Sorry did you say 5 bidders! This is June not April. A great Jeremy Fox RT Edgar auction took place at this home 23 Ferncroft Avenue Malvern East. Bought under the hammer for $3,560,000

Stonnington seems to have got itself back into the game with a second “OK, sort of – almost normal” auction week in the 60’s clearance rate wise. We monitored 23 homes of which 15 were bought; that’s a 65% clearance rate (last week 69%). Of the auctions we  attended 7 of the 10 were bought.

What’s happening? Price reduction is happening. The buyers are there!  Buyers got hit early May with a lot of stock and could see a lot more coming and they paused. That meant things didn’t sell as easily as April, pass-ins occurred and prices dropped. Stonnington sellers have had two more weeks than those in Boroondara to face the “new order” and they have used those two weeks to price adjust and things are now beginning to move again at auction. Welcome back sellers – lets see what happens from here.

High Noon for K&B

It was a case of Toorak High Noon for Kay and Burton today with 3 substantial properties for sale around midday. One sold before (3 Cleeve with Andrew Baines) and two failed to attract any auction bidding interest (9 Kenley and 10 Moonga). The thing of interest is Kay and Burton’s new style of auctioning.

1)      Run the campaign and gather intelligence but give little way

2)      Tell everybody the ball park figure on Auction Day via a Vendor Bid and then shut it down quickly.

3)      Deal with the brave and inquisitive under pressure afterwards.

For the most part we thought this was not working early May – early June I’ve become a believer for now. It’s a well thought strategy. Early July let’s see …… Kay and Burton is a very strategic company; they run campaigns in waves – feeding off each other, regrouping and then going again. It was no coincidence that May was a stellar of stellar months for their vendors and themselves - they had obviously been planning it since Christmas. K&B appeared to lose their way for a short time when they focused on others; but the generals have pulled hard and the well oiled Millionaire Machine is back in full swing.

EOI

They are back and moving along. We have just assessed a really interesting home at 3 Avalon Road Armadale (Ross Savas of Kay and Burton). We have a rating on it and price thoughts. If we can help you through the EOI maze please give us a call.

Andrew McCann of Bennison Mackinnon’s thoughts on EOI to the question, “do you think EOI are increasing and working at the Top End”?

We don’t deal in a lot of EOI campaigns and as a company we don’t think they work as well as the Auction method so they are rarely suggested. Buyers tend to find them confusing and prefer to either know an asking price for a Private Sale or bid in a transparent and open environment which an Auction allows for. They do have a place at the “very top end” of the market and for some “unique” properties however from the more recent EOI campaigns we have seen they don’t seem to be working.

Twoday.com.au

Marshall White – the ever innovative have launched a new under a million, new age, internet savvy, younger persons company (I think I got that right). The main aim is to give a focus to this very important market while still allowing Marshall White to keep its exclusive high end identity. Darren Saunderson heads it up and while it is not our market, we will watch with interest. Good Luck with the new venture. 

Its not million dollar news but intersestingly South Yarra produced 18 results for a 78% clearance rate today however not one of  the sales was over $1million. Below are the results around and over a $million.

Make Good Decisions

Looking good Lachie! One of our favourites Lachlan Fraser-Smith ably assisted by Simon Dale gets four bidders zinging to an "under the hammer price" of $1,672,000. Prahran 1 York Place.

Nathan Waterson – Focusing on Stonnington

Nathan Waterson of Bennison Mackinnon

Kristen: Hi Nathan.

Nathan: Hi Kristen. How are you?

Kristen: Good thank you. I’m here today with Nathan Waterson one of the partners at Bennison Mackinnon, he’s been there for five years now. We are just going to have a bit of a chat about the market and what’s been happening. The first thing I think would be Clearance Rates, how have they been going so far this year?

Nathan: Look there’s no doubt we’ve seen a leveling in the market right across the board, but as a company we’ve still been transacting on or before the day at about 87 per cent, so a little bit down on the 94 (per cent) that we were tracking at last year.

Kristen: Okay and if we look at land prices – I mean we look at Armadale – you look at land prices there at what sort of price range at the moment, per square metre?

Nathan: Per square metre – generally in the better suburbs and probably the bigger blocks of land they’re tracking at about $3500 a metre, for the smaller properties at a little bit less than that at the moment.

Kristen: So if we jump across Glenferrie Road, perhaps to the Haverbrack area, what sort of price ranges do we find there?

Nathan: It’s been a little while since something has transacted in that sort of precinct, whether it be Haverbrack or into the Stonnington State. But they’re generally at a similar sort of price around $3500 (per sqm) maybe a little bit more for a home that you’re not going to see come to the market too often.

Kristen: Okay. Now Prahran’s been pretty strong this year, your thoughts there?

Nathan: I think it’s been driven largely by the fact that we haven’t had a huge amount of property to offer out into Prahran this year. It’s been quiet on the front of the single-fronted cottages where they’ve been creeping into that $1,000,000 to $1,300,000, $1,400,000 price point – if they’ve got parking.

Kristen: And then the buyers, where are they coming from do you find?

Nathan: The buyers into that Prahran market on those sorts of cottage type homes are generally trading up within the suburb or a couple of suburbs surrounding. Or they are downsizing coming the other way back from suburbs such as Malvern – where they’ve been on a double fronted home with a pool and the kids have maybe already grown up and moved out.

Kristen: So if we look forward to the future. The listings that you’ve got coming up, I know that stock levels at the moment have been pretty strong we’ve found across the board.

Nathan: They have been, absolutely.

Kristen: What are you finding for the future months?

Nathan: We’ve got really strong numbers of listings up for the 19th and 20th of June already, and then we’ve got a little bit of a break over the school holiday period.  And we are already starting to list very strongly for that period of the 31st of July and beginning of August. And we’ll see pretty good numbers coming up just prior to spring.

