Brighton 3 Keith Court: Ian Jackson and Stewart Lopez of Kay and Burton show us there is nothing wrong with good land and a view. 4 bidders and a sold sticker at $2,900,000.

Six out of seven in Brighton East were bought at auction today but at expected levels, not ridiculous prices. The highlight for me being that after a flurry of $2m offerings in previous weeks; you can still find some reasonable $1m to $1.5m buying in Carrington, Grant, Griffin, Rogers, Plunket and Margaret Streets as evidenced today.

Land sale at 26 Bright Street – Halli Moore Buxton. On first glance you may say land is dropping below $2000 per sq metre; but closer inspection would show you its south facing and a difficult triangular block. No, prices are not dropping overall right now – they are stabilizing or not going up as quickly.

The rest a Bayside was a mixed bag with Black Rock and Beaumaris passing in 3 out of 4 reported auctions. Brighton had 11 auctions but they were not all top of the pops with just over half sold restoring our belief that buyers can, when not running scared, make good decisions.

While in Brighton I notice 17 Albert St was bought for just under $4million - Justin Follett from Kay and Burton – I liked this home, great spot, been with several agents –surprised it took so long to sell.

Off Markets:

There is no doubt off markets are on the increase in Bayside at present with JP Dixon and Kay and Burton  getting a few away on the Golden Mile and surrounds such as another one in Albert St area recently. Off markets are an interesting phenomenon and seem to take the house to a new level for some buyers just because it is “off- market”. We do buy them – especially at the $3m+ level and one thing we try and emphasize to buyers is great, they are off market and secret, but they still need normal due diligence carried out on them including paperwork checks, pest and building and the all important fair value test. When you find an off market it’s not naturally better; it’s just a home with a different method of sale.

Apartments and Townhouses:

Enquiry for these is on the rise as well. A well positioned one selling in Sussex St mid week for just under $3million through Regina Schmidt and David Hart of Buxton and Buxton also getting another apartment away in the big multi development site in Well Street just out the back of the Church St shops – the price was $2,300,000.

Some further highlights:

Mark Earle of Buxton sold 9 and 11 Myrtle Road Sandringham with a combined 7 bidders for just over $3,000,000. The thing I found of interest in these two auctions within the same hour, is how two very different homes side by side can end up close to each other in value. You couldn’t have two more dissimilar homes – read our auction reviews and ratings below – smaller land and great little home versus bigger land and very basic home.

3 Keith Court Brighton – Ian Jackson and Gail Pullen. Just how much is a view worth. No value in the house except as a building footprint. $2,900,000 was the result at an auction, where one of the four bidders seemed way too young to be having that sort of money, however for  the 580 sqms it worked out at $5000 per sq metre exactly. Good – keep forever views.

Line that up against 12 Young street (passed in yesterday) – similar distance from water – 100 metres but no views and their 689 sqm couldn’t get a bid at $2,000,000 or $3,000 per sqm. When they say Brighton has $million dollar views I guess this proves it.

Happy Wife Happy Life

Brighton 2 Manor: Bought After $5,580,000. Bidderman 1. Great home and great price. Well done to buyer and seller and agents Regina Schmidt and Brian Devlin - you're all winners on this one.

A quieter week in terms of numbers, given the Anzac  long weekend, and results were as expected.  Some sold strongly, some passed in, some sold after.  The ‘golden triangle’ in Black Rock continued to sell, with Nick Johnstone of JP Dixon selling 16 Glenmore Crescent for $1,820,000 and a well run campaign by Jason Gill of Hodges at 49 Were Street in Brighton, saw  James Paynter (auctioneer) bring down the hammer at $2,230,000.  Both properties, although liveable, will require work in the future.

The big auction for Bayside this week was with Buxton’s David Hart at 2 Manor Street, Brighton – a stellar location and property.  Initially passing in at $5,000,000, David successfully negotiated the price up to $5,580,000.  Chris Bevan of JP Dixon got another ‘biggie’ away during the week in Martin Street, Brighton, down on the ‘golden mile’ for a little over $8,000,000.

A few that passed in, were 3 Bruce Street, Beaumaris – land only with a north rear for  $1,080,000, 40 Edward Street, Sandringham  for $1,100,000 and 1 Roslyn Street, Brighton on a vendor bid of $1,450,000.

May will see 5 weekends of auctions this year and should provide us with information regarding the continuing strength and numbers in the market.  Speaking with Justin Follett of Kay & Burton on stock levels, he advised they have more auctions coming up for May than for the same time last year.  They have experienced a strong start to year and he believes the market may stabilize over the next few months.  Good news for both buyers and sellers.

Happy Wife  Happy Life

Black Rock 19 Stanley Bought $1,600,000. Despite a quiet auction, Mr Smooth aka Wes Belt relieved the one bidder of a solid amount in post auction negotiations. Strong, very strong.

Strength was seen in quality properties today, however, there were still a few surprise pass-ins.  Well-positioned land with homes of minimal value (some could argue no value) led the way.  4 Arkaringa, Black Rock, was auctioned by Campbell Cooney of Hodges and sold for almost $2,350 sqm (if there is no value in the house).  22 Surf Avenue, Beaumaris in another great location was auctioned by Mark Earle of Buxtons for around $2,050 sqm (again with a liveable house requiring major work/replacement). Another land property (920sqm) at 2 Fairleigh Avenue, Beaumaris, overlooking the R0yal Melbourne Golf Club, auctioned by Brian Hutchins of Brian Hutchins Real Estate  sold for $1,340,000.  However, 18 Arranmore, Black Rock (again land only) passed in at $1,150,000.  Another surprise today, given that 40 Sussex Street, Brighton sold strongly a few weeks ago for just over $4,500 sqm,  was  1 Webb Street (a stone’s throw away from Sussex) which passed in for $2,550,000. Difficult home but stellar location so Buxton’s Mr Hart should move it on some time sooner rather than later.

When speaking with Stephen Tickell of Hocking Stuart he advised “Despite buyers appearing to become a little more cautious with their  bidding at auctions over the past couple of weeks there still appears to be a strong underlying confidence , particularly at the ‘top end’,  in our sector of the bayside.”   6a Seaview Crescent, Black Rock   and 71 Royal Avenue, Sandringham both sold after auction today, both over $ 2 million dollars, maintaining Hocking Stuart’s clearance levels above 85% across the board.  He further advised  “The market remains strong, but the heady ‘free for all’ days of auctions with unrestrained bidding may be returning to a more sensible and sustainable level.”  Another sale today over $2,000,000 was with Jason Gill of Hodges, who ran a successful campaign at 52 Asling Street, Brighton.  The property also passing in at $2,110,000 and sold post auction close to $2,200,000.

Across Bayside agents still feel stock levels are down, however, results like Nick Johnstone of JP Dixon, selling 4 properties in Hampton in the last month totaling $16M may encourage others in the area to think about listing their properties.  Normally these are the sorts of properties we buy in Brighton,  but the strength of the recent market may be beginning to include Hampton on a more regular basis.

The median price trend chart, courtesy of the REIV, is a very useful tool to confirm thoughts over the longer term. This chart below clearly shows Brighton’s price decline in 2008 and price recovery in 2009 – as it does but not quite as dramatically for most of Bayside. Remember these REIV charts are for all homes not just our focus of $M+.

Happy Wife, Happy Life

Hampton: 30 Avondale Street: Bought under the hammer for $2,800,000. 3 bidders. Crowd over 200. Mark Earle of Buxton in charge of the hustle and bustle.

Bidderman was 2.5 of the 6 properties we covered in Bayside  (and 3 across Melbourne for all the properties we covered over $1,000,000.)  Clearance rates were high amongst most Bayside agents.  Justin Follett of Kay & Burton advised 100% clearance rate today, whilst Mark Earle of Buxtons Sandringham advised they sold 6 of 8 and Julian Augustini of Hodges advised 86% across Bayside, with the standouts in the lower price brackets, with multiple bidders.

Jenny Dwyer of Hocking Stuart, teamed with her usual partner, Stephen Tickell, to sell 2 Victoria Street, Sandringham today for $1,552,000.  The 7 bidders were divided between bulldozing and renovating as this property held interest for both.  On 727 sqm with a south facing rear, land was $2,134 sqm.

243 Beach Road, Black Rock, auctioned by Julian Augustini of Hodges, sold for $2,230,000 with 3 bidders.  Another knockdown, on 1022 sqm with access from Bayview Crescent.  This calculated land at $2,189 sqm.

