James Paynter in action at 66 Victoria Sandringham - sold under the hammer for $3,500,000 - 3 bidders.

Saturday May 20th Biggest Auctions:

• Canterbury, 35 Monomeath Ave, Doug McLauchlan (Marshall White) passed in and bought afterwards, $4,200,000+, no bidders
  The weather was still and the crowd was strong at this auction – with about 100 people in attendance…(See More in Auction Reports)
• Sandringham, 66 Victoria St, James Paynter (Hodges), under the hammer, $3,500,000, 3 bidders
  An amazing Sandringham house in a popular street, and a decent sized crowd of around 50 had turned up to see what would happen at auction on Saturday…(See More in Auction Reports)
• Fitzroy North, 39 Alfred Crescent, Arch Staver (Nelson Alexander) under the hammer for $4,200,000, 3 bidders
• Caulfield North, 3 Airdrie Road, Darren Krongold (Gary Peer) at auction a tiddly bit under $3,000,000.
• Toorak, 2 Brookville Road, Heather Elder (Marshall White) at auction also a tiddly bit under $3,000,000.

• Kew, 61-63 Alfred St,  passed in, $5,300,000, 2 bidders
  “A landmark auction” were the words that auctioneer Richard James used to describe this auction…(See More in Auction Reports)
• Kew, 1 Selbourne Rd, passed in, $3,670,000, 2 bidders
  Landmark Kew property and this auction was well supported by a solid crowd of around 100 people….(See More in Auction Reports)
• Toorak, 29 Linlithgow, passed in, $3,500,000

35 Hampden Armadale - Over $9,000,000 (Jeremy Fox)

Friday 18th May: Some more $8M+ activity this week with 35 Hampden Armadale (Jeremy Fox) on the public market for a week and sold somewhere between $9,000,000 and $10,000,000. The Art Deco home with tennis court on over 1800 square metres had a James Rating of over 850/1000 for full reports see below and 129 Domain Road (a block of high end apartments) sold through Andrew Baines and Jock Langley for in excess of $8,000,000.

Top End apartments have seen a few sales this last fortnight or so with Peter Kudelka  selling Springfield avenue Toorak before auction for we believe in the mid $3m’s and Marcus Chiminello has sold two apartments at 103 Mathoura Road – including the penthouse for over $4,000,000 and ground floor number 2 for over $3,000,000. These sales represent per sqm rates according of $12,000 plus.

Canterbury 162 Mont Albert Road. Scott Patterson and Tim Picken. Bought Under the Hammer $4,166,000, 3 bidders

Saturday May 12th: Some solid results at the Top End this weekend with 4 from 4 above 4

• Toorak, 10 Rathmines St, Jeremy Fox (RT Edgar), after auction, above $4,300,000
  Auctioneer Jeremy Fox looked quite regal positioned in front of this imposing property flanked by his support team…(See More in Auction Reports)
• Canterbury, 162 Mont Albert Rd, Scott Patterson (Kay & Burton), under the hammer, $4,166,000, 3 bidders
  A medium size crowd gathered in the front garden of this home on the Golden Mile…(See More in Auction Reports)
• Balwyn, 6-8 Fitzgerald St, Alastair Craig (Jellis Craig),under the hammer, $4,025,000, 2 bidders
  The team at Jellis Craig had a reason to smile today, especially Alastair Craig with four of his auctions selling including this property…(See More in Auction Reports)
• Kew, 50 Fellows St, Tom Aylward (Jellis Craig), under the hammer, $4,000,000 plus, 2 bidders.

At $3m it was 50/50 on 8 sales expected to be around $3m and above

• Carlton North, 57 Wilson, Peter Stephens (Nelson Alexander) at auction over $3,500,000
• Richmond, 51 Richmond Terrace, James Tostevin, at auction over $3,000,000
• Armadale, 24 Denbigh Rd, John Morrisby (Jellis Craig), after auction for an amount in excess of $3,000,000,  4 bidders
  John Morrisby kindly provided us with the following information…(See More in Auction Reports)

And some of the pass-ins

• Toorak, 9 Landale Rd, passed in $3,000,000, no bidders
  Showing an affinity for round numbers, auctioneer Gowan Stubbings kicked things off with a vendor bid of $3,000,000…(See More in Auction Reports)
• Middle Park, 68 Park Rd, passed in $2,850,000, no bidders
  A crowd of 60, including a number of young children and dogs, stood widely dispersed in the tree lined street…(See More in Auction Report)
• Brighton, 5 Birdwood Ave, passed in $2,800,000, no bidders
  The sun shone brightly in the front yard of this Spanish Mission style home in Brighton’s Golden Mile…(See More in Auction Reports)

39-41 Mayfield Avenue Malvern over $7million

Saturday 5th May: Today there were two strong results today in the $3m+ segment – but if you dig a little deeper there was a decided lack of interest in a number of homes that passed-in aiming towards $3m.

Malvern, 39-43 Mayfield Ave, Gerald Delaney (Kay & Burton), under the hammer, $7,131,510, 3 bidders
It felt like an entourage of Kay & Burton agents in attendance here and it did take a bit to get going due to the wet weather…(See More in Auction Reports)

Camberwell, 35 Broadway, Alastair Craig (Jellis Craig), under the hammer, $3,425,000, 6 bidders
A much anticipated auction this one as the property was a rare offering – an original home with fantastic bones on excellent land size and prized north facing rear…(See More in Auction Reports)

Pass-Ins

Brighton, 10 Kent Ave, passed in, $3,300,000, 2 bidders
Nick Johnstone is re-auctioning this Golden Mile new build after an unsuccessful effort last year in front of a crowd of around 60…(See More in Auction Reports)

Armadale, 20 Royal Crescent, passed in, $2,500,000, no bidders
There is something about Wayne Gillespie designed spaces – they just work well in terms of proportion and functionality, and the extension at 20 Royal Crescent is no different…(See More in Auction Reports)

St Cloud - 61 Kensington South Yarra - the 5th sale at circa $10m in a month

Early May:Five sales around $10 million mark in recent weeks – but the momentum may be easing.
Before we cover the marginal negative change in market sentiment over the past couple of weeks at the Ultra Top End, we feel it’s important to highlight the 5th sale at around $10 million that took place recently and that confirmed both the Pre Easter market spike and the power of the Kay and Burton Mexican Wave. The latest, a property at 61 Kensington South Yarra, was sold by Andrew Baines (he will need a tax advisor this month!) for more than $13,000,000. The property had something of a chequered past in terms of being on again, off again, sold, then sort of sold, then not sold. As a large landholding so close to the CBD it had positives. But it also had negatives: being near the freeway (noise) and overlooking power lines (visuals). That is what made for an interesting deal – it was a battle of wide opinions. Nonetheless it sold.

That makes a total of five sales in recent weeks at around the $10 million mark. Four were from Kay and Burton and one was from Marshall White.

So, after almost nothing for six months (a Kenley and maybe a Linlithgow excepted), bang – five were gone in a fortnight or so. Obviously buyers and sellers felt better and the K&B agents clearly smelled that. They did their Mexican Wave job well and pre-warned a number of buyers through a whisper campaign of what may happen. And see what happened! As soon as the first domino fell, the agents shouted (quietly) from the roof tops “Told you so” – and that lit the fuse on four more circa $10 million sales.

At times like this, when skilled agents are involved, certain homes appear to be under an irresistible force and deals get done. There is nothing wrong with this. It’s brilliant marketing and it’s what needs to happen to get a number of deals over the line. It’s not all buyers either – sellers are in on the Mexican Wave as well. They hear the whispers, see the results, get told “I told you so” too, and their price dexterity improves as they see real, concrete opportunity floating by.

However now that the early pre-Easter selling season is over, it seems that momentum has been lost again and the buying crowd are refocused on another game.

In the last few weeks the gloss at the Top End has faded a bit. Buyers are not quite as excited about what’s on offer – understandably given there are not a lot of publicly listed new hotties out there. As well some sellers have unwisely misread the recent activity as a market price increase and as such, without thinking, have in many cases put their homes back into the too hard basket.

What do the agents think?

We asked them: ‘Has the market changed a bit in the last week or two?’

Marcus Chiminello, of Marshall White, says that the market has definitely lost some of its ‘ooommpph’ in the last fortnight. ‘But this in my opinion is due to the almost complete lack of new and exciting stock.’

Michael Gibson of Kay and Burton says that while the market is very healthy – his company made four sales totalling around $50m around Easter – he does acknowledge that in the last fortnight ‘we have seen a loss of the momentum and this in my opinion is due almost entirely to the lack of new good quality stock at market prices.’

The Reserve Bank’s interest rate cuts can have  mixed results at the Top End.

The Reserve Bank gave us all a bit of a surprise with its recent rate cut of 50 basis points. But the impact of the rate cuts at the Top End will be mixed.

The diagram below shows the progress of two identical hypothetical negotiations that started before Easter. Back then the difference between what the sellers wanted and what buyers were prepared to offer was $600,000.

With the interest rate cuts, a couple of results could eventuate – especially at the Top End where often there is only one buyer.

On the one hand, a lower interest rate may give the buyer confidence to offer a higher price, as long as they are feeling secure in their job. At the same time, if the seller was say overseas and had an exposure to currency movements, the interest rate change may make the seller nervous. A large exchange fluctuation can alter the value of an offer more radically than any agent argy-bargy. So a seller at exchange risk may alter their price and help the deal and a buyer who is secure in their job may also help the deal in going a little stronger as he finds borrowing to be marginally cheaper. With just a $100,000 difference between offer and expectation there may well be a deal done.

Alternatively, the events of the last few weeks may have the opposite effect. The seller may have looked at some of the recent strong sales on the Top End market and have lifted their expectations even higher thus widening the gap. The buyer on the other hand may look at the interest rate cuts as an indicator of a struggling economy, and become more concerned about their future employment prospects, prompting him or her to reduce his original offer. Now the deal is even further apart, with a difference of $900,000 between offer and expectation.

The point of this hypothetical is to show how complex negotiations can be at this level, and how as a buyer you’ve got to navigate through a number of possible scenarios.

How do you get validation if you want to do more in the way of due diligence than take the selling agent’s word as gospel?

Personal Research – At the moment researching the high end without being in the know has a higher degree of difficulty than an Olympic half pike from the high tower – there seems tremendous secrecy surrounding every sale. With secrecy comes its close friend “uninformed speculation“. And when you throw into the mix limited numbers of sales, inexperienced buyers can bake a very different cake when it comes to value.

