25 Campbell Road Balwyn - Peter Mitchell - Under the hammer - $3,000,000 - 5 bidders

Week 4 September 24th: Overall market interest is down this week, best evidenced by the fact we had 30% less Marketnews readers on the Monday of  this week than the past two month average (alternatively we may be just getting boring). While some new AFL coaches bobbed up, so have some interesting homes and it may be worth your while to revisit your contacts to see what new offerings are on the horizon. The internet portals are showing more homes in the Upper End than they have for a while and this is due to the agents planning an extended campaign to manage arrange the Grand Final while still trying to get the home done and dusted prior to the Melbourne Cup. So this week may have been more interesting than you thought but soon it will be back to “quiet and low new stock” as far as listings go until the second week of November post Melbourne Cup (hopefully).

Biggest Sale: 2 Albert St, Brighton, Leigh Hallamore (Buxton); after auction, in excess of $3,100,000, 3 bidders
With a relatively big crowd of 60 lining both sides of Albert St, there was a feeling in the air that this auction would be an exciting one. And, although he had to open on a vendor bid of $2,500,000 to kick-start proceedings, auctioneer Leigh Hallamore soon had a tightly contested battle between three parties on his hands. Bidding was strong and constant with bidder 3 eventually earning the right to negotiate after the property was passed in at $3,120,000. Bought after for an undisclosed amount. (Jen Milligan)

Biggest Pass In: 324 Beaconsfield Pde, St Kilda West, Andrew Stuart (Hocking Stuart); Passed in, $5,000,000, no bidders
Auction Andrew Stuart took great pleasure in explaining to the crowd how the under-ground car lift and turning circle worked – with a  practical demonstration. Demonstrations over, Andrew asked for a bid somewhere near the lower end of the quoted range. No one offered a bid and  a vendor bid of $5,000,000 was made – still no interest and half time was called. Half time was short and sweet. The property was reoffered again and surprise, surprise – no bids and the property was passed in at $5,000,000. It has been a long time since a property on Beaonsfield Parade has sold under the hammer. Sales are being transacted its just taking some time for vendor and buyer to reach that all important middle ground. (Guy Angwin)

Bidderbuzz Auction: 25 Campbell Rd, Balwyn, Antony Woodley (Marhsall White); under the hammer, $3,000,000, 5 bidders
Antony Woodley took the helm and fielded bids from 5 parties before the hammer fell at $3,000,000; after being on the market around $2,700,000. Around 70 people attended this auction. Full report in Market News (Adam Woledge)

Some clean ups from previous auctions and another few off markets and quiet results for the month.

• 34 Tormey St Balwyn North – James Tostevin – after auction for around $3,000,000
• Brighton 12 North Road – Jonathan Dixon – off market – over $5,000,000
• Toorak 67 Lansell Road – Andrew Harlock – after auction – over $3,500,000
• Toorak 1 Sargood – Lachlan and Paul Castran – Expressions of Interest – new home – undisclosed
• Balwyn 49 Metung St – John Bradbury – Expressions of Interest – new home – undisclosed
• Kew 26 Dean St – James and Hamish Tostevin – Expressions of Interest – new home – over $4,000,000

Not everything sells at the top - 111 Walsh South Yarra - Passed-In $3,250,000

Week 3 September 17th: Good quality Top End (around $3m and above) continues to change hands in strong numbers.

• 40 Balwyn Canterbury Peter Dixon over $3,000,000
• 37 Fairview Hawthorn Jeff Gole just under $3,000,000
• 3 Gardiner Hawthorn Hamish and James Tostevin – 5 bidders $3,850,000
• 41 Drummond Carlton James Keenan – $3,160,000
• There were $3m pass-ins at 111 Walsh South Yarra and 2-4 Sandown in Brighton.

During the week these $3M+ were bought

• 48 Hampden Road Armadale Andrew Baines over $6,500,000
• 45 Martin Brighton Ian Jackson just under $4,000,000
• 42 Matlock Canterbury Sam Wilkinson just over $3,000,000
• 198 The Esplanade Stewart Lopez – were quoting in excess of $6,000,000 – undisclosed

This September, to date, we are aware of 26+ sales in the is $3m and above price range – see our $3Million Plus report. If you look at our $3Million Plus market report for last year, September 2010, we got to 46 boughts by months end – http://marketnews.com.au/2010/09/two-9-million-homes-bought-on-monday/ and that was pretty much a solid activity time in the market. The Top End has some ooomph just now.