Another strong result for 56 St Andrews Street, Brighton, after 60 St Andrews Street sold this month for $2,900,000.  Nick Johnstone of JP Dixon Real Estate auctioned the property, in front of about 90, he had 2 bidders and sold it for $2,610,000. He also got sold the biggest sale I can remember in Hampton for some time, said to be between $4,400,000 and $4,600,000 at 31 Gordon Grove Hampton.

The two that didn’t make it and were passed in – 27 Cowper Street, Brighton, rating 736, a double fronted period home on 576 sqm and north facing rear, failed to attract a bid. The other pass in was 21 Balcombe Park Lane, Beaumaris on  696 sqm rating 677.  Both these properties needed major renovations to bring up to current home expectations.

The property of interest today, with around 200 onlookers, was 30 Avondale, Hampton.  A new, period style, family home on 700 sqm, auctioned by Mark Earle of Buxtons sold for $2,800,000.   Mark advised afterwards that good quality stock is still especially popular with buyers.

Things are expected to be a little quieter over the Easter/school holiday period.  Both Jenny Dwyer and Mark Earle say Bayside is currently not inundated with properties for sale.  Though Justin Follett claims there are some good quality land sites coming on after Easter.  1st of May is shaping up to be the next big weekend in real estate.

Happy Wife, Happy Life

Brighton: 4 Dawson Avenue: Matthew Morley in Action. Bidderman 3. Bought under the hammer for $2,460,000 or $3770 a sqm for Golden Mile land.

Another 24 sales over $1,000,000 in Bayside, moving the average for the month to 2.5 per day. It’s 6pm Saturday afternoon, and so far, our research shows 24 of 27 reported properties in Bayside have sold.  19 at auction, 3 before and 1 each by expression of interest and private sale. 

The current clearance rate is 86% in Bayside and bidderman 2.75 for the 4 auctions we covered, although only 2 across all of the auctions we have covered this weekend. Highett was the leader in strength today.  Three properties on offer and three sales – all over $1,000,000.

John Spiers of  JP Dixon auctioned a good house in an average street in Highett, rating 669 on 572 sqm,  at 24 Noyes Street, Highett.  Three bidders took the price over a million dollars (not often seen in Highett until recently), passing in at $1,020,000 and successfully selling immediately after for $1,050,000. Hodges Real Estate had a successful day, with  James Paynter selling 43 Ashwood Avenue, a three bedroom, single living room period home, with small rear garden, rating 676, for $1,192,000. 

Meanwhile, Peter Alpar, successfully sold 2 Morley Crescent, a new large family home, for $1,302,000.  No we are not talking about Beaumaris – this is Highett. Kate Smith and Stephen Tickell of Hocking Stuart showed their skill at 17 Kirkwood Ave, Sandringham.  This was an old English classic, that needed a cosmetic makeover.  Passing in with two bidders, it was sold after for $1,885,000 – a strong result but not completely unexpected in that Royal Avenue Precinct. Nice note from the owner politely correcting a factual error or two (thank you) who is moving to greener pastures in Port Phillip. 

Two in Brighton both had 3 bidders.  4 Dawson Street, auctioned by Matthew Morley of Morleys Real Estate, sold under the hammer for $2,640,000 and Nick Johnstone of JP Dixon passed 10 Kent Ave in at $2,100,000 but was successful in  selling the property for a bit more afterwards. Looking at 3 of the 4 properties passing in, perhaps Vendor expectations are creeping beyond the Buyers, but then quickly placed back in check upon reflection, given the negotiated sales afterwards.

The big land sale this week was on Brighton’s Golden Mile – 14 North Road, 1551 sqm rating 665 with a south facing rear sold after an expressions of interest campaign by Chris O’Farrell of JP Dixon for a little over $3,500 p/sqm.

Happy Wife Happy Life

Middle Park: 64 Nimmo St: Changing of the Guard: Young bull Michael Szulc directing traffic as the old bull - Geoff Cayzer looks on. 7 bidders. Bought for $3,155,000

Just another quiet week (not) in Brighton with 13 reported sales over $1m.

Big increase in Bidderman at auction: 2.6

Some follow up to previous weekend’s passed in auctions – two sold privately during the week; the first at 49 William St, Brighton (Phillip Mellody Buxton), where they seemed to be thinking $3.5m, had a vendor bid of $2.95m last weekend and sold mid week for well north of $3m but not $3.5m. The second was 32 Cosham St, Brighton (David Wilson of JP Dixon) – we reported the auction a few weeks ago – only vendor bids – sold mid week for just under $3m.

Another hot Hocking Stuart Ferrars Place sale in Albert Park on the back of last weeks $4m+ one. 21 Ferrars – Michael Coen – 274 sqm land + townhouse was bought for $2.25m (quoted under $2m). This little section of the world – the crescents of Howe, Martin and Ferrars is rivaling St Vincents place and the Domain in South Yarra.

Black Rock – 4 out of 4 homes over a million reported sold at auction today as apposed to Brighton East 1 out 4. But look at the homes – in Brighton East the non sales were main roads or near main roads.

Brighton Land Value Update
4 Vaucluse (Carole Laird Hodges) - South facing rear – 553 sq metres sold before for $1,280,000 or $2300 per sq metre.
106 Carpenter (Trudy Biggin Biggin and Scott) – Backs onto railway line (almost) – 504 sq metres sold for $930,000 or $1845 sq metre today. 116 Carpenter, also backs onto railway sold for around the same (some minor value in the house)a few weeks ago.

Main road or railway line discount for land seems to be a minimum 15% and can be 25% against good blocks nearby.

What Didn’t Sell?
13 Wellington (Bert Stewart Buxton) didn’t run out the door. The home is tired and if you wanted to start again then at a $3,500,000 vendor bid that makes the asking price for land north of $4400 – the Diamond K as we call this precinct between the Brighton Beach and Church St is good but is it north of $4000 sqm – stay tuned.
13 Baxter St Elsternwick (Bill Stavrakis Biggin and Scott) – great little single fronter inside but outside – no car park. See our rating.
There were 4 apartments  (Black Rock, Southbank and Port Melbourne 2) in that tricky just over a million range and all passed in today. But to balance this there were 4 private sales during the week of apartments in this range.

James Auctions we attended today

CAULFIELD SOUTH, 19 Flowers St – Passed in – no bidders (Biggin Scott)
It was a day for window shopping at the auction of this Caulfield South property, with auctioneer Bill Stavrakis failing to attract any bids from the crowd of around 70 people.  Mr Stavrakis opened proceedings with a vendor bid of $2m, and despite a persuasive speech on the value and quality of the property, could not get any bids from the crowd. The property was passed in on a second vendor bid of $2.1m.

BEAUMARIS, 4 Scarborough Grove – Bought – two bidders (Buxton)
Not a single car drove by during this auction, a detail auctioneer Mark Earle was quick to point out in his pitch – the peace and quiet only disrupted by the singing birds in the many trees. A genuine bid of $1.2m opened proceedings and was quickly countered by a second bidder. Rapid, confident bidding between the two parties followed and the house sold shortly after for $1.355m. An average crowd of around 40 people lined both sides of the street to catch the action.

BRIGHTON, 13 Wellington St – Passed in – one bidder (Buxton)
With a grand piano in the foyer and Pachelbel’s Canon playing in the background, there was a feeling of grandeur at this auction. Buxton’s Leigh Hallamore led the way and opened proceedings with two vendor bids of $3m and $3.25m. One genuine bidder jumped in but the property was passed in at $3.5m. Around 60 people lined the streets to watch the auction, an eclectic gathering of the young and the not so young.

MIDDLE PARK, 64 Nimmo St – Bought – seven bidders (Cayzer)
A big and noisy crowd of 120+ came to witness this auction, and many were there to bid as well, about 7 bidders getting involved. It began with a knocked back bid at $1.5m followed by a vendor bid at $2.4m to officially open. Auctioneer Michael Szulc and the Cayzer crew got spun in all directions picking out the bidders and seemed to be just as awe-struck as the crowd when bidding shot past the selling price at $2.8m and sold for $3.155m.  Crowd members walked off shaking their heads in disbelief of the selling price.

ELWOOD, 19 Beach Ave – Bought – two bidders (Chisholm & Gamon)
A large crowd of 90+ scatter around this windy scene just off Beach Road. Auctioneer Torsten Kasper keeps grounded in the breeze, opening with a vendor bid of $2m and rounds up two bidders to join in. The property is on the market at $2.2m and sells for $2.230m. Another strong result.

BRIGHTON, 106 Carpenter St – Bought – three bidders (Biggin & Scott)
The hammer came down with a thud within minutes at this auction! Auctioneer Marcus Peters led the way, taking an opening bid of $800,000 from the crowd of 50 onlookers. Two more bidders entered the fray and the property was quickly on the market at $880,000, selling minutes later for $930,000.

