Monday 28th November – 57 Cole Brighton ( Peter Kennett of Hocking Stuart). A family home with some floor plan issues that has been on the market for sometime, has been bought after a few interested parties were gathered together in an Expressions of Interest Campaign and one person popped up over $3,000,000. We rated the home 757/1000 mainly on its position and land characteristics.

Big auction, big crowd and big bidder numbers: 98-100 Mont Albert, Canterbury, Alastair Craig (Jellis Craig), under the hammer, $3,380,000, 6 bidders

End of Spring Market Summary

Bidderman: The stats over the last 3 weeks (below) highlight in our opinion exactly what has been happening to a large extent all year. Two weeks ago we reported 27 bidders on 5 homes and 14 bidders combined on the other 21 auctions. Last week it was the same story – 17 bidders on 4 homes auctioned and only 15 bidders combined on the other 21 homes that we reported on. This week we had 26 bidders on 7 homes and 24 bidders combined on the other 27 homes we reported on. If you are hot, you can be really hot and if you’re not then you need a panadol and a good agent.

Clearance Rates: Basically on auction day you have a 50/50 chance of selling – although demand for $3m+ properties has weakened in last fortnight.

Stales: (long term pass-ins) The market is acting on properties where prices have been adjusted, and continuing to pass over homes where the vendor remains committed to a price rather than a result. One month after Super Saturday a full third of the homes that went to auction still had not been sold. It is not true for agents to say they are all being cleaned up. They are not.

Expressions of Interest – are no different to auctions. At the Top End last month we nominated 8 homes to monitor as having Expressions of Interest closing dates either side of the Melbourne Cup. Of those eight, four (50%) have sold around the proposed closing time and the others remain on the market. The four that have sold were goodies and they got exceptional prices. The other four – well, they remain unattached to a buyer.

The Top 3 things buyers can do to take advantage of what is on offer before Christmas.

1)   Find: Off markets, stales, rebadgers and pass-ins. Many homes are being re-presented after failed campaigns early in the year. If they failed on price then, why pay it now? Off markets are back in season as many recent buyers would be keen to see a quiet sale before Christmas rather than wait till 2012 – there may be a bargain there. Stales – don’t give up. If it’s a home you like then revisit with a  written offer – even if the asking price is baloney. Rule One in this market: if you don’t ask, you don’t get. Man up and put the offer in!

2)  Assess Price: Use past sales carefully and change their meaning – sales of six months ago are now the ceiling prices, not the floor prices (as in previous years). The market is going backwards in price, not forwards (A graders excepted).

3)   Negotiate: As buyers if you want to negotiate to your advantage while still maintaining a reasonable level of risk in terms of buying versus missing out on the home, then you need to be able to apply the Fisherman’s Friend Wet Fish Slap on overpriced homes. You know the commercial – where she gives him an uppercut with a wet fish. If the price is baloney and you are not going to pay it, don’t walk away – you may be doing yourself and the seller a disservice, as you may in fact be the best buyer. Go and hit the seller with the Fisherman’s Friend Wet Fish Slap and then apply pain relief afterwards. This is exactly what our selling agent friends have been doing for years in post auction negotiations. They hit you hard with a big number, then they offer to relieve your pain (slightly). So if you have a sensible price, go and offer it – you may well be the seller’s best deal and if you walk away because of your timidity, then both you and the seller lose. If aFisherman’s Friend Wet Fish Slap is not your caper consider hiring a professional who can help you – it’s invigorating. And of course if it doesn’t have the desired effect – consider moving on.

Saturday 26th November Weekend Auction Results

Bought

• 98-100 Mont Albert Road Canterbury (Alastair Craig) – $3,380,000 – 6 bidders
• 25 Grange Road Kew (James Tostevin) – Around $3,000,000 – 1 bidder
• 24 Anderson Malvern East (Heather Elder) – Around $3,000,000 – 2 bidders

Passed-In

• 2 Collins St Brighton – $2,975,000 – 0 bidders
• 1022 Malvern Road Armadale – $2,800,000 – 0 bidders
• 21 Wattle Road Hawthorn – $3,050,000 – 0 bidders
• 68 Molesworth Kew – $4,600,000  – 0 bidders
• 20 McGregor Middle Park – $3,200,000 – 0 bidders

Friday 25th November – 58 Howitt Road, Caulfield North has been bought for a record Caulfield price according to the effervescent Ross Savas of Kay and Burton. The price;  well can say they were talking $6 million and the calibre of the home leads us to conclude they would have got that, so over is definitely not out of the question. This was a truly great home, our James Home Rating of 838/1000 is one of the highest we have scored this year. The market is obviously still recognising and paying for great quality.

Thursday 24th November – 25 Montalto Avenue Toorak ( Nicole Gleeson) – Basically land only for the area as the home requires a serious reno – passed-in last Saturday on a lone vendor bid of $3,450,000 was bought today for an undisclosed amount.

Wednesday 23rd November – 58 Glyndon Rd, Camberwell (Jock Langley) Private Auction  BOUGHT over $3,300,000: Attended this mid week private auction  just in case a bargain was to be had. No bargain, with a very healthy Tim Derham – Abercromby’s auction – 3 bidders and passed in for $3,300,000 and bit – deal was negotiated after wards in excess of that figure. Strong result – this is still outer Camberwell!
PROPERTY: James Home Rating Excerpt: Big home in the “almost ‘burbs” on 2100 sqm with tennis court – it’s all about the land. Set down for a private auction as opposed to a public one – (mmmmm, that’s an interesting twist) on November 23rd. What is the land per sqm at this size worth? How many other competitors do I really have in this market? Am I better to go before and if not successful how will I manage a Jock Langley pass-in?

Monday 21st November – 6-8 Myrtle St Brighton (Barb Gregory). This last weekend’s biggest auction – and another private one at that, was completed at a price over the quote of $6,000,000. So another solid Golden Mile sale with land in excess of 1600 sqm plus some solid improvements and another good result for Marshall White in Brighton. While private auctions are very secretive they seem to meet the vendors requirements for privacy and a buyers liking for transparency – perhaps a way of the future for some key homes.

Subdued mood: Toorak, 25 Montalto Ave, Jason Scillio (Kay & Burton), passed-in $3,450,000, no bidders

Saturday 19th November: At auction only two out of ten were reported as sold at the $3m+ level.

• 19 Florence St, Kew (Diana Healy) – Bought for over $3,600,000
• 2 Monomeath Pl, Canterbury ( Richard Earle) – Bought after for over $3,100,000

Pass-Ins at

• 47 York St, Kilda West – $3,800,000
• 24 Monaro Rd, Kooyong – $3,500,000
• 25 Montalto Ave, Toorak – $3,450,000
• 9 Berry St, East Melbourne – $3,200,000
• 11 Victor Ave, Kew – $3,000,000
• 2 Snooks Crt, Brighton – $3,000,000
• 26 Stawell St, Kew – $2,950,000
• 6-8 Myrtle St Brighton – undisclosed

Overall quite a weak day – although having been through many of those pass-ins I can say that a number were not the most exciting of offerings.

Friday 18th November: The Christmas Stock Flood has really gained some momentum in the last week with a large influx of homes coming onto the market right now – especially at the Top End (look at our stock graphs in Market News). This has to be good for buyers. Where in recent times our main role has been finding quality homes – the bulk or our work has moved to assessment and negotiation. Price is such a movable beast right now and it’s good, as a buyer, to have an open mind and strategies (within your acceptable risk v reward parameters) to take advantage of the lay of the land. Please that is not to say that all the goodies are being given away – far from it – but once a home falls into that certain category (eg stale, overpriced or a B grader) then significant discounts are possible – if the vendor wants to sell. Yes you need to know what to do, how to do it and when to do it – but professional advice can fill that knowledge gap for you. Two properties purchased in the last fortnight or so $700,000+ off the original asking price and that was a $3m home and $300,000+ off the original asking price and that was a $2,000,000 home. The market is operating normally – however now, more so than at any other time this year, it is a true buyers’ market – Great Choice and Negotiable Prices. Buy Well.

Wednesday 15th November: 4 Kiers Court Caulfield North (Phillip French)  one of the more distinctive homes I have seen this year is now reported as sold in excess of $3,000,000. Our James Home Rating was 684/1000 (see below) and what the owners did with a difficult block was in my opinion, amazing and the price was solid. Also a huge block at 181 Gipps St East Melbourne (Sarah Case) over 1000 sqm was bought undisclosed (over $5,000,000) and finally to complete the RT Edgar trifecta 29 Loch St, St Kilda West (Anthony Grimwade) almost 1000 sqm plus period home was bought for $3,800,000.

Tuesday 14th November: 3/61 Nepean Highway Aspendale (Rowan Thompson) which we reported as passed-in on the weekend, has now been bought for $3,150,000.

TOORAK 49 Mathoura Road, Justin Long, 4 Bidders, $5,220,000

Saturday 12th November: 3 biggies – 2 bought and 1 passed in.

47 Kinkora Rd, Hawthorn, Peter Batrouney (Jellis Craig); Under the hammer, $5,660,000, 4 bidders
Grace Park, north-facing rear, big land and beautiful period home. Some may say a drover’s dog could sell this on a sunny day, but that would be unfair on Peter Batrouney and Campbell Ward. This writer knows for sure we will get a first rate performance and in all likelihood a very solid result. About 120 have gathered in the back yard and we begin with a vendor bid of $5,000,000. Quickly in $50,000s between Bidder 1 and Bidder 2 we reach $5,300,000 and a half time break. Two more bidders join in and it’s on the market at $5,500,000. A few more bids and it’s all over at $5,660,000. A typical successful Peter Batrouney and Campbell Ward / Grace Park auction.