Valuers – This is fast becoming a profession under siege as margins are cut dramatically by banks. This means cost-cutting internally, which can lead to a lowering of standards. And once habits of careful fact checking are replaced by wham-bam phone calls to those who have vested interests in rubbery figures, all of a sudden we no longer have credible valuations. Which is not to say that there are not some excellent valuers out there for the Top End. But you need to question whether you should rely on those who have massive contracts with large developers, or who approach their valuations at 60 kilometres per hour with a Google maps mentality. Sure, they’ll fit in with what the selling agents tell you. And there won’t be any problems with the bank lending you the money. But if the figures you’re given are unreliable, you may have a big problem on your hands when it comes to resale.

Solution: Deal with the people who do the deals. Engage them to act on your behalf and ask them to justify and prove their selling or buying price thoughts. If the deal is big enough get verification though a reputable valuer – not one recommended by a selling agent, and not one who specialises in $400,000 Werribee homes – but a real one. Their fee is between $3,000 and $4,000. In this low transaction and therefore weak information market they can be more valuable than a building inspector.

So how do you negotiate in this market?

When validation is not possible and the market is unclear going forward, you really need to be on your game when making decisions – presuming that good decisions are your aim.

So as boring as it sounds, be clear on your goals and whether they fit this market. For instance, buying a home with a short term time horizon and wanting low risk are almost mutually exclusive concepts right now.

Longer term buying may well meet your emotional and financial goals.

Let’s skip the search strategies and some due diligence and get to pricing.

In this market its about price framing rather than price negotiation – by which I mean that haggling over $100,000 is really not the main game, it’s getting into the correct $1,000,000 segment in the first place that’s the most important.

A smidge of what we’ve looked at recently

61 Clendon Road, Toorak with Michael Gibson and Matt Davis. The quote price is $16m to $18m and it’s big land – around an acre  in the old language. The home is a beautiful one and for me the highlight is the library. It perhaps lacks a grand room, but that won’t  be an issue for the purchaser who will have plenty of scope to do what they want. The gardens are expansive and if you have the botanical  passion you will have the room to do something special. Full rating possible.

Off Market in Hawthorn with Jock Langley. The quote is $6m plus and it is a north facing rear, larger period home with tennis court.  The home itself needs a reconfiguration to bring its floor plan into the 21st Century and the garage placement needs some thought to take  full advantage of what’s on offer. Full rating for clients only.

61-63 Alfred St, Kew with Jin Shang from Jellis Craig. This 2300 sqm block with a large period home was sold at public auction in  May 2009 with strong bidding. I remember it well: half a dozen bidders got it to just under $5m. The overseas surge was just starting after the FIRB changes. Two years on and with no major changes to this “back to front” floor plan it will be interesting to see how the market now views this home. A big auction on May 19th. Full rating available.

And one by the beach – 43 Seacombe Grove Brighton with Barb Gregory of Marshall White. No quote is allowed under Executor’s  instructions, but circa $8m is what they may say if they were giving a quote. Interesting variables in this one are the quality of the view – it is strong - and how much extra this is worth. The ability to rebuild close to the front (STCA) and therefore take advantage of this incredible view is another plus. And finally there is a question as to what is the actual land size that prospective buyers will use in their calculations. This is far from a “normal” block. Brighton waterfront has been going at around $10,000 per sq metre for a few sales now, but $12 million wouldn’t seem right for this home given a lot of the block would be classified as driveway access. So is it in fact a 600 sqm  or 800 sqm or 1000 sqm block plus driveway? And is the market still at $10,000 per sqm for land as it was in recent sales at Mytton  and Shandford?

22 South Road Brighton - Mark Earle - Bought After - $3,255,000 - 3 bidders

Saturday April 21st: 22 South Road Brighton (Peter Hickey) Bought After $3,255,000
James Auction Report: Thought I would come to see the only $3m auction on offer today – that is if it is actually gets $3m+.  Auctioneer Mark Earle strides out in front of a crowd of around 60 and launches into a synopsis of the rules, some pearls on the market and his thoughts about how good this home is. Well down to business, let’s see if any bidders share his views on this 1700sqm rambling home with tennis court on South Road. A fair and reasonable start is called for, but none is forthcoming and so a vendor bid is made at $3,000,000. To be honest the crowd doesn’t seem to be excited about things – but in balance it’s unlikely to have anymore than one or two bidders – but it will sell eventually as tennis courts always do. After some patter and some fill a grumpy $3,000,000 is called out and is excepted and replaces the vendor bid. A second bidder tries to get out $3,020,000 but is beaten by a third bidder to $3,050,000 and two bids later we are at $3,100,000. A hesitation and another $25,000 comes from Bidder one to $3,125,000. Bidder Three is looking at Bidder Two who goes to $3,150,000 and after Bidder One says he is out Bidder Three comes in at $3,175,000. Strangely the on the market question is not asked. Mark is working the bidders well and extracts a smaller bid after his suggestion of $10,000 and then a $5,000 and it’s passed in at $3,190,000. Good auctioneering and it’s passed in – it will sell. It did.

35 Sussex St Brighton (Jason Gill) – a home in need of some serious work on good land (880 sqm) has been sold – short or initial expectations but nonetheless a solid number below $2,800,000.

13 Washington Toorak (Hugh Hardy) – a quiet off market of land only – 700 sqm selling for above $5,500 per sq metre.

March finished pretty strongly and, despite a big slowdown in terms of April auctions and new stock, the deals have kept coming. The mainstream media have been claiming a slowdown based on a few paltry sales last weekend, but they’ve been eating a bit too much chocky if they think that represents a true sample of what is happening out there right now at the Top End.  While price is still very iffy, interest isn’t.

May is the pointer for 2012 and we are looking at a number of off market homes and pre-market homes (for listing in May). Which means there will be enough on offer to see where that 2012 pointer goes. Our feelings are that prices are still stabilising and that activity is OK.

Last year we had three activity spikes – one around Easter, one in September and a small one for two weeks in December. Those spikes featured homes in and around $3m to $7m.

March 2012 was definitely a spike in terms of activity and April has continued in that vein; not so much in terms of numbers (due to the holidays) but in terms of substantial deals.

Worth noting are four recent sales at around the $10 million mark (3 over and 1 just under). What that says is that people are acting. We last saw this level of activity in August last year where $55 million worth of property sold across 11 sales. In some ways the 2012 Easter weekend was just as impressive with 3 and possibly a 4th ultra-quiet sale in South Yarra transacting for over $10 million and another one very close to it.

A quick rundown on some of the biggies:

• Level 39, Royal Domain Tower, 368 St Kilda Road, Melbourne
  Whole floor in excess of 50 squares. Sold by Andrew Baines of Kay and Burton – Over $8,000,000.
• 26 Albany Road Toorak
  Set on grounds totaling approximately 2,476sqm, a championship-size tennis court and indoor/outdoor pool. Sold by Michael Gibson of Kay and Burton. Over $10,000,000. On the market for over a year and offers back and forth saw this home sell in excess for we believe $11,000,000.
• 1 Millswyn St South Yarra
  On 2,152sqm approx in South Yarra – yes it’s part commercial but it’s a big piece of residential dirt. Sold by Michael Gibson and Matt Davis of Kay and Burton for over $10,000,000 we believe.
• 21- 23 Kooyoongkoot Road Hawthorn – Sold by Marcus Chiminello of Marshall White. Over $12,000,000
  Tennis court court and pool on 2,788 sqm – just down from another big parcel of land at 33 which sold for around $8,000,000 last month.
• 49 Irving Road Toorak – it’s been on the market longer than Richmond has been trying to win their latest premiership but it has finally been put away by Jeremy Fox for $5,000,000 on the knocker.
• 7 Maple Grove Toorak - slightly dated home with a tricky floor plan. Sold by Michael Armstrong for over $4,500,000
• 38 Havelock Road Hawthorn East – 1300+ sqm in size, had been on the market for some time with initial quotes in excess of $4 million. Sold by Glen Coutinho of Hocking Stuart for just above the mid $3 millions.
• And the Balwyn Formula is back in vogue (sort of), that is, small land, big new home and big price – with 3 such homes recently sold in the suburb: 57 Citview (Brett Philipp);  31 Elliott (John Bradbury) and 111 Winmalee (Jin Shang). All sold for between $2,800,000 and $3,200,000 with land sizes between 650 and 750 sq metres. Prices are down but activity is improving.
• 79 Beaconsfield Parade Albert Park – the sale was managed by Paul Western of Cayzer Real Estate.   On land of 409m2. Passed in at auction on the 3/03/12 and sold on 4/04/12 in the range of $3.2m to $3.5m

Down Bayside way things have been a bit quieter, but that is after a dozen or so $3m+ sales last month. One recent sale was 32 Dawson Avenue (newish home in the Golden Mile), sold by Chris Bevan for an undisclosed amount.

This month, like last month and next month, is shaping up as good solid activity months for buyers and sellers, a number of high end quality agents and the $3m+ market overall.

So if you want to buy there seems little reason to be totally negative, sensible on price and quality yes, but not totally negative. While the market may be down in terms of price from last year and activity is still nowhere near the stellar heights of 2010, there is definitely a heartbeat at this Top End level right now, and that is good news for sellers and buyers alike.

As a company we have been involved in seven deals over a million in April – with three purchased to date and four still pending. The three we purchased were: an Off Market around Gasworks Park in Albert Park (Kaine Lanyon); a pre auction sale in Richmond (Luke Schickerling) and a holiday home (private auction) at Fairhaven with Marty Maher from Great Ocean Properties. We should add that the three agents in these cases were professional to deal with and got solid prices for their vendors – two of the three had multiple bidding.

Finally it does look like the Kay and Burton Mexican Wave is back – although we are not sure that is good news for us buyers and hopefully it won’t last too long.

And to finish with some balance – there are still a number of homes out there that haven’t sold: Kooyongkoot Road, Central Park Road, Kooyong Road to name a few – they are really good homes but ……..

May is looking reasonable for new stock.

Life’s OK.

2011 Best Auction Photo - I see Red: The Hocking Stuart boys - Andrew Stuart, David Wood and Michael Coen - bring a glimmer of colour to an otherwise dreary Melbourne day on July 30th. 20 Barrett St, Albert Park had no bidders but was bought after auction for $2,200,000. Sums up the year for most agents. Jen Milligan the reporter and photographer

At 6pm on Saturday, the James Clearance Rate for $M+ was 46% on the 24 auctions we attended. The Weekly Review Bidderman, our demand indicator, was 1.3.

This Weekend’s Market
It was a weekend that exemplified what 2011 has mostly been about – big enough crowds, and even spirited bidding in some cases, but ultimately a failure by many sellers to accept what buyers were prepared to pay. The overall market is definitely finishing the year on a flat note.

