November 21, 2015
There are signs that the buyers are starting to move their focus away from property and onto more pressing deadlines such as Christmas, shopping and holidays. The number of buyers inspecting at opens is starting to slow. That said, the buyers for the good properties are still there. Last week Marshall White sold two large family homes, both over $6million at 53 Hawthorn Grove Hawthorn (Zali Reynolds) and 9 Bates Street Malvern East (Rae Tomlinson).
Last week we looked closely at Balwyn North, which was looking a little over-supplied (and/or) with vendors wanting prices well above the market. The clearance rate last week was 45%. This week there were 16 auctions reported with only five bought, resulting in a clearance rate of 31%. The trend appears to be continuing.
Another property up for sale after being purchased only 14 months earlier for $3.17m was 15 Nevis Street, Camberwell. A large newer home on 722sqm with north rear passed in on a vendor bid of $3.1m.
In keeping with our thoughts of a continuing strong downsizer market, two good properties sold in Kew with Jellis Craig circa $2.5million – 92 Wellington Street (Greg Toogood) and 70 Foley Street (Peter Vigano).s
- 16 Belmont Avenue, Kew (Winneke/Ward, Jellis Craig) – solid original Victorian, 1,020sqm – $3,905,000, 4 bidders. Large numbers attended the auction with three buyers still bidding above $3.7million.
- 10 Selwyn Avenue, Elwood (Sceney/Inan, Hocking Stuart) – pretty Brick Edwardian, 560sqm, close to Elwood Village ripe for renovation – undisclosed, above $2.5million.
- 25 Meek Street, Brighton (Mellody/Davidson, Buxton) – 658sqm, north rear in a street that has seen a lot of development in recent years – $2.4m (after auction) or approximately $3,647sqm.
- 33 Pine Avenue, Camberwell (Winneke/Tatti, Jellis Craig) – 836sqm north rear in the esteemed Sunnyside Estate – $3.045m or approximately $3,640sqm.
- 53 Normanby Road, Kew (Chieh/Panayi, Christopher Russell) – solid period home with unique, well preserved features, yet being corner block also a potential development site – $1.9m or just under $3,000sqm.
- solid double-fronted home in a good central location – Hawthorn – circa $2m
- large family home with views – Brighton – $6m plus
- land opportunity – Beaumaris – mid $1millions
- single level period home with good garaging – Malvern East – circa $2.5m
- modern home with basement – Brighton – $6m plus
- period family home with pool, good street – Elsternwick – high $2millions
35 Little Leveson St, North Melbourne, Edward Hobbs (Biggin & Scott), passed in, $1.977.5m, 4 bidders
A great crowd of well over 100 gathered in the laneway that is Little Leveson Street in North Melbourne. The offering was a unique one, and not easily repeatable – a classy inner city warehouse conversion close to great cafes (such as the Auction Rooms) and a short walk to the CBD. Auctioneer Edward Hobbs have a brief preamble and then didn’t have to wait too long for an opening bid, which came instantly at $1,770,000. A string of bids followed from three other parties and the property eventually passed in at $1,977,500 and remains for private sale at the time of writing with an undisclosed reserve.
32 Forster Ave, Malvern East (John Morrisby, Jellis Craig), under hammer, $1.87m, 4 bidders
Slight drizzle didn’t deter the crowd at this Malvern East auction. John Morrisby was our auctioneer and, assisted by Andrew Luke, stepped out on to Forster Ave and called for an opening bid. Unable to secure one, he instead tabled a vendor bid of $1.5m to kick-start proceedings. One by one, four bidders entered the competition and at $1.69m John announced he would be selling. Bidder 4 was a late entrant but left with the prize when the hammer came down at $1.87m to a round of applause.
25 Meek St, Brighton (David Hart, Buxton), after auction $2.4m
Auctioneer David Hart was met with quite a big crowd as he took centre stage on Meek Street alongside Phillip Mellody and Tom Davidson. A vendor bid of $1.95m was tabled before Bidder 1 chimed in at $2m. Bidder 2 offered a $50k rise and bidding continued until the price reached $2.24m and the property was passed in. The home sold after auction for $2.4m.
Agent Opinion: “We are constantly asked how the Melbourne market compares to that in Sydney. Here is an interesting take”
Geoff Hall (Kay & Burton): “Despite some cooling of the market on a national basis, Melbourne is the hottest housing market in the nation, with Sydney in second place over the past quarter.
Whilst the volume of stock is up considerably on this time last year in Melbourne, the number of quality family homes on offer is relatively low. This is the key reason that clearance rates for houses in good locations remains consistent and in excess of 75%.
National dwelling values across the combined capital city index rose 0.2% over the month of October and were up by 1.4% over the quarter and 10.1% higher over the year.
In the latest price data up to the end of October, the annual price growth gap between Sydney and Melbourne has closed coniderably. In the past three months, Melbourne’s home value index has increased 3.1%, easily the biggest among the capital cities, while Sydney’s rose only 1.5%. In annual terms, Sydney is up 15.6% and Melbourne 12.8%. If the current trend continues in a month or two these positions will be reversed.
A survey of property valuers, financiers and market analysts has predicted property prices in Sydney and Melbourne will continue to increase for the next six to twelve months. Around half of the respondents to “The Property Directions Survey”released by the Australian Property Institute, said an upward trend will continue for a further six months. One third of respondents believed the upward trend will last a further 12 months in both Sydney and Melbourne.”