ELSTERNWICK, 13 Baxter St – Passed in – three bidders (Biggin & Scott)
Strong, fast bidding at this auction but despite interest from three parties, the property failed to sell. Auctioneer Bill Stavrakis accepted an opening bid of $900,000 from the crowd of around 50 people. Bidding was quick and soon reached $1.123m, but was passed in at this amount.

Happy Wife Happy Life

Elwood: 30 Wave St: Sam Gamon: WHERE DID THAT BID COME FROM? Bought $1.775m. Photo - Jen Milligan

John Holdsworth and Andrew Stuart of Hocking Stuart had the biggest auction with 34 Ferrars Place South Melbourne at $4.71million and the biggest pass-in at $7m+ at 121 Beaconsfield Parade Albert Park.

Wherever you went from Sandringham to Port Melbourne to Elwood to Bentleigh our advocates and reporters called in million dollar sales – over 50 in fact. Yep -50. There were also a number of pass-ins, at least 22 over a million and a number remain unreported. Again as we have said in other market wraps there are buying opportunities over the next few weeks pre Christmas – keep your wits about you and if it makes sense to you, why not think about jumping in.

Black Rock: 9 Bayview Crescent: The house the crowd is looking at sold for $1.725m which, according to Jenny Dwyer, has broken the Black Rock sqm record.

Bentleigh, Ormond and McKinnon – talking with Peter Sinclair, Melissa Ryan and Nick Renna also of Hocking Stuart after their very successful $1.055m result on 21 Wood St Bentleigh we got to theorizing that those  buyers that are coming to Bentleigh by necessity (many families come by choice) may in fact be coming from  NOT traditional Bayside suburbs such as Brighton or East Brighton (Bidderman below 2 most auctions) but may in fact be being squeezed out of suburbs such as Glen Iris and Malvern East where Bidderman week in and week out is between 4 and 5 on the better suited family homes. The $1.2m result in Hughesdale – yep Hughesdale where nobody really batted an eye may confirm this theory or it may simply be that finally Melbournians are coming of age and realizing just how great and how cheap some of our inner city suburbs and homes are when you compare to Sydney and the rest of the world. It’s good to talk to Pete, Melissa and Nick – lots of knowledge there.

Continuing on the result at 21 Wood St Bentleigh (land only) which confirms that last weeks 28 St James Bentleigh sale at $1,038,000 was at market and proves in our mind that land east of Jasper Road – almost Bentleigh East; in that Higgins Road sporting complex precinct (James recommended precinct) is now being calculated at over $1200 per sq metre on the good blocks.

Bidderman 1.6

James Attended Auction Reports below

HAMPTON, 9 Deakin St Nth – Passed in – no bidders (Hodges)
Auctioneer Julian Augustini (Hodges) had his work cut out for him today, with no response from the very small crowd attending this auction. The property was passed in following a second vendor bid of $1.325m.

MIDDLE PARK, 10 Langridge St – Bought – three bidders – (Hocking Stuart)
Although Auctioneer David Wood waited patiently for the sound of constant chatter to subside and give way to a bid, it was only after he offered a vendor bid of $1,400,000 that 3 of the 60 people in the crowd decided to begin a slow race to the finish. The property was declared on-the-market at $1,505,000 and the miserly bids continued. As the threat of rain was mentioned by Mr Wood, to fast track the result no doubt, 2 of the 3 bidders declared their limit and Mr Wood clapped the highest bidder “sold” at $1,610,000.

BLACK ROCK, 9 Bayview Crescent – Bought – six bidders (Hocking Stuart)
Huge interest in this executor’s house, with a crowd upward of 150 people. Cyclists, walkers families and developers all keen to see what would happen to this property in a prime location close to the beach. Stephen Tickell (Hocking Stuart), assisted by Jenny Dwyer, took the reigns, with the auction opening on a genuine bid of $1.2m. Five more bidders joined in the action and bidding quickly exceeded the $1.25m reserve. The house eventually sold for $1.725m which, according to Ms Dwyer, has broken the record per square foot in Black Rock.

HAMPTON, 52 Linacre St – Bought – three bidders (RT Edgar)
An extremely large crowd gathered at this auction, which opened on a genuine bid of $2.2m. Auctioneer Greg Costello, (RT Edgar), took bids from three parties, but the property failed to sell, passing in at $2.325m. It sold later for $2,437,500.

SANDRINGHAM, 4 Keats St – Passed in – no bidders (Hodges)
A very quiet crowd of about 20 people attended this action where the only chatter came from children playing in a nearby yard. Auctioneer Julian Augustini (Hodges) did his best to get a reaction from the small gathering but there were no bites and the property was passed in on a second vendor bid of $1.52m.

ALBERT PARK, 121 Beaconsfield Parade – Passed in – no bidders (Hocking Stuart)
It seemed there was a garden party on at Beaconsfield Parade today. The 100 or so people inspected the historical property, enjoyed the bay views and were even soothed by the sounds of the water feature in the front garden. A lovely time was had by all except Auctioneer Andrew Stuart. There was no popping of the bubbly at this garden gathering!  Mr Stuart could not coerce a single bid from the large crowd even after making what he termed “a very low vendor bid of $7,000,000” to open proceedings at this auction. No. 121 was Passed-In and everybody went home.

ELWOOD, 30 Wave St – Bought – two bidders (Chisholm & Gamon)
A most tranquil setting with birds singing, the hustle and bustle of St Kilda a stone’s throw away and only the distant hum of traffic could be heard…Enter vibrant auctioneer Sam Gamon (Chisholm & Gamon) and his assistant Shane Banfield who launched into a tag team entertainment routine using famous lines such as “how’s the serenity” and telling the small but attentive crowd that everyday was a holiday in beautiful Elwood. And, although the auction got off to a fairly slow start, the expertise and perseverance of Mr Gamon saw two  bidders enter the fray and strongly contest this modern house, reaching a sale price of $1.755m. A lot of happiness from the crowd for the new owners of the property.

BENTLEIGH, 21 Wood St – Bought – three bidders (Hocking Stuart)
A very quick hot auction, typical of Hocking Stuart’s Nick Renna. Opening on a vendor bid of $800,000 it was soon on the market at $890000. Voracious bidding saw the house sell for $1.055m. Great vibe with a crowd of around 70 people and three bidders.

BRIGHTON, 49 William St – Passed in – no bidders (Buxton)
Despite the hard work of auctioneer Leigh Hallamore (Buxton) there were no bids at the auction of this Brighton property. A reasonably large crowd of around 70 people saw the property pass in on a vendor bid of $2.95m. Two or three interested parties were seen in discussion following the auction so it should be interesting to see if there are any further developments in the coming days.

ST KILDA WEST, 42 Mary St – Passed in – one bidder (Bennison Mackinnon)
A crowd of 50 people walked to Mary St to watch an auction conducted by Damien O’Sullivan. An opening bid of $2m was immediately followed by a Vendor Bid of $2.25m. Mr O’Sullivan described the vendor bid as “ being in the bottom end of the guide” and then, proceedings came to an abrupt halt. No further bids resulted in the property being Passed-In.

BRIGHTON, 23 Cosham St – Passed in – no bidders (Kay & Burton)
A good crowd of 90+ gathered in the front drive-way of 23 Cosham St. You could smell the sea-breeze and feel the anticipation as Gerald Delany stepped out. He boomed out and wasn’t shy to start with a vendor bid of $5 million. He said he wasn’t surprised by the lack of bidding as ‘no-one likes to be the first bidder’. No one was confident enough to bid and it passed in pretty quickly at the initial vendor bid as the rain started to set in.

Happy Wife Happy Life

Brighton: 21 Montclair: Happy Photo. For David and Fiona Southgate the buy and sell stress is over. Photo: Carole Laird from Hodges.

Bidderman at 1.7 is still consderably lower than elsewhere in Million Dollar Melbourne.

Brighton and Brighton East reported 16 $m+ auctions with 5 passed in. In addition to the reports below was a strong result at 40 Black St with James Paynter of Buxton which sold under the hammer for $2,050,000. Small block, period home needing serious work – the renovators are back with a vengeance – such a different story from this time last year. This would not have even drawn a crowd let alone a strong result.

