Albert Park 77 Page: Mr Stuart sure knows how to pull a crowd. A couple of jokes, four bidders and bang: she's bought - $1,290,000. He's still got it!

Of the 10 auctions we attended, three were bought before auction, three were bought under the hammer and four were passed in (with one bought after).  Our demand indicator Bidderman was at 1.5 bidders per auction. So out of 10, seven were bought. That seems a big improvement on the last few weeks. We have seen 20 homes over $1m purchased in a fortnight in Port Phillip.

This clearance rate boost was not completely unexpected; unlike Boroondara and Stonnington there is not much new stock on the horizon in Port Phillip. And, while there is an overhang of unsold properties, there is an argument that this mostly relates to inferior or overpriced stock.

We think Port Phillip may be a microcosm of what might happen in Melbourne generally – as soon as stock begins to dry up, the clearance rate will subsequently improve. And if that continues, a return to stronger prices will follow. While we are not fortune tellers, it feels as if this market – along with the other main Million-Dollar-Plus markets across Melbourne – may just be taking an enforced breather (caused by supply exceeding demand), and could reignite again once stock levels are significantly pared back. Let’s wait and see.

The big unanswered question is demand strength: Bidderman is still somewhat weak in Port Phillip, evidenced at 0.9 this weekend despite the post auction clearance rate.

20 Gellibrand Road, Port Melbourne went under the hammer with Frank Callaghan of Frank Gordon, advertised at $1,300,000+. After a very confident opening bid of $1,400,000, two bidders pushed the price to just over $1,600,000. Enter bidder number three, who was only interested in bidding in $1,000 rises, and the property was finally bought for $1,681,000 – which I thought was a solid result for the vendors.

Similarly, the auction at 13 -15 Evelyn Street, St Kilda East saw confident bidding and multiple bidders willing to pay considerably more than the reserve. The growing crowd saw Kaine Lanyon of Bennison Mackinnon put on a good performance and produce a solid result for his vendors. Speaking with Mr Lanyon after the auction, he indicated that, whilst the market is generally patchy, quality real estate is still attracting strong interest and multiple bidders and achieving good results.

Last but not least, 77 Page Street, Albert Park with Andrew Stuart of Hocking Stuart (a James Market News favourite), saw four bidders put their hand up for a slice of one of Albert Park’s premier streets. An opening vendor bid of $1,100,000 was followed by frenzied bidding. The property was announced on the market at $1,160,000, with a final result of $1,290,000. It was a strong result, given the current market, for a property with no car parking. However, that is what happens when four people are determined to get into a great pocket of Albert Park.

The properties that were sold before included: 7 Burns Street, Elwood;  76 Armstrong Street, Middle Park; 161 Dow Street, Port Melbourne.

The properties that were passed in included: 5 Kerferd Place, Albert Park; 96 Iffla Street, South Melbourne; 118 Hambleton Street, Middle Park (Sold post auction for $1,760,000)

What was interesting about all the passed-in properties was that  in all instances the vendor was the only bidder. So where is the value level if there are no actual bids?

Opportunity is now here, which makes it important to have more information on hand than the vendor thinks you have and than what the agent  is telling you.

Auction Clearance Rates

19 monitored – 13 bought – 68% clearance rate ( last week 54% / week before 32%)

Know your market

Middle Park 118 Hambleton: Oliver Bruce - He looks good and he is good. No bidders, yet bought immediately afterwards for $1,760,000.