49 Mathoura Road Toorak, Justin Long: Under the hammer, $5,220,000, 5 bidders
Justin Long is a very experienced and capable auctioneer and he needed to be today as he was put under pressure by bidders constantly trying to reduce the bids he was calling for. He held firm time and time again, and in the end the vendors would have to think (whether they were happy with the price or not) that without Justin’s skill and endeavours, this property might not have been sold this weekend. Five bidders all with their own individual strategies locked horns for 45 minutes involving breaks and multiple “is it on the market?” questions. The opening bid was $4,000,000, the property declared on the market at $4,950,000 and eventually bought under the hammer for $5,220,000.

Biggest Pass In: 3/61 Nepean Hwy, Aspendale, Rowan Thompson (RT Edgar); Passed in $3,000,000, 1 bidder
The excitement was in the air and the house was buzzing with people enjoying the sunshine and the stunning panoramic view of the beach literally on the doorstep.  With only 500 beach front homes in Melbourne, explained auctioneer Rowan Thompson to the large crowd of 100, the “international standard resort style property” represented  a wonderful opportunity.  Mr Thompson opened proceedings with a vendor bid of $2,800,000 and sought $100,000 rises.  With Mr Thompson’s encouragement, a bidder from the crowd obliged with a bid of $2,900,000.  A vendor bid of $3,000,000 followed and despite Mr Thomson’s best efforts, there was no further bidding on the day and the property was passed in on the vendor bid.

Friday 11th November: This is a typical week at the Top End for me. I have been through the following homes, given them a James Home Ratings (not for public display), calculated buyer value and price ranges and noted a few negotiation strategy issues each home may present when attempting to maximise buyer outcomes:

PRICE: $3,000,000+ (Agent Quote)
POSITION: 7 Linacre Road, Hampton, (Jenny Dwyer)
PROPERTY: James Home Rating Excerpt: Complex family home with water views (quality ones of Yacht Club), multiple living areas, 5 bedrooms on one level, dual staircases, basement and all on 635 sqm in one of Melbourne best inner seaside precincts. Price – that will be interesting as will the method of sale – both rare birds for this part of the world right now.

PRICE: $5,250,000 (Asking Price)
POSITION: 29 Seymour Grove, Brighton (Ian Jackson)
PROPERTY: James Home Rating Excerpt: North-facing rear, brand-new build on a big block around 1,000 sqm. Upstairs is very good, perhaps a lift was needed at this price. It’s to a formula and one that always sells when buyer meets seller or vice versa on price – that meeting price – well that is the big question? I remember going to the land auction around the start of the GFC (early 2008) and it was bought quite well at $2,100 per sqm – bought quiet well, considering what other knockdowns in this street and Wolseley had gone for, a short time before this auction.

PRICE: $8,000,000 ish (Agent Quote)
POSITION: 18 Fitzroy St, Kilda (Michael Gibson)
PROPERTY: James Home Rating Excerpt: Has already received a lot of publicity due to its current owner and the facade photograph is wonderfully enticing. A home of pluses and minuses for different family types. One of the real pluses for some families would be the rooftop pool – spectacular is an understatement. Location is also smack bang in the middle of the action. Building was an advertising agency office in a previous life – although much of the work was already done when this last sold (twice in 2004 between $3,000,000 and $4,000,000) .

PRICE: $6,500,000 plus (Agent Quote)
POSITION: 21 Isabella Grove, Hawthorn (Scott Patterson)
PROPERTY: James Home Rating Excerpt: It’s a trip back in time. The entrance really looks like a movie set from Charles Dickens (love the dome). One of the most powerful views for me was actually through the kitchen window of what would have been servant’s quarters – the form the steps take going back up across the road stick in my mind. The home itself is obviously one for specific tastes and you will have a few issues to get your head around if you are going to be the buyer – but that could be well worth the mental effort.

PRICE: Circle $10m to $12m (Agent Quote)
POSITION: 1 Harcourt St, Hawthorn East (James Tostevin)
PROPERTY: James Home Rating Excerpt: Most “in the trade” would describe this as a big thumper and the agent quote estimate says you are going to need a big wallet to match. Valuing this would require an open mind and purchasing well, would require a firm base on goals and a flexible strategy to test on many levels. The house – well – it’s not about the house, there are bones to work with. No, in my opinion it is all about is the land and more to the point the shape of the land and where the home sits and what you want and can do within its limitations. So is the land worth the $sqm of  say no 49 Harcourt which had two bidders at auction and went for over $7,200,000 last year or is there a discount involved? Challenges for all parties if this is to be a deal.

PRICE: In the picture you can see next door which was also subject to a similar campaign recently at a similar asking price tag ($20,000,000 to $30,000,000). The price –  if it does indeed sell – will be a source of conjecture, supposition and innuendo for months to come just like Shakespeare Grove was last year and just like when this home was so famously bought and sold last time (a decade ag0).
POSITION: 1 Towers Rd, Toorak (Michael Gibson)
PROPERTY: James Home Rating Excerpt: Wow – if you can work out a way to get through this home you should. An art deco masterpiece with pool, tennis court, contemplative gardens all on a Toorak acre. The entrance and view from the kitchen are very powerful. At this price level, there are many more questions, but it always comes back to one final one, when the others have been answered – How can I buy this for the best possible price? Your answer may well be determined by the relationships you keep.

PRICE: Around $3million is Agent Jock’s quote
POSITION: 58 Glyndon Rd, Camberwell (Jock Langley)
PROPERTY: James Home Rating Excerpt: Big home in the “almost ‘burbs” on 2100 sqm with tennis court – it’s all about the land. Set down for a private auction as opposed to a public one – (mmmmm, that’s an interesting twist) on November 23rd. What is the land per sqm at this size worth? How many other competitors do I really have in this market? Am I better to go before and if not successful how will I manage a Jock Langley pass-in?

PRICE: Around $4,500,000 (Agent Quote)
POSITION: 68 Molesworth St, Kew (Hamish Tostevin)
PROPERTY: James Home Rating Excerpt: This is a home of thought and quality – and with a price tag quoted over $4.5m if you are going to be the buyer you are going to have to put some thought and quality into how to go about this – such as, what is this home really worth? It is a very specific home – big in size, lifts, views, a lot of WOW. Attention to detail is obvious. But what about heating and cooling and sun with all that glass. Land value is not hard but home value – is this a $1.5m or a $2.5m build and will that matter? One of those buys where process is so very important if you want to buy well. A rare offering for the modern home buyer and worthy of serious consideration.

Grand Sale Land Sale in Kew - Tender Closing Today (Friday 11th November). It will be interesting to see what happens at 6-12 Madden Grove Kew on this mini-subdivision of 4 blocks around 600 sqm each. Mark Dayman and Antony Woodley taking in the offers and have expectations above $2,000 per square metre.

Thursday 10th November: Another three strongish Toorak buys in the last week.

• 16 Kenley Court Toorak (Michael Gibson of Kay and Burton) – Bought for over $12 million for nearly 2000 sqm of land a very substantial home. James Home Rating 779/1000. Excerpt from James Home Rating:

The big pluses for me are the court location, the look from the street and the gardens – tranquil, serene, sanctuary – all those words that are antonyms to stress. This is what the gardens are, and for me they are the major selling point to 16 Kenley. The home, well for most of us (i.e. those who can’t afford it) it’s a rare and magnificent home. However for buyers at this level I think they will find some issues with the floorplan – especially the position and connection between the kitchen and living area  and the front staircase so close to the front door. This seems an afterthought and does detract a little from the majesty of the entrance. Walking through the home I keep thinking of the gardens, the location and the land size more so than the building. However if you can afford 16 Kenley then you can afford to make the changes you want. And so, like almost offerings at this level in Toorak, it comes back to: when do you want to buy, what is available, what is the right exchange price and how best do you go about the process?

• 24-26 Balmerino Ave, Toorak (Justin Long of Marshall White and Hugh Hardy of Bennison Mackinnon) – 1850 sqm of land inc tennis court. Passed in at the Thursday afternoon auction for $7,000,000 and was bought immediately afterwards for an undisclosed amount. As I went through this home it felt mostly about the land and the sweeping views, however I suppose that is the way with almost all Toorak homes. The end result was $3,800 per sqm approx.
• 4 Lisbuoy Court Toorak (Nicole Gleeson and Michael Gibson) – Townhouse with some land, bought for over $4,000,000.

Greg Costello and Tim Wilson in full swing on the Brighton Golden Mile - continuing to sell at $10,000 per sqm. See report below

Week Ending November 5th: Has the action returned after the September excitement was followed by an early October siesta? We think yes – it is back. People do have cash and they are parting with it when they find the right home. In the last 10 days at least 9 homes over $4 million have been bought and sold.