The Port Melbourne Apartment Market is semmingly back with 22/1 Beach St (HMAS) and Level 6 in the 4th tower selling at auction for $1.645m and $1.77m respectively. Jane Lucas of Kay and Burton and John Slavkoski of Barry Plant

Julian Augustini said Hodges 6 out of 7 sold at auction.
Buyer demand is quite strong as buyers realize little stock is coming on moving forward over next 5 weeks
“Both Campbell and I have 5 auctions each for December 12^th. These campaigns started today and response has been strong so Dec 12^th is looking strong despite huge numbers of auctions this weekend.”
More offers being made prior to auction that I’ve seen in a years – and there are a quite a few sold before.  Sandy last week 2 sold at and 1 passed in and 4 sold before.
$1m to $1.5m is very strong through Sandy and Hampton.

Other properties included 7 Armfield and 127 North Rd both of which sold in excess of $2m.

Auctions we attended today:

BRIGHTON – 2 Wellington St – Bought – two bidders
According to auctioneer Frank Hellier, for Malcolms Real Estate, there was a lot of genuine interest in this property, with Asian and Russian buyers among the mix. Assisted by the young Tom Davidson, Mr Hellier took a genuine opening bid of $1.5m and the property was on the market at $1.7m. Two bidders saw the property sell under the hammer for $1.85m in front of a crowd of around 60 people.

BRIGHTON – 3 Maysbury Ave – Passed In – no bidders
Agent Robin Parker described the wide frontage of this property as ideal for developers, but unfortunately even that didn’t entice any buyers for this 1920s home. Auctioneer Greg Costello, of RT Edgar, opened with a vendor bid of $1.95m, and after a further two vendor bids the property was passed in at $2m. A small crowd of around 20, many of whom seemed to be nearby residents and not genuine buyers.

BRIGHTON – 113 Male St – Passed In – one bidder
The meticulous renovation of this Victorian home attracted a lot of interest from passers by, but unfortunately the only sale that took place was by a neighbour selling plants from his driveway! Julian Augustini, of Hodges Real Estate, opened with two vendor bids (the first was $1.3m), followed by a single genuine bid of $1.35m but the property was passed in at that price.

BENTLEIGH EAST, 43 Mawby Rd – Passed in – no bidders
Three couples seemed interested in this neatly presented property and were seen talking to agents from Buxton Real Estate before proceedings. But despite that, no one placed a bid and the property passed in on a vendor bid of $900,000. A big crowd of around 80 people. Auctioneer was Craig Williamson.

HAMPTON, 26 Avondale St – Passed in – no bidders
Despite the efforts of Greg Costello, from RT Edgar, and a good crowd of around 60, this property failed to attract any bids at auction. Earlier, two parties had shown interest in the property, but it was passed in on a vendor bid of $2.4m.

HAMPTON, 1/39 Holyrood St - Bought – four bidders
A moderate crowd of around 50 people attended a unique auction where the reserve of $475000 was disclosed by Greg Costello before proceedings. RT Edgar took the unusual steps at the vendor’s request and after a cheeky bid of $400,000, a serious bidder met the reserve. Quick bidding from four parties followed with increments down to $250 and selling for an undisclosed amount.

MIDDLE PARK, 191 Page St - Bought – four bidders
This auction was described as being like a street party with several groups of people staying and chatting after proceedings. Even auctioneer Andrew Stuart, of Hocking Stuart,  joined in the frivolities when the business of selling properties was over. Four bidders after an opening vendor bid of $1.8m. The property was on the market at $2m and bought for $2.120m.

BRIGHTON EAST, 5 Lysander St - Bought – five bidders
Strong interest from several developers for this good sized property pushed bidding up quickly. Campbell Cooney (Hodges) led proceedings which started with a genuine bid of $1.1m. The property was on the market at $1.255m and sold for $1.280m. A solid crowd of 50 people with five bidders.

BRIGHTON, 29 St James Park Drive – Bought
A lovely atmosphere, with many of the 45 strong crowd sitting on the grass to watch the auction. Rod Richardson (Hocking Stuart) was in charge and opened proceedings on a vendor bid of $1.69m. Unfortunately there was no response from the crowd and the property was passed in. It sold later for an undisclosed amount.

ELWOOD, 10 Lawson St – Passed in – one bidder
Auctioneer Tony Pride gave a great address to the crowd of around 50 people, but even this failed to excite the crowd. Only one bidder became involved in the proceedings after an opening vendor bid of $1.75m. The crowd just wasn’t in a buying mood and the property was passed in at $1.76m.

Happy Wife Happy Life

St Kilda West: 22 Park: Great day for an Auction: Well we thought so but nobody else did: Passed In

While Inner East flies Bayside still presents buying opportunities -

Three Facts about our Bayside – Beaumaris, Brighton to Port Melbourne

• 58% Clearance rate on 36 auctions yesterday – that’s low.
• Less than one bidder auction today. That’s right Bidderman below one – that is a falling market if it continues.
• Some of the nicest buyer agents live there.

Beaumaris: 29 Haydens: Hey Jen! Steve I'm focused! Jen, where have those bidders gone? Steve Tickell & Jenny Dwyer. Passed In

If you hate the beach, love traffic and have got plenty of money stay looking for your double fronteds in Armadale and Hawthorn – only trouble is the coffee shops are full in between open times with fellow depressed non-buyers; oh and Maserati dealers looking for selling agents (that was unfair). No, no, no young men go South and take your woman with you – show her a good time at Hampton’s Brown Cow and while you are gazing into her eyes nodding that yes you really do get “Happy Wife – Happy Life” drift off into the clouds and dream about your mortgage lender’s expression when he realizes you’re not going near your limit to buy your dream home.

The $5m+ market is alive and well in Brighton and in fact has been stronger all year, than it’s “wealthiest suburb” challengers Hawthorn, Canterbury, Toorak and Malvern; however the $1m to $3m market is not as strong especially in the fringe suburbs of Hampton, Sandringham and Beaumaris.

This is best evidenced by a sample Saturday’s results

James Auction Reports

54 Shasta Brighton East – Bought Afterwards – no bidders during auction
Auctioneer Peter Kennett of Hocking Stuart was not able to elicit any response from the crowd and passed the development property in on his second vendor bid at $1.7m

29 Haydens Road Beaumaris – Passed In – No bidders
A crowd of about 50 gathered around the outside pool in glorious sunshine to watch this auction. Despite the lovely setting and a chatty crowd, there were no bids forthcoming. Auctioner Steve Tickell opened with a vendor bid of $1.12 million but there were no takers and the property passed in at this price.

19 Chatsworth Brighton – Bought Afterwards – 2 bidders
2 bidders joined in on top of the opening vendor bid of $2.6m from Jason Gill of Hodges. Passed in at $2.89m and sold after at $2.95 million. Almost a $500,000 improvement on when it sold late last year.

33 The Avenue Hampton – Bought Before

52 Black St Brighton – No bidders
Small crowd saw no bids at all come forward to auctioneer Jonathan Dixon.

5 Manor St Brighton – Bought – 3 bidders
Auctioneer Leigh Hallamore of Buxton opened with a vendor bid of $1.2m and 3 bidders from the crowd of 50 joined in until it was sold at $1,705,000.

16 Tennyson St Sandringham – Bought – 2 bidders
A picnic atmosphere prevailed here, with many of the 100-strong crowd sitting on the lawn to watch proceedings. It was the first time in 50 years that this house had been offered and that generated a lot of buzz from the crowd. Auctioneer Mark Earle opened with a vendor bid of $1.65 million and two bidders joined in. There seemed to be a lot of happiness from the crowd when a family bought the home for $1.861 million.

47 Reed St Albert Park – Passed In – No bidders
The sun was hot but the vibe was cool at this auction. Auctioneer Oliver Bruce opened with a vendor bid of $2.3 million and followed it with a second vendor bid of $2.38 million after no-one from the 40-strong crowd offered a bid. The property was passed in at that price.

290 Cecil St South Melbourne – Sold After – One bidder
In front of 30 people, auctioneer Andrew Stuart opened proceedings here with a vendor bid of $1.6 million. The sole bidder made a bid of $1.61 million and the property was passed in at that price.

20 Asling St Brighton – Passed In – No bidders
A crowd of 70 saw Jonathan Dixon pass-in this home on one of two vendor bids at 2.5m.

22 Park Street St Kilda West – Passed In – One bidder
About 100 people attended this auction, which auctioneer Tony Pride opened with a vendor bid of $2.5 million. The sole bidder made a bid of $2.55 million, which was followed up by a second vendor bid of $2.7 million and the property was passed in at that price.