Kristen: And we’ve seen a lot of properties selling on main roads. Are you still getting those sorts listing? Are they still selling well?

Nathan: We’re probably not carrying any just at the moment and the ones that we have seen go up this year have probably been the harder type of properties to sell as they always are. But while the market was good they were moving like everything else. It’s now that we’re starting to see those just thin out like the rest of the market place.

Kristen: Okay. And if we finish up with your predictions for the market, what are your thoughts there?

Nathan: I think the market will probably track along pretty similar to the way it is at the moment, where we’re seeing 1 -1.5 buyers at most of our auctions whether it be on the day or before – as we’re starting to see more sales come about that way. So I think you’ll just see a pattern that continues like it is.

Kristen: All right, well thanks Nathan. Thank you for coming in.

Nathan: My pleasure. Thank you very much.

Kristen: That’s Nathan Waterson from Bennison Mackinnon.

Glen Iris 18 Clyde: "The Boss" John Morrisby letting the 3 bidders know they are a bit short at $1,385,000. Passed In but sure to be dealt with soon if the vendor knows the new market.

Stonnington was surprisingly strong with Park St South Yarra (Warwick Anderson of RT Edgar) going well past $3,900,000 on multiple bidding; 81 Clendon Road Toorak (Gerald Delany of Kay and Burton) selling post auction north of $7,350,000 and 64 Burke Road Malvern East selling before for 3,320,000 or $1366 per sqm for main road land.

The clearance rate was back to almost 70% and our recent frosty forecast for the next month in Toorak and South Yarra now seems as reliable as a weatherman in Melbourne’s spring.

No, no, no Toorak is not on fire – it’s just not quite as cold as we thought. And while sounding like a Kay and Burton salesman, please tell me how you ignore a claimed 80 sales at around $250,000,000 for the month. Either Michael’s having me on or the market has some real hidden strength, notwithstanding at less frenzied prices (that’s agent code for slight dip).

Why the auction turnaround – price adjustments. The vendors of late May have proven they can read and don’t wish to experience the early May vendors pain; so they have swallowed the price pill to become sellers and avoid remaining owners.

The market, the agents and the jungle drums have worked. What happens now becomes a function of stock levels going forward as some demand (for now) has been proven to be there.

Other interesting sales and (almosts)

• At an auction in Clarendon St Armadale (Madeline Kennedy and Andrew Hayne of Marshall White) where a nice little Edwardian single-fronted was bought for just over $1.2 million, and its twin sold earlier this month for $50,000 less. Hard to argue against that fact although it is only one fact.
• 12 Chesterfield Malvern (Rob Vickers-Willis of Abercromby’s and RT Edgar’s Will Cooper) which has been on the market longer than it takes to get an apology from a selling agent seems to  have some post auction momentum and should sell north of $3 million or over $3000 per sqm and a free house (which we like James Rating 667/1000)

All in all a humbling week or so for this Top End predictor.

Stonnington Auctions – 26 monitored – 18 bought – 69% clearance rate

 Make Good Decisions

Toorak 81 Clendon Road: Listen to Gerald's gospel my sons, bid now or bid afterwards; either way the vendor is getting your money. Gerald Delany, Mike Gibson and Ross Savas - K&B's true believers. Bought afterwards for over $7,350,000.

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

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

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

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

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

So why have we eased?

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

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

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

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

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

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

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

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

Make Good Decisions 

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

South Yarra 7 Kensington: A lot of standing around on a beautiful autumn morning - but that is not meant to be the entire auction script for Kay and Burton. No bidders. No action. Nice day though.

Of the 11 Stonnington auctions we attended today, four properties sold under the hammer, one before with the balance passed in (one of those six has since been reported as sold).

Of the pass ins, five were passed in with no bids (apart from a vendor bid).

So are vendors getting ahead of themselves?

Let’s first look at what was bought.
The stand-out sale was 32 Grandview Grove Prahran East, which Justin Long of Marshall White sold under the hammer for $4,410,000. The property was the previous gallery of Dr Joseph Brown, the well known artist and collector. It’s not often that Prahran East will record the highest price sale in Stonnington, but this is a rare house and although it will take a large budget to restore it to it’s former glory the challenge may well be worth it.

Abercromby’s Rob Vickers-Willis had two of the next best with 2 Willis Street, Prahran selling for a bullish $2,111,000 (3 bidders) and 14 Wheatland Road Malvern going post auction for an undisclosed amount in excess of $2,250,000. An impressive 6 bidders from a crowd of a 100.

Marshall White chipped in the 67 Emo Road Malvern East which sold for $1,381,000 through Phil De Fegely and John Bongiorno managed a smallish crowd but with 3 bidders to an “under the hammer result” of $2,245,000 at 94 Claremont Avenue Malvern.

The lack of bids for some of the pass-ins could not be put down to the quality of the property. For example the two South Yarra terraces which went to auction, at Kensington Road and Davis Avenue, had both undergone extensive and quality renovations with very few if any negative comments on their quality and style. Neither street would be classified as South Yarra’s best but they were both quality houses.

Equally, 5 Hopetoun Road Toorak was renovated to a very high standard and sitting on about 1000 square metres of land.

So why no bids?

Well, price is about the last remaining variable-  it is not going to be the strength of the marketing campaign or auctioneer as a number were handled by the Kay & Burton “A” team.

If there is a message for vendors: to sell, you need a willing buyer and a willing seller – and agreement on price.

Prices do not keep rising every week and your house may not be seen as 15% better than your neighbour’s house just because it comes onto the market a month later.

Make Good Decisions

Abercromby's Rob Vickers-Willis in fine form at 14 Wheatland Road Malvern with a big crowd of a 100 producing 6 bidders and a post auction result in excess of $2,250,000. Photo: Julia Atkinson

It is 6pm Saturday and the James Million Dollar-Plus Clearance rate for the 36 Auctions we attended today was a solid  75 per cent on good stock numbers.

