Overhang is the issue, but new stock numbers are dwindling so a rebalance is possible.

BY Mal James 5th June 2010

Not enough pressure at an auction for you? Then why not add a Channel 7 film crew and a new TV series and it's raining and indoors in a small space and you've got Marcus Peters breathing down your neck. Mate I was scared just watching. One very brave bidder and passed in at $850,000. St Kilda - 23 Mitchell.

SUPPLY OVERHANG BUILDS
First some stats. Last Saturday’s (May 29) Auction results showed strong evidence of “auction overhang” in Port Phillip where the clearance rate was 32% clearance rate on the 22 auctions we monitored.

Seven days later the reported clearance rate had lifted from 32% to 45%, with only three of the pass-ins and unreporteds reported as having been bought. On this evidence, it seems a stretch to say that in Port Phillip Million-Dollar-Plus homes are being bought soon after auction. There is overhang elsewhere in $Million Melbourne but not as much as Port Phillip. Which suggests the chance of bargains here.

Suburb	Address	Price	Last Week	Today
ST KILDA	8/98 Barkly Street	825,000	Passed In	Bought
PORT MELBOURNE	266 Esplanade East	905,000	Passed In
SOUTH MELBOURNE	290 Moray Street	950,000	Passed In
PORT MELBOURNE	110 Esplanade West	1,150,000	Passed In
ALBERT PARK	73 Victoria Avenue	1,200,000	Passed In
ELWOOD	108 Mitford Street	1,300,000	Passed In
MIDDLE PARK	32 Wright Street	1,400,000	Passed In
PORT MELBOURNE	3a Barak Road	1,500,000	Passed In
PORT MELBOURNE	1 Princes Place	1,700,000	Passed In
ELWOOD	200 Tennyson Street	1,925,000	Passed In
ELWOOD	99 Mitford Street	2,100,000	Passed In	Bought
ALBERT PARK	144 Danks Street	2,401,000	Passed In
SOUTH MELBOURNE	93 Cobden Street		Not Reported	Bought
ELWOOD	1/481 St Kilda Street		Not Reported

What Supply Overhang means to you, the buyer
1. More choice, given that new stock has to compete not only with other new stock, but with old stock which hasn’t sold yet.
2. Better pricing on all homes as there is real competition for the first time in a long while – providing of course you understand the negotiating game and know how to play it.

We genuinely believe that there is an air of bargain hunting around at the moment and if you are a little brave or a little flexible on the purchase then perhaps you may consider being a bit more aggressive on the offer. Perhaps you also may consider talking to a buyer agent to show you your real alternatives.

Stock Levels Going Forward – Unlike Boroondara stock does seem to be drying up a bit. Forward auction bookings for Port Phillip are decreasing compared to May. So a quick rebalance is possible.

Apartments
This $M+ market is still continuing to show some signs of life with 3 more reported sales in

576-578 St Kilda Road Melbourne at $2,200,000 with Biggin and Scott
48 Nelson St St Kilda for $1,300,000 with David Cutler of Century 21
3908/7 Riverside Quay Southbank (Eureka) for $1,200,000 with Georgina Dakdouk of Dingles

A report from Michael Szulc of Cayzers
We had 7 auctions scheduled for today, of which we have sold 5. 1 before auction, 1 under the hammer, 3 passed in and sold shortly after.

The new trend appears for buyers to be holding back until the last moment and not declare their interest until they have to. It is only when it appears the property will be taken away from them that they show their hand. Whilst buyers are thin on the ground just at the moment, they are still there and it is case of the agent knowing how to deal with the situation……….patience and experience is proving very important at the moment.

Buy Opportunity

Port Phillip – 11 monitored – 6 bought – 54% clearance rate (last week 32%)

Suburb	Address	Passed In	Bought	Not Reported
MIDDLE PARK	57 Erskine St		892,500
PORT MELBOURNE	26 McCormack Street		925,000
ELWOOD	52 Dickens Street		1,085,000
ST KILDA	35 Vale Street		1,192,000
ELWOOD	9 Hartpury Avenue		1,610,000
ST KILDA WEST	14A Park Street		1,700,000
MIDDLE PARK	83 Canterbury Road	1,800,000
PORT MELBOURNE	65 Bridge Street	1,810,000
PORT MELBOURNE	103/159 Beach Street			Not Reported
SOUTH MELBOURNE	172 Bank Street			Not Reported
ST KILDA	23 Mitchell Street			Not Reported