Happy Wife Happy Life

Oh and don’t forget Elsternwick
17 Regent St Elsternwick  Renovator - great spot and great bones.
http://www.domain.com.au/Public/PropertyDetails.aspx?adid=2008025585
James Auction Report: In front of 80 people, an optimistic bid of $800,000 started this auction. Lots of bidding and lots of entertainment here – seven bidders and the property sold for $1.39 million.
In Hawthorn this would have pushed $1.8m to $1.9m

Canterbury, 19 Rubens: Would you believe it? Missed by that much. Actually Richard James of Jellis Craig does not miss all that often. Four bidders. Bought for $3.301 million. Good result for agent Daniel Bradd as well.

It is 6pm Saturday and the James Auction Clearance Rate on the 32 $1m+ properties we attended and reported on today was 72 per cent.

The REIV’s clearance rate was declared at 82 per cent but they are missing around 200 auction results and our guess is the clearance rate has dropped below 80 per cent for the first time in a long time.

But, hey, there were 1000 auctions – it’s the Grand Final, the Melbourne Cup and the Masters of 2009 all rolled into one for selling agents. This is it – the big one; and things went pretty well for sellers and not so good for buyers who didn’t buy and were hoping for a little sign of decline.

What’s Hot x 2

• Family Homes in Boroondara and Stonnington in $1m to $3m range.
• 166 Mont Albert Road Canterbury - seven bidders – $4.01 million.
  James Auction Report: James Tostevin started slowly, taking a $2.95 million opening bid in front of a big crowd of around 80, all nicely spaced out around the tennis court. Seven bidders later, in what seemed like an eternity on the last few bids, saw the hammer come down a bit gingerly at $10,000 over $4 million.
• 20 Callantina Road Hawthorn- five bidders – $6.125 million.
  James Auction Report: About 130 people saw this auction open with a genuine bid of $4.9 million. There were five bidders and the property was on the market at $5.65 million. The eventual buyer was a determined bidder who stayed strong throughout the auction process and bought the property for $6.125 million.

What’s Not Hot

• This weekend: surprisingly, Malvern East’s Gasgoine Estate was dead as a doornail today, with three pass-ins from three homes (0 per cent clearance); as was Toorak, with only one from five selling, or 20 per cent clearance rate, but everywhere else in Stonnington was very strong.
• Bayside was definitely weaker than Stonnington or Boroondara. In Bayside, six out of 11 $1 million-plus auctions we attended sold, or 54 per cent clearance rate. In Stonnington and Boroondara, it was 16 out of 20, or 80 per cent for $1 million-plus homes.
• There are still some cheaper homes in Bayside. Hampton is cheap compared to Kew and Hawthorn.
• PPP (Price, Property, Position) ADVICE from our AUCTION REPORTERS
  If you hate the beach, love traffic and have got plenty of money, stay looking for your double-fronteds in Armadale and Hawthorn. The only trouble is the coffee shops are full in between open times with fellow depressed non-buyers; oh and Maserati dealers looking for selling agents (that was unfair). No, no, no, young men go south and take your woman with you – show her a good time at the Brown Cow at Hampton and, while you are gazing into her eyes nodding that, yes, you really do get “Happy Wife – Happy Life”, drift off into the clouds and dream about your mortgage lender’s expression when he realises you’re not going near your borrowing limit to buy your dream home.

De Ja Vu – Not Really – 2008 and 2009

19 Chatsworth Avenue Brighton auctioned pre-Melbourne Cup Weekend 2008 and then again today.

James Auction Report 2008: “Energetic comments from Leigh Hallimore didn’t draw any bids, despite his offer to take any bids prior to his opening and closing vendor bids.” Quote was $3,2 million. Sold sometime later for around $2.5 million.
James Auction Report 2009: Two bidders joined in on top of the opening vendor bid of $2.6 million from Jason Gill of Hodges. Passed in at $2.89 million and sold after at $2.95 million. Almost a $500,000 improvement on when it sold late last year.

As this is the big one for 2009, we have focused this edition on results, results, results. What is really happening out there in the trenches? From that, you should be able to work out what will happen in the run-up to Christmas. Here are our auction reporter summaries and these are their stories.

Gina – Bayside (attended auctions in Prahran, Albert Park and South Melbourne)

• Very quiet and quite flat atmosphere at auctions.
• None of these auctions sold and there were few bids (one bidder made one bid at Prahran, none at Albert Park and one bidder made one bid at South Melbourne).
• Most of the crowd at all three auctions seemed to be neighbours – most came on foot and didn’t hang around to see auction results.
• No Chinese bidders at any of these auctions.

Annette (four auctions – Hawthorn, Malvern, Malvern and St Kilda West)

• Good crowds – 70, 80, 100, 130.
• Good numbers of bidders – 6, 5, 5 (but just one bidder and one bid at St Kilda West).
• One Asian bidder at Claremont (but wasn’t the buyer). Largest presence of Asian people at these auctions was at Callantina but they were not involved in the bidding.
• Crowd at Park St, St Kilda West was a “younger crowd” but it also had least atmosphere – quite sombre, people were keeping hands in pockets.
• Crowd chatty and strong bidding and crowd interest at Claremont and Stanhope. Also big crowd interest at Callantina but it did sell for $6 million.

Jenny (two auctions – Beaumaris and Sandringham)

• Mixed atmosphere and results. Beaumaris had a chatty crowd but no bids. Lovely setting – held around the pool, people in crowd commented that they thought sunny weather and lovely setting would put people in the mood but it didn’t appear to. Passed in on the vendor bid.
• Sandringham – first time this house had been offered in 50 years, so generated a lot of interest. Crowd seemed buzzy and genuinely happy when family bought the house. Two bidders.

David (Bayside – Brighton and Hampton)

• Five auctions, plus one sold before.
• Four passed in.
• Small crowds.
• Flat overall.

Julia (five auctions – Hawthorn East x 2, Canterbury, Malvern East, Malvern)

• Big crowds – 125, 60, 100+, 130, 200.
• Not huge numbers of bidders - one at Victoria Rd, four at Rubens Grove, three at Finch St, none at Central Park Rd and one at Deanlea Court.
• Of the four bidders at Rubens Grove, two were Asian and they were the final two bidders after the other two dropped out. The bidding got quite aggressive between these two and one bidder (who was eventual buyer) was very keen to buy it.
• With the other auctions, all felt buzzy at the start and like they would build into something big but then never did. There were four pass-ins and only Rubens Grove sold under the hammer.

Adam (three auctions – Balwyn North x 2, Hawthorn)

• Big crowds – 80 at each.
• Bidders – not many but they were quick-fire auctions. There were probably more bidders there than bid but they didn’t get a chance to get their hands up.
• Didn’t see any Asian bidders
• An anecdote: because it was such a big auction day today, all of the Marshall White crew and team working were supplied with bottles of water and snack packs to keep their energy up throughout the day.

Tom (two auctions – Toorak and Elsternwick – a tale of two cities)

• No real interest at Toorak but seven bidders at Elsternwick.
• Summary from Tom: “On Saturdays, I do auction reporting to get out in the fresh air and see the buzz of different parts of Melbourne, the people, the houses, the streets. I have always had an interest in houses and have a special interest in Californian Bungalows and 1930s Art Deco. Since March, the property market has been on fire with prices that defy my bookkeeper’s conservatism. The market seems to be back where it was in the last half of 2007 and I am surprised at how competitive it is at auctions these days. Well located family homes in the inner suburbs under $2 million is a very strong market – they never seem to go out of fashion.”

MORE ADVICE from our AUCTION REPORTERS
17 Regent St Elsternwick Renovator - great spot and great bones.
http://www.domain.com.au/Public/PropertyDetails.aspx?adid=2008025585
James Auction Report: In front of 80 people, an optimistic bid of $800,000 started this auction. Lots of bidding and lots of entertainment here – seven bidders and the property sold for $1.39 million. In Hawthorn, this would have pushed $1.8 to $1.9 million.

HISTORY LESSON – rewind one year to same pre-Melbourne Cup weekend 2008

James Market Insight, 25 October 2008:
At 5pm Saturday, just two of the 13 auctions we attended today have sold under the hammer, with another two or three expected to be sold overnight.

Here are three quality home auctions from 25 October 2008 – they would have all sold well today.

85 St Vincent Place Albert Park:
James Auction Report 25 Oct 2008: Biggest crowd I’ve seen this year to hear auctioneer Andrew Macmillan put on his first-rate routine: he starts quietly, forcing the crowd across the road to move to him, and he made some very humorous comments. So I, as usual, enjoyed the show, as did everybody else, except, at time of leaving, the owner. Class property, class auctioneer – no result yet.

28 Thanet St Malvern
James Auction Report 25 Oct 25th: “The opening bid from the crowd was well below the quote. Another bidder made one bid and then another offered a smaller increase, which wasn’t accepted. The property was passed in to the highest bidder – not sure this will sell unless there is major movement from either buyer or seller.”