The “frenzy” feel has left the highest of the higher end market for now as the new age businessman and establishment money, who determine the Toorak market, reconsider after

(1)    looking at their business’s forward estimate balance sheets.
AND
(2)    looking at the prices being asked.

While we are indicating we think the market has cooled in the last fortnight, we are not saying prices are dropping – they are just leveling a bit as buyers say; no more – nope – that’s enough – I don’t wish to afford anymore. Consequently at the TOP END there are now fewer occasions when there are multiple extreme bidders pushing prices 10% beyond the previous week’s experiences. This in effect has produced a leveling of demand at the $2m+ mark and consequently vendors are selling at market expectations in line with last months performances or they are not selling.

The price surge since November 2009 on top of the unending climb since March 2009 may well be showing some light at the end of the tunnel for distressed buyers.

But please . We felt this cooling about a month ago and then the pre-Easter weekend slapped us in the face and said: “No buddy you’re wrong – no market leveling here”. That same cooling feeling or perhaps better described as less frenzied feeling is flowing freely throughout the Top End of the market today as buyers simply say. No.

No – I’m not scared anymore – I need to be sensible and if I can’t buy it at that; then I need to move on and find one I can.

This could become the May 2010 buyer mantra as we have good stock levels for the next 4 weeks. How long will it last? Personally I think it is a thought of some substance and we may see an extended period of buyer caution.  We are saying buyer caution not buyer inaction.

Many (not all) of the buyers who have a few million and then some to spend on a home understand money. They understand balance sheets; they work and/or mix in positions where they observe what is happening in business. And businesses right here and now are asking questions of the future.

So while buyers are not panicking in any shape or form – they are still around in very strong numbers – they as a collective seem to have taken a more circumspect view of what a home is worth to them. Buyers seem happy to leave it to those that must have it (bullish buyers or unrealistic sellers) and move on in search of a home that is good quality and sensibly priced.

Let’s hope this is the case because no one, bar an opportunist, loves operating in a boom and bust market. And if we keep booming then we are going to bust.

The Inner Melbourne Median Market say $1million to $1.5million is a completely different animal and this is to be expected. At this level discretion is not an option – you need to house the family. They are getting bigger or you are moving here or you are leaving home. Buyers need to buy and they still are in strong numbers. Nope. This market is still giving the impression it is well and truly unsatisfied and still has an incredible appetite for the markets offerings at this price level.

Some of today’s (Saturday May 1^st) stats on the auctions we covered

Over $2million – Bidderman 1.9. Clearance Rate 60%

Under $2million – Bidderman 3. Clearance Rate 82%

The market is not going backwards, it is just rejecting those who are still on the rise and rejecting those agents who have promised the world and then some, run a campaign accordingly and looked around at auction time surprised it’s not 15% over last week’s best result.

However buyers the market is not weak; it is still very strong at the right price for the right home.

Buy happy

Mal

Malvern 14 Wheatland Road auction crowd in excess of 100.

Malvern East 104 Manning: Bought under the hammer for $1,760,000: Bidderman 3: Andrew James working the crowd, the bidders, the vendor, his staff. Whatever it took - he was there until a result. Deal done. Good Work.

Not many highlights today as the supply of quality properties was limited and buyers may be waiting for  the promised stronger offerings in May.

At the upper end, results were mixed, with an attractive Gillespie townhouse on Walsh Street passing in at $4,820,000 after a vendor bid of $4,800,000 in front of a quiet crowd. Another pass-in was a new modern property at 3 Willow Street Malvern. Bidding started with a genuine offer of $2,800,000 and then  topped and stopped with a vendor bid of $3,000,000. Similarly in East Melbourne, 181 Gipps street was passed in for a second time in less than a year with a genuine bid of $5,900,000.

On the other side of the ledger a well renovated period home on Manning Road in East Malvern sold for a strong $1,760,000 after 3 bidders competed in a good old auction, where there were no vendor bids and no half- time break. Across the highway and into St Vincent Place, a smaller period home sold for $1,631,000 while on Chatsworth Road in  Prahran, a small period home requiring a complete rebuild sold for $1,165,000.

The latter sale raises the interesting challenge for Gen Y kids and their parents, as the starting price for even smaller inner city un-renovated properties is close to $1,000,000 – and then you need to renovate. This issue normally gets most publicity around election time – but if you are a parent with say 3 kids, who at some stage will want to live in their own property, what are the solutions ? Well you can always write a cheque from petty cash – but not everyone has that option.

The parents can guarantee the mortgage – but Gen Y kid ( and whoever else ) will need the cash flow to meet the mortgage payments. For example an $800,000 mortgage for 25 years at 7.25% requires payments of  about $5800 per month. That’s about $70,000 per year after tax. That means Gen Y kid  ( and partner) need to earn a minimum of $250,000 to meet mortgage payments and then live on approx $1000 per week! Now that may not seem very attractive as Gen Y kid also want to renovate and drive a smart car and live in the fast lane. So a guarantee may not be the answer.

The “killer ” is the entry price of the property. If somehow the deposit can be increased, then mortgage payments may become more affordable- but the family savings plan needs to start early and be relentless. Otherwise think outer suburbs!

Make good decisions and think ahead

Toorak: 140 Kooyong Road - Bought $4,040,000 - Bidderman 2. Although this went better than some thought it would, an overall toughish day for Iain Carmichael and an even tougher day for many slightly surprised auctioneers across Melbourne who were performing to less enthusiastic bidders than a fortnight ago.

It is 6pm Saturday and the James Million Dollar-Plus Clearance rate from the 31 Auctions we attended today was 61 per cent. Wow that was a bit of a surprise! Please note we thought the quality of the homes on offer was not as high as the last two weeks in February or the upcoming March 27th auction list.

Bidderman
A major drop in Bidderman today. Bidderman was 2.8 the week before our Labour Day break and today he was 2 bidders per auction.

