend. There was no shortage of bidders for the good properties.
- 22 Leura Grove Hawthorn East (John Morrisby/Sally Morrison – Jellis Craig) – a good-feel home, tastefully renovated, in a coveted Hawthorn East street – undisclosed above $4.5m
- 16 Foam Street Hampton (Robin Parker/Kate Fowler – Marshall White) – last sold for $1.26m in 2012, add a practical renovation on a good block size in a well loated street (close to shops/station) – $3m
- 96 Hambleton Street Middle Park (Oliver Bruce/Nick Hoo – Marshall White – neat double fronted home –$2.956m
The land only market is particularly hot across Melbourne. From our observations, developers/builders are very busy. Buyers, too, are feeling comfortable to build a new house rather than wait for something established, which is a hot market in itself.
- 10 Neave Street Hawthorn East (Steve Burke/Margot Dawson – Hocking Stuart) – approx. 828sqm, north rear – $3.35m or around $4,050sqm
- 35 Rose Street McKinnon (David Jane/Michael Egan – Century 21) – approx. 828sqm, west rear, desired position on McKinnon Hill – $1.985m or around $2,400sqm
- 51 Victory Boulevard Ashburton (Natalie Hall/Michael Hingston – Jellis Craig) – approx. 679sqm, east rear – $1,575m or just over $2,300sqm
- 108 Bamfield Street Sandringham (Scott Hamilton/Brydie Hamilton, Buxton)– 480sqm Sold for $1,551m or just over $3,200/sqm.
If you design smart and build well you can do well is this market.
Of course, enlisting the services of a good architect really helps.
Take this example: 14 View Street Hawthorn (Architect, Steve Domoney – Agents, Richard Winneke/Campbell Ward – Jellis Craig) sold a few weeks ago at a mid-week auction for an undisclosed amount over $5.7m after being purchased before auction in May 2015 for $2.1m.
From an architect’s eye, this is what we thought of the property:
31 Mathoura Road Toorak
About 100 people gathered to watch the auction of this well designed, light, modern family home. With the road temporarily blocked to cars by development further down the street, auctioneer Jeremy Fox from RT Edgar had a broad stage to interact with the audience who thronged both sides of the street. After an opening bid of $3.75m, four bidders pushed offers past the reserve of $4.1m. Joking with the bidders to entice further offers, the home was eventually knocked down for $4.115m to a round of applause from the crowd.
133 Head Street Brighton
There was a serious vibe at this auction and fair enough – the property had a lot going for it: Edwardian facade, practical floorplan and prized north-facing rear aspect. A good crowd of about 120 attended, and a lowly bid of $2.2m (was this real?) got the auction started. It didn’t take too long for a further two parties to take place in the bidding and the property was announced on the market in the $2.6 millions. Faltering in the $2.8 millions, the two bidders went back and forth and the home eventually sold for $2.905m – a very solid result, it must be said.
Auctions we like, scheduled for March 25
Agent Opinion: As an agent who has worked in Brighton for many years, what do you see as the fastest growing market in Bayside at the moment?
David Hart, Director – Buxton Brighton: Without doubt, land. Week in, week out we need to re-calibrate Brighton and Brighton East land prices as new benchmarks are set. Anything in a convenient position, with room to build either a single home or multiple dwellings, is creating amazing competition. We had a recent land value property of 613sqm in Arthur Ave where the vendor wanted it sold quickly. After a week on the market, we had nine buyers register their interest to attend an informal midweek twilight auction, where it sold for $400,000 over reserve.