Some Auction Results this weekend

• Biggest Sale: 2 Mytton Grove, Brighton, Greg Costello (RT Edgar); Under the hammer $6,050,000, 2 bidders
  Brighton Golden Mile Beachfront – these are four words that mean money. In recent times that has meant $8000 to $10,000 per sqm – at least at the northern end. A question our auctioneer Greg Costello asked in his opening spiel was “is this southern part of the Golden Mile more highly regarded than the northern part due to the activity on the beachfront?” Personally, as I run past here every day I think yes, but the auction result will tell us for sure. With the blue sea as our backdrop I’m expecting an exciting auction – irrespective of the market this stuff always sells. Greg Costello is conducting proceedings in front of a small crowd of 30. We start with an opening bid of $4,850,000 from Bidder one. $5,000,000 comes in from Bidder two strongly – solid bid. $5,100,000 from a third bidder – who as it turns out was with Bidder one – so we don’t count him – strange strategy that one. Anyway with a fair bit of action we move up to $5,600,000 in various amounts and then to $5,750,000. At all times Bidder two looks in control and is bidding very well and with some intimidation without being over the top. Normally Greg Costello is in excellent form but today was not his best day with bid retention and there are a number of confusing referrals back to his penciller for clarification. At $5,900,000 the “is it on the market?” question was asked, and after a quick referral, an affirmative answer is returned. There are two more decisive bids from Bidder two and its all his at $6,050,000. Loved the winning bidder’s style – aggressive and sensible and much better than his opponent and also many so called professionals that I have witnessed recently – well done sir – we have a job for you here if you care to apply. (Mal James)

• Other Brighton Golden Mile Results: 2 Mytton at $6,050,000 divided by 613 sqm = $9,869 per sqm or almost identical for previous absolute beachfront sqm rates over the past year (which have maintained themselves in the last year and increased on previous high water marks). 8 Moule Avenue (David Hart) is a classic Golden Mile address (but not absolute beachfront) and sold this weekend for $2,310,000 or $3,510 per metre. On first glance that is not expensive, but it is in fact not too far off previous Golden Mile sqm rates. A third Golden Mile property 15 Dudley St (Regina and Brian) sold for in excess of its pass-in figure at $4,400,000 which, again considering the house was nothing other than a nice facade, was a very, very solid result.
• Biggest Pass In: 58 Kooyongkoot Rd, Hawthorn, Scott Patterson (Kay & Burton); passed in, $3,400,000, no bidders
  Could you find a better setting for a Melbourne Spring auction? A tranquil backyard by the pool! In front of around 60 people, auctioneer Scott Patterson gave his usual professional best to attract some crowd bidding but this was to no avail. The property passed in after two vendor bids – $3,300,000 and $3,400,000 respectively – and remains for private sale. (Adam Woledge)
• Bidderbuzz Auction: 15 Chastleton Ave, Toorak, Warwick Anderson (RT Edgar); Under the hammer, $4,135,000, 4 bidders
  Spirited bidding after a slow start was a welcome sequence at the auction of this single level home in Toorak. A crowd of 80 neighbours chatted quietly throughout the action, eagerly anticipating the value to be determined by the market. After opening on a vendor bid of $3,400,000 and the declaration that the council had valued the property at $3,700,000, auctioneer Warwick Anderson tried to keep pace with the determined 4 bidders. After the second vendor referral, Warwick announced the property on the market at $3,800,000 but the strong bidding continued, with bidder number 4 securing the home at $4,135,000. (Gina Kantzas)

RT Edgar: Has had a pretty solid time with 8 properties selling over $2 million in less than a week, including an off market at 68 Walsh St believed to be around $4 million, not mentioned in above dispatches.

October 29th: Excerpt from October 15th James Marketnews: 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.

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.

Week 4 August 27 2011: Not a lot happened at auction in this market this weekend at $3M+, with the exception of 25 Kent Avenue – the action was all last week and it was away from the auctions.

Biggest Sale: 25 Kent Ave, Brighton, Leigh Hallamore (Buxton); After auction, $6,400,000, 4 bidders
Crowd numbers were high to witness the auction of this rare absolute beachfront property.   Auctioneer Leigh Hallamore cleverly positioned himself along the back fence in front of the beach to maximise the emotional impact of the uninterrupted beach views of the (as it turned out) 4 bidders.  With at least three beachfront properties selling recently at $6m, $7m then resold for $8m and an undisclosed price, 25 Kent  was – as expected – strong.  An opening bid of $4m was a ‘dream price’.  A second bidder quickly upped the price to $5.9m and the bidding was on, stopping at $6.35m where the property was passed in to see if there was a bit more.  And there was: a final sale price of $6,400,000 or not too far off $10,000 per sqm if you saw no value in the home. (Kristen Hatt)

Marcus Chiminello of Marshall White: “We are currently seeing great activity in the upper end of  from both buyers and sellers emerging from the depths of winter and that are now prepared to participate in the market as opposed to the past weeks and months when many were prepared to just sit and watch the market. Most of the recent high end market sales have not been an overnight success, most requiring months of dialogue between agent, buyer & vendor. As demonstrated in recent weeks, I believe the trend of discreet off market transactions will continue to grow moving forward as vendors and purchasers alike at the higher end of the market seek privacy with their real estate transactions.”

$3M+ Market Summary: Activity in this $3M+ segment has been building most of this month of August but there has been little to show for it until this past week, which has been a stellar performance by any measure. Bidderman was over 2 on the $3M+ homes purchased.

Agents are reporting that buyers have started to change their attitudes – and for once we don’t think this is spin. The interest is at least partly because the market has been starved of interesting offerings like the property at 4 Mernda Rd, Kooyong (Ross Savas and Michael Armstrong), which was a beauty and had at least 3 bidders over $6million (and would possibly have had a few more if circumstances hadn’t pushed for an early finish to the Expressions of Interest campaign).

Last week’s powerhouse result for Paul Keane and Peter Batrouney at 9 Salisbury Balwyn, where 4 bidders produced another result over $6 million, indicates that some buyers have waited long enough and are saying: “OK if it’s good, it’s priced right and it meets my needs then I’m interested.” There was another one of these on Saturday over $6 million at 25 Kent Ave, Brighton (see full auction report below).

But before you think we’ve been sent a case of Moet by our new found friends on the other side – it’s all about the price and quality of specific properties.  The market is definitely not in an upward phase in terms of price. In fact unless your property is an A grader, and “correctly priced”, it’s likely the price is falling every day you ponder over the signed offer on the table (if you can get one). Smart sellers realise this.

Just to get some balance on what’s happening in terms of price:

• The Mont Albert property sold by Michael Ebeling that we report on below, was a good result. But it sold last year for basically the same price.
• The selling price of St Georges Road, Toorak property represented a greater than 10% discount on the initial asking price. It was a great result in that sub $9million range, but it had no takers for 6 months at $10million.

So what’s to account for this past week’s activity? Partly it’s because buyers can see less choice coming on the near future, due to the Grand Final being on later this year (thus preventing a normal 4 week auction campaign between Grand Final and Melbourne Cup). Partly it’s due to some good $3M+ homes on offer right now. And partly it’s due to underlying demand that has been there for some time. A lot though is because of correct price matching.

No doubt the next few months will see an increased number of stales (long term unsolds) – repackaged, rebadged and remarketed. If they are also repriced then who knows, maybe we will be off again and back to a more normal balanced market (which is what most buyers also want).

Of course, it could all  just be a dream and we will all wake up again soon.

There were some good Private Sales through the week and we saw a return to off market transactions, as well as two successful Expressions of Interest:

• Ross Savas and Michael Armstrong of Kay and Burton held a Boardroom Auction last Thursday for 4 Mernda Rd, Kooyong. (This had brought forward the original Expressions of Interest deadline for Tuesday of next week.) Its “on the market”  price was around $6,000,000, and it sold for between $6,000,000 and $6,500,000 with 3 bidders. See our ratings below.
• Michael Ebeling of RT Edgar got 12 Stanhope St, Mont Albert away for towards $3million – off market. This was around what it reportedly sold for last year. Not all bad news in that.
• Rob Vickers Willis and Tim Derham of Abercromby’s sold 10 William St, South Yarra under the hammer for over $5,000,000 at a Wednesday private auction. See our ratings and report below.
• Michael Cooney of Hodges sold 50 Ebden Ave, Black Rock (a two hatter with a 700+ rating) for over $3,400,000. This modern home was a goodie, but it’s been rare to see homes sold for more than $2 million in this area since 2009. So this was a good result and the best sale in Bayside we can report for the week.
• Expressions of Interest – 333 Glenferrie Rd, Malvern with Gerald Delany and Nicole Gleeson – sold for over $3,500,000.
• Post Last Week Auction Pass In 24 Hawthorn Grove, Hawthorn – Paul Keane – sold for an undisclosed amount above $3,000,000
• Off Market:4 Mathoura Rd, Toorak – Peter Bennison of Marshall White. This went to auction last year (or maybe earlier), and has now been traded for more than  $3,000,000
• Off Market:10 St Georges Rd, Toorak – Marcus Chiminello – This home has been through a few agents and while it did not achieve what we thought was an incredible asking price of $10,000,000 earlier in the year, it did actually get close to $9,000,000 in the last week or so – still an incredible price. See our home rating
• Off Market: 3 Murray St, Armadale also Marcus Chiminello. It also sold for just shy of $4,000,000 recently.

These sales represent the best or close to best numbers in this Top End $ segment this year.

Agent Survey: Why is this week’s $3M+ improved performance happening?

Paul Keane: With the stock-market on what appears a roller-coaster ride over the past month or so, people are retreating from it and investing that money in the good old “bricks and mortar”. I have spoken to several people over the past week and they believe the real estate market is off by about 10% from last year (some claim more) so if you are looking to upgrade your real estate portfolio there is so much upside….why not buy a $6m home that may have been worth $7m this time last year…..nothing much has really changed… only people’s mindsets are different.