Wormie the Price Worm took her first breather of the year and flattened, maybe even fell a bit. Prices should continue to remain level or even fall marginally for next fortnight or so – after Easter price rises or falls will in part be determined by how quickly any overhanging (if any) March 20th and 27^th stock is mopped up by the market; and what new stuff is coming on in late April following the Easter hiatus and off course any change in buyer sentiment.

Feel and Mood
There was definitely a more subdued feel out there today. Why? Well it could have been that the overall quality of stock was not at the premium level of February 27. It could have been that it’s the natural ebb and flow of buyer mood. March 27 has some rippers on offer, so maybe buyers are holding off; nonetheless the word around the traps is an easing and todays results for the moment show that. We have said that March 27 and the first month after Easter are the real 2010 tests. February did start very strongly but in part was this a reflection of the angst 2009 unsuccessful buyers felt or was this a pointer to 2010? As we say its early days and all things are still pointing upwards for prices in 2010 but today was not as convincing as the last few auction weeks. As buyers we hope we are not just imagining things -some rebalancing would not be a bad thing. Reminding buyers that they can be little seller hiccups in the middle of a bullish run eg the week after Melbourne Cup. Next two weeks will be interesting.

Stock Levels
We looked at more than 100 homes last week. There were many new ones on the market with sellers trying to get sold on March 27 before the Easter shutdown.  2010 has been both a feast and famine for $1 million-plus properties. The feasts of new stock were three weeks (typical auction campaign length) before February 27  and this week, which is three weeks before March 27. Easter is in early April, so, after March 27, we have a gap of a few weeks before housing stock should arrive on the market in a more orderly fashion. Then there will be a more consistent level (down or up but fairly consistent) before the build-up to Spring Carnival racing, footy and, finally, Santa. If you are thinking about buying a million dollar plus home now is the time to be looking with an incredible 150 auctions scheduled for Boroondara, 70 for Stonnington, 50 for Bayside and 40 for Port Phillip in the next fortnight you mightn’t see what you want but at least you will get an idea of what is on offer.

28 Victoria Avenue Canterbury: Auctioneer: Gerald Delany (Kay and Burton) 
Result: Passed In $4,025,000 Bidderman: 1
Fantastic French Provincial house in one of Canterbury’s best streets. Highlights include a 6 car garage and a 2000 bottle wine cellar.  Kay and Burton (Ross Savas and Michael Armstrong). James rating: 771.
James Auction Report:The usual big crowd (180) with a fair level overseas interest for this Gerald Delany Kay and Burton auction. In the $2,000,000 to $3,000,000 price range the newer homes go well in Boroondara but as you rise to $4,000,000 and above the bidders at auction drop and this was no exception with a longish drawn out begging procedure from Gerald after an opening $4m vendor bid which finally, finally resulted in a lone bid and pass-in at $4,025,000.

17 McKinley Ave Malvern: Andrew Macmillan  Auctioneer:
Result: Bought under the hammer $2,460,000 Bidderman: 2
Gracious period home with a light filled extension close to Claremont Ave Village and Malvern Station. Advertised in the $2,100,000 to $2,300,000 range. Bennison Mackinnon (Tim Bennison) James rating: 862.
James Auction Report:
On a sensational sunny day, in a beautiful part of Melbourne, Auctioneer Andrew MacMillan started the auction with a vendor bid of $2,100,000 dollars. After two parties revealed their interest in the Malvern property, the bidding came thick and fast, quickly rising to $2,400,000, at which point Mr MacMillan went inside the house to consult with the vendor, returning to declare that the property was now on the market. Around 60 people turned up to watch the action which peaked at $2,460,000 and was sold to a very happy couple to the sound of cheerful applause.

Mark Stobart from Bennison Mackinnon who is well liked as a knockabout guy and respected within our circles is unwell at present and our prayers and thoughts are with him, his family and those close to him at Benmac. We all hope he gets well soon.

Something Smells

Issue One:  It’s being done
Smart agents and sellers know that buyers are affected in the very critical first 30 seconds by what their senses pick up (our emotions). Smell is one of our senses most easily influenced and smart agents are now incorporating fragrances into the dress-up of houses before OFIs. An increasing number of homes that we visit smell pleasant and evocative: perhaps a salty sea tang or fragrant flowers. Ross Savas and Nicole Gleeson of Kay and Burton are masters at this and are consistently, overall, the best smell presenters of homes we have seen; in fact, they would win that award by a country mile. Painting, gardening, antique furniture, music – they have the ability to convince vendors to spend $50,000, even $100,000, on dressing up their home and, as well, they also get smell absolutely right.

Speaking with Ross, he states that presentation is everything, whether it be a restaurant dish or a birthday present, and  a home is no different. He also said that Kay and Burton has made an effort with fragrances because of the impact they have; for example, many international hotels have a particular and identifiable fragrance, so that you know where you are as soon as you smell that familiar scent.

Issue Two: Prices
Does this result in higher prices? In our opinion, absolutely yes. We went through 482 Barkers Road Hawthorn (James Rating 755/100) mid-week. They are asking $10 million-plus and, besides the manicured grounds, antique furniture and  co-ordinated décor, what we really noticed was the smell. The perfumes, fragrances and aromas throughout the house had been thought through carefully. They were not overpowering in any way but they evoked a response from our senses and to such an extent that we thought about the smells of a few other homes we’ve been through recently. Another one that sprang to mind was 83 Marine Parade Elwood (James Rating 836/1000), also coincidentally Kay and Burton-Michael Armstrong. This home, almost on the beach, had the smell treatment; a bit different from Barkers Road as it incorporated the sea and a more homey feel.

But it’s not just smell; sound is also a big deal.