In fact, with the exception of two in Boroondara and one in Glen Eira, none of the properties we reported on sold under the hammer this weekend. By the end of the day, the final clearance rate for Boroondara was 47%, Port Phillip was 44%, Bayside was 36% and Stonnington 29%. To be balanced, overall it wasn’t an exciting stock weekend.

However one auction of excitement was 17 Yarraford Alphington (Andrew Simondson of Collins Simms). Our initial thoughts were $1.6m to $1.7m for value, our rating was 557/1000 and our finishing comment was “Overall a home that will attract a limited but probably very emotional audience”. The under the hammer result ended up around $400,000 away from where we initially thought and probably $300,000 over reserve (so what do we all know sometimes) as a couple of must-havers fought it out – further proof that if the property is well marketed and regarded as an A-grader, then strong prices can still happen. As 2011 draws to a close the market continues to remain two-faced; a reasonably strong one for a limited number of market priced A and B graders and another far bigger, far weaker and price falling one for overpriced A, B or C graders.

With the number of auctions dropping to next to nothing over the next couple of weeks before going into the long summer hiatus, this is our final Market News edition for 2011. This weekend’s auction reports are still available for viewing and our Buyer Advocacy office is open until December 17th.

Please read on however, for our summation of the year that was. Read on too for our James Market News Annual Awards and our revisiting of the best auctions of 2011.

2011 Table of Contents Christmas Edition

• 2011 – Year in Review
• James Market News Annual Awards
• 5 Great Auctions in 2011
• Christmas Thank Yous
• Legends’ Thoughts on 2012 will be in Buyer Masterclass over the next week.

2011 YEAR IN REVIEW

2011 has been a year some in the property market – chiefly sellers and some agents – would possibly rather forget. For buyers it’s been a little better, when there’s been a reasonable supply of good stock. But buyers’ enthusiasm has been constrained by nervousness about economic events unfolding beyond our shores. So while they’ve been out there looking, and while in many cases they’ve been keen to buy, they haven’t wanted to pay too much – certainly not as much as what many sellers are demanding. For many sellers it’s not been a happy result – and some of them will be still on the market with their now stale offerings in the new year.

Read on for our season-by-season account of how the year unfolded.

LATE SUMMER

After 2010 finished in a state we described as ‘balanced and healthy’, 2011 started with a bit of warmth, even moving into ‘hot’ for the $1 million market. On the last weekend in February, clearance rates for the auctions we attended were up at 74% and Bidderman was at 2.

But a flush of new stock slated to come on to the market in March and April would be the test of whether the warmth we saw in the last weekend of summer represented an underlying hotting up or a temporary New Year afterglow.

The story was different with the $3m+ plus market, which was dead as a doornail with very few homes changing hands. Geographically too, the trend at the Top End of the market reversed – with Bayside performing a lot better than the Inner East (in fact Brighton townhouses at the $3m level were almost walking out the door).

AUTUMN

The New Year afterglow had indeed faded by March, with buyers increasingly nervous about world events, the stock market, the government – the whole shebang. Coinciding with this buyer nervousness was a flood of new stock coming onto the market as would-be sellers also nervous about the future decided to try and sell quickly.

The surge in stock was not taken up by the market and consequently we saw declining auction clearance rates and bidder numbers, and a market groaning under the weight of stock numbers. Not only was new stock coming on that would previously have been gobbled up, but it was having to compete with an increasing backlog of pass-ins from previous weeks. This compounding rate of stock build meant price only had one way to go – and that was down. It wasn’t quite a price free fall, however, as most sellers, including those  at the $3m+ level, had the resources to ride out what they thought was just a blip of negativity.

Red Zone - Bidders under 1.5 - Falling Prices - Click to enlarge

EASTER

From around Easter the market had the first of two short periods of 2011 price spiking (September was the other). Those sellers who had the good luck or good management to be in the market at this time saw some good results – especially those with sensibly priced A grade properties. 

May 21^st was probably the high point for sellers, with the clearance rate a whopping 84% on the 37 auctions we attended and Bidderman of over 2. It was the 2011 weekend to be selling.

WINTER

However, the late autumn cheer turned out to be nothing more than a brief flare of optimism before we went into a grinding winter with little activity as the supply of good quality stock dried up, and buyers stayed home uninspired by what was on offer. It was not so much a negative as a boring market.

Prices flat-lined and even fell on lower quality homes. The exception was the rare occasion when a quality home hit the market, but overall the market was off by as much as 10% from the last peak in April 2010.

The unluckiest sellers this year were those that went to auction on August 6 the day after the stockmarket plunged by more than 4% on fears the global financial crisis was re-emerging. Just 3 of the 25 auctions we covered sold under the hammer – that’s 12% – though by the end of the day that figure had gone up to 55%.

After that weekend of panic, the rest of winter wasn’t quite the disaster that some had feared. It was more a ‘nothing’ market, with little good stock on offer, and most auctions seemed a tug of war rather than a race – even when there was solid support from buyers. Vendors refused to budge on price, and buyers weren’t prepared to pay what they saw as inflated asking prices – and the result, more often than not, was a stalemate.

Red Zone - Poor Price Matching - Falling Prices - Click to enlarge

EARLY SPRING

Early Spring saw a reprieve from the doom and gloom of winter, with the second of the year’s upwards price spikes. The $3 million plus market did particularly well. On August 27 we reported that 11 homes had sold for a total of $55 million in one week.  Clearance rates were back up over 60%. The heat stayed for most of the month of September at $3M+.

Why did this happen? It was like April – it was about buyers looking into the future and seeing not a lot of good stock coming on. The supply and price equation showed that demand was there when conditions were right – and September proved it.

But by mid-September we were back in the ‘two speed market’. This division between over-priced lower grade properties and good quality well priced properties had been going on all year, but it became more entrenched as the year went on and buyers flocked to A-grade auctions and stayed away in droves from the rest.

At the lower end it was a vicious circle of low bidder demand resulting in poor results, making sellers reluctant to put their houses on the market. Which meant little in the way of good stock around, so buyers already feeling cautious about the economy anyway weren’t bothering to go out there and bid on the little that was on offer.

Meanwhile, at that upper level, where buyers weren’t so concerned about the economy, they were snapping up whatever good quality stock was coming on to the market. All you need is couple of bidders at this level to push the price up, and even at this point we were seeing auctions with three or more.

However the up spike was short-lived. By the end of September the heat had dissipated as opportunistic sellers flooded their properties onto the market. Within a fortnight most of the good news for sellers was over. And, as it turned out, that was it for sellers in terms of good news in 2011. For buyers though, the good news has rolled on for the rest of the year with a great combination of falling prices and increased choice.

LATE SPRING

With the AFL season ending a week later than usual, the spotlight was on October 22 as the day of culmination for many auction campaigns and the biggest Super Saturday for 2011. 150 auctions were slated for the $1 million market in the Inner east and Bayside, three times as many as the previous week, and twice as many as we’d seen on any weekend since autumn.

But it was a day of pouring rain and frustrated hopes for many sellers, with a clearance rate of just 43% on the 46 auctions we attended. And many of the properties that passed in on that hopeful day sat on the market for weeks to come. Three weeks after Super Saturday our survey showed that a third of those properties still had not sold.

Even so, the market was not exactly on its knees. Yes, prices were continuing to fall and in some cases falling quite substantially. But when vendors were prepared to fall in with the market, there were bidders. In fact, if choice and falling prices are your definition of a good buyers’ market, this was an ideal buyers’ market.

2011 - Falling Prices - Click to enlarge

WHAT DOES THIS MEAN FOR 2012?

There is a lot talk going on about the market being overpriced and the bubble bursting. But the fact is the bubble has already well and truly burst. Prices right now appear to be tumbling as much as they did in the GFC. Even on some good homes they are down 5%- 10% and as much as 20% since our last high water mark (April 2010) on the weaker homes.

But markets can turn quickly. To recap on recent history, we saw this kind of price discounting through the GFC in 2008 – although, please the GFC was heavier than 2011. But we also saw prices climbing back up the next year, with  a mini boom occurring up until Anzac Day 2010. During that period some prices on some homes rose by as much as 30%. Our graphic representation to the right shows how prices have moved in the past couple of years.

And while we have seen big price drops in 2011 (on all but the best of the best), there is not the panic we saw three years ago. The market appears to be accepting these ups and downs as a normal gyration and these gyrations may well become bigger and more regular in 2012 as we all become more ‘fully informed’ through media saturation.

Our best bit of advice for 2012: The Market is Two-faced:

Look at the Bidderman stats over the last 3 weeks. Two weeks ago we reported 27 bidders on 5 homes and 14 bidders combined on the other 21 auctions. It was the same story last week, with 17 bidders on 4 homes but only 15 bidders on the other 21 homes we reported on. This week we saw  26 bidders on 7 homes and 24 bidders combined on the other 27 homes we reported on. Which shows that properties that are hot, are really hot. Those that aren’t, need a good agent.

These facts should show you the importance of

• Research
• Multiple Negotiation Strategy – low and high
• Price Framing – may be $100,000s away from where you are.
• Selection in buying now determines for your future in selling.

Auctioneer of the Year – Growling Jack
It was an easy choice this year: ‘Growling’ Jack Bongiorno has been the standout auctioneer in our patch in 2011. And while it is true an auctioneer is only as good as the selling agents who support him (in this case Heather and Rae in particular), you still have to go out there and perform.

In the past we have been critical of Growling Jack’s opening waffle (it was too long) and while that has improved, there are still auctioneers with a better opening patter. So why is he our auctioneer of the year in 2011?

Simple – in the guts of the auction and at the business end he is the strongest, most effective performer out there right now. In a tough market place – and many auctions are tough right now – Growling Jack takes the audience and the bidders on. He challenges them, makes them laugh, makes them cry and most of all he keeps things going – rarely missing a beat in terms of numbers or momentum. In 2011 if you wanted to see the best, then you needed to watch a full-on Growling Jack auction – it was on many occasions a masterpiece of theatre and business combined. Hat off to you Jack!

Also on the podium are Phillip Kingston and Antony Woodley – these guys a good, bloody good and they extract money from the crowd where others can’t. Philip Kingston is still the auctioneers’ auctioneer and the most consistent performer over the last decade in our opinion. Antony Woodley is a pro – his spiel, tempo, bid retention, bid suggestion are almost faultless and his auctions should be viewed by young auctioneers as a training manual.

Agent of the Year – Marcus Chiminello
Only a few years ago Marcus was our young agent of the year; this year he seems to have really come of age. Particularly towards the end of the year, he flew home to the finishing post with some very big deals. Specialising in new homes and apartments, his years of consistent data basing and marketing have really begun to pay off and Marcus’s name was, in 2011, the name we heard the most when it came to the big deals getting done. His strengths lie in two things – his ability to match a buyer and seller and his way of doing business. We find it simple, open and straightforward. Yes he does step quote, like almost all Marshall White agents, but he is more open about it and guides buyers through the process a lot better than most (he keeps you informed and if you deserve it, he treats you with respect). There are many great agents out there in 2011 and in our opinion Marcus Chiminello was amongst the best of them. Hat off to you Marcus!