Michael Armstrong: Some buyers are no longer getting burnt by the share market (they’re out). Some buyers have got sick of waiting. Some buyer attitudes have changed.  (Second tier homes though are continuing to drop in price.)

Mike Gibson: Definitely gained some traction in the last few weeks

9 Salisbury St, Balwyn - Peter Batrouney and Paul Keane. Competition by 4 bidders resulted in a very strong price under the hammer of $6,620,000

And now for a brief excursion back through the market of August 2011.

Week Three August 20, 2011: Whilst there was little, actually no doubt that prices were dropping across the general market and the $3M+ segment was well down on activity compared to this time last year there continued to be a tantalizing number of goings on to let those involved at this level think we may just be having something to do come Spring. Furthermore whilst we had been saying that activity off market was more talk than substance in the last week or so we were involved in and had seen a couple of deals that again confirmed that if the stock was actually for sale (meaning at market buy price not a seller dream price) then a deal could be done – as long as the buying  and selling agent were reasonable at their job and both the vendor and buyer had some patience. Boughts and solds this week

At Auction:

• 9 Salisbury St, Balwyn – Peter Batrouney and Paul Keane. 4 bidders resulting in a very strong price under the hammer of $6,620,000 ( See our auction report)
• 30 Mangarra Canterbury – James Tostevin. 4 bidders and a strong $3,210,000 under the hammer
• 24 Hawthorn Grove Hawthorn – Paul Keane – Post Auction for an undisclosed amount above $3,000,000

Kew, 49 Sackville St - James Tostevin - 4 bidders - Under the hammer $4,310,000

Week Two August 13, 2011: There was life at the Top End (even if the heartbeat was faint) as evidenced by some good Top End $3M+ results.

• South Yarra 83 Walsh – Justin Long and Peter Bennison – Bought After $4,842,950 – $5,327,750
• Kew 49 Sackville – James Tostevin – Under the hammer – 4 bidders – $4,310,000
• Camberwell 87 Broadway – Richard Winneke – Bought After – 1 bidder – $3,795,250
• Hawthorn 4 Glan Avon – James Tostevin – Under the hammer – 3 bidders – $2,815,000
• While mid week 8 Myoora Toorak (Over $10,000,000) did not sell at a Thursday auction (it’s a home that requires a very specific buyer and could be hard to sell even in a stronger market) -  8 Blackfriars Close Toorak (Justin Long) our biggest pass-in last week-end at $3,000,000 (0 bidders) did sell for $3,250,000 on Monday.
• Peninsula – in one of “the” streets – Spindrift in Flinders – we saw Marketnews favourite and nice lady Prue McLaughlin of Kay and Burton sell a home for an undisclosed amount well over $4,500,000. As well Andrew Hines got 57 Tubbarubba Merricks North (over 60 acres) away for around $3,500,000
• 19 Lovell St Hawthorn East -Modern home saw the Expressions of Interest campaign brought forward by Sam Wilkinson and Scott Patterson and a sold sticker in the mid $3m’s

Not quite $3m - which is the story of the $3M+ Market this 2011 winter - 18 Knutsford St, Balwyn, Richard Earle, Bought After for $2,730,000 on a vendor pass-in of $2,300,000.

Week One August 6, 2011: We had a few comments that we hadn’t put up a $3M+ market report since May. That was for a good reason – it would have been an almost blank sheet. However there were some sputters  of life from deep within – a sign that the top end engine could be starting to turn over again. From our own company’s point of view we were involved in 3 dealings after having been bereft of activity for most of winter at this level.

• A sale in Boroondara this last month at just over $6M – completely off market
• 24 Boxshall St, Brighton (David Hart), which has been on the market for a long time, has finally changed hands for just under $3M
• 4 Sussex St Brighton (Regina Schmidt and Brian Devlin) sold for a hard-to-believe $3,775,000. We attended that auction and the result was … well brilliant.
• and while down in Bayside, 2 Tennyson St, Brighton with Jonathan Dixon, after passing in at auction a month or so ago, just sold for around that pass-in figure and well over $3,000,000
• 12a Harrison Crescent, Hawthorn, which had a rating too low to put up on our site, was sold by Sam Wilkinson of Kay and Burton for over $3,000,000
• Along with 3 Irymple Ave, Glen Iris (Iain Carmichael); 5 Story St, Parkville (Tom Roberts) and 80 South Road, Brighton (Barb Gregory) in the last week, the Top End over $3M is trying to work its way back into some form.

Back to the Future – What’s up Ahead?

With a couple of big homes due for auction next weekend – including 49 Sackville St, Kew (James Tostevin); 7 Foote St, Brighton (Phillip French of RT Edgar) and 83 Walsh St, South Yarra (Peter Bennison and Justin Long)  - we will begin to see if there is some air at the higher altitudes as we limp into the footy finals – traditionally a key indicator for activity in the early and late Spring markets at the $3M+ level.

What is happening this spring after the winter holidays? Hey Mark, c'mon mate! Cheer up -You did sell 27 Rathmines Road Hawthorn East under the hammer with 2 bidders.

At 6pm on Saturday, the James Clearance Rate for $M+ was 48% on the 25 auctions we attended. The Weekly Review Bidderman, our demand indicator, was 1.3 bidders per auction.

This is our last Marketnews summary and auction reporting until Saturday July 30^th. We normally take a fortnight break at this time of the year due to the Winter school holidays, but we have extended it to three weeks due to minimal action in the $M+ Inner East and Bayside market.

Accordingly we have produced our bumper half-year insight on what has happened year to date and what we envisage may happen between now and Santa coming down the chimney.

What has happened on the markets so far this year?

February 19. With clearance rates at 63%, we were thinking this was looking like a healthy balanced market. The $1 million+ was actually looking hottish. But there was little activity on the $3 million+ market, and an increasing number of duck auctions  with no bidders. Overall stock quality wasn’t great and that has been the story all year really.

March 26. Clearance rates dropped to 58%, the first indication that we were moving into a buyer’s market – possibly until Easter and possibly until Spring we suggested. Well, we were right there. The other big issue that portended the future market was the lack of take-up of passed-in auctions from the previous two weekends – just 3 out of 26 had sold over the next couple of weeks.

May 21 saw a surprising lift in the market, with a clearance rate of 84% on the 37 auctions we attended. We certainly didn’t see it coming, but the big difference was the high quality of stock on offer. And buyers snapped it up. As we said though, one swallow doesn’t make a summer. And it didn’t.

June 4. This was the weekend we recognised that this down market was different to last year’s. Last year prices may have been down but there was still lots of activity with buyers and sellers agreeing either at auction or sometime after on a price that was possibly lower. This year the market has been characterised by numerous pass-ins and lots of stales (long term unsolds).

June 18. The wheels of supply really seemed to be grinding to a halt. Clearance rates were 38% but the biggest problems were lack of quality and sellers holding out for unrealistic prices – rather than lack of demand.

June 25. Last weekend saw an uptick in the clearance rate of 58% as an increasing number of sellers dropped their heads back down from the clouds. But, as we saw, it was back down to 48% as we head into the thick of winter.

Consistent Themes of the 2011 Market so far

1. This is a buyers’ market – and basically has been since April last year, 2010.
2. There has been a major contraction of turnover in the $M+ market this year to last year. The A+ sellers have withdrawn and so have the “we also need to buy” sellers. They have become nervous that if they sell now, there will be no good homes to buy.
3. Effectively the market has wound down to a much lower transaction level than last year, initially led by sellers asking prices higher than market, thus reducing turnover. Then as the year has gone on, prospective sellers with A+ homes decided the current market is not for them, reducing turnover further.
4. The underlying market demand is stronger than the stats headlines show. Almost every time we have good stock weekends our demand indicator Bidderman increased (see chart below). Look at the weekends 26 February, 9 April, 21 May and 25 June.
5. Stock overall has been a lot poorer in quality from the beginning of 2011 compared to last year.
6. The key characteristic of price this year has been the stubbornness of both buyers and sellers with regards to movement.
7. Prices continue to improve on selective high quality, well priced homes (yes, it’s true). But this is a very small segment in the market. For many, prices have flat-lined and for lower quality homes the market price has fallen. Overall the market is off by as much as 10% from the last peak in April 2010.
8. Above-market prices are rarely being achieved. So when sellers pass their property in then more often than not they are having to drop their price, wait a long time and go through pain to sell. And even then there is a high chance they won’t sell. In 2011 there is a real risk in sellers going for a big number and not getting any number at all.
9. Stales (long term unsolds) have been building all year. There are hundreds of homes out there that remain unsold and have the potential to negatively affect the market going forward.
10. Selling agents have correctly predicted stock shortages, price corrections and the market gap between good well priced stock and inferior overpriced stock. The market has in fact been predictable if you know how to read the signs.

Buyer Demand weaker, but still there when Quality to be had

 Average numbers of bidders per auction, as shown by our Bidderman indicator above, rarely went above 2 this year. But when stock was of high quality, the bidders were out in force. Clearance rates (below) further supported the argument that there is underlying demand when we have good stock and/or well priced weekends.

On most, but not all, good stock weekends where the sellers have let the market set the prices there has been solid activity. However these figures support the fact, very strongly, that we are in buyers market not a balanced one.

What will happen in Spring?

After a mediocre early Winter market, the question on the minds of buyers and sellers alike is will the market fire back up in Spring?

We asked some quality selling agents to give their predictions.

A number of agents are predicting that we’re likely to have stock shortages again this Spring. Why is that? According to Kay and Burton director Ross Savas, it’s because vendors are perceiving that the market is under pressure, so they are holding off placing their homes on the market till conditions improve.