1 Fairlie Court South Yarra
James Auction Report 25 Oct 2008: “Auctioneer Jeremy Fox started by saying this home was worth $5 million and then called out a $4.5 million opening vendor bid. There was no response from the crowd.”

Lots more detail below on each auction in our Market Wraps and NO MARKET NEWS NEXT WEEK on the Melbourne Cup Long Weekend. We return the week after for the run to Christmas.

Buy Well

Mal

Thank you for a huge effort today from many people:

A big thank you to all our auction reporters and auction and sale coordinators Melinda Brown and Simone Clarke – it is not easy dealing with grumpy advocates each week and getting a wide coverage of million-dollar-plus auctions up in a timely manner on a Saturday night. But you do it and do it well. Thank you.

Thank you also for the continuing support we receive from selling agents Marshall White, Benmac, Kay and Burton, RT Edgar, Hocking Stuart, Noel Jones, Biggin and Scott, JP Dixon, Jellis Craig to name a few. We published a strong article last week, which we 100 per cent stand by and we were challenged on a number of points during the week,. It was robust but polite discussion and no agent pressured us to stop writing opinion pieces and no agent stopped us reporting their results (good or bad) today. Thank you.

Elsternwick, 7 Seymour: Bill Stavrakis at his mercurial best. Bought $1.66 million.

Albert Park, 41 Cardigan Street: Geoff Cayzer entertains a big crowd. Bought for $2.7 million.

Approaching 80 per cent of the 18 reported auction results for Bayside this weekend – that is as strong as it has been all year.

25 Orchard Street Brighton - Trudy Biggin of Biggin and Scott

James Home Rating and Comments: 577 out of 1000. Land only, or is there some value in this home on this small Brighton north-facing block?

James Control Price: Dirt $1,125,000 + House $200,000 = $1,325,000.

James Auction Report: Three bidders from the crowd of 60 were interested in this property. Opening with a genuine bid of $850,000, this property was on the market at $1 million and quickly sold for $1.035 million.

James Post-Sale Examination: No value placed in the house – we were too strong. With three bidders, and on the market through a good agent, the market is saying the land was worth $2300 and the home nothing, or the home was worth a bit and the land at, say, $2000 per sq metre. I think land is getting stronger and stronger in Bayside and the market judged the home to be of minimal value.

50 Service St Hampton - Halli Moore of Buxton

James Home Rating and Comments: 760 out of 1000. Great Sandringham/Hampton timber home. Really good spot – light is still pretty good, even though south-facing rear and not the biggest back yard. Good flow and quality throughout. If they price this at market, it will have very solid interest. Ready to move in and has lots of WOW.

James Control Price: Dirt $1,133,900 + House $1,000,000 = $2,133,900.

James Auction Report: A large crowd of 100 people gathered here for this auction. It opened with a $1.9 million genuine bid and two bidders joined in but there was no result, with the property passed in at $2 million. Sold afterwards for $2.2 million.

James Post-Sale Examination: Spot on and this represents a 24 per cent increase since it last sold in early 2006. Is land in Service St Hampton approaching $1800 per sq metre? Yes, if the home value is put at $1 million. This still is a good result for agent Halli Moore of Buxton.

41 Cardigan Place Albert Park – Michael Szulc of Cayzer

James Home Rating and Comments: 665 out of 1000. She is a beautiful lady in need of a serious internal facelift – stairs and bathrooms. But stick with the old girl, as she is worth it – good rear light and car access and sensational location. It’s hard to overcapitalise and, if you can handle the stairs, then this is the place to buy to be near absolutely everything. Price-wise this will be interesting: is land worth $6000 a sqm in these parts and what does the market value this building at?

James Control Price: Dirt $2,172,000 + House $400,000 = $2,572,900. Terraces go in and out of popularity, so not sure there will be a host of bidders here on Saturday – not because there is a problem with this but because there are usually only one or two bidders. Let’s see what the market says. James Control Price: points of reference were 35 Vincent St on smaller land, 333 Montague St, 348 Montague St and 353 Montague St Albert Park.

James Auction Report: A crowd of 150 watched Geoff Cayzer kick this off with a vendor bid at the $2.2 million quote. With three bidders in the contest, two fought it out to a healthy $2.7 million result for this gracious old beauty (the house, not Geoff).

James Post-Sale Examination: Spot on for bidders and price. Good result for agent Michael Szulc – whom we think is a good agent and we like to talk to. So is land valued at $6000 per sq metre and the terrace home (which needed an update) around $900,000 or is the land valued at $7600 per sq metre and the home $400,000? This is where the market does seem to be consistent on like-with-like sales and you do have a number of homes with similar characteristics. When “valuing” yourself, it is important to consider these sales. As for land value in Albert Park – because of the small sizes, few vacant land sales and high prices – the only consistency in land prices here is their inconsistency.

Happy Wife Happy Life

Gerald Delany of Kay and Burton bringing the hammer down.

Sandringham, 9 Codrington: Steve Tickell. Passed in for $1.47 million.

A few mixed results in Bayside again today, but mid-week JP Dixon got away a big apartment sale in the Sandown St Golden Mile complex at just under $4 million. That is almost $20 million-worth of apartment and townhouse sales in a week and a bit for Brighton’s big end of town.

Some more significant sales: white-hot Justin Follett sold 77 Well St Brighton during the week for $3.3 million. It was an expressions of interest campaign. If it’s a new developer home in Brighton worth more than $3 million, then, right here and now, Justin seems to have a stranglehold on selling this market. Also from Kay and Burton, the dapper Sturt Hinton quietly unloaded the unfinished and off-market 14 Tennyson St, believed to be north of $4 million. The Willansby St development continues to be well received, with another two sales during the week. The power of location.

10 Harwood Street Brighton – Nick Johnstone, JP Dixon

James Home Rating 768 out of 1000. We like this home a lot. It has a really good family feel and excellent flow in home. 1920s, very well-renovated four-bedroom home. Despite having a south-facing rear, the large side and rear windows let in a lot of light. Position-wise, you could argue this part of Brighton is a little far from the shops but, then, you could also say it’s close to the Bay. I would be most surprised if this was not well received by the North Brighton/Elwood $3 to $3.5 million buyers.

James Control Price: Dirt $1,920,000 + House $1,400,000= $3,320,000 Reference points for land were Drake St Sales such a 1-4 with Buxton in July 2009.

James Auction Report: About 80 people turned out for this auction, which opened on a vendor bid of $2.85 million. Three bidders joined in the action. After a half-time break at $3.06 million, auctioneer Jonathan Dixon announced that the property was on the market. There were no further bids and it sold for $3.06 million.

James Post-Sale Examination: We think we were too bullish on home value on this one and should have had the home around $1.1 million – effectively single level. The market seems to see a home price barrier at around a million for anything single level. One for the memory bank. The result seemed market – it was us who was out. Still more than $3 million for North Brighton though.

11 Butler St Brighton – John Clarkson of Hocking Stuart

James Home Rating 768 out of 1000. Close proximity to school and shops. Good building block and house is livable for the time being. Last one in the street flew at auction.

James Control Price: Dirt $1,462,500+ House $100,000= $1,562,500 Reference point 3 Butler St which sold at $1.47 million under intense competition in April.

James Auction Report: There were four bidders from the crowd of 80 at this auction. Opening with a genuine bid of $1.15 million, this was on the market for $1.2 million and sold for $1.665 million.

James Post Sale Examination: Interested to see because it is rare to get such like with like. This says the market has risen 13 per cent since April for building blocks in this area. And that was when we thought 3 Butler was a stellar selling result. Pretty well as expected result but, nonetheless, this is a bulldozer home and if so then a towards $3 million buy.

Happy Fathers Day.

Port Melbourne, 6 First Point: A large crowd of about 90 people turned out for this auction. Auctioneer David Wood of Hocking Stuart opened with a vendor bid of $4.75 million but there were no takers and the property was passed in at this price.

Auctioneer Kaine Lanyon opened this auction with a vendor bid of $1.5 million and no result.

Bayside was alive with the sound of keys changing hands.

Well, except for 6 First Point at Port Melbourne – beachfront. Our auction report: A large crowd of about 90 people turned out for this auction. Auctioneer David Wood of Hocking Stuart opened with a vendor bid of $4.75 million but there were no takers and the property was passed in at this price.

