March 5, 2016
We saw strong numbers again on the weekend and the formula is a fairly simple one – demand is well in excess of supply, particularly for quality homes close to amenities.
There is some discernment for properties with issues (eg. main roads), particularly if vendors have high expectations. However, if you are a buyer looking to buy in Melbourne right now, the task is a fairly tough one.
With over a thousand auctions on Saturday (REIV data reported 1041 auctions and 74% clearance), crowds were really strong, particularly for the better properties and our photos really capture that.
New Quoting Laws:
Last week’s media was focused new legislation to crackdown on underquoting.
Whilst this is a win for many buyers, it is also important to remember the quote is only one part of the equation.
Price is ultimately determined by opinions – the vendor and the buyer(s) which can be influenced by a number of factors including:
- The number of parties interested in the home
- The number of other similar properties on the market
- The number of different buyer groups the property may suit
- The number of uses the property may offer buyers
- Any other external economic influences (overseas, local, government etc).
Often when starting the sell/buy process – the vendor wants ‘as much as they can get’ and the purchaser wants ‘to pay as little as possible’.
A transaction, however, can only take place when the two parties meet.
In real estate, it is an accepted fact that if you want to sell your house well, you engage the services of a selling agent to market the property and provide advice and feedback to help the vendor make an informed decision about the price they ultimately want to sell their home for on auction day.
Agents can provide a lot of information for buyers too, however, the agent is engaged and paid by the vendor to obtain the best price they can for their vendor.
It is important for buyers to undertake their own independent research and maybe engage professional services of their own to be in the best position to buy the property, particularly as the news may impact current processes and strategies, for example will there be more offers before auction now and what constitutes an offer?
- 4 Kerferd Street, Malvern East (Rob Vickers-Willis, Abercromby’s) – renovated period home, functional floor plan, car garaging and pool – $4.68m
- 12 Barnato Grove, Armadale (Darren Lewenberg/Gowan Stubbings, Kay & Burton) – modern 5 bedroom home, sold circa $1.5m above reserve for an undisclosed amount above $6.5m
- 68 Avoca Street, South Yarra (Nick Gatacre/Peter Perrignon, Hocking Stuart) – well positioned liveable home, only 577sqm but with the support of some recent strong results – undisclosed above $7m or $12,400sqm
- 12 Mowbray Street, Hawthorn East (Rebecca Edwards/Tim Picken, Kay & Burton) – 1124sqm – undisclosed circa $3m, or around $2,700sqm
- 26 Rosslyn Street, Hawthorn East (Rebecca Edwards/Andrew Sahhar, Kay & Burton) – 562sqm – undisclosed circa $2m, $3,650sqm
- 71 Ashburton Road, Glen Iris (Tim Dwyer/Richard Kerr, Tim Dwyer RE) – 760sqm, north rear – $1.825m or $2,400sqm
Modern, low maintenance townhouses are in demand, particularly if they have good downstairs bed/bath combinations:
- 4 Glyndon Road, Camberwell (Gail Logan/Daniel Staley, Fletchers) – $1.83m
- 22 Shepherd Street, Surrey Hills (Adam Garvey, Garvey RE) – 3 bidders – $1.676m
- Unique WOW renovation to a period home – Malvern – $3.5-4m
- Modern family home – Kew – $5.5m
- Well positioned family home, period façade, options to further update – Sandringham – circa $2m
- Single storey period home close to amenities – Hampton – high $1ms
4 Kerferd Street, Malvern East (auctioneer Rob Vickers-Willis, listing agent Emma Pierson, Abercromby’s), sold for $4.68m, 2 bidders
A beautiful, early Autumn Saturday and the auction of 4 Kerferd Street attracted a huge crowd of around 150 people. Rob Vickers-Willis was our master of ceremonies and after calling for an opening bid, was rewarded with a strong offer of $4m. A quick-fire auction, that saw the home on the market at $4.52m, eventually selling for $4.68m. A solid result, continuing a good run for properties in the Gascoigne Estate which in the past two weeks alone has seen $16m sale worth of real estate transactions for quality family homes.
5 Nelson Street, Sandringham (Julian Augustini, Hodges), sold for $2.655m, 5 bidders
Nelson St was overflowing with people and crammed with cars prior to the start of this auction! Well over 100 people had gathered to watch proceedings, with auctioneer Julian Augustini at the helm. After delivering a succinct preamble, Julian called for an opening bid and a strong $2.4m came from the crowd. This did not deter the competition, as another four bidders entered the fray, quickly taking the price to $2.445m with Julian announcing that the property was indeed now selling. A flurry of bids and the hammer finally came down at $2.655m to a thrilled family, with a round of applause from the appreciative crowd.
42 May Street, Hampton (Robin Parker, Marshall White) sold for $1.535m, 4 bidders
The auction of this home on a high, prominent Hampton corner attracted a crowd of around 75 people, who gathered in the front garden and along the fence to get a glimpse of the action. Robin Parker was our auctioneer and he called for an opening bid. Bidder 1 was quick to reply with an offer of $1.2m before Robin countered with a vendor bid of $1.3m. Bidders 2 and 3 joined the contest and at $1.4m Robin headed inside to refer to his vendor. Back outside and we were advised that the reserve had not quite been met, but we were close. Bidding continued until the sale price of $1.535m was reached.
Properties we like, scheduled for auction on March 19:
- 1 Royal Crescent Armadale (Justin Long/Mark Harris, Marshall White)
A-grade location, pretty façade, modern renovation, car garaging, broad frontage
- 175 Abbott Street Sandringham (Jenny Dwyer/Mandy Engelhardt, Hocking Stuart)
north facing rear, pretty façade, good number of bedrooms/bathrooms, affordable option given the package
- 34 Uvadale Grove Kew (Stuart Evans/Grayson Rayner, Marshall White)
Great street, close to schools, wide block, two liveable/rentable homes, flat block
- 19 Bates Street Malvern East (Ian McLennan/Danielle Waterton, Jellis Craig)
beautiful garden, wide block, excellent bedroom zoning, single level living, lovely feel
- 6 Calvin Street Hawthorn (Rebecca Edwards/Scott Patterson, Kay & Burton)
City views, close to river/Richmond, flexibility, good land size, block width
Agent Opinion: “Do you think more vendors are starting to get ahead of the market?”
Daniel Wheeler (Marshall White): “Vendors have been patiently waiting to see how the market would respond after a summer period of no auctions and negative commentary in relation to the economy. What we have seen early in 2016 is the sheer lack of property available for sale resulting in buoyant auctions conditions, which are meeting vendor’s expectations; and in some instances exceeding them.”
Please note that due to the Labour Day weekend, there will be no Market Pulse next week. We will be back with more updates the following weekend, March 19.