Is this just false spin to get sellers to act? We don’t think so. Richard Winneke of Jellis Craig for instance reports that most agents are admitting to a 25% volume reduction of high end stock being transacted between this year and last. Balwyn and Kew are down around 20% in overall transactions (not just the high end).

In Bayside Jason Gill paints a similar picture of diminishing turnover but uses a different measurement: “In Brighton in July 2009, 2010 and 2011 we have seen stock on the market go from to 92 to 125 to 150 meaning older overpriced stock is simply not selling.”  What this means, he adds, “is that the stock that comes on in Spring will need to be of good quality and be priced correctly, rather than more of the same, if it is to excite the market.”

As during the GFC, the market has primarily ground to a halt on lack of action and lack of confidence. As with the GFC it will need a kick start of some note (eg Australian Dollar dropping bringing expats and overseas buyers back) to entice WOW and discretionary  sellers back into the market place, thus lifting turnover.

This is where patience presents a conundrum for buyers: if many of us pass on buying in early spring then the late spring surge may not happen at all. And come Christmas time we will still be in a buyers’ market but we won’t have bought. The question is then: how long are you prepared to wait?

For a full wrap of opinions on the Early and late Spring Markets read our Buyer Article section throughout July in Melbourne’s Premier $M+ Home Magazine – The Weekly Review.

So what does this all mean to you the buyer

Smart Buying RIGHT NOW involves:

1. New strategies: You need new bidding strategies at auction. Putting your hand up until you run out can work in a hot sellers’  market, but in a buyer’s market it just means that you are burning cash.
2. Realising that not all sales are at auction:  There are an increasing number of homes sold off-market, prior to auction, as expressions of interest and so-on. You need to have a strategy to keep ahead of what’s out there. And then you need to know how to wheel and deal in these methods of sale – not just to pay the right price but to actually get it, if you want it.
3. Knowing that in this kind of market, you as a buyer may need a new modus operandi. In a hot sellers’ market most buyers are reactive, while in a buyers’ market the best buyers are often proactive. Good homes are still selling well -so when a home is sought after, you may still have to compete as strongly as 2009.
4. Understanding what the Real Value is:  Most genuine buyers are getting the best service they have ever received from selling agents in terms of being told what is out there. How much for all these opportunities? Is 10% on the auction quote or 10% off the sale price the right start point? Well maybe, but there may also be daylight between you and the next buyer.
5. Recognising that Patience is Needed. Patience is the forgotten buyer skill. We are not talking about procrastination, but the ability to wait until you have found the right home that meets your family needs. Just because you can buy now and it’s ‘cheap’, doesn’t necessarily make it your family’s best fit.

IVANHOE EAST, 12 Ravenswood Ave: Going, going gone! Rod Watson (Jellis Craig), under the hammer, $1,059,000, 2 bidders

Biggest Sale: Balwyn, 30 Walsh St, Steven Abbott (Jellis Craig); Under the hammer, $1,992,500, 5 bidders
“An entertaining auction, in a fine setting. Auctioneer Steven Abbott looked for an opening bid but none were forthcoming. Mr Abbott then offered a vendor bid of $1,750,000 to get things underway. The auction did not take too long to get started and there was solid bidding between four parties. The property was on the market at the $1,915,000 mark, and bidding looked almost over at  $1,950,000, when a new bidder came into play. The property was eventually bought under the hammer for $1,992,500.   A good result for vendor and agent alike – this property had been around for some time and although the floor plan itself had some concerns, the Reid Estate positioning underpinned value and ultimately buyer interest here.” (Adam Woledge)

Biggest Pass In: Kew, 34 Macartney Ave, Walter Dodich (Marshall White); Passed in, $3,925,000, 1 bidder
“A sense of deja-vu here at Macartney Avenue: about 3 months ago, auctioneer Walter Dodich auctioned No.21 and today it was No.34′s turn. Both properties fine, modern new homes with all the bells and whistles, built by the same builder. In front of a good crowd of around 120 people, a vendor bid of $3,900,000 was placed and just when you thought this was going to be quick auction, a crowd bid of $3,925,000 was offered. There was no further bidding and the property was passed in at this figure.” (Adam Woledge)

Bidderbuzz Auction: 7 Heathfield Rd, Brighton East, Nick Renna (Hocking Stuart); Under the hammer, $1,625,000, 4 bidders
“Another great Nick Renna auction with fierce bidding, big crowds and a great sale price. A genuine bid kicked off proceedings at $1,000,000 and, while low, it was accepted by Mr Renna before he offered a vendor bid of $1,280,000 (which was closer to the quoted price). Two bidders entered the fray and the price quickly rose to $1,405,000 where it was declared on the market. Bidding continued strongly when, out of the blue a third, strong bidder entered into the competition. The price continued to rise and Mr Renna fielded bids from all three parties before bringing the hammer down at $1,625,000. A great, entertaining auction and a strong result for the Hocking Stuart team and vendor alike.” (Jen Milligan)

We only buy homes

KEW, 34 Macartney Ave: A big crowd of 120 people turned out to watch Walter Dodich (Marshall White) in action. Passed in, $3,925,000, 1 bidder

Like many auctions this weekend, a lot of standing around, not doing much. MALVERN EAST, 9 Lewes Drive: Passed-in at $2,500,000 with two bidders. Anthony Grimwade (RT Edgar)

At 6pm on Saturday the James Clearance rate for $M+ was 57% on the 30 auctions we attended. That was well down on last week’s cameo of excitement, but understandable giving the quality change between this week and last week at the Top End.

Bidderman, our demand indicator, was 1.5 bidders per auction. However the quality of the offerings was one of the lowest this year.

While there were a few volcanoes (4 or more bidders), what was more interesting was that 1 in 3 homes were ducks meaning they didn’t get a bid a all. We think that was a confirmation of the market reaction to this weekend’s lack of Top End quality.

In fact, only 1 in 5 of $M+ homes monitored this weekend sold under the hammer.  The rest sold before or soon after – or didn’t sell at all. That’s an Under the Hammer Clearance Rate of 20%.

What that means is that in this current market buyers need a lot more than just a ‘hand up in the air and hope’ strategy to buy homes well.

Market Summary:

There were plenty of auctions at the lower levels, e.g. at or around a million dollars, but many lacked any WOW factor.

A number of the key selling agents were off this weekend on holidays and, as with many buyers, they seem to have turned their attention to pursuits other than buying and selling.

It was hard to find a property over $2 million up for auction. The only $3 million plus auction we saw in Toorak was at 68 Hopetoun Road with Steve Abbott of Jellis Craig – an art deco that seems to get sold every 12 months (see report below).

The REIV median prices came out this week and rightly confirmed what the market has been saying for some time: Prices are weaker.

This year to date has been a positive one for buyers with reduced competition, more choice and lower prices. On the flip side the buying opportunities are only such if you take them (a Steve Abbott auction line).

Next week, there are almost no auctions and not too much the week after.

Post Easter, as we said last week, may or may not be a different story. But our feeling is that quality choice will dry up and the big issue will become finding a rose amongst the thorns, the pass-ins and the stales. If those roses are hard to find then prices for them will firm as new quality drops with discretionary vendors adopting a wait and see strategy.

What Sold Well – Volcanoes with 4 or more bidders

• Albert Park, 62 Barrett St – Peter Simmons – Nicely renovated Period Home – $1,575,000
• Hawthorn, 23 Falmouth St – Hamish Tostevin – Nicely renovated Period Home – $1,330,000
• Hawthorn, 11 College St – Richard Earle – Nicely renovated Period Home – $1,409,000
• Kew, 36 Maitland Ave – David Oster – Land site – $1,345,000
• Toorak, 80 Grange Rd – Rodney Morley – Nicely renovated Period Town Residence – $1,500,000

$3M+ market: Overall, the high end at $3 million+ appears as weak as it has been for 12 months. Although  a shortage of new quality stock post Easter has put some zing back into the market as some buyers are forced to act.  Growing kids, divorce, lifestyle, whatever cannot wait for everyone indefinitely. Go to our $3m+ report to see most of the last weeks’ 10+ sales.

Michael Armstrong, Kay & Burton, South Yarra: “I think we can expect a fairly normal market post Easter.  Market conditions are settled and stock levels looking forward to May/June are lighter than what we’ve experienced in the past couple of months.  Vendors have had to adjust their expectations in recent times and buyers with long term views have realised that the past few weeks have presented them with good opportunities. The better quality offerings will continue to attract competition and alternatively  buyers will continue to deal harshly with those vendors (and agents) who price properties incorrectly.”

ST KILDA, 2 Marine Pde: On a bit of a rollercoaster day, it was apt to have the Scenic Railway at Luna Park as the backdrop of this Claudio Perruzza (Biggin Scott) auction. Passed in, $1,850,000, no bidders

Biggest Sale we covered: 68 Hopetoun Rd, Toorak, Steve Abbott (Jellis Craig); after auction, $3,050,000, 3 bidders
“This art deco property with Heritage One (HO1) overlay was looking for a committed buyer to make it a home. A vendor bid of $2,800,000 got the proceedings underway and the first bidder entered the race with a bid of $2,850,000. A second vendor bid of $2,900,000 signalled that the bidding was still some way off from the desired sale price. Auctioneer Steven Abbott wouldn’t entertain an increment of $5,000, demanding at least $10,000 to stay in the race. Despite keen bidding, this property was passed in at $3,020,000 but this was just the start of the negotiations. Bought after for $3,050,000.” (Debbie McTaggart)

Biggest Pass In we covered: 12 Dudley Pde, Canterbury, Doug McLauchlan (Marshall White); passed in $2,000,000, no bidders
“Doug McLauchlan took centre stage in the very big, leafy backyard of this great property and looked ready for action. Assisted by his Marshall White team, Mr McLauchlan explained that the circa 1923 home had been in the same family for a massive 72 years. But even the sentimentalists amongst us in the crowd weren’t ready to put their hands in the air and bid. Mr McLauchlan opened and closed on a vendor bid of $2,000,000.” (Jen Milligan)

Auction Video: Architect Adam heads to sunny Hawthorn this week to witness a ripper auction at 23 Falmouth St, a Marshall White property with auctioneer Hamish Tostevin.  Click on the live action.