Moving South

To the big one that did sell, which was with Kay and Burton, at 23 St Ninians Road. It was a three-bedroom Golden Mile beachfront apartment selling towards $6m. On top of the two $3 million-plus Male St sales last week, it has been a big week for Kay and Burton’s Church St office and, in fact, Brighton.  With just over 300 sq metres at St Ninians of internal area, that works out around $18,000 per sq metre, or similar to the record sales reported at the Salta Mercy Development in East Melbourne before the GFC. It does also have 200 metres of external courtyard and four car spaces and is beachfront. Nonetheless, this is better than what Toorak and South Yarra have been doing in terms of townhouse/apartment sales.

And speaking of apartment sales and Kay and Burton, two sales over a million dollars reported at the 30 Willansby Avenue development, which is out the back of the old Bowling Club development.

7 Blairgowie Court Brighton. Sold after at $2.04 million with Peter Kennett of Hocking Stuart. Our auction report: About 40 people gathered inside for this auction. Auctioneer Peter Kennett opened with a vendor bid of $1.8 million and was eventually able to extract a bid of $1.9 million from the sole bidder on the day. There were no further bids and the property was passed in at this price. This says land values are holding strong in Brighton. House value $400,000 would make land at $2500 per sq metre; however, if we look at it as a bulldozer or no value like 7 Cosham St Brighton, which also sold with Peter Kennett a month or so ago, then both got north of $3000 per sq metre improved.

Moving South

Hampton: 2 Ocean St Hampton with Steve Tickell and Jenny Dwyer of Hocking Stuart interested us as it sold last year for $967,000. The 2008 auction was very quiet and it was passed in and bought after for $967,000. Then came the Global Financial Crisis and doom and gloom. This is our auction report of yesterday: There were five bidders in the crowd of 60 at this auction. It opened with a genuine bid of $910,000, was on the market at $1 million and sold for $1.155 million. Nothing was done to 2 Ocean St and it resold for a near 20 per cent increase. It’s good money if you can get it. Location. Location. Location.

Moving South

13 Prospect Grove Black Rock (two streets back from beach and shops) with Garry Murphy of Hodges sold for $1.135 million. It was land only and that says land is $1746 per sqm in that immediate area. That is Golden Triangle prices; mind you, it is just as close to the water and shops as some of Black Rock’s outer Golden Triangle.

Moving South and still with Hodges – Errol Driver and Suzi Finch at

3 Bodley St Beaumaris

James Rating 715 out of 1000. This house has a great feel and would suit a younger family well. Really like the way light is brought in to the rear living areas and bedroom separation and car garaging is good. Given level changes, rear yard and pool is a little higher than the internal floor area. This is not ideal, yet you do have good views out to the backyard from the kitchen area, which is important. Well presented home offering alternative living areas for a variety of family needs. Perhaps could have done with an extra bedroom upstairs, depending on your needs. Easy walking distance to The Concourse, schools, beach and parks.

James Control Price: Dirt $942,000 + House $300,000 = $1,242,500

James Auction Report. About 35 people witnessed this auction, which opened with a genuine bid of $1.2 million. On the market at $1.315 million, three bidders pushed this to a sale under-the-hammer of $1.355 million. Errol Driver is an auctioneer we like: on time, succinct and gets the job done.

James Post-Auction Examination: Our land was right but the market said the home was worth $400,000 and, upon reflection, we agree that was not unreasonable. Good home – well  done to the purchasers.

Finishing off with a good result also with Hodges and also with Suzi Finch at 2 Tramway Parade (just around the corner from Bodley on similar land size) which sold for $2.15 million.

Happy Wife Happy Life

EXECUTIVE SUMMARY
Scott is Sandringham’s quiet achiever. Respected by many, including his rivals, Scott gets a number of deals over the line quietly and without much fuss. In fact, I’m not sure we know as successful an agent with such a low profile. We like Scott because he gets in his car and meets you at homes and we like Scott as a selling agent because he pesters you to go to some properties you didn’t want to go to and now and again you are glad you did. That’s a good agent. Friendly, price-accurate and communicative – if you wanted a real opinion on selling your home, you could do worse than give Scott Hamilton a call.

Mal: Family status and where do you live?
Scott: Married to Julie for 33 years; she is a kindergarten assistant at Helen Paul in Hampton . Two children: Luke, 26 (an osteopath), and Brydie, 24 (health/science degree but now a property manager for Buxton Sandringham).

Mal: How long have you been in real estate and what is the company you work for?Scott: In real estate for bit over six years and always at Buxton Sandringham.

Where do you mainly work (area) and what types of homes do you specialise in?
Bayside along the beach from Brighton to Beaumaris and inland to Cheltenham and Highett.

What makes a good investment?
A good investment is anything you are happy with if it’s for living in yourself. If it is purely an investment property, then position to transport and amenities and naturally return on investment and rentability.

What makes a good family home?
A good family makes a good family home. You could live in a tent and be a happy family. Other than that, I don’t particularly subscribe to “it must be a north-facing rear” as many people will request. In Black Rock, a lot of great family homes have been built with south-facing back yards but the architects have designed these homes with the outdoor entertaining and living areas at the front, taking advantage of the north aspects. Definitely good family properties have good storage space, at least two living areas and two bathrooms, and a great kitchen enables mum and dad to be happy when they cook and that’s really important.

What makes a good buying decision?
A good buying decision is anything that can give good capital growth and keep you happy after you have signed the contracts. You cannot go wrong in Bayside with great schools, transport, parkland, beaches, shopping centres, dining, block sizes and proximity to the CBD etc.

Best investment decision you made?
My best investment decision was buying our family home in Hampton before we were married and before Hampton became fashionable.

Worst investment decision you made?
My worst investment decision was not buying a property of about an acre adjoining and overlooking Portsea Golf Club. It was a good mate’s step-father’s old home and he and I could have bought it for $80,000 about 20 years ago. The views were magnificent, as it was one of the highest points in Portsea, but we declined as we weren’t keen to get another mortgage. We often talk about it with great regret.

What are the top three precincts in your area, how big is an average block, what type/style of home, what is the dirt price and how much for a renovated home today?
The top three precincts would be:
1. Hampton between Hampton Street and the beach;
2. Sandringham between Gladstone Street and the beach; and
3. anywhere in Black Rock/Beaumaris close to the beach; eg Golden Triangle – Bluff Road to beach going north from Balcombe.

Three underrated streets in your area for family home buying (where, price, type and style, would they have to renovate)?
Three underrated streets in our area would be:
1. Raynes Park Road and
2. Teddington Roads in Hampton with a mix of housing styles on big blocks and close to everything.
3. Gladstone Street in Sandringham

What would you say to a young couple with $800,000 looking for a family home specifically in your area – eg (where, type and style, would they have to renovate)
For $800,000, I would recommend streets in Hampton and Sandringham close to Bluff Road if they were willing to renovate or rebuild. If not, then Highett, Hampton East and Cheltenham beach side of Nepean Highway are great spots.

What would you say to a downsizing couple with $1.5 million specifically in your area (where, type and style, would they have to renovate)?
Downsizers in our area with $1.5 million to spend are in a great position. Developers are finally getting it right and having their architects design townhouses with main bedrooms downstairs. I would recommend downsizers ensure they have a good size garage with remote doors and access to the home, at least two living areas and bathrooms, a neat easy-to-maintain sunny courtyard with enough room for entertaining, BBQ and a herb garden. Two-storey is fine as long as the main bedroom and at least one bathroom is downstairs. Good proximity to shops and transport is also important. They would not have to renovate for $1.5 million and a number of developers have these style projects in the pipeline in our area now.

Buyer Agents: yes or no?
Buyer agents are fine because they don’t muck around with us. It’s either “yes, we like it ” or “no, not this one”. Nobody’s time is wasted. They also have a greater understanding of values than a lot of buyers, particularly if they are shopping out of their area. I’m pretty sure that buyer agents only get paid if they are successful in buying a property for their client, so at least we know you are a serious buyer.

Apartments or houses?
Different people have different requirements, it’s horses for courses.

Auction or Private Sale?
Again, horses for courses. I always ask a vendor what is most important to them in the selling of their property. The responses vary from obtaining the highest sale price, to good communication or speed of selling, to complete privacy from a particular nosy neighbour. We adjust to suit the vendor’s needs and, let’s face it, not everyone is comfortable with an auction.  I generally see what a vendor would prefer and work with that if I agree it’s best for that property.

How can a seller maximise their value at sale?
To maximise value at sale, definitely stage the property for the sale. This means gardening, hired furniture, decluttering, fixing anything that’s been neglected, ensuring high wattage light bulbs are fitted and, of course, ensure that the agent you list with is a better negotiator than you are. If you pay a bit more for a better negotiator, you will be rewarded in your sale price. Too many vendors base a listing decision on an agents “%” rather than what sale price the agent can achieve for them.