Issue Three: Disguise problems
Music and water fountains are mood setters but they are also noise disguisers and are especially good at deflecting road noise. Politely ask it to be turned off next time (for a minute or so) if you wish to gauge road noise levels. As an aside, I still go into some houses that have doof-doof or loud music playing – in fairness, it’s rare; but it’s hard to see the positive features in a home with that sensory attack.

The increased emphasis by high-end agents on sound, visuals – furniture, knick-knacks and flowers – and smell only confirms our view that buying a home is dual outcome process – emotional and financial.

Issue Four: Opportunity
Let’s look at one of the senses in isolation. How important is smell in the emotional decision-making process? Well, at the extreme end, smell is an incredible turnoff – for example, the smokers and fresh paint combination giving us the trashed rental home feel; or the damp, dank odour that lingers from darkened corners of a home – makes us all nervous to put our hand deeper into our pockets come auction time. But does bad smell equal a bad home? Not necessarily. It can be an indicator of a problem or a partial cover-up (which a building inspection can help uncover); but on the positive side, though, smell can also be a turn-off to the one or two buyers who would have been your competition. Most smells can be removed in time, via improved ventilation, fixing the problem or removing the source. So if the house flow, room sizes, price and position make sense, then maybe your financial sense needs to override your emotional (and smell) sense.

Similarly, bad visuals – outdated wallpaper or garish paintwork or furniture that only your great-uncle would have used – can act as a turn-off to your competition, but this can often be one of the easiest things to fix in a house. One house currently on the market is 5 Beech St Malvern East, with Adam Cashmore of Jellis Craig(rated 709/1000). While it is a good home, it has a strong individual décor that, in our opinion, is suited to a small minority of people and could potentially be pushing away a number of potential buyers. We don’t think you should be turned off this property because of the pig out the front (please, no, that’s not Adam or Jeff) or the colours inside, as it is a good, practical family home.

Issue Five: Misunderstanding
And one final point on this:  the feel sense – often we are thrown by wobbly floors and we should have a raised eyebrow but many times this big time turn-off to many is a relatively easy and inexpensive fix. It’s called restumping and, in some cases, it’s less money than your new TV.

Issue Six:  First impressions
Perhaps, as buyers, we should not be so keen to accept or reject without a more thorough examination – eg a rating. First impressions are often the best impressions but make sure that these impressions are worked through and don’t lead you to poor decisions.

PS the owners of 5 Beech St Malvern East have a nice home and are perfectly entitled to present it how they wish  -  after all, I’m the idiot in an 18^th century hat!

Buy Well

Mal

Malvern: 17 McKinley - Bought $2,460,000. Bidderman 2. Andrew MacMillan thinking "Phew finally got one over the line - heard it's been a quiet in Stonnington today."

Not a whole lot on offer today and certainly minimal quality for the most part.

Something old, something new. What sells? Well this week it was something old. Two good old sales were: 140 Kooyong Road with Iain Carmichael of Bennison Mackinnon (James Rating 691/1000) which sold for a bullish $4.04 million after being on the market at $3.6 million. Two bidders in a crowd of 70 made strong sure prices on this part of Kooyong Road were confirmed at least at $3400 per sq metre. In our rate we could see why $4m was thought but we weren’t sure it was getting there. It did – and despite today’s drop in Bidderman nobody is saying the market is weak.

The second positive result was at 17 McKinley Avenue Malvern also with Bennison Mackinnon’s Tim Bennison (James Home Rating 862/1000). This was bought under the hammer for $2.46 million – an attractive house and land package – in a good Malvern street. Again two bidders in a crowd of 60.

Meanwhile negotiations are continuing on a very good oldie at 9 Kensington Road South Yarra - Alex Schiavo of Kay and Burton .This  was passed in at $4.5 million after an opening vendor bid of $4.0 million. Three bidders took the property up in $50000 bids to the pass in price.

The outcome of something new? Well unit 2 at 44 Canberra Rd Toorak – Tom Staughton of Kay and Burton (approx a year old) passed in on a opening vendor bid of $2 million while a new Christopher Doyle designed townhouse at 111 Charles Street Prahran – Sam Wilkinson of Kay and Burton also passed in on a vendor bid.

One result that shows the million dollar market is firing for the right home was 5 bidders fighting it out at 15 Nirvana St Malvern East – Adam Cashmore Jellis Craig with sold for almost $1,500,000. Solid.

Results not all that surprising as not  many properties are on the market after the holiday last weekend and the big weekend prior to that. We spent the week looking at newly listed properties most of which are due for auction on March 27. Over 70 homes with a million dollar price tag are expected to be auctioned in the fortnight so keep your eyes open there are bound to be some seller casualties.

Make Good Decisions

Mark Lawson of Jellis Craig; one of the quietest big achievers. Deep in thought and under the radar. Photo: Mal James

Leaving out Glen Iris – talked about that in Boroondara wrap - we saw 24 $m+ campaigns this week with a seller disconcerting 10 passed in at auction. That is a clearance rate of 58% and the main reason the overall James Clearance Rate is as weak as it is today.

Why? Price is why? Many vendors are dare we say it ahead of themselves. We are no longer convinced we are in an across the board rising Stonnington market.

Prahran: 14 Elm: Tom McCarthy and Philip Moore of Biggin and Scott getting the job done. 2 bidders. Bought for $905,000.

Pass-Ins at: Dunraven, Moss, Caroline, Thanet, Hawksburn, Washington, Toorak Rd, Kooyong, Wallace and Rockley. Heavyweight agencies Kay and Burton and RT Edgar having the majority of these pass-ins between them.

Another tick for transparency at auction – quote em sensibly and tell buyers if you are the only bidder you will buy it at the quote type auction with Lachie Fraser Smith of Bennison Mackinnon firing up a big crowd at Jordan St Malvern (report below)

8A Thanet Malvern (RT Edgar – Michael Ebeling and Jeremy Fox) an incredible townhouse which has been on the market for months was bought this week for closer to 3 than the original $4m ask. No harm in trying -still a good result. Nice home.