Big Issue and Weekend Reflections: Coming back after the Easter holidays.

Two Weeks Off: Marketnews will be on holiday for two weeks with our next Marketnews on the 7th of May. A number of agents are talking up the 21st and 28th of May as possible Super Saturdays (as buyers let’s hope so). For James Buyer Advocates it will be business as usual.

We Only Buy Homes and have a safe Easter break:

Job Advertisement:

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?

ST KILDA WEST, 51 Park St: The ever dapper Geoff Cayzer (Cayzer) searches for bidders but passes the property in on a vendor bid of $1,225,000

Agent Q & A : How does current pricing compare with the same time last year?

Nick Yannopoulos, RT Edgar, Albert Park: “The intensity at auctions and buyer enquiry has certainly dropped over the last year particularly in the top end of the market. However outstanding homes in premier locations are still going strong as it does in any market. With winter approaching and stock levels reducing this should bring some stability.”

ST KILDA, 56 Blessington St: Adam Guest (Century 21 Wilson Pride) has his back against the wall (or tree in this instance!). Passed in $1,950,000, no bidders

HAMPTON, 56 Linacre Rd: Come on! Just one more! Mark Earle (Buxton) does his best to squeeze every last bid from the crowd. Bought under the hammer for $1,650,000, 2 bidders

Key Points:

• Clearance Rate for quality homes was stronger than our stats show today
• If you went to auction in Brighton, Brighton East or Hampton today you had a good chance of selling with clearance rates 81% (13 from 16). Further down the bay like Sandringham and Beaumaris really struggled.
• Hampton 7 Raynes Park Road with Stephen Wigley Hodges recorded a strong $2m plus result and a volcano (4 or more bidders) – a bit of a rarity for that neck of the woods – $2,204,000.
• Land Price Check 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 at over $3,200 per sq metre. That is a steady as she goes price similar to last year Golden mile (no view) buys. 7a Dawson with Nick Johnstone of JP Dixon confirmed this price by selling 762 sqm of irregular land for $2,500,000 at auction – almost identical psqm prices.
• And another $3m+ sale with a strange twist (all non bidders asked to leave) at 40 Drake Brighton (Ian Jackson).

Agent Q & A : How does current pricing compare with the same time last year?

Robin Parker, RT Edgar, Brighton: “The hot topic at the moment amongst many in the market is “what are prices doing”? Well, the short answer is it’s steady. Certainly the less attractive , or the inferior positioned properties, are finding it tough. However if you weigh up the prices of  desirable homes in desirable suburbs in desirable streets,compared to this time last year, then you start to realise it’s  “steady as she goes”. So if it feels right, if the times right, then go for it.”

Scott Hamilton, Buxton, Brighton: “Pretty similar.”

PRAHRAN, 2 Westbourne St: Elliot Gill (BenMac) in action. Under the hammer, $1,080,000, 3 bidders

Key Points:

• Stock is now starting to dry up as Easter interrupts the market and with the vibe dropping since Labour Day we may well see limited stock in the discretionary upper end market coming on Post Easter.  19 Huntingfield Toorak (Justin Long) was a classic example of a limited offering that captured the markets’ attention – even allowing for building value at $2,000,000 (and that is generous) that would leave land value with a north orientation at around $5,000 per sq metre. That is not a lower than 2010 or giveaway price.
• Another good land pointer is 60 Repton Road – one of my fav areas just near Ardrie Park – a 700 sqm block sold for $1843 per sqm through Dean Gilbert of Marshall White
  

STOP PRESS: March, while not huge in numbers, did finish the month with 3 solid mid week $3M+ buys – including 4 bidders at $7 million or better at 2 of them.

• 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.
• 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.

Justin Long, Marshall White, Armadale: “The way I see things at present, we are experiencing some mild upward pressure on prices but not enough to fill big gaps between market value and vendors’ expectations where those gaps have been created through over-optimism by either agent or vendor. Fairly priced properties in good locations are being competitively sought and those looking for ‘opportunities’ are, as is often the case, forced to compromise on location or suitability. Some are extremely lucky, but most in fact will ultimately pay what is required to buy the home they really like or sit on the sidelines and watch values eventually rise beyond them.”

New Subscriber System: Over the next few weeks we will  introduce a free subscription model giving you greater access to our council-specific wraps, which include auction results, news, opinion and analysis on a micro level. This subscription model helps us improve your browsing experience as clients or general subscribers by delivering more relevant content to you on the site and in your email newsletter. Sign up by clicking Subscribe at the top right of the website. If you experience any problems as we are testing and implementing this new improved system please let us know at enquiry@james.net.au

See it's not all bad news! ST KILDA, 30 Crimea St: A happy couple embracing. John Carter (Hocking Stuart), under the hammer $1,450,000. 4 bidders.

At 6pm on Saturday the James Clearance Rate for the 35 $M+ auctions we covered was an almost icy 51%. Bidderman, our demand indicator showing average numbers of bidders per auction, remained at a market-cooling 1.4 bidders per auction. We seem now to be firmly in the grip of a Winter chill.

Market Summary:

March 2011 has seen a $M+ auction clearance rate averaging in the high 50s.

As the market continues in its cooler mode, an overhang of unsold homes continues to build. Two-thirds of homes passed-in are still for sale. Add to this the Expressions of Interest campaigns ending in no result and there seems little doubt we are in a softer, cooler, lower market than a month ago – especially at the high end.

Last week we produced a special report on the fate of $M+ properties that had passed in at auction this year and found that only 3 of the 26 $M+ pass-ins we monitored had since been bought a fortnight later. Seven days on from that report only a further two of those pass-ins have been reported as bought. Some of these properties went to auction 3 weeks ago. Of the 13 properties that we monitored last week as having passed-in, four have since been bought.

It seems it’s a tough gig right now for sellers whose property passes in at a price over the market.

Buyers – this is opportunity! You may think it will get worse (or better depending on your point of view). But what is likely is that after Easter sellers simply won’t put their homes on the market, creating a shortage of stock choice resulting in firming prices. We are not economists but the bad news does not seem to be anything other than transient to us right now – especially when the media are carrying credible news stories on housing shortages (supply) and increasing internal and external immigration (demand)

The $1 million to $1.5 million market is different to the rest and is still rocking along. The best description we feel is not ‘cool’, but ‘balanced’ –  leaning in fact slightly to ‘warm’ for this dollar segment. This is the ‘hottest’ market at present and still has a reasonable depth of bidders. Prices are not shrinking as much in this price range.

The one thing that differs in this market segment from this time last year is the number of volcanoes (runaway 4+ bidder auctions). Today we saw 3 volcanoes from 19 auctions on properties between $1m and $2m we covered. This time last year (March 27^th 2010) there were  9 volcanoes from 14 such auctions. That is a volcano rate of 16% today compared with 64% this time last year in that $1m to $2m range. So, even the early $1m+ market has slowed.

Back to to the Overhang or Hangover:  If you accept we are in a Buyers’ market until Easter, then the question for those who haven’t gone into mental lockdown is:

What is happening to price?

That depends on the quality of homes you are looking at. If you just took your information from the results on sales of Red Hot Homes, you could interpret we are in an improving market. These top quality homes seem to be going even better than last year, as we show in the diagram below. (Although it is important to remember that these homes are understandably the focus of the selling agents – given they are marketers).

It is possible to read positive agent news, see some red hot results and look at selected median price changes and see a different story to what is happening to a lot of the market since the Labour Day weekend.

But for many homes where the vendors have circled $3 million as their hoped for price tag, the end result has been below rather than above $3 million.

In a slowing market with dropping prices as well as a fall in turnover (actual deals done), when the median price falls it does so in smaller doses than does the TOP of the TOP END market, because the TOP END tends to fall to the middle while the bulk of the lower end sales tend to hold up the median price. The reverse is not true when a rising price market comes with big turnover increases, because this tends to exaggerate the increases. This is not to say median prices are not useful – they are.

We are not saying the market is bad – we are saying it is good, in fact very good. You as buyers have opportunities to buy well – either by buying at a lower price or by securing a better home than you could have afforded this time last year, maybe even this time six weeks ago.

To buy better you need to be able to

1. Act not freeze.
2. Calculate correct market price ranges in this new market, i.e. when researching past prices it shouldn’t be an automatic plus 15% on last year.
3. Remain flexible if your targeted home is high quality. The market may view it as a red hot and these are still going well and selling occasionally for better prices than a year ago.
4. Adopt strategies to lower the price, or if that is too difficult for you then look for the buys that present opportunities to sell at a lower price without you asking. An alternative is to get a professional who can assist you in price strategies or take advantage of the opportunity to buy a better quality home than you thought possible.