Agency of the Year –Kay and Burton
In 2011 Kay and Burton’s performance in a tough market at the Top End set them apart. In their specialty, the Ultra Top End, they have made their mark with some very substantial sales and they have done it consistently. They have gained a first rate performer in Scott Patterson to head up their Hawthorn Office and unfortunately lost a doyen in Gerald, who has retired. All through this, under Mike Gibson, they haven’t missed a beat. What separates them from their main rivals, besides their consistent professionalism, is they have not attracted anywhere near the level of negative comment about their quoting from buyers we deal with. Kay and Burton are a first rate company and this year in our opinion they have been the best we have come across. Hat off to you Michael!

Innovation of the Year – The Kay and Burton Report
Sure others do it – but nobody does it as well and the first few minutes of this report are compulsive viewing each time it comes out. It’s slick, informative and is looks solid – a great marketing tool that lifts the bar for all of us. Hat off to you Tracey.

Young Agent of the Year – Campbell Ward
Honesty and Decency are the two words we associate with Jellis Craig’s Campbell Ward when it comes to real estate. In fact Campbell is very much NOT how many of you may think about selling agents – he is quiet, polite and generally low key. With his partner and mentor Peter Batrouney they form one the more effective teams in Boroondara. Campbell we hope you never change and we also hope that more and more young agents see that you can park you ego to the side, you can be open and honest with buyers and sellers and you can have a very successful real estate career. Hat off to you Campbell and may many others follow in your real estate footsteps.

Raspberry of the Year

Step Quoting – when it’s done inappropriately, (and not all step quoting is illegal or immoral),  it is the biggest negative to our industry and we urge buyers not to tolerate blatant lying around what an agent expects a property to go for. Report them, put in claims for your expenses such as building and pest reports, hassle them, ask them for a comparable sale to justify their attempt to treat you with contempt. Sellers – when your agent lies for or to you in this market, you may actually end up with a lower price than if your agent has been truthful. Buyers are not idiots, they will pay you back after a pass-in, if they feel you have not negotiated in good faith.

The Bayside Market – we are not sure what’s in the water in Bayside. But it has clearly affected some vendors and some agents there. The Bayside Market is actually a lot healthier than it may appear in terms of would-be buyers; but as long as sellers and agents remain so far apart when it comes to asking price versus market price,  the market will continue to operate on lower levels than it needs to.

2011 Auction Report of the Year – Reporter Daniel Ehrenreich
Super Saturday – October 22nd  – 38 Kerferd St, Malvern East, Glen Coutinho (Hocking Stuart); Under hammer, $2,862,000, 4 bidders

Wow what an auction! This is as intense as it gets. Glen Coutinho has firmed as one of the best auctioneers in Melbourne in my humble opinion. What started out with meek interest from a lively crowd of around 70 people turned into the most hotly contested auction I’ve ever seen. A modest opening bid of $2,350,000 was announced from one party in the crowd and was quickly overtaken by another for $2,355,000.  The two went back and forth in increments of $5,000, then $2,000, then $10,000. Once the price reached $2,501,000 it seemed as though the action had come to a head, and Mr Coutinho retreated to his vendors to discuss the situation. Confident of reaching the price he and his vendors desired, Mr Coutinho continued unabated, knowing full well there were several other parties very interested in the property. As the property was being called down for a fourth time a third party entered the fray, bidding $2,540,000. This guy was ready for a showdown, but the original bidder stuck to it and was relentless in his pursuit of the Glen Iris home. Unable to continue, the young lion who made a worthy challenge correctly backed off, leaving the fight wounded but not insulted. At this point the crowd was able to breathe momentarily, but it wasn’t over! A fourth man entered the mix, and began his challenge. He proceeded to walk across the road towards the original bidder attempting to eye him down, but the original bidder was having none of it. As those who play enough poker know, when someone shows aggression towards you, it is generally a sign of weakness. Fortunately, the original bidder (who probably doesn’t play poker) picked up on the bluff and showed no signs of folding. Once the figure reached $2,862,000, the new combatant gave up announcing: ‘he can have it,’ and the auction ended with a standing ovation from the crowd, although it may have only been an ovation as they were already standing. (Daniel Ehrenreich)

September 3rd – 29 Rose St, Armadale, John Bongiorno (Marshall White); Under the hammer $3,030,000, 9 bidders

Well here we are with the MW trifecta – Jack, Rae and Heather. The monkey and the two organ grinders some unkind people may say. The crowd is big, but not unexpected (125) and they are here to watch the theatrics and possible fireworks as this home was only bought and sold 3 years ago for a tad under $2,500,000. There is talk the current owners want a fair bit more than their money back. We get the usual start from Jack – solid and professional and then to the real theatre. $2,000,000 bid from Bidder One is refused/half taken and a vendor bid at $2,250,000 is slammed back – geez Jack is in an aggressive mood. A second bidder chimes in at $2,275,000 and a 1/2 time break is taken. That was a surprise. “Get on with it” Jack barks out at the crowd upon his return. Bidder Three tries $10,000 – “No” screams back Jack. He has obviously been well prepped about big interest by Heather and Rae, but nonetheless it’s still very aggressive bid refusals. Two more bidders take it up to $2,425,000 and we have some momentum – some real momentum. Jack says there is no reserve – and he issues the challenge bid or you’ll  “get overrun” at the pass-in. Boy, is he sticking it up the crowd – Jack is at his petulant best and it seems to be paying off. Please this is not gay abandon – Heather and Rae must have briefed him there were multiple bidders. Bidder 5 – $2,500,000. Bidder 6 – $2,600,000. Jack has won the crowd over with his self deprecating humor intertwined with a certain downright arrogance that he has in spades today. Lots of bidding and we are at $2,800,000  – Bidder 7. $2,875,000 and a couple of bidders rightfully push hard for an answer to the question.  “Is it on the market Jack?” they repeatedly ask and belatedly and smartly Jack retreats back inside for an answer – this was a time for concession, empathy, not bravado and Jack read it perfectly. On his return – wait for it “Yes it’s on the market” he fires into the main “on the market” enquirer and Jack adds “now bid – no pressure but we’re all watching you”. $2,925,000 – Bidder 8. Straight through $3m with a new bidder – that’s 9 in total. Bought under the hammer for $3,030,000. Wow! And the market is dead for all homes – NOT. Not sure who should take a bow for this – certainly Rae and Heather – and the home, the sellers, the market, Jack, the bidders. Why don’t you all take a bow. Bloody ripper auction.

August 13th – 4 Glan Avon, Hawthorn, James Tostevin (Marshall White); Under the hammer $2,815,000, 3 bidders
Enchanting riverside parcel of land with a couple of possible development issues, sees a large crowd of 130 in attendance wondering what this rarity will bring. James Tostevin is our auctioneer and the centrepoint to his opening spiel is a letter from council saying basically no heritage overlay. This is why James is a great agent – attention to detail and he powerfully makes his case that you can build what you want (STCA). To the uninitiated most would not realise just how powerful this presentation was by James. It’s rare you see a commanding performance before the bidding even begins, but his delivery was strong and persuasive – obviously this has been a issue and he buried it firmly, leaving bidders in no doubt and free to raise their hands. I dare say he was also the catalyst in getting this letter – many agents would simply not have bothered by saying – “make your own enquiries”. Anyway to the bidding – Bidder one opens at $2,000,000 and an immediate vendor bid at $2,200,000 is placed on top. Bidder 2 at $2,250,000. Bidder 1 – $2,300,000. Bidder 3 – $2,400,000. We move between bidders in $50,000’s to $2,550,000 and then in $25,000’s and then less. A word back on the auctioneer – James has always been highly regarded as an auctioneer by us – but I suppose because he is such a good agent we have always seen him as that first and auctioneer second. Today his bidder suggestions, pace and pathos were near faultless. This was turning into a truly command performance. After a small momentum drop we arrive at $2,625,000 and James calls a half –time break. This no doubt is to seek vendor instructions, but it is also because he too feels a drop in momentum and a break is called for so as he can return and revitalize his dueling bidders. We get to $2,700,000 and then $2,710,000 and it’s still not on the market: James suggests a bid to $2,750,000 which gets the nod and immediately it’s announced it on the market. Well done we are playing fair rules today not the bulldust pass-in and Claytons reserve. As we begin to slow James eeeks out every last bid with good humour and a certain intangible feeling which gets the hand of the underbidder up a few more times than perhaps he wanted to. It looks like it’s gone at $2,810,000 but a final $5,000 and the other bidder has it – exhausted and delighted all at the same time. Really a near faultless performance with no referral to notes – and people think anybody can be an agent or auctioneer – bravo James a brilliant, powerful 20 minutes and in the Top 10 of all auctions I have seen.

May 21st – 17 Murchison, St Kilda East, Phillip Kingston (Gary Peer); After Auction Just under $1,700,000, 2 bidders
Nice little home this one, well thought out with unusual entry but it works for me. Quote is $1,600,000 to $1,760,000 and while car parking is not brilliant, it is an above average typical quirky St. Kilda East home and should have interest. At this price, the quote seems full, well let’s wait and see. Just about to start and Phillip says he is holding it inside. Good idea it’s cozy by the fire. Down to business; we like Phillip Kingston. You know – he is one of Melbourne’s Dons when it comes to auctions. This crowd of around 40 is in for a treat as the rear is a great amphitheatre for this sure to be entertaining auction. Phillip would have been a stand up in a previous life or a politician – he is simply the most powerful story teller that operates on Melbourne auction weekends and today with emotion and genuine passion he leads the crowd into a place where they all want to be and that place is here. A nice little interim joke, the crowd laughs gently as Phillip calls for bids. Nothing arrives and a vendor bid is placed at $1,600,000. A few jokes about his fellow agents and Phillip reminds any potential bidders that bid now or face a non transparent post auction process. No action and first call, second call, half-time and zippo. Just before Phillip closes the auction, a ripper question is asked. “Phillip can I can bid lower than $1,600,000”. “No” – politely comes the reply. And finally $1,605,000 comes and a second bidder in at $1,610,000. Game on at the death – or is it. It’s like drawing teeth and surprisingly that’s all she wrote. Passed In at $1,610,000, a surprising first act to this two act play. If Phillip couldn’t get another $5,000 then there wasn’t another. We await the final installment. Postscript: sold after within the range – believed to be under $1,700,000.