What are the do’s and don’ts for buyers when dealing with selling agents?
At a private sale, if you love a property and it’s right for you, then don’t miss it because the vendor wants an extra $10,000 or $20,000. You will regret it and may not get another chance. Don’t tell the agent you are not interested in a property if you are. Agents won’t hike a price up just because a couple of buyers tell them they like it. For an auction, don’t offer prior to an auction, but ask to be kept informed if someone else tries to buy it prior. Show up at the auction and bid like you really want to buy it, but stick to your budget or have someone bid on your behalf if you don’t think you can. Buyer agents are good at this and much better than your uncle.

What do you think are the opportunities now with us?
Opportunities are a-plenty. A great time to upsize, downsize or re-locate if a retirement in the country or interstate is an option. The shortage of stock is reflected in large numbers at Open For Inspections so far this year. Buyers are being cautious but they are there. It is also a great time to buy the “land value” big blocks in good locations and build townhouses. There are a lot of older people looking to downsize and stay in the same area.

Where is the market going in 2009 in your area?
The market in our area is still strong and should continue so in 2009. There is no panic selling and strong demand will keep prices stable around here.

Who will win this year’s premiership and why?
The Premiers this year will be Hampton Rovers in B Grade amateurs. As far as the AFL is concerned, the Bombers will have to wait a few more years unfortunately.

If a potential seller would like an appraisal or wishes to sell their home, how is it best to contact you and what are your details!
Scott Hamilton of Buxton, email shamilton@buxton.com.au or phone 0414 705 486.

Market News

To say the market is experiencing incredibly growth in capital values is an understatement.
Last year we reported values increasing by as much as 30% despite what the stats people were saying and there are ever greater increases this year. These large increases as per most of the rest of the world are largely confined to inner suburban quality properties. Land itself, meaning land where homes can be pulled down, is particularly well sought after in all Melbourne Bayside and inner eastern suburbs

What is driving the market?
It is being driven by overseas buyers, stock market wealthy buyers, buyers whom have seen large increases in their own properties and buyers who are confident in their future.

However rather than focus on what is now being largely reported in the press we thought we would dedicate this newsletter to showing what we are buying and what we can do to help you.

Why Use an Advocate?

Buying the right property is an art and a science. Think of a few houses in similar areas with similar characteristics and ponder what they were worth 10 years ago. What are they worth now? Will they have increased or decreased in value at the same rate? If that is a priority for you (and it should be) James Buyer Advocates through our ratings, processes and experience show you the good ones.

Strategy is vital to buying the right property. How to buy, how to minimize cost, what to buy, and where? How do I make an offer? What do I really want and how do I get it? Where do I want to be financially in the next decade? Why do some people own multiple properties without a mortgage and others have one property and are struggling? The answer is strategy. James Buyer Advocates helps you define and execute your action plan to buy the right property.

We will save you money – and make you money in a highly competitive market. This is the number one reason why most people think about advocates in the first instance, and in many, many cases we do just that. We know this is of primary importance in all business negotiations but it’s interesting to note that clients we’ve surveyed after the buying process often rate savings as the Number 3 benefit in using James Buyer Advocates. Buying property well is as much about MAKING money as it is about SAVING money. We’ll be happy to explain this in detail at our first meeting.

Understanding the true value of a property is tough. Working out what a property is worth is a lot more than looking up a few statistics. And we definitely need to talk some more if you think saving money is about finding a cheap place “below valuation”. In many cases if you are not crystal clear about property values, you could well be negotiating at a level that will not buy the dream home you want. It might also leave you with a compromised property in the long run. Another expensive and distressing mistake a buyer can make is to pay way too much or never buy at all.

We help ease the stress and emotion in buying property. Buying a home is about as bad as it gets. It’s emotional, exhausting and sometimes terribly discouraging. You only need to miss that perfect property, drive for miles to find the picture on the brochure didn’t nearly match your expectations (or what you’d been told), have agents leave you hanging or be gazumped in the negotiation stage. It hurts. At James Buyer Advocates we provide a barrier.

“Hidden” properties do exist – so understand ALL your options. “Hidden” properties do exist – so understand ALL your options. There are hundreds of places out there you may never find or get to see. Quiet sales, private transactions, sales without boards. There are places you won’t be given the opportunity to inspect because they aren’t advertised. We deal with agents every day. We find “hidden’” houses that will never be listed because agents and vendors approach us quietly all the time. And we are involved in a number of property purchases “off market” without any publicity or fanfare.

Agents are not your friend, mentor or guide in the buying process. We actually like and respect many selling agents, but they act for sellers or vendors, not buyers. They work exclusively for the vendor. James Buyer Advocates works exclusively for the buyer.

Your privacy is guaranteed. Most agents don’t know who you are, and it’s a good idea to keep it that way. That’s because if you don’t buy today, you might buy something else tomorrow. It’s not in your best financial interests if an agent knows “what you were prepared to look at before”. Our role as a buyers advocate is to keep you ahead of the game without revealing your hand.

Finally, if you are looking in this market at the million dollar and above level

1. You will be negotiating against a selling agent who has a strong level of experience – have you got that?
2. The selling agent will be very good at his or her job of “slotting” you into a home and into a price that fits nicely with the seller – but that’s not you! Good selling agents work diligently for the seller first not you the buyer; otherwise they are breaking the law.
3. Other buyers will have professional help whose job it is to purchase for their client – often before you have a chance.
4. If it’s an easy buy with a smiling agent then well ………

What are some of our money-saving tips?

Don’t confuse saving money with buying the wrong property. What happens if it’s not the right place and you have to sell again in two years? An inner Melbourne home in a good suburb will cost you $100,000 to $200,000 in stamp duty and agent fees, not to mention the cost of moving and stress. If you think negotiating is all about money and arguing the edges then you will not buy or negotiate well at Melbourne’s higher levels unless you are a very lucky person. Higher end Melbourne agents in the main (eg companies like Kay and Burton, RT Edgar, Marshall White, Bennison MacKinnon, Jellis Craig, Hodges, JP Dixon, Buxton, Hocking Stuart to name a few) have very good top end agents.

We all need expert advice, strategy and tactics sometimes. Would you go to court without a lawyer? Or would you handle the court case yourself and just call a lawyer in for sentencing? It’s a bit like that getting somebody at auction to put their hand up when they have done no research into worth, the seller, the agent, other buyers or more importantly, your needs. We have the experience to know what, when and how to make an offer.

Paying the right price is about establishing the value of the property. Are you happy getting $50000 off the asking price when you could have got $500,000? Do you know how to make a low offer and not risk losing out to another buyer? Are you paying $800,000 too much for the wrong place? It may take you a long time to recover from these decisions if you are wrong. If you think homes with similar price tags are similar homes with similar long term outcomes then many selling agents with poor homes would love to do business with you now. You need to know the sometimes subtle differences between a $2M home and $4M home and unfortunately for some buyers (selling agents call them wood ducks) the only difference was the price you paid.

You will save the most money by matching the correct property to your needs. You don’t want to pay $1.5 million when a house is worth $1 million, but similarly you don’t want to not pay $1.1million if it’s the right property for you. Understanding your needs can take less than 48 hours to do, but it needs to be done.

Renovating or re-building will not always save you money. Say there’s a 10,000 square foot property and the price is more than $2 million. The house is arguably a knock-down job. If you had $2.5-$2.7m to spend, would this be a good buy if you could put a new home on the block for $500,000? The answer is probably no. You couldn’t put a half-decent home on the block for that money that would be viewed by new buyers as value when it came time to sell.

Buying property is all about achieving capital growth. There’s no point saving money on the asking price if you don’t make money in the long-term. The major part about buying property is that it is all about making money. None of us have money to waste, and we can stop you spending more than what is fair.

What we have bought in recent times at James Buyer Advocates

Our Property Focus Areas

Some changes

With growth comes decisions and at James Buyer Advocates we faced accommodation and client service issues. After a few months obtaining advice from various consultants Ian, Antony, Justin, Sam, Courtney, Catherine, Denise, Craig have moved to Hawthorn Road Caulfield to focus on a streamlined investor and owner occupier approach to buyer advocacy. Ian can be contacted on 0418 131 636 or through his website www.jpp.com.au. His new company will cover investors and a far wider geographical area than we have in the past.

Peter, Adam, John and Mal remain at 9 Hillcrest Avenue Brighton with a focus on personal, one on one service for higher end clients – that is clients who are wishing to purchase properties in Inner Melbourne. Our office phone number remains the same 9596 8822. We have launched our new and improved website at www.mjba.com.au