Lower prices and choice can’t be a bad thing for buyers – even if only temporary.

If now is good news for buyers, how will the post Easter market be?

The important issue is stock supply, and to give us an idea of how this is going here are some thoughts  gleaned from our ‘Round the Grounds agent opinion about upcoming stock levels:

• There is not a lot of new stock on offer in Port Phillip due to Grand Prix interruptions. With Easter approaching it is lean times for new offerings.

• Stock in Stonnington is now starting to dry up as Easter interrupts the market. With the vibe dropping since Labour Day we may well see limited stock in the discretionary upper end market coming on post Easter.  19 Huntingfield Toorak (Justin Long) was a classic example of a limited offering that captured the market’s attention. Even allowing for building value at $2,000,000 (and that is generous) that meant that land value with a north orientation was  around $5,000 per sq metre – not exactly a giveaway price, and certainly higher than 2010.

• Peter Kennett, Hocking Stuart, Brighton, believes the window of opportunities and fair choice in Bayside won’t last long. “Currently the best opportunities for buyers are at the top end.  There are great negotiation opportunities at the top end. (But) school holidays and winter coming means less stock available for buyers… “

• In Boroondara there has been tremendous change within the business of real estate. The May and Winter markets will all be determined by stock levels – the size of the overhang, how it’s mopped up and whether or not we will see nervous vendors putting their quality stock up for sale post Easter. For buyers, now may simply be a window and not a trend.

Runaway of the Year to date:
208 Drummond Street Carlton: James Keenan of Nelson Alexander: Terrace home, quality and around 255sqm.  This was quoted and on the market at around $1.5million and two bidders fought it out until, wait for it, around $2.5 million (undisclosed final price). WOW!

$3M+ Market:
STOP PRESS: March, while not huge in numbers, did finish the month with three solid mid-week $3M+ buys – including four bidders at $7 million or better at two auctions.

• Toorak Ottawa Avenue : Jeremy Fox of RT Edgar – quiet sale off market in the mid $8 millions
• 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.
• Canterbury 13 Rubens: Jeremy Desmier Fletchers and Tom Ryan, Sold before Auction: Over $3,000,000.

A sea of umbrellas and a solid result for Justin Long (Marshall White) SOUTH YARRA, 66 Hawksburn: Under the hammer, $2,440,000, 5 bidders

Biggest Sale: $7,060,000: 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 he added Huntingfield proved that.

Bidderbuzz Auction: 66 Hawksburn Rd, South Yarra, Justin Long (Marshall White); under the hammer, $2,440,000, 5 bidders
“Despite the abysmal weather, a crowd of no less than 90 people attended this South Yarra auction. Auctioneer Justin Long did his best to entice an opening bid from the crowd, but to no avail, and instead decided to make a vendor bid of $1,800,000 to break the silence. Mr Long did not have to wait long for his first legitimate bid from the crowd, which came within moments of his vendor bid. Four other bids soon joined in the mix pushing the price past $2,000,000, then $2,100,000, and finally slowing at $2,400,000. Sensing the conclusion of the auction, Mr Long cannily attempted to extract one or two last bids from the interested parties. The home was eventually bought under hammer for $2,440,000 and applause were heard for the winning party.” (Daniel Ehrenreich)

Biggest Pass In we covered: 79a Harcourt St, Hawthorn East, Mark Dayman (Marshall White); passed in $3,300,000; no bidders
“No shoes were allowed in this property, which happens from time to time. What I wasn’t prepared for were the sixty pairs of shoes that made it difficult to access the front door! The attending crowd of over 130 surely gave auctioneer Mark Dayman some confidence that there might be a genuine buyer amongst the group.  With a succinct preamble it was now up to the crowd to play their part, however the silence led to a vendor bid of $3,300,000 . Still nothing and half time was called. After the quickest half time I have ever experienced, Mr Dayman didn’t mess around and the property was passed in.  Negotiations were commenced with interested parties.” (Guy Angwin)

New Subscriber System: Over the next few weeks we will  introduce a free subscription model giving you greater access to our council-specific wraps, which include auction results, news, opinion and analysis on a micro level. This subscription model helps us improve your browsing experience as clients or general subscribers by delivering more relevant content to you on the site and in your email newsletter. Sign up by clicking Subscribe at the top right of the website. If you experience any problems as we are testing and implementing this new improved system please let us know at enquiry@james.net.au

Auction Video: Klarity Kris reports from leafy Malvern on the Jeremy Fox (RT Edgar) auction at 4 Beamsley. Click on the live action.

Buyer Masterclass: What should you look for when buying a home when there are kids in the picture? Klarity Kris discusses this scenario in this week’s Buyer Masterclass.

We Only Buy Homes

Do you know where all the bidders have gone? Sorry Nathan no! GLEN IRIS, 1/292 Tooronga Rd passes for $975,000 in front of a small crowd.

STOP PRESS: March, while not huge in numbers, did finish the month with 3 solid mid week $3M+ buys – including 4 bidders at $7 million or better at 2 of them.

• 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.

New Subscriber System: Over the next few weeks we will  introduce a free subscription model giving you greater access to our council-specific wraps, which include auction results, news, opinion and analysis on a micro level. This subscription model helps us improve your browsing experience as clients or general subscribers by delivering more relevant content to you on the site and in your email newsletter. Sign up by clicking Subscribe at the top right of the website. If you experience any problems as we are testing and implementing this new improved system please let us know at enquiry@james.net.au

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.

SOUTH Yarra, 17 Acland St: The maestro, Gerald Delany (Kay & Burton) in action. Passed in, $3,250,000, no bidders.

Key Points:

• Toorak 17 Lansell with Lisa Jarrett of Abercrombys sold mid week after being on the market since late last year
• Toorak 16 Cole St with Nicole Gleeson of Kay and Burton sold mid week after being on the market since late last year

Agent Q & A: Has the market changed since before Labour Day weekend?
Lachlan Fraser-Smith, BenMac, Armadale:” The main change in the market since Labour Day is that the quality of buyers at open for inspections is very good, however the numbers of people through opens has slowed after a busier than anticipated start to the year. The reasons for this are: as the year settles down after a typical February spike in prices, people have found out at open for inspections and attending the early auctions what they wanted to know about prices and have assessed the market and either go to auction themselves or sit still and stay where they are. Numbers of properties on the market has increased as well but there are still some very active buyers out and about so they quality of buyers is certainly still there. We have been seeing some very strong results between $1 million and $2 million in Armadale and between $3 and $5 million in Malvern and Malvern East.  We will see a reduction in properties coming onto the market going into the traditional Easter, Anzac day and school holiday period. This will, I believe, underpin the market for the homes that come on post Easter in May.”
Iain Carmichael, BenMac, Armadale:“The Stonnington market in recent weeks has performed well given slightly diminished bidding activity at many auctions. Pleasing elements from a vendor’s point of view is that sales are being made and that clearance rates in Stonnington continue to exceed the Melbourne-wide figures by up to 10% each week end. The trend for buyers to hold off bidding is puzzling as the great majority of properties auctioned are still sold for solid prices at or immediately after auction.  Stock levels are reasonably full and the market will test both vendor expectations and buyer depth in the weeks leading up to Easter. It will be interesting to observe whether buyers will continue to run the gauntlet and back themselves into post-auction negotiations and, in some cases, private auctions or whether the true transparency of the auction system will give consumers sufficient comfort to bid with confidence and buy ‘under the hammer’ or become the highest bidder to gain an exclusive seat at the negotiating table.”
Andrew Hayne, Marshall White, Armadale:“No I don’t think things have changed too much. The market has been pretty price sensitive for a while now, so provided vendor’s expectations are in line with the market then there shouldn’t be any problems selling. I am a big believer in each property sets its own market so each one has to be treated on an individual basis rather than generalize about market conditions or sentiments.”

ARMADALE, 2 Avondale Rd: Warwick Anderson (RT Edgar), Passed in, $1,950,000 no bids.

BRIGHTON, 7 Yuille St: Jonathan Dixon looks for bidders and finds one. Not enough to sell under the hammer though. Passed in $2,500,000, 1 bidder

Key Points:

• Two Land Sale Volcanoes 4+ bidder auctions below:
• 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.
• 5 Horton Close Brighton with Campbell Cooney of Hodges – just off the north end of the Golden Mile. – $2,055,000 for 652 sqm of land = $3,151 per sqm land for smaller parcels closer to the beach. Solid. 5 bidders.
• People do want new homes in Bayside and this is backed up by the post auction sale with Peter Kennett at 1 Hunter St Black Rock – it is what we call the almost Balwyn formula (small land and big new home) – only its not quiet as big and lavish and has a more palatable $2m price tag instead of the $3m and $4m Boroondara price tags. Black Rock $2m versus North Balwyn $3.5m -  mmmmmm
• Further supporting evidence for new homes at the right price – 91 South Road Brighton with new home package specialist Justin Follett of Kay and Burton was bought on Tuesday through an Expressions of Interest campaign for in excess of $2,600,000.

Agent Q & A

How are stock levels and what will they be like leading up to Easter?

Robin Parker, RT Edgar, Brighton: “Stock levels for good quality family homes continue to be in short supply in the sub $2 million price bracket.”

Rod Richardson, Hocking Stuart, Brighton: “We definitely have a lot ahead of us.  I wouldn’t say stock levels have dropped at all and there is a lot more for sale in the coming weeks as we approach Easter.  The past few weeks we’ve had some good results and it looks like that’s set to continue.”