February 26th – 33 Middle Crescent, Brighton, Jason Swift (Hodges); Bought under the hammer, $4,300,000, 3 bidders
“Hey start me where you like – somebody bounce my ball” cried out the cockney accent of Jason Swift. I loved this auction; it was entertaining , bold and good ‘ol fashion fun. Jason Swift gave us piles of corn, humour, clichés and he gave the auction something else – character and the more important – momentum . At first you might think, hmmm bit strange – bloody Pom doing an auction – but mate he’s as Aussie as Jack Thompson and I loved the way he auctioned this home. The crowd was spread out – the vendor wanted a big but not ridiculous number and with good work pre-auction and a classy performance on the day, Hodges got what their client wanted. Well done Jason; I’m not sure how many people know just how good that was – bringing a crowd with you at this level is what only a few can do well. That was definitely a 2 hat performance. Opened at $3,000,000; on market at $4,200,000 concluding under the hammer at $4,300,000. Great theatre and a great way to finish the day.”

Thank Yous
Even though we are on the other side, as a group we receive mentoring and support from James Connell, Mike Gibson, Gerald Delany, James Tostevin and Richard Earle and many others and we thank them for that. Personally I find my chats with Rob Vickers-Willis, Justin Long, Scott Patterson, Hamish Tostevin, Peter Batrouney and Richard Winneke and many others very helpful and stimulating. We could not produce what we produce each week without the access of selling agency principals such as David Hart, Tim Derham, Jock Langley, Stephen Tickell, Peter Kennett, Iain Carmichael, Geoff Cayzer, Andrew Stuart, Campbell Cooney, Bill Stavrakis, Jeremy Fox and Jonathan Dixon to name but a few – so thank you. Each week we are out there sniffing around, digging things up, reporting the good and the not so good; yet rarely do we have any interference and never have we been pressured to change anything. In a world of prima donnas (supposedly) we get a very fair run and we thank almost all selling agents for that.

Buyer Advocacy has an important role to play in providing an alternative voice for buyers and we acknowledge the contribution of our main competitors in David Morrell and Chris Koren.

While we don’t agree with everything Chris Vedelago from The Age writes and no doubt vice-versa, we acknowledge his contributions as being the best overall in the mainstream press. Its amazing to us the lack of quality insights provided by the dailies into Melbourne Property. Often they are no more than a collection of dubious quotes cobbled together with no meaning or value.

We would also like to thank Eileen from the The Weekly Review who puts up our Buyer articles most weeks, even the ones that carry some controversy – thanks for staying brave.

To our own production team leaders in Simone Clarke and Jen Milligan thank you for another great year – I still don’t know how you organise what you do each auction week. To my personal editor Karin, who keeps me in check, thank you.  To our independent management advisors in Chris Farrell and  Peter Tanner thank you. To co-workers Guy, Julie and Naomi and partners Gina the Boss and Architect Adam thank you. To all our auction reporters Kate Agnoleto, Debbie McTaggart, Joshua Bong, Doug Paget, Daniel Ehrenreich, Lexie Stewart, Nikki Hills and the real old boy, David James, another great year of reporting and thank you – without you none of this would be possible. To a few of our favourites who moved onto greener pastures this year in Michael, Kris and Peter and our new IT partners Kate and Michael at Andmine thank you.

And finally to all of you who come up to us at opens and auctions and say nice things (mostly), who write tens of  letters to us every week, asking us questions and saying nice and not so nice things (fair enough if you keep it polite) – thank you. And lastly to you, who gave us  over 500,000 visits (incredible stat from Google) during 2011, thank you all for your support. We at James hope you have a safe and happy Christmas and New Year (we are open till December 17th) and look forward to seeing you next year in 2012 to do it all over again (office opens 16th January) – our first Market News will be back in mid February 2012.

The Question: After Super Saturday would these 3 not sell, sell lower or would the Mexican Wave** (see explanation below) kick in and they all sell once one had gone.
The Answer: The Jungle Drums beat loudly and the Mexican Wave kicked in with all three selling within 24 hours of each other. All three had quotes of $5m to $6m during their campaigns. Scotsburn was bought after a weekend pass-in (believed to be around $5m), Montalto was for most of its campaign a private sale (but finished in a Boardroom Auction at just over $7m) and Scott Grove was an Expressions of Interest closing Wednesday (reportedly 3 interested parties and sold 2 hours after the deadline for well over $6m).

October 29th: 54 Hanby St Brighton (above) (Kevin O’Brien) – The only auction I came out for today. Damian Davis – a bit out of his normal territory started up the engines with a solid opening spiel in front of a crowd of around 50. After he had finished his coverage on the home’s flow, light and feel, he asked for $3,300,000 from the crowd. Nothing was forthcoming, so a vendor bid at $3,300,000. Another vendor bid at $3,350,000 and a half time break did nothing to excite and so the words pass in brought an end to the proceedings on this lovely home that has a vendor at one level and potential buyers seemingly at another.

October 25th: 25 Scott Grove Glen Iris (Rae Tomlinson and James Connell): Bought within 2 hours of close of play for well in excess of the $6m+ price tag. This was a very good home on a very big parcel of land and the result was deserved and expected for a quality A grader – we rated it at almost 3 hats or 791/1000 (see our rating below). And a good night for Marshall White overall with 34 Chatsworth Prahran being sold through Madeleine Kennedy for $3,137,000.

October 24th: The collection of Expressions of Interest campaigns finishing in late October/Early November will be watched by many. There are some great homes, but the results this last weekend indicate they may not sell as strongly as September results suggested they might. We are monitoring a geographically widespread sample – all over $3m and will bring you the results as they come. Lets see if the K&B Mexican Wave** is in play for the Top End buyers or have taken their bat and ball and gone home.

**K&B’s Mexican Wave: It is possible that the above marketing campaigns could in fact produce higher results if we see more marketing campaigns in the style of Kay and Burton’s Mexican Wave effect. It’s just like at the MCG: Kay and Burton brings a group of homes together and push and prod till they get one buyer to perform and then uses that result to get other buyers to put their hands up on other homes. This is planned months beforehand, it’s totally legitimate, it’s brilliant in concept and it’s why people like Ross Savas and Mike Gibson are worth their fees and then some. Other Mexican Wave agents who plan and execute well are Marcus Chiminello, Rae Tomlinson, Heather Elder, Justin Long and Peter Bennison of Marshall White to name a few. However K&B are the absolute masters at the Mexican Wave.

Alastair Craig and Richard Winneke maneuver 3 bidders to a bought price of $2,855,000. This is where some of last spring's $3M plus action is right now at $3M minus.

October 22nd: During 2011 the $3M+ market has been as fickle as we can remember: it disappeared for most of the year, came back with a vengeance in September and has now seemingly run away lost again.
To demonstrate the point, only two homes out of 150+ scheduled $M+ auctions reported a sale price over $3 million today.  Yes two – that’s not many.

They were 34 Stevenson St, Kew with James Tostevin, which sold after auction and 7 Barrington Ave, also in Kew, with Scott Patterson, which sold before auction.

Mid- Week Apartment Auction: 3002/368 St Kilda Road (Marcus Chiminello) – Thursday night auction @ 7.00 pm. A similar property in the same building on the same side, same square metres, same décor, sold for $3.3m a short time ago. Quoting $3.3m plus then $3.5m plus. Surprising to have an auction in St Kilda Road but Marcus Chiminello and Nicole French (the new Batman and Robin) lined up auctioneer Growling Jack Bongiorno and 3 bidders fought it out past the last sale sales, past the first quote and the last quote and all the way up to $3,800,000.

Why did it sell so well? Demand exceeding Supply for North orientation; 315 sqm size with car parking on the 1st floor (no dizziness getting in and getting out) and Shrine views. Well marketed by one of the best in the business at this stuff.

Price: Has been gently improving in some key blocks on some key apartments – but it’s all about the apartment characteristics. There are literally hundreds of apartments above a million that have no buyers at all, because they have nothing unique to offer except a very cheap price.

Biggest Sale: 38 Kerferd St, Malvern East, Glen Coutinho (Hocking Stuart); Under hammer, $2,862,000, 4 bidders
Wow what an auction! This is as intense as it gets. Glen Coutinho has firmed as one of the best auctioneers in Melbourne in my humble opinion. What started out with meek interest from a lively crowd of around 70 people turned into the most hotly contested auction I’ve ever seen. A modest opening bid of $2,350,000 was announced from one party in the crowd and was quickly overtaken by another for $2,355,000.  The two went back and forth in increments of $5,000, then $2,000, then $10,000. Once the price reached $2,501,000 it seemed as though the action had come to a head, and Mr Coutinho retreated to his vendors to discuss the situation. Confident of reaching the price he and his vendors desired, Mr Coutinho continued unabated, knowing full well there were several other parties very interested in the property. As the property was being called down for a fourth time a third party entered the fray, bidding $2,540,000. This guy was ready for a showdown, but the original bidder stuck to it and was relentless in his pursuit of the Glen Iris home. Unable to continue, the young lion who made a worthy challenge correctly backed off, leaving the fight wounded but not insulted. At this point the crowd was able to breathe momentarily, but it wasn’t over! A fourth man entered the mix, and began his challenge. He proceeded to walk across the road towards the original bidder attempting to eye him down, but the original bidder was having none of it. As those who play enough poker know, when someone shows aggression towards you, it is generally a sign of weakness. Fortunately, the original bidder (who probably doesn’t play poker) picked up on the bluff and showed no signs of folding. Once the figure reached $2,862,000, the new combatant gave up announcing: ‘he can have it,’ and the auction ended with a standing ovation from the crowd, although it may have only been an ovation as they were already standing. (Daniel Ehrenreich)

Biggest Pass In: 11 Scotsburn Grove, Toorak, Jeremy Fox (RT Edgar); Passed in, $5,000,000, 1 bidder
A small crowd of around 40 and half are Toorak agents just looking. Jeremy Fox gives us a good solid spiel and we are away. Or are we? Jeremy calls for a $5,000,000 opening bid and gets nothing but silence. He goes inside for his half time break and leaves us all in the rain – actually he was pretty quick to return. I’m typing in Passed in on my Ipad and – whoops no – there was a genuine bid and $5,000,000 is taken up. Then it is passed in to the lone bidder. We await the outcome. (Mal James)

October 15th: Quality Stock Levels have improved for Buyers:
Good levels of good stock came into the market late September and buyers began to take deeper breaths and relax a little.  Angst dissipated somewhat as quality buyer saw more quality homes they could buy, diminishing the spectre of missing out on a home, leading to a drop in buyer urgency and ultimately price.

This Quality Supply Increase is best demonstrated at the Top End.

Want a home with a Tennis Court in Toorak? Got around $6 million dollars?

