Lined up like ducks; but the ducks didn't perform. Prahran 32 Harvey St: Passed In $875,000: 2 ducks, I mean bidders: John Manton of Marshall White (to the left) was the duck hunter.

In Toorak and South Yarra it was 50% at auctions today – which actually wasn’t that bad when compared to the last few weeks. Stonnington today had a reported clearance rate including Glen Iris over $1m of 66% (12 from 18). Not a lot to be taken from specific results today except to say that some average properties on main roads got some bidding interest; cases in point Williams and Orrong results. We reported on 7 and only one property – 48 Park Place South Yarra failed to register a bidder.

For those that had awell priced property and an agent who could get it on the market seemed to get a  good result. Case in point: 19a Tintern Avenue Toorak – John Bongiorno Marshall White

James Auction Report: A high action, fast-paced auction was the scene from 19a Tintern Avenue, Toorak this afternoon. Under the glorious Melbourne sunshine, John Bongiorno started off proceedings with a modest vendor bid of $1,700,000. The first bidder announced themselves after a moment of hesitation from the 70 plus crowd. After several bids back and forth, one party declared themselves out of the race which brought about a flurry of fresh aggressive bidding from a new party. Back and forth between the new and original bidders, twenty or so times, brought the price up to $2,380,000 at which point the original bidder waved the white flag and accepted defeat. Having declared the property to be on the market at $1,825,000, the vendors would undoubtedly be thrilled with the result, selling the property under hammer for $2,380,000. A strong atmosphere in the crowd produced three bidders on the day.    

Above does not happen that often in a completely down market.

So why have we eased?

We had lengthy interviews with Justin Long and James Connell of Marshall White and this is a synopsis of their takes on the market:

• Market still has strength evidenced by MW’s clearance rate in the 70’s per cent wise and as Justin put if 644 Orrong can get two bidders and a sold sticker on a $2,000,000 reserve then we will still be feeding our families for a month of two
• Properties must be priced appropriately as buyers have choice. Choice is the reason we have seen the disappearance of the ridiculous price paid.
• The market is in better shape than the press are saying and the proof may well be in the pudding as stock levels pull back going into the winter depths.

We had another discussion with Gowan Stubbings and Andrew Baines of Kay and Burton while waiting for the 58 Llaneast Auction. A summation of their comments are as follows

• $11 million sale in Flinders
• 4 Elgin Armadale which we reported on at auction last weekend – sold after a pass-in.
• Previous 80% Auction clearance rates have spoilt us but the times have changed. We (meaning selling agents) need to work differently. Expressions of Interest are now the way to go.
• There is sale after sale happening and unlike a month ago no result looked surprising – meaning too high.
• Buyer urgency has definitely dropped

Our take on the events of South Yarra, Toorak and Malvern in recent times

• Get ready for Expressions of Interest and if you don’t know how to play this game then you will learn at your peril. Get some help. Why will EOI’s happen? Simple; many auctions are not working  well in this market.
• The Kay and Burton claimed results can’t be ignored despite the pathetic South Yarra, Toorak auction clearance rates of the past few weeks. The market is not in freefall.

If we all agree yes the market has turned; then the interesting question to ask now is why?

 The real truth will mean different medium term outcomes for buyers.

Make Good Decisions 

He's happy. Lachlan Fraser-Smith aka Uncle F. of Bennison Mackinnon. He truly is one of Saturday's great auction characters; right up there with Marshall White's Disney twins. Go watch Lachie at an auction near you; it's an emotional experience and more the point it's usually a success. Malvern 15 Winter: Bought under the hammer: $2,010,000: 2 bidders.