ALBERT PARK, 64 Kerferd Rd: The sun was shining in Albert Park, but the bidders were nowhere to be found. David Lack (Biggin & Scott) passes in for $1,950,000 in front of a crowd of 60.

Key Points:

• 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.
• Overall the year has started better than anticipated but pass-in vendors will need to adjust if they want to attract buyers.
• 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 4 sales on this strip over $4m last year seemed different offerings.
• 49 Howe Crescent advertised in an Expressions of Interest campaign for later this month sold last week well over its $5m+ guideline for over $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 that St Vincent Garden precinct (or just off it). Michael Coen of Hocking Stuart the dealmaker on this one. Good job.
• Elwood – some action at the top end with 338 Barkly selling for $2,400,000 and 46 Goldsmith selling after last weekend’s pass-in both with Torsten Kasper of Chisholm and Gamon. 102 Tennyson passed in for $1,700,000.
• Land sale in Elwood at 49 Ormond Road sees land still around $3,000 per sq metre.

Agent Q & A

How are stock levels and what will they be like leading up to Easter?

Nick Yannopoulos and Gerald Betts, RT Edgar, Albert Park: “2011 has so far seen healthy stock levels and buyer activity. The Port Phillip district continues to perform strongly, particularly in the $2 million and under price bracket where stock is consistently in high demand and under supply. The current market activity levels suggest the area will continue to perform well right through to the Easter holiday period.”

Damian O’Sullivan, Marshall White, Albert Park: “Stock levels have been very healthy thus far in 2011. Despite this, success rates have remained particularly high and in doing so encouraging many would-be sellers to consider listing their home for sale sooner rather than later. Many home owners seem inclined to want to sell prior to Easter and the ensuing winter chill when activity typically slows. We, too, are advising people to contemplate this and take advantage of what we believe is a vendor-biased market”

Kaine Lanyon, Marshall White, Albert Park: “Stock levels appear very healthy at present and will continue to be leading right the way up to Easter if the very recent activity & enquiry we have seen is any indicator. We feel that the market so far has performed better than what most people were expecting it do thus far and as a result the confidence appears to be flowing on from that.”

ELWOOD, 6 Dickens St: Adam Guest (Century 21) finds one bidder in the crowd of 90, but passes the property in for $3,460,000.

PRAHRAN, 68 Wrights Terrace: Like many of today’s auctions, this one had good numbers in attendance, but unfortunately no sale for Justin Long (Marshall White), passed in $1,610,000, 1 bidder

Key Points: It’s all about the bigger deals this week:

• 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

Agent Q & A

How are stock levels and what will they be like leading up to Easter?

Mark Wridgway, RT Edgar, Toorak: “Stock levels over the next 6-7 weeks leading up to Easter are likely to be above normal. This year Anzac Day falls the Tuesday after Easter Monday which leaves only 3 days of that last week, which happens to immediately follow the school holidays. I can imagine that some people will essentially extend the school holidays to almost 3 weeks. Most vendors will want to see that period through before launching a new campaign, so the option is to get your property onto the market in time for a  9^th April auction date or wait until 21^st May.”

Justin Long, Marshall White, Armadale: “ The 3 weekends leading up to the Labour Day weekend were heavily booked even before Christmas hit us, as those who had purchased in late 2010 made plans to complete their real estate transactions at the earliest opportunity. Those not forced into February action seem to have been delayed until the first few rounds of auctions were played out and, the results having been reasonably encouraging, those that have waited are now finally making their decisions. The long weekend has adversely affected stock levels for March and the first weekend in April as many vendors chose not to have that weekend in their programs but as a result, the 9^th April seems to loom as the BIG weekend before Easter. In summary: expect a late (but strong) pre-Easter run.”

More big crowds this week, such as this one at 27 Auburn Pde, Hawthorn East, which stopped traffic! Under the hammer, $1,360,000, Peter Batrouney (Jellis Craig), 4 bidders

At 6pm on Saturday the James $M+ Clearance Rate on the 32 auctions we covered dipped to 59%. For the second week in a row there were around 150 new $M+ listings in our main coverage area of Bayside and the Inner East. Buyers have firmly said to sellers – “if it ain’t priced right we ain’t bidding, because we can see plenty of other homes coming on”. This attitude was particularly evidenced by the ‘duck’ rate (auctions with no bids and no sale afterwards) which was almost 1 in 3 this weekend  – well up on last weekend.

However there were exceptions – such as in Stonnington at the top of the Top End where there was almost no stopping the market and it made its strongest statement of the year so far.

Where is the Market At?

Last week there were indications the early $million+ market could be warming up a bit. But a second strong week of listings has taken some heat out of the market.

The strongest “take notice of me” stat was this weekend’s Bidderman dropping back to 1.5 from a more healthy 2 last week. What that tells us is that buyers are seeing stock choices going forward and the urgency has dimmed on some homes.  If Bidderman continues like this to Easter, prices are unlikely to rise.

This weekend we did see price pressure on quality homes, with quite strong bidding at a number of auctions (including several $3m+ auctions) and five ‘volcanoes’ of 4+ bidders per auction.

What we’re saying is that this first market period, up to Labour Day, has started healthy and balanced. But the second market (up to Easter) is no longer a shoo-in positive for would be sellers.

For buyers, this two week stock surge presents an opportunity for good prices on some good homes that the market may miss – at least until Easter. But things can change quickly – while May last year saw oodles of stock coming onto the market, that may not happen again this year. Given we’ve got such a late Easter in 2011, we may already be seeing the stock surge we saw in May last year, which could mean we don’t get strong stock levels this May.

Crowd Numbers: Again we had big crowds at many auctions, indicating a strong level of interest in results. This weekend we reported one in three auctions with 80 or more people in attendance. All others had good numbers watching.

Our $M+ Supply Indicators:

New Stock: This has been the second huge week in a row for listings with around 150 $M+ homes newly listed for sale in the Inner East and Bayside areas that we cover. There were around 200 $M+ listings across Greater Melbourne.

Actual Numbers Sold: There are solid numbers of $M+ homes changing hands, which is in part why we are not yet buying into any  cries of  a “weak market”.
Agent Market Comments:
Gerald Delaney (Kay & Burton): “I can’t see anything wrong with the market at the moment. We have seen good interest on good properties. I definitely think the market is a healthy one.”
Justin Long (Marshall White): “I feel the market has a bit of upward pressure at the moment. The well priced properties are going beyond expectations and the overpriced or not so good can be very hard work.”

James Marketnews Big Issue:
A few Expressions of Interest and Forthcoming auctions are coming back – a possible sign the pre-Easter auction market is viewed as oversupplied. Watch the discussion on Market News TV.

‘Round the Grounds Snapshots
Boroondara -  Stock Surge in Boroondara – Clearance Rates are definitely not as good as we are used to, but nearly 40 homes at $M+ were bought this week
Bayside – Bayside still shining the brightest – more stock coming on pre Easter will re-test its underlying 2011 strength
Port Phillip – So-so weekend, but stock wasn’t that exciting. Wow on Howe – Big $6m+ sale.
Stonnington – Where the big action was this weekend.
Rest of Melbourne – Just not a lot of $m+ auction action happening so we held over this week’s report
More Detailed Analysis in our Weekly Local Council Market Wraps

$3M+ Markets:
New Homes: Definitely weaker than last year particularly in the Balwyn and North Balwyn heartland.
Period Homes: Solid interest continues
More News and Specific Results can be found in $3-Million-Plus Market articles on the home page

MALVERN, 66 Claremont Ave: Iain Carmichael (BenMac) led a cracker auction - on the market at $3,300,000 and selling under the hammer $3,700,000, 3 bidders

Biggest Sale: 19 Hamilton Rd, Malvern, Justin Long (Marshall White): Under the hammer $4,357,000
The auction opened on a bid of $3,820,000, was on the market at $4,250,000 and bought under the hammer for $4,357,000. There were two bidders and a crowd of around 150. A solid result for this 1930s reproduction home on 668sqm of land.

Biggest Pass-In: 279 Beaconsfield Parade, Middle Park, Gerald Betts (RT Edgar): passed in $4,250,000
“Auctioneer Gerald Betts opened with a vendor bid of $4,000,000 and closed with a vendor bid of $4,250,000 in front of 40 seemingly uninterested observers.” (Mal James)

Bidderbuzz Auction: 11 William St, Brighton, Rod Richardson (Hocking Stuart): Under the hammer $3,100,000, 5 bidders
“The epic 45 minute auction of 11 William Street had a mix of elements to entertain those spectators watching on – intensity, drama and tension with a few awkward silences thrown in.  In the end it was a battle of the property developers for this generous block of land, in the heart of bayside Brighton.  Auctioneer Rod Richardson showed composure in the face of heckling and the patience of a saint during this long auction, working tirelessly to achieve a solid result for the vendor from the opening bid of $2,710,000 to the winning end at $3,100,000.  All in all, it was an entertaining auction to witness!” (Nikki Hills)

Auction Video: This week Architect Adam heads to Hawthorn to witness James Tostevin and the Marshall White team auction 66 Manningtree Road. Click on the live action.

Please Note: we always ask permission to film and we always show respect at each auction. We also never video at an auction we are bidding at. If you are at an auction and don’t wish to be videoed, there are designated no-video zones. See our co-workers or ask the auctioneer.

Buyer Masterclass: A change of pace with Architect Adam telling us why we love Victorian homes – with plenty of facts and figures.

No Marketnews next week with Labour Day Long Weekend.

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