In the last week we visited, assessed and rated: 11 Scotsburn Toorak (Andrew Smith), 10 Montalto Toorak (Mike Gibson) and 25 Scott Glen Iris (Rae Tomlinson). All have tennis courts. So even if there are 10 buyers for tennis courts at this price level, there’s a fair bit a choice there. If normal market forces prevail and the buyers have good representation, then the prices on all three could be lower than if there was only one of these homes on offer. That’s unless, of course, one home is more strongly favoured than the others by a significant number of those 10 buyers – or if the Mexican Wave effect happens (see below).

Similarly in the last week we have been through some really good new home offerings at over $6 million, including 14 Kilsyth Toorak (Michael Armstrong); 15 Vista Toorak (Nicole Gleeson) and 33 Coppin Grove Hawthorn ( Scott Patterson) – see our ratings over the coming week.

These are just some examples. And in fact, quality stock levels have improved at all price levels. This is good news for Top End buyers and the reason we think October 2011 and hopefully November 2011 will be better months for buyers than were Winter 2011 and September 2011 in terms of:

1. More choice

2. Less chance of the runaway prices.

This price segment is all about either side of the Melbourne Cup – as a number of Expressions of Interest, Private Sale and Auction campaigns are scheduled for some sort of conclusion at that time. We anticipate publicly reporting in  early November as to market movements since September’s price and activity spiking.

“No way mate - this market is fighting back– taking no prisoners today (April 9th).” John Bongiorno. Malvern 54 Stanhope. Bought $3,170,000. 3 bidders.

Week Ending 30th April: Back from a week or two off, this market now, has a fairly clear run till Christmas, with a only brief breaks for a couple of holiday weekends.

Over the next four to six weeks we should see more choice and some reasonable activity (although not expected anywhere near the levels of last year), as the May market is a traditional agent preferred selling time. Why? Well there is a good stretch of time until Queens Birthday weekend to run an uninterrupted campaign. Stock Quality is the unknown.

Come July things will be relatively quiet as there is a general sellers’ feeling (rightly or wrongly) that good homes do not look their best at this time of the year and accordingly a number of high end selling agents take winter holidays in Europe and therefore do not program campaigns to be run in their absence.

In the post Easter week or so there have been ten or more high end sales including the representative  half dozen below

• 15 St Ninians in Brighton for between $8m and $9m – perhaps not a lot more than what is was sold for less than 2 years ago (need to look up sale time to be absolutely sure of date) – Justin Follett of Kay and Burton
• 255 New Brighton for between $5.5m and $6m – Regina Schmidt and Brian Devlin of Buxton
• 50 Hotham St East Melbourne which had been on the market for at least 6 months for $7million – Paul Richards of Hocking Stuart – on the market for a fair bit of last year and also a failed auction. Nonetheless a reasonable price – not everything the sellers wanted – but more than had been offered at times in the past by buyers. A good result for both parties.
• 150 Clarendon East Melbourne – the Salta apartments saw Anton Wongtrakun deliver another big sale at $5,200,000 for Unit No 4
• Out to the paddocks of Lower Plenty with a Marketnews favourite Rocco Montanaro of Morrison Kleemand who achieved close to $3m on an Expressions of Interest Campaign for a good home on 7 acres at 75 Cleveland.
• And we round up our selection of high end Easter Sales with a $6M+ sale at Mount Eliza 15 Freemans Road – Michelle Skoglund of Aqua

In summary over Easter the market at this level has not been dead, but definitely subdued – there is increasingly a dampening mood in terms of both buyer and seller confidence. Time will tell if this is a short or longer term phenomenon. Price will play a important part going forward as we seemingly move into more uncertain market conditions – i.e. ones that are not as clear as they have been in the past 2 years since we awoke from the GFC. Overall the market now and in fact all of 2011 has not been strong at the $3m+ level – but there are still enough transactions (especially in Bayside) of sufficient value to avoid holding a wake just yet.

With winter approaching and a fair amount of stock available we think it is a buyers’ market and the future is best described as – “uncertain times”.

Finishing on a positive note our James Investment Division has seen some solid interest with investors coming back into the market (rentals are improving) and one current flavor of the times is blocks of flats. Some examples of what we are talking about.

Finishing on a positive note our Investment Division has seen some solid interest with investors coming back into the market (improving rentals as well) and one current flavor of the times is blocks of flats. Some examples of what we are talking about.

Week Ending 16th April:The $3m action this week was away from auctions.

The drought in the Balwyn Formula – big price, small land, new home – was broken again with Maurice Di Marzio getting 59 Hosken Street, Balwyn North away in the high $3 millions. That’s the third in a week on the back of the two biggies reported last weekend.

Canterbury, 11 Chaucer Close, with Boroondara doyen Peter Mitchell of Marshall White, got the same sort of high $3 millions price.

Hawthorn, Harcourt St, was a hot place to be this week with Nick Ptak getting 79a away for just under $3.4 million (we think) and one of the results of recent times. Peter Vigano of Jellis Craig  got $3.625 million for 42 (we did not see that price coming)

Speaking of good results, Marcus Chiminello got a price in the high $3 millions for 2/264 Walsh St, South Yarra. It’s not our job to talk agents up but in a slow apartment market Marcus has got a number of solid results.

St Kilda West, 10 Loch St, with John Holdsworth sold for $3,650,000.

Andrew McMillan from Benmac got 367 Beaconsfield St, Kilda West away in the $4m to $5m range after a very lengthy campaign (probably due to previous asking prices).

At Auction today 68 Hopetoun Rd,  Toorak with Jellis Craig’s Steve Abbott, sold afterwards for $3.05 million. That was up a few hundred thousand dollars on the last time it sold around a year ago.

Week Ending 9th April: The strongest week this year for the $3m+ Top End market:

South Yarra 43 Marne St: Nicole Gleeson of Kay and Burton: Well over the $12,000,000 quote range making Domain Precinct land values at $8,000 per sqm for the bigger blocks.

Hawthorn 51 Berkeley St with Tim Blackett also of Kay and Burton: North of $7,000,000 on Scotch Hill for a good home that needs some reworking and a tennis court.

While still in Hawthorn Mr Nice Guy and Very Effective Tim Picken of Jellis Craig got away the quinella with 25 Mary St (Modern in Grace Park) being bought for a credible $4,300,000 and 1 Hilda (period in Grace Park) for $2,800,000. Both a little down on ambitious asks but nonetheless solid prices for what they were.

But wait there’s more and was it us who cried out the death of the Balwyn formula- new build, small block, overpriced. Well on a technicality were are still credible as it’s neighbouring Kew; but with 21 Macartney (Walter Dodich of Marshall White) and 5 Mawson (Peter Dixon of Jellis Craig) both selling at auction today for $4 million’ish, the death of this market maybe a little exaggerated. However please it is only two sales, but they were biggies.

The news doesn’t stop for sellers there with period home successes at 50 Wattle Valley Canterbury (Duane Wolowiec and James Tostevin) selling under the hammer for a strong $3,465,000; 54 Stanhope Malvern with Rae Tomlinson also under the hammer for $3,170,000 and 13 Rubens Grove Canterbury with Fletcher’s Jeremy Desmier bought before for over $3,000,000.

Bayside has recorded a few strong sales as well with 29 Bay Street Brighton (Bert Stewart of Buxton) selling post auction over $3,550,000 and the final result put north facing (no view) Golden Mile land over $3,200 per sq metre. That is a steady as she goes price similar to last year Golden mile (no view) buys. And another $3m+ sale with a strange twist (all non bidders asked to leave) at 40 Drake Brighton (Ian Jackson).

While on land sales 1073 Malvern Road Toorak (Justin Long) passed in at $3,225,000 and a reserve was offered – not taken up – two new bidders appeared and a second auction took place resulting in a sale well over the pass in figure.

Why all this activity? Pass-ins are still languishing in large numbers without much interest. However its all about quality and new stock and buyer confidence. All three things happened this week -

1. buyers felt better in themselves (confidence);
2. buyers felt this week had some real quality offerings (quality)
3. and buyers couldn’t see a lot of stock coming one (limited new stock)

Post Easter is no Buyer lay down misere after today’s results.

MALVERN EAST, 15 Albert St: There was a bit of fence sitting at this Andrew Hayne (Marshall White) auction, and not a lot of action. Passed in $1,600,000, no bidders

With not much on offer this weekend, only one over $3m ( Steve Abbott – 68 Hopetoun Rd, Toorak) and minimum quality at the lower end, my thoughts turned to family, holidays and the Pies. Winter will be a time of continuing opportunity, but as buyers we will have to work hard to find them. And you will still need some bravery if you wish to take those opportunities. Overall, unless you are convinced that the world is going to fall apart, this is the best time to buy since GFC 2008 – providing it is the right home at the right price.

South Yarra, 2/264 Walsh St. A good high $3 million result from Marcus Chiminello. It’s not our job to talk agents up,  but in a slow apartment market Marcus has got a number of solid results in recent times.

Andrew Hayne, Marshall White, Armadale: “There will be a bit more stock post Easter, but May won’t be as busy as years gone by due to Easter being a bit later. The 3 weeks leading up to the June long weekend will be busy after the school holiday period, and then slow down again.”

Daniel Wheeler, Marshall White, Armadale: “What we will see beyond Easter will be fair prices being paid for properties, and a shrinking amount of property becoming available leading into the colder months. June is distracted with a long weekend, and yes, it’s school holidays time again – so we will have some interruptions. In the meantime, enjoy the quieter roads!”

Have a good holiday from all things real estate and see you back bright, refreshed and ready to buy after Easter. Drive safely – Mal.

MALVERN EAST, 72 Kerferd St: A large crowd gathered for the auction of this Gascoigne Estate home, but there was no sale. John Bongiorno (Marshall White), passed in, $2,800,000, no bidders

Key Points:

• A lot on offer in Stonnington today with 42 auctions monitored over a $m with 22 homes over a million bought.
• Although there was a lot on offer – it was a mixed bag quality wise.
• If there is such a thing the good home clearance rate index would have shown a better result than the stats.
• It was a case of a lot of the good stuff sold, some of the good stuff didn’t and much of the overpriced and/or rubbish got what it deserved – zilch.