Michael Gibson and Justin Follett of Kay and Burton were both a bit chipper when I spoke to them this weekend and assured me that while the market may seem a little boring until the end of the school holidays, there are some good homes coming on after that. Hopefully post Melbourne Cup as well. Michael added that vendor moods have improved with the Top End good news of recent times. We hope he is right as that will mean more choice for buyers.

78 Blessington St Kilda - John Bongiorno - 6 bidders - Under the Hammer for $3,400,000

Week Two September 10: With the third week in a row of significant competition on A grade Top End homes there is little doubt we are now firmly in the midst of  an activity spike due to significant stock shortages of “ready to move in family period and new homes” in the $2m to $6m range.

On top of what we saw 2 weeks ago (11 sales at $55m with an average of 2 bidders each) and last week (7 from 8 bought over $3m) we saw solid results this weekend at:

1. Kew 20 Barry – Peter Batrouney 3 bidders, under the hammer, $3,850,000
2. St Kilda 78 Blessington – John Bongiorno $3,400,000, 6 bidders.
3. Armadale 46 Stuart – Andrew Hayne 2 bidders, after auction, over $3,300,000
4. Malvern East 58 Kerferd – John Bongiorno, 1 bidder after auction, $3,075,000
5. Malvern East – Little Como – 50 Finch – Gowan Stubbings – Expressions of Interest – It was a long battle but there is a sold sticker on the board.
6. Toorak 8 Ultimo – Justin Long – After Auction – 3 bidders – $2,900,000

Whilst the market is giving a big tick to those it likes (well priced A graders); it is marking very harshly those that is doesn’t and they are best summarized as B or C graders – homes that have issues. Some examples below

1. Toorak 32 Canberra – its old and tired – big land though.
2. Kew 2 -4 Heather – No backyard, no garage and no real interest.
3. Malvern East 4-6 Finch – 0 bidders – a big reno required and only a few metres from Dandenong Road

And then there is 22 Surrey Road Toorak – Auction was due today – converted to Expressions of Interest at the last minute. What does this mean?

Yes our focus in Marketnews seems to be all at the top of Top End ($3M+). Right now that is where the real action is. There has been an unequivocal mood change that does not seem to have been shared by the market at the lower dollar values.

Buyers are now having to answer some very real questions.

What is the real price? – Eg What is the highest other bidder prepared to pay, if indeed there is one? As a buyer am I trying to buy an A grader or a C grader – am I $300,000 below the other bidder or $300,000 above nobody!

What should my new strategy be in trying to purchase a Top End home? Extract from an MW St Kilda auction report “This market now plays to MW’s great little system and strength – shake the buyers up, show ‘em their competition, work out who is the strongest, then pass it into them and mentally torture them in post auction dealings by referring to those outside. It’s very hard to argue with it’s effectiveness, for if you don’t play the game, on a good home in this market, then there is a high chance somebody else will. This market is now spiking in the direction that will enhance MW’s reputation amongst sellers but …  um how do I say un-enhance their reputation amongst buyers.” This applies to not only Marshall White, but Jellis Craig, Kay and Burton, RT Edgar, Benmac and many of the Bayside agents. The main question for buyers is not it’s legitimacy (the sellers absolutely want this); its how do I best manage it and achieve my main goal within my buyer risk profile.

How will you manage a negotiation situation under extreme pressure – then is not the time to work out a plan. After the event is not a time to say I could have done it a lot better. The market has changed at this level, and may well change again, as a buyer have you moved with the times?