An unusual area that we don’t hear much about Doon St Prahran (just off Greville and Chapel Streets) saw an interesting development site sell through Dean Gilbert of Marshall White midweek for $2.265m or $4100 per sq metre. Good land price marker for the area.

Bidderman 2.3

We spoke to James Connell, Director of Marshall White who reported a very strong day with 27 out 31 auctions selling.  He said very strong – across the board. The next three weeks are big for Marshall White.

Auctions we attended today:

CAULFIELD NORTH, 13 Carnarvon Rd -Bought – five bidders
John Bongiorno, of Marshall White, jumped straight into this auction with a vendor bid of $850,000. Mr Bongiorno kept the auction moving quickly, accepting bids from five bidders and putting the property on the market at $1.080m. The crowd of around 50 people watched as the property sold under the hammer for $1.090m.

PRAHRAN, 8 Moss St – Passed in – no bidders
A huge crowd of more than 100 people saw Jason Scillio tend to proceedings at the auction of this Prahran house. Many of the crowd seemed to be neighbours who stayed and chatted after the auction. After failing to attract any bids after an opening vendor bid of $1.3m, the property was passed in.

SOUTH YARRA, 25 Hawksburn Rd – Passed in – no bidders
Andrew MacMillan corralled the crowd of 40+ spectators hoping for a spirited auction for this traditional Terrace. But the home alarm which heralded the start of the auction was the only other sound apart from Andrew’s vendor bid of $2.0 million.

MALVERN EAST, 17 Hughes St – Bought – three bidders
James Tostevin led proceedings which moved quickly after an opening bid of $1m. The property was soon on the market at $1.2m and sold upwards of $1.35m. Three bidders and a good crowd of 60 people

MALVERN EAST, 104 Brunel St – Bought – four bidders
In what was described as a very family friendly street, this house attracted a lot of interest. John Morrisby (Marshall White)was exuberant and generated a lot of bids from the crowd of around 65 people.
A vendor bid opened proceedings at $1.1m and the property was on the market at $1.3m. Four bidders and the property sold under the hammer for $1.43m.

TOORAK,2 Brookville Rd - Passed in – no bidders
Gerald Delaney quickly put his stamp on this auction with a vendor bid of $2.75 million. When a member of the audience suggested that the  bid of  was too high Gerald was quick off the mark with the  offer to negotiate with anyone who would make a bid. No one did and the property was passed in.

MALVERN, 56 Jordan St – Bought – six bidders
A massive crowd gathered for this auction to witness six bidders contest an extremely popular residence. Several times the property came close to sale with late bids breaking a few hearts. The property finally sold for $1.895m.

TOORAK,  57 Washington St – Passed in – no bidders
Iain Carmichael desperately sought a bid for this well finished apartment, but alas the pattern of the morning continued with no action apart from 2 vendor bids of $1.35m and 1.375 Million.Another pass in.

PRAHRAN, 14 Elm Pl - Bought – two bidders
After a subdued start, two bidders entered the fray taking the sale price of this property to $905,000. A good result for this tenanted, unrenovated house in a quiet pocket of Prahran.
Auctioneer was Tom McCarthy of Biggin Scott and a crowd of 34 people.

TOORAK, 22 Avenel Rd – Bought – three bidders
Phillipe Batters asked for an opening bid of $1.9 million and was rewarded with a firm offer, after which 2 bidders quickly took the price to $2.21million. A third bidder then joined in to take it through the reserve of $2.265 million. Bidders 2 and 3 then slogged it out with increments of $10,000, $5000 and then $1000 with the property being bought for $2.321m.

Toorak;21 Glyndebourne: Warwick Anderson took a bid at $3m and then closed on a vendor bid of $3.350m

Little to report on the $m+ front interest after a huge October for most Stonnington agents. Plenty of choice over the next 3 weeks with 24 and 29 Auctions $1m+ auctions planned for the last 2 weeks in November.

Private Sales
36 Heyington Place Toorak was sold by Tom Staughton and Mike Gibson of Kay and Burton. Assuming a complete rebuild the result put land value at $3800 per sq metre. A handful of other private sales over $1m during this time in Stonnington.

Post Auction Results for Gasgoine Estate Blues of 2 weeks ago
47 Finch Street – sold afterwards (John Morrisby of Marshall White) and 74 Central Park road – sold afterwards (James Redfern of Marshall White )

Some of Todays Auctions
6 Brookville Toorak – Passed in – one bidder
A genuine opening bid of $2.6m was quickly countered by a vendor bid of $2.8m. Auctioneer Andrew MacMillan remained cool as a cucumber in the sweltering heat, but the property passed in without attracting any further bids. Crowd of 50 people.

21 Glyndbourne Toorak – Passed in – three bidders
Crowd of 40 people and three bidders. Genuine opening bid of $3m. The property passed in at $3.35m. Warwick Anderson Auctioneer

16 Vincent St Glen Iris – sold before for just over $1.8m in a board room auction through Andrew Hayne of Marshalle White.

Malvern East: 74 Central Park: John Bongiorno of Marshall White schmoozing the crowd at a Park Auction: Passed In.

Surprisingly Malvern East’s Gasgoine Estate was dead as a doornail today with 3 pass-ins from 3 homes (0% clearance); as was Toorak with only 1 from 5 selling or 20% clearance rate but everywhere else was very strong.

Oliver Bruce of Bennison Mackinnon - a star on the way up. Watch this space!

Overall Stonnington which covers Armadale, Malvern, Malvern East, South Yarra, Toorak and we include Prahran was 68% on the 28 auctions we looked at.

Bidderman was  2.6 – which was still strongish considering the properties.

James Auction Reports

36 Peel St Prahran – Bought Afterwards – One bidder
About 60 people attended this auction, which opened with a vendor bid of $1.05 million. The sole bidder made a bid of $1.06 million but there were no further bids from the crowd or vendor and the property passed in at that price. Damien Davis auctioneer.

