We were scheduled to cover 36 auctions in many suburbs this weekend and 5 properties were bought before auction. The number of pre-sales has been slowly increasing recently and may reflect an emerging group of vendors who have become concerned/ realistic about the price to be obtained at the auction.
The price obtained with a pre-auction sale will not necessarily be less than that obtained at an auction but it will certainly lower the tension of not receiving a bid at the auction and then negotiating with a single buyer. An example of such a sale was 23 Fawkner St South Yarra. This was a spectacular renovation of a cottage in an indifferent street with an indicative quote of $3,000,000 – $ 4,000,000. Three bidders were interested at over $3,500,000 and it sold for over $3,600,000. A good result for Ross Savas, and his Kay & Burton team.
The second type of Vendor could be the person who likes the spectacle of the auction but is willing to listen to his agent and set a realistic reserve. A sale will often occur and all parties walk away with contented smiles on their faces. An example of such a sale today was 9 Glen Road, Toorak. Although the property was passed in after a vendor bid of $3,100,00 and a genuine bid of $3,125,000, subsequent negotiations with Andrew Hayne of Marshall White allowed a buyer to purchase at $3,300,000. This property was a well renovated art deco house, with some issues – but one with a polished renovation.
The third type of vendor could be the person who loves the theatre of the auction, but who believes he knows the market better than the market. The auction may or may not produce a bid – but it will always be less than satisfactory to the vendor. Recently there have been more auctions of this type and a number of sales agents are increasingly talking about vendors getting ahead of themselves and the sales agent is spending an increasing time in managing expectations (downwards).
We saw some good results in Stonnington today on homes we covered: 23 Fawkner Street( as detailed above), 45 Bruce Street, Toorak was bought through Rae Tomlinson of Marshall White for $3,100,000 ( essentially land value at $4354 psm) and a Glen Eagles town house at 68 A Nicholson South Yarra bought through Dean Gilbert of Marshall White for $1,205,000. Another good result was the purchase of a terrace on Inverness Street Armadale through Anthony Grimwade and Jeremy Fox of R.T. Edgar which was bought for a strong price at a shade over $1,660,000.
However below gives a representation of 29% reported bought on 17 scheduled auctions.
With the majority passed in on a Vendor Bid we estimate Bidderman across South Yarra and Toorak auctions was 0.5. One of the lowest on record (including 2008)
|568||SOUTH YARRA||281 Williams Road||May 8 2010||12:00pm||Not Reported|
|SOUTH YARRA||14/286 Toorak Road||May 8 2010||12:00pm||Not Reported|
|681||SOUTH YARRA||68A Nicholson Street||May 8 2010||11;30 am||Bought|
|818||SOUTH YARRA||23 Fawkner Street||May 8 2010||11:00am||Bought|
|SOUTH YARRA||20 Millswyn Street||May 8 2010||2:00pm||Passed In|
|SOUTH YARRA||48 Tivoli Road||May 8 2010||11:30am||Not Reported|
|SOUTH YARRA||3 Davis Avenue||May 8 2010||11:00am||Bought Before|
|721||TOORAK||172 Kooyong Road||May 8 2010||12pm||Not Reported|
|TOORAK||1/83 Grange Road||May 8 2010||1:00pm||Not Reported|
|650||TOORAK||12 Flintoft Avenue||May 8 2010||11:00am||Passed In|
|752||TOORAK||5 Merriwee Crescent||May 8 2010||1:00pm||Passed In|
|689||TOORAK||9 Glen Road||May 8 2010||12:30pm||Bought|
|831||TOORAK||7 Power Avenue||May 8 2010||2:30pm||Passed In|
|TOORAK||9/679 Toorak Road||May 8 2010||9:30am||Not Reported|
|610||TOORAK||45 Bruce Street||May 8 2010||3:30pm||Bought|
|637||TOORAK||13 Devorgilla Avenue||May 8 2010||11:00am||Passed In|
|TOORAK||2/12 Lambert Road||May 8 2010||2:30pm||Passed In|
Luxury apartment sales should see some activity in the coming weeks with three – four good properties being recently listed. They include 1/23 Washington Street, Toorak ( Tim Wilson of R. T. Edgar); 2/9 Heyington Place Toorak ( Warwick Anderson of R. T. Edgar and Geoffrey Wilson of Geoffrey Wilson) and 2/ 45 A St Georges Road Toorak ( Gary Ormrod of Kay & Burton and Carla Fetter of BenMac). These properties are generally purchased on a $ price per square metre – which is likely to be in the range of $10,000 – $15,000 – depending on location, convenience and quality of construction plus of course emotion.
Make Good Decisions