Strong Crowd at South Melbourne 210 Nelson Road - Anthony Grimwade - Under the hammer - 3 bidders

Week One September 3: My week this week. A good week with another $3M+ purchase for a satisfied client – which makes a good string of activity in the last month for our company. Overall a solid start to Spring after a less than exciting Winter (well I enjoyed Scotland with my son anyway). A magic moment for me was the home at 8 Torrington Place in Canterbury (Michael Armstrong of Kay and Burton). We will have a rating up in the next few days – but in a nutshell it’s a very brave new build home. Its Olde English for a start, which already loses most of you; but it is built to such a standard that when its attracts a suitor to its sweet offerings they will be entranced and will move to a mindset of I have to have this. The French Provincial being built next door will attract more; but this home will attract a greater intensity of interest. The price – well its asking $5million and for me the end result will be give or take a million and the sold sticker will be slapped on in an almost impossible to guess timeframe. That will depend on when the specific bee walks into this very specific honey pot. A lovely, well thought out, beautifully crafted home – go and check it out – its open mid week and weekends or google for our rating by weeks end. Please we are happy to be more specific on perhaps how best to buy it; if indeed it’s of interest to you.

My other magic moment was the 29 Rose St Armadale Auction: I really love watching Heather and Rae (Marshall White) at work – they are masters at their craft also – just like the developers of 8 Torrington. The two of them had positioned buyers on this home (last sold for around $2,500,000 in mid 2008) to get involved in the biggest shootout I have personally witnessed at an auction this year. And they lined up one of the best sheriffs to take all-comers on – Growling Jack (John Bongiorno) and boy did he fire up – to use the vernacular he stuck it right up ‘em and corralled 9 bidders into the final $3,030,000 result. It was very powerful to watch and while not reflective of the overall market right now, it did provide a pointer to the current lack of stock at the $3m+ level and a beacon for those that feel the only way forward is without hope. Sure we are all a bit nervous, but things are simply not as bad as The Age daily headlines make you think they are – well not right now in the $3m+ segment anyway.

Again the standout $ segment – granted on very low numbers ( 6 from 8 ) Yes there were some big pass-ins like 67 Lansell Road Toorak ($3,200,000 vb) but it has some challenges. Also passed-in 2 Iona Toorak ($5,000,000 vb) – postscript: was bought over the weekend.  However the ones that were bought this week showed, in the main, multiple interest.

• Toorak 2 Iona – Jeremy Fox – bought after auction $5,080,000
• Armadale 29 Rose  – see report below 9 bidders $3,030,000
• Malvern East 7 Bates – Heather Elder and Rae Tomlinson – 3 bidders – bought after for $3,500,000+
• Hawthorn 34 Coppin Grove Jack Bongiorno – 3 bidders – under the hammer – $4,110,000
• South Melbourne 210 Nelson – Anthony Grimwade – 3 bidders – under the hammer – $4,215,000
• Toorak 19 Sargood – Jeremy Fox – 2 bidders – bought after – $4,700,000.
• Balwyn 12 Creswick – William Chen – Bought Before – Undisclosed – around $3,000,000 . This was after a failed auction earlier in the year.
• Canterbury 52 Mont Albert – Karen Gornalle – Private Sale – over $3,800,000.
• Hawthorn East 5 Constance – John Chartres – After Auction – just under $3,000,000. 2 bidders.

Hawthorn 35 Mason: Scott Patterson and Michael Armstrong: Bought for over $3,100,000: 4 bidders

Some interesting results to finish off the month:

• 6 Teringa Place Toorak with Andrew Macmillan and Andrew McCann of Benmac was bought Sunday for an undisclosed amount over $3,500,000. House was quite serviceable but it would have also been considered as a bulldozer job placing land just under $5000 per sq metre
• 

  49 Howe Crescent South Melbourne - bought in excess of $6,000,000. Expressions of Interest - Michael Coen Hocking Stuart

  And a very quick and smart result at 49 Howe Crescent South Melbourne with Michael Coen of Hocking Stuart – due to be sold through an Expressions of Interest Campaign completing 21st March it was snapped up within a few days of advertising on the 25th of February. The result was a strong one and is undisclosed but the  quoting was over $5,000,000 and we believe in sold for in excess of $6,000,000 to give you some perspective. We do a fair bit of work in the is Expression of Interest area and this again proves that those who wait until the stated deadline do not put themselves in the best position to buy.

• 

  290 Beach Beaumaris - Len Sharp Chisholm and Gamon - Full asking price of $2,950,000 after a previously failed selling campaign.

  Private Sale at 290 Beach Road Black Rock with Len Sharp of Chisholm and Gamon for full asking price of $2,950,000. This again supports our comments that 1) Bayside and 2) New and 3) $3m (almost) price tag are a combination that is getting some runs on the board in the late Summer of 2011.