117 Peel St Prahran – Bought Afterwards – Two bidders
A genuine bid of $1.37 million opened proceedings here. Two bidders from the crowd of 30 people joined in and the property was passed in for $1.44 million. It sold afterwards for an undisclosed figure. Robert Vickers-Willis auctioneer

105 Stanhope St Malvern – Bought – 5 bidders
A bidder from the 80-strong crowd opened proceedings here with a $1.7 million bid. Five bidders bid strongly here, with the bids climbing quickly. On the market at $2.175 million, the property sold under the hammer for $2.4 million. Auctioneer Andrew Hayne

109 Claremont Avenue Malvern – Bought – 6 bidders
In front of 70 people, auctioneer John Bongiorno opened with a vendor bid of $1.8 million. Six parties joined in, bidding strongly and steadily to see this property on the market for $2.2 million and sold under the hammer for $2.31 million. Auctioneer John Bongiorno

6 Cross Toorak – Passed In – One bidder
A quiet auction here, with 40 people watching and just one bidder. Opened on a vendor bid of $4 million and the sole bidder added $20,000 to that figure. The property passed in and remains unsold at the time of writing. Auctioneer Jason Scillio

112 Charles St Prahran – Bought Before

47 Finch St Malvern East – 3 bidders
Just over 130 people at this auction, which opened with a vendor bid of $2.1 million. Three bidders joined it but it was not enough and the property passed in at $2.3 million. Auctioneer Justin Long

3 Forrest Court Toorak – Sold Before

74 Central Park Malvern East – No bidders
This auction was held across the street in Central Park, giving proceedings a festive, summery air. About 200 people enjoyed the warm weather and park setting but this did not translate into bids. Auctioneer John Bongiorno opened with a vendor bid of $2.6 million but there were no bids and the property passed in at that price.

Buy Well and Make Good Decisions

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

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

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

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

What’s Hot x 2

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

What’s Not Hot

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

De Ja Vu – Not Really – 2008 and 2009

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

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

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

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

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

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

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

Jenny (two auctions – Beaumaris and Sandringham)

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

David (Bayside – Brighton and Hampton)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Buy Well

Mal

Thank you for a huge effort today from many people:

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

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

Malvern East: 10 Kerferd: Andrew Hayne bringing the hammer down at $2.315,000. 5 bidders.

There are a huge number of auctions and private sales in Stonnington this week and next week. The most dominating number is 3.875 – that is the average bidders at auctions we reported on below. 31 bidders at 8 auctions. Stock has increased and bidders numbers have actually risen substantially.

Glen Iris: 30 Great Valley Road: Mark Wridgway. Passed In $1.4m. No bidders

Here are a sample of our Auction Reports – these in the most part are randomly chosen.

ARMADALE, 2a Denbigh Road – 4 bidders
Auctioneer: Mark Stobart. A quick auction lasting about 10 minutes saw 4 bidders competing for this well renovated Edwardian. Bidding started with a genuine offer of $1,500,000 with increments of $10000 and $20,000 taking it $1,700,000 when it was announced to be on the market. Twelve more bids took it to the selling price of $1,756,000

ARMADALE, 24 Hume Street – 5 bidders
Good campaigning by Tim Brown to claim 5 bidders, solid performance by Paul Castran and “voila” this hidden gem is polished off with a sale at $1,135,000.

MALVERN, 23 Elizabeth Street – 6 Bidders
Auctioneer Mark Stobart, Bennison Mackinnon. Opening bid $1.45m Actual. On the market $1.6m last bid and sold $1.776m. Crowd 60. Bidders 6. Auction Vibe Steady, Auctioneer worked hard, progressive $1k bids between 2 bidders.

MALVERN EAST, 10 Kerferd Street – 5 bidders
Opened $1.8m and very slow off the mark again, finally picking up pace and bidders – five in total and a great result $2,315,000. Andrew Hayne of Marshall White was the auctioneer.

PRAHRAN, 56 Perth Street – 3 bidders
Lee Pellizzer ran a spirited auction with 3 bidders from a crowd of 60 to achieve a healthy $1,275,000 for this solid, well situated investment. ”

SOUTH YARRA, 6 Cromwell Road – 1 bidder – What only one!!!!
Small crowd of 30 people watched Phillipe Batters of Williams Batters place a vendor bid of 2.4m and then take a real bid of $2.45m at which point it was passed in.

SOUTH YARRA, 2 Walter Street – 4 bidders
Auctioneer: Paul Castran. Vibe good. Crowd 50. Bid start $900,000. On market $1,080,000. Bidders 4. Sold @ $1,135,000

SOUTH YARRA, 67 Darling Street - 5 bidders
Five bidders from a crowd of 30 made close on 80 bids to buy these three apartments (with an indicated annual rental of $90,000) on the slopes of Murphy Street for the very healthy price of $2,512,000 well above the indicated range of $1.8 – $2.2 million. Andrew McMillan launched the auction (his first of 5 for the day) with a Vendor Bid of $1,800,000. The ultimate buyer joined in with an offer of $1,820,000 and spirited bidding took the price to $2,000,000 – when a break was taken. Although the property was not on the market at this stage it quickly reached the reserve of $2,050,000 and then a new bidder joined in at $2.090.000. With further increments of $1,000, $2500, $5,000 and $10,000 the bidding raced to a great outcome for the vendor, auctioneer and buyer. ”
Buy Well

Toorak, 78 Clendon Road: Our job has its moments! The absolute joy of buying a dream!

Malvern, 81 Stanhope Grove: Iain Carmichael guiding his buyers to $2.52 million.

Of the 19 $1 million-plus auctions we looked at today in Stonnington (inc Glen Iris) 17 sold, or 90 per cent.

Couple of highlights:

37 Armadale St Armadale with Bennison Mackinnon, which had been hanging around for a few weeks post-auction, sold for, we believe, a tick under $2.3 million.