What sold well

• South Yarra 43 Marne St: Nicole Gleeson of Kay and Burton: Well over the $12,000,000 quote range making Domain Precinct land values at $8,000 per sqm for the bigger blocks. Private Sale mid week
• 54 Stanhope Malvern with Rae Tomlinson under the hammer for $3,170,000.
• 1073 Malvern Road Toorak (Justin Long) passed in at $3,225,000 and a reserve was offered – not taken up – two new bidders appeared and a second auction took place resulting in a sale well over the pass in figure.
• Malvern East – 13 Chanak with Maddie Kennedy and John Manton of Marshall White – great “feel” home but tougher location being fringe Gascoine to get the $2m plus number – it got it.
• Toorak – 3 May – Richard Hornidge of RT Edgar – a bit of a dog single fronted needing a reno but was priced sensibly – bought for $1,055,000.
• Toorak – 1a Nareeb Court  – Matthew Wassylko of Marshall White – 0 bidders last year, this year 3 bidders and was bought for $2,940,000.

What didn’t sell well

• Luxury Apartments seem to have ground to a halt – one big exception 2701/368 St Kilda Road Melbourne $3,410,000 – Marcus Chiminello – No real capital growth there, but at least it sold.
• Toorak – 3 Denham – Courageous price expectations?
• Malvern – 225 Tooronga – Difficult location?
• South Yarra -  3 Shipley – Good home and garden but some Punt Road noise and some overlooking?

• Toorak Ottawa Avenue : Jeremy Fox of RT Edgar – quiet sale off market in the mid $8m’s
• Toorak 19 Huntingfield: Justin Long and Peter Bennison of Marshall White – mid week auction, 3 bidders and on the market at $6,700,000. Bought under the hammer for $7,060,000. James Connell said afterwards that this market was not all bad news and Huntingfield supported that.
• Canterbury 13 Rubens: Jeremy Desmier Fletchers and Tom Ryan, Sold before Auction: Over $3,200,000
• South Yarra – The Caroline Coachhouse – they were looking for $3m ish for a very long time (eg in the years) and now Mike Gibson – Kay and Burton has got it away.

South Yarra 17 Acland St: Gerald Delany. Fairly typical of the market for the slightly overpriced or slightly less than perfect. Passed-In with no bidders and now for sale at POA.

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Week Ending 26th March: The Market at this level was fairly quiet this week with the good sales, price wise but not too many of them.

• Templestowe, 9 Edwin: On the market since October of last year with Jeremy Tyrell of Fletchers. Has been bought for in excess of $4,700,000
• Richmond 37 Docker: Ken Griffith of Jellis Craig. Bought at auction, $3,300,000 – $3,500,000
• Hawthorn 23 Lisson Grove: Michael Lui of Marshall White. Bought after auction $3,600,000 – $3,800,000
• Toorak 17 Lansell: Lisa Jarrett of Abercrombys. On the market since December of last year and selling for circle mid $3′s

Armadale 1026 Malvern Road: The recipe was there for a good auction - quality period home on big land - however the market is a different beast from some time ago at this price level and a quiet auction took place with Jack Bongiorno in charge. Opened on a bid of $3,400,000, passed in to that bidder and was bought after for an undisclosed amount. Crowd of 40.

Week Ending 19th March:

Off Markets, Forthcoming Auctions and Expressions of Interest are increasing as market stock levels begin to rise dramatically. However some big sales including a $13,000,000+ in Toorak and a $7,000,000+ in Brighton along with a few other $3m+ buys indicate the market hadn’t completely gone to sleep .

James Tostevin: “Overall a good day. The $3m+ market is hard to read and we are not getting huge numbers of bidders at many auctions;  so there is a case to say the results may be looking healthier than the market actually is – but from a purely stats points of view (clearance rates) today was a good day.”

In Boroondara:

• Balwyn 34-36 Linckens:  (Toby Parker of Hocking Stuart) – a $3m+ auction slotted in for auction this weekend has been bought before.The quote was over $3.7m and if, as we believe, it was bought for close to $4 million then it was a strong sale.
• Kew 41 Victor Avenue: (James Tostevin) – Two strong bidders and sold under the hammer for $4,100,000.
• Canterbury 17a Alexander Avenue: Passed In $3,200,000. No bidders
• Kew 22 Stawell: Passed In $3,000,000. 0 bidders.

In Stonnington:

• 19 Kingston St, Malvern East, Iain Carmichael (BenMac); After auction in excess of $4,600,000
  “Auctioneer Iain Carmichael was in charge of proceedings for this picture perfect home.  A large crowd of over 80 packed in to the beautiful mature gardens surrounding the house, as the sun shone to show this property at its very best.  The initial vendor bid of $4,250,000 didn’t seem over the top given the location of this park-adjacent idyll.  Despite the auctioneer being confident of a sale, no further bids were forthcoming and, after referral to the vendor, the property was passed in. (Debbie McTaggart)
  Footnote: Nobody bid at auction at $4,250,000 but 2 bidders emerged post auction and fought it out afterwards to a price well in excess of the reserve and well in excess of $4,600,000. Go figure.
• Armadale 1026 Malvern: James Redfern of Marshall White: Passed in $3,400,000 and bought afterwards. 1 bidder.

In Bayside:

• Brighton 29 St Ninians: As always, auctioneer Jonathan Dixon opened proceedings right on time and the preliminaries were soon completed. This property has a supreme and uninterrupted view of the Bay from the City to Royal Brighton Yacht Club and the potential for future development was clearly explained by Mr Dixon. Nevertheless, no bids were forthcoming and the property was passed in on a vendor bid of $7,300,000.
• Brighton 18A Martin: Passed In for $3,300,000. 1 bidder.

Labour Day Weekend March 12th: As expected minimal activity over the weekend; well no auctions that is – a heap of new stock was listed to go onto an already over supplied market.

Brighton 2 Shandford: Bought Post Auction for over $7 million or in around $10,000 per sq metre - meaning Melbourne absolute waterfront is amongst the most sought after land in the world. Regina Schmidt and Brian Devlin from Buxton.

On a buying note, the Golden Mile in Brighton is still alive and well with Regina Schmidt and Brian Devlin from Buxton getting 2 Shandford away post auction for an undisclosed amount over $7 million and in fact over Shandford’s other $7 million sale of a few weeks ago. This home had some positives and will possibly be retained but with two blocks totaling around 1400 sqm going for nearly $15,000,000 this shows that Melbourne absolute waterfront has some of the most sought after beach front in the world on a dollar per sq metre basis.

Another quieter one in the Golden Mile just before the long weekend – 11 Kent Avenue (Stan Fisher of Biggin and Scott) – was reported as bought again for an undisclosed amount having been sold only last year for a tick over $4 million. The rest of Melbourne may be a little quiet, but Golden Mile Brighton is relatively hot for land sales (compared to previous years).

In the heart of the Bagel Belt at 85 Lumeah Road Caulfield North (Gowan Stubbings of Kay and Burton) a large block of land (around 1800 sqm) with a tired home on it was sold for an undisclosed amount for over $4 million, under the hammer, having been on the market at $3.5 million – 3 bidders. That makes it number two along with Langdon Road at or over $4m in the last fortnight in Caulfield.

In Stonnington 20 St Georges has been bought for an undisclosed amount. The property had been quietly on the market for some time before a more public campaign this year. The asking price estimate was $12,000,000 to $15,000,000 and it is believed to have been sold in the middle. Andrew Tolson of TBM was the selling agent. We went through it a few times on behalf of different clients and found it to be a home of some class with good light and a nice flowing floor plan – slight negatives were a less than full-sized tennis court and some overlooking at the rear (although it was not significant and, if you lost the tennis court, planting could remedy that). Being St Georges it commanded a premium – although to date its “little brother” down the road at No 10 hasn’t sold at an already passed Expressions of Interest deadline. However, considering the home’s characteristics, it would be hats off to the agents if it got near their $10,000,000 ask, even if it is St Georges.

Also went through 14 Bruce St Toorak late last month –  it has been bought for a reasonable margin over $3,000,000. Again showing the power of good architects and in particular Wayne Gillespie. Difficult block and orientation and a market place that has competition for supply, so this was a good result for an Expressions of Interest campaign and the man that sells a number of these very quietly – Marcus Chiminello.

‘Hoping for $3m in a different market but didn’t quite get there’ stories: In Port Phillip, 7 Pilley Street in St Kilda East, which was originally marketed at an ambitious around $3 million, has been bought for around $2.6 million - Jeremy Fox of RT Edgar. All things considered, this was still a very good result for the area. In Malvern, 5 Gaynor Court with Rob Vickers-Willis got to $2.73 million and a three storey terrace home in Carlton with Anthony Gattuso of AG Property got around the same amount. All solid results.

Overall still a lot of properties on the market at this $3m+ price level that have completed normal auction and Expression of Interest with no result.

Malvern 66 Claremont: Iain Carmichael: Bought for $3,700,000: 3 bidders: At this point, someone yelled "is it on the market?" and the BenMac team hastily retreated inside to speak to the vendor. Upon his return, Mr Carmichael said yes indeed it was on the market and it was here that the bidding really took off. After the price hit $3,625,000, one of the bidders went bang - $3,700,000 - and knocked everyone else out of the competition. A great finish to a great auction

Week Ending 5th March: All the bigger deals were basically in one spot, Stonnington.

Actual Boughts in Stonnington:

• Malvern 19 Hamilton – Justin Long – At Auction – $4,357,000
• Malvern 66 Claremont – Iain Carmichael – At Auction – $3,700,000
• Toorak 9 Ross – Justin Long – Auction – over $3,600,000
• Toorak – 3 Teringa – Andrew(s) McCann and Macmillan of Benmac – post last weeks auction – over $3,500,000 – nearly $5000 per sqm for rear south facing land
• Toorak – 611 Toorak Road – Expressions of Interest – Greg Herman of RT Edgar – $3,500,000
• Toorak – 231 Kooyong Road – James Redfern – Post last Saturday’s auction – over $3,500,000
• Malvern East – 127 Finch St – Rob Vickers-Willis – $3,300,000

Bayside: A Key land Indicator

• 11 William St Brighton with Rod Richardson of Hocking Stuart – $3,100,000 for 1383 sqm of land = $2,241 per sqm for land in central Brighton. Solid and expected result. 5 bidders.

Boroondara: Action at the Top End almost non-existent

• Stock Surge – Large amounts of $M+ stock are hitting the market for pre-Easter campaigns
• 61 Bellett Camberwell has been on the market since July of last year and was sold by Sam Wilkinson of Kay and Burton mid week for $3,100,000.
• The Balwyn formula of big block, new home, big price tag seems to have come to a grinding halt – very few high end new sales. Opportunity?
• Off markets are on the increase.

Port Phillip: The overpriced are as cold as ice in Port Phillip right now. No bites, no action – as evidenced by the pass-ins of yesterday and the first two weeks of this market.