9 Valley View Road with Maddie Kennedy of Marshall White sold for $2.2 million. Some would say almost land only. 1083 sq metres. Does that confirm land at around $2000 per sq metre here? Yes, we think so, with last week’s sale at 18 Valley View around the same sqm rate, allowing for that home to have value at $800,000.

6 Kensington Road in South Yarra - Jeremy Fox of RT Edgar

James Home Rating and Comments: 777 out of 1000. Looks a really good period home with a first-class renovation. Good land size, space and flow – good separation of bedrooms – great location. If I keep talking, I’d sound like a selling agent – certainly worth a look.

James Control Price: Dirt $3,960,000 + House $1,100,000 = $5,060,000.

James Auction Report: A small and quiet gathering of 40 people here. Auctioneer Jeremy Fox was offered two crowd bids. The opening came from the crowd at $3.85 million and was topped later by a bid of $3.86 million. The property was passed in at this price with negotiations with the highest bidder hoping to generate a sale post-auction. Sold figure believed to be around $4 million.

James Post-Sale Examination: We got it wrong and underestimated the negativity of the next-door flats and we’ve talked about this in the main Market Insight article.

26 Chesterfield Avenue Malvern - Joanna Nairn of Marshall White

James Home Rating and Comments: 663 out of 1000. Good solid home in a premier part of Malvern. South-facing rear on a small block does reduce light. Bedroom set up works well, although would have liked to see one downstairs. A real feeling of solid establishment values when you walk through and very well presented. A typical 1920s/1930s that has been very well finished. Despite tandem garaging, it is hard to fault the building.

James Control Price: Dirt $1,893,000 + House $1,200,000 = $3,093,000.

James Auction Report: Auctioneer Justin Long reported in, as we got caught at another auction. Two bidders, passed in at $2.95 million. Vendor is well north of that.

James Post-Sale Examination: At present we and the market agree but the vendor does not. This home was bought off-market not that long ago.

35 Chatsworth Prahran - Chris Stoupas of Bennison Mackinnon

James Home Rating and Comments: 641 out of 1000. A beautiful period home with good space and a good feel.  A car parking issue is the only drawback (and may make it hard to sell) from this classic Victorian home and Chatsworth is THE Prahran street.

James Control Price: We didn’t pre-auction price it.

James Auction Report: A big crowd of 120 people here but a quiet auction. Auctioneer Damien O’Sullivan kicked things off with a vendor bid of $2 million but silence followed. The property passed in at that price and several interested buyers hung around to talk post-auction.

James Post-Sale Examination: If you’re talking $2 million, you need a car park.

Buy Well

4 sales that interested me over the last 2 school holiday weeks

33 Murray St Prahran (Guy St Leger of Biggin and Scott) sold for $1.22m and we think this renovators delight was a good buy – north facing rear, good period façade, rear car access. A $500,000 reno after purchase – maybe less, means that Prahran in this precinct and we call it the Flying Duck Precinct (after the hotel) is approaching $2m for a double fronted renovated home on around 300 sqm.  Marshall White’s sale in near neighboring 26 Trinian Street last Saturday at $1,285,000 (5 bidders) for a similar home on slightly bigger land size (350 sqm) confirms that.

25 Central Park Malvern East sold post auction for $2.52m – Around 100 people witnessed this auction two weeks ago and it passed in just above $2.2m. Andrew Summons and Andrew James (no relation) of Hocking Stuart conducted proceedings and conducted them very well. After the pass in it was offered at significantly less than $2.52m – which it should have been on a 2m+ quote, but was declined by the potential buyer. Another potential buyer made an offer and they too were offered the reserve below $2.52m. They declined and so another mini auction was organized and a price over the offered reserve and over expectations was decided upon at $2.52m – go figure.

Three points that come from this:

• Three months ago all of us thought $2m and a smidgeon was the value -so the market is rising
• And Thomson’s sale of 38 Central Park Road continues to affect the Gascoigne estate sales.
• There is downside risk as well as upside reward in every action.

Another renovators delight at 28 Llaneast Armadale sold for $1,470,000 showing three things to me (4 bidders with Marshall White’s Andrew Hayne and Madeline Kennedy conducting proceeding in their usual efficient and professional manner).

• The market is moving with across the road and renovated selling in the $1.3m’s only a month or so earlier.
• The power of numbers – three Asian groups bidding on number 28.
• And the increasing drift of Chinese/Asian buyers from Boroondara through to Stonnington. This home is timber, unrenovated and period, not historically a combination that is of interest to overseas buyers from Asia.

And finally the home (64 Hopetoun Road Toorak)  that sparked the newspaper headline – “Toorak In Crisis” was sold under the hammer for $7,075,000. If you remove the unfinished home that puts the 1550 sq metres of land at $4500 per sqm which par for the course in Toorak.

The auction was Kay and Burton’s Gerald Delany at his best. We do try and be positive about buying and selling agents because our industry gets enough negative press to sink a battleship, however we don’t believe there would be a single person in our business who would speak poorly about Gerald, a legend of our profession.  So to the auction. Hopetoun road was effectively closed with well in excess of 200 people, about 20 agents and Ferraris, Benz’s and other luxury cars parked double abreast on both sides making for a real amphitheatre feeling. Starting at $5m with a vendor bid on a quote of $6m+ was in my opinion to show the top bidders that they had competition – it was strategically a very smart move by the auctioneer. There were in fact 7 bidders and a number from overseas. On the market around $6m and sold just over $7m. A powerful auction sending for now a powerful statement to the market and proving the newspaper headline inappropriate. If this did sell at land value and there were 7 bidders then despite the vendor’s publicized predicament as stated proof of crisis it was the result and the competitive nature in which it was obtained that in fact (for now) proved the opposite to the headline. So for now, Toorak is not in Crisis.

Design Smart