• I went to a Beaconsfield auction yesterday – the offering slightly less than perfect but still a great spot – however the start was a $4million vendor bid and then a $4,250,000 vendor bid. I may have to eat humble pie when the result comes in but for me the four sales on this strip over $4m last year seemed different offerings.
• 49 Howe Crescent, which was advertised in an Expressions of Interest campaign for later this month, sold last week well over its $5m+ guideline for more than $6m (we believe). A very rare large land size at 915 sqm with a double fronted Victorian on it shows the pulling power of large land so close to the CBD in the St Vincent Garden precinct (or just off it). Michael Coen of Hocking Stuart was the dealmaker on this one. Good job.

TOORAK, 37 Lansell Rd: Andrew Macmillan (BenMac) passes in for $2,800,000, no bidders, but thanks the crowd for their participation with a wink or two.

Key Points:

• Off Markets, Forthcoming Auctions and Expressions of Interest are increasing as market stock levels begin to rise dramatically.
• Nobody bid at the 19 Kingston St Malvern East auction (Iain Carmichael) at $4,250,000 but 2 bidders emerged post auction and fought it out afterwards to a price well in excess of the reserve and well in excess of $4,600,000. Go figure!
• Armadale 1026 Malvern: James Redfern of Marshall White: Passed in $3,400,000 and bought afterwards. 1 bidder.
• 20 St Georges Toorak which has been on the quietly on the market for some time before a more public campaign this year has been bought for an undisclosed amount. The asking price estimate was $12,000,000 to $15,000,000 and it is believed to have been sold in the middle. Andrew Tolson of TBM was the selling agent.
• “Little brother” down the road at No 10 St Georges hasn’t sold at an already passed Expressions of Interest deadline – however it would be hats off if the agents got near their $10,000,000 ask, even if it is St Georges, considering the homes characteristics.
• 14 Bruce St Toorak late last month – and it has been bought for a reasonable margin over $3,000,000. Good result for an Expressions of Interest campaign and the man that sells a number of these very quietly – Marcus Chiminello.
• Overall a number of properties on the market at the $3m+ price level that have completed Private Sale or Expression of Interest campaigns with no result.

Agent Q & A:“What is your take on the Economist’s article that Australian house prices are overvalued by 56%?”
Justin Long, Marshall White, Armadale:” While I do not have a view on every sector of the Australian market, as for Melbourne I think the observation is complete nonsense and that by and large house prices for Melbourne seem to me to be reflective of people’s excellent earning capacity whilst still allowing, especially in outer suburbs, the opportunity for low income earners to get a foothold.”

Tim Wilson and Jeremy Fox get ready to do battle at 2 Bromley Toorak, but in the end there were not in the trenches and they stood there as generals and watched 3 bidders slug it out to $5,600,000 - $800,000 over reserve.

Week Ending November 27th:

The high end ($3m+) which like the proverbial brides nightie (not sure if I can say that) is up and down at the drop of a hat. A fortnight ago it was up and last week it was down – this week it was up and in a big way – below are some of the results.

Highlights:

• Toorak 2 Bromley with Jeremy Fox of RT Edgar for 5,600,000 – 3 bidders (see report)
• Hampton 3 Lorraine for over $3,000,000 with Nick Johnstone of JP Dixon (Expression of Interest)
• Armadale Adelaide (Off Market)
• Hawthorn 41 Wattle Road – good home on the market for some time bought for well over $5,000,000 through Paul Keane Jellis Craig
• South Yarra 2/155 Domain Road Marcus Chiminello of Marshall White bought for in excess of $7,500,000 or $20,000 per square metre  (Off Market)
• Toorak 88 Mathoura Road for $6,500,000 bought before – also Marcus Chiminello
• Armadale 12 Munro with Tim Derham, passed in at auction last weekend at $3,000,000 and has been bought afterwards.

$3m+ not so highlights:

• Brighton 12a Manor: Passed In $3,800,000: Zero Bidders
• Hawthorn 5 Yarra: Passed In $4,500,000: Zero Bidders
• South Yarra 16 William: Passed In $4,200,000: Zero Bidders
• Canterbury 35 Logan: Passed In for $2,860,000: Zero bidders

South Melbourne 9 Anderson: An exciting auction which had a buzz from the crowd, trams, birds and sounds of people playing sport down the street at the Melbourne Sports And Aquatic Centre. Geoff Cayzer was auctioneer and, although soft spoken, he was very entertaining with his humour and pre-auction speech. This lightened the atmosphere and allowed two bidders to fight it out after Mr Cayzer's opening bid of $2,850,000. The battle wasn't long though as after some 5 bids the hammer was brought down and the property sold for $3,250,000, which brought cheers and jubilation from the winning bidder's party. A great, fun and entertaining auction to watch.

Week Ending November 20th:

This market seems clear as mud in terms of short term directional pointers. Some good ones sold, some good ones didn’t and all on a turnover down on this time last year and down on September of this year. But the market hasn’t stopped completely in its tracks eg 50 Charles Kew with Paul Keane of Jellis Craig – going nowhere for some time then some interest, then bang a boardroom auction and well north of $4,200,000 was achieved on the night. On the quiet side, a second off market north of $13,000,000 in recent times – actually it was over $15million and in establishment Toorak – Mike Gibson from Kay and Burton the selling agent.

$3M+ Highlights

• Malvern 116 Stanhope: Paul Keane of Jellis Craig. Bought for just under $3,500,000
• South Melbourne 9 Anderson: Geoff Cayzer. Bought under the hammer for $3,250,000: 2 bidders
• Ivanhoe 9 Nyorie: David Oster of Jellis Craig. Bought after auction for $3,100,000: 2 bidders

$3M+ not so Highlights:

• East Melbourne 105 George: Passed In on a vendor bid for $4,500,000
• Malvern 1 Wilks: Passed In on a vendor bid for $3,000,000
• Armadale 12 Munro: Passed In on a vendor bid for $3,000,000

Great Expectations but in the end it was more like Bleak House as 50 Hotham Melbourne East failed to sell under the hammer. Passed In for $7,000,000. Glen Coutinho of Hocking Stuart

Week Ending November 13th:

………But this new state of affairs does not apply so much to the $3m+ market which was a little less shiny today after shining like a beacon 7 days ago. In fact there were a number of significant pass-ins at this level this weekend.

So in a nutshell: last week’s doom and gloom on low quality stock and a negative feel mid-week at open-for-inspections was followed by a bit of a bounce-back this weekend – with more homes selling than expected. But that’s not to say it’s a strong sellers market by any stretch of the imagination. At present the market is, in our opinion, between cool and warm, depending on the quality of the stock. We await with interest next week’s instalment as to where our late Spring market is heading.

Highlights

• 32 Linlithgow, Toorak (Jeremy Fox of RT Edgar) was the biggest sale of the day (see report below)
• 4 Snowden, Canterbury (James Tostevin and Duane Wolowiec of Marshall White), Bought after at an undisclosed price of more than $3,000,000.
• 35 Cole St Brighton (Ian Jackson of Kay and Burton), Bought at auction for a shade over $3,500,000 – after not selling at an Expressions of Interest campaign earlier in the year

Lowlights

• The weather
• Biggest Pass-In was at 50 Hotham East Melbourne, a great home with an 800+ James Rating. It failed to attract any bidding near the reserve and was passed in at $7,000,000
• $3M+ pass-ins at 188 The Esplanade Brighton, 3 Buley Hawthorn East, 18 Heyington and 12 Merriwee Toorak

Camberwell 18 Currajong: 3 bidders, 3 advocates and one great auction: Maurice Di Marzio: Bought under the hammer for $3,375,000

Week Ending November 6th:

What a difference a month and some increased stock levels make. If you have a look at our $3m section in October and compare it to our September report you will see a big difference in activity, especially when you consider the market had a clean run in October with no election and limited footy interruptions, and had five

Click on video to see $3m auctions live

auction Saturdays. This market is as fickle as the horse race we love to watch. In Winter this market was down, in September it definitely perked up and now the $3m+ and off-markets would appear to be edging downwards again. But again the statistics are hiding the full story: there were in fact a few sales over this level we have been asked not to report on, and we ourselves have purchased four off-markets over $1million in the last month, in Brighton, Clifton Hill, Hawthorn and Caulfield. Plus look at this weekend’s $3m+ results! The fact is, there is still plenty of activity – just not as public as in September. There are good homes available for sale off market if you know where to look.

• Elwood 45 Dickens: Jason Scillio: Under Hammer: $3,535,000:  3 bidders
  A large crowd gathered in the front garden of this magnificent property to hear Jason Scillio provide a well prepared preamble prior to inviting bids from a large crowd on this beautiful afternoon. After the usual hesitation, strong bidding emerged from three buyers and it was on the market at $3,450,000. The house was soon bought with a strong bid $3,535,000. (David James)

• Carlton North 810 Drummond:  Tom Roberts:  Under Hammer  $3,450,000:  3 bidders
  What a home. This is the best example of the saying ‘don’t judge a book by its cover’.  It is an ugly duckling from the street, but when you walk through the door you’re hit with one of the most stunning living area renovations I have seen in Inner Melbourne. The auction itself started with a pretend bid at $2,000,000 that was immediately countered by auctioneer Tom Roberts with a vendor bid at $3,000,000 and she took off from there. Three bidders and on the market at $3,300,000 before settling at $3,450,000 in front of a crowd of 125.

• Toorak 6 Benson: Gowan Stubbings: Bought around $3,000,000: 3 bidders
  A great auction to watch. Auctioneer Gowan Stubbings led the way, offering a vendor bid of $2,400,000 after a member of the crowd offered an initial bid of $2,350,000. With three bidders overall, it became a battle between two very confident, strong parties, both determined to fight it out to the very end. One bidder offered increments of $10,000 and even $100,000, while the other settled on $1000 increments each time. Ultimately, the $1000 bidder won, walking away with the property for an undisclosed amount close to $3,000,000. A very entertaining auction with a crowd of around 60. (Jen Milligan)

• Some solid results outside Saturday’s auction:
  Toorak 63 St Georges: Andrew Baines of Kay and Burton: Expression of Interest for just under $8 million. Went through this home and tennis court.It had a good feel and, just as the ad says, an exclusive street address. At around $4,000 per sqm it was a win for the buyer and seller.
  Two blocks of flats sold at mid week auctions: South Yarra 28 Tivoli ($4,825,000)  Philippe Batters: 46 Ulupna; Ormond ($3,700,000) Andrew Chisholm.
  Brighton 11 Kent Campbell Cooney was bought post auction for $4,100,000, which put south-facing, non beachfront land on the Golden Mile at $3,800 per sqm

• It was gratifying to see the number of professional advocates acting for buying clients this weekend. The Bidderbuzz auction at Currajong auction had three advocates, and there was one each on Benson, Drummond, Elwood. While the advocate didn’t win the chocolates for their clients every time, at least it shows more $1m, $2m, and $3m+ buyers are making informed decisions.