• Caulfield 20 Langdon Road – Rochelle Butt and Rodney Morley of TBM got away 1500 sqm of land plus home in Caulfield North for an amount believed to be in excess of $4,000,000. Showing that Caulfield’s prices can be Canterbury prices when the right package is sought after.

Week Ending February 26th: If last week was the season opener for the $1m+ auction market, then  this  week  was the beginning of the $3m+ auction market and the main  focus for this weekend’s report. We don’t have all this weekend’s numbers in yet, so it’s hard to call, but it seems that this upper  market cleared at 44% of the properties under the hammer. We at  James accept a slightly lower auction clearance rate on the day in this segment as indicating balanced, warm or even hot  markets, because the air is generally thinner at this level due to the lower number of bidders available at this price point, and because the pre and post auction argy-bargy is  generally greater. Today there were quite a few $3m+ homes on offer. We  think this market segment is underwhelming at present – however if it is the right price, the right property and the right position it is still being well  received and taken up.

A few of the biggies that were bought

• Armadale 23 Wattletree Road – Justin Long – 3 bidders – $3,300,000
• Hawthorn 46 Illawarra – Mark Dayman – Bought Before – $4,250,000
• Brighton 33 Middle Crescent – Jason Swift – 3 bidders – $4,300,000
• Malvern East 8 Westgarth – Andrew Macmillan – 2 bidders – Post Auction Buy a smidge under $3,000,000
• Hawthorn 45 Mason – Scott Patterson – 4 bidders – Under  the Hammer over $3,100,000
• Malvern East 118 Finch – Bought for $3,150,000
• Kew 4 Madden – Peter Batrouney – Bought After – 1 bidder – $3,050,000
• East Melbourne – John Bongiorno – 3 bidders – $3,000,000

Some of the biggies that missed the mark

• Balwyn North 15 Stephens  – 2 bidders – Passed In for $3,650,000
• Balwyn North 59 Hosken – Passed In for $4,050,000
• Toorak 44 Verdant – Passed In for $3,750,000
• Hawthorn 23 Lisson – Passed In for $3,600,000
• Toorak 231 Kooyong – Passed In for $3,500,000
• Malvern East 50 Finch  - 1 Bidder – Passed In $4,100,000

St Kilda West 49 Mary: Passed In $4,000,000 - 0 Bidders: Andrew Stuart was not in the mood for mucking around – he had an uphill battle and he knew it. An opening vendor bid of $4,000,000 immediately hushed the vibrant crowd of 120 and that was it. Game over – a half time break for show but the gate was shut. A duck for this auction. Photos by Phoebe James

Week Ending February 19th: This market is either poor or, what is more reasonable to assume, still on holidays. Mike Gibson of Kay and Burton says that most high end sellers, as advised, are waiting. Hence the quality currently on the market is average. He expects good stock at this level to come on post Labour Day and before Easter.

To support our claims that the $3m+ market hasn’t really got going yet, look at this weekend’s Pass–Ins of $3m+ properties  –

St Kilda West – Mary St – $4,000,000 –  0 Bidders
James Auction Report: See Report Above

Camberwell – Canterbury Road – $3,801,000 – 1 Bidder
James Auction Report: An air of expectation at another James Tostevin Boroondara tennis court auction. He has almost singlehandedly made them his own over the last 2 years or thereabouts. His focus has been 20000 sq ft tennis court at $6m plus. A huge crowd, around 200 with kids trampolining, people milling and cars driving by. Everybody seems to know at least one person to give a wink or a nod to. Carnival atmosphere. Then the business started – well this time it didn’t. One auctioneer bid at $3,800,000 and then surprisingly one crowd bid for $1,000 more. Small Argument – settled with pass-in to the bidder on his $1,000 bid. Inside to do battle and last check they were still banging heads. We await the result.

"You are all very naughty schoolkids and I'm going to keep you back here somebody bids." Well no, James Tostevin didn't say that but he may have been thinking this on Saturday. Camberwell 31 Canterbury: Passed In $3,801,000: 1 bidder:

Balwyn – 12 Creswick – $3,425,000 – 3 Bidders
James Auction Report: A genuine bid of $2,000,000 opened proceedings. Auctioneer Maurice Di Marzio politely accepted the bid, suggesting it was closer to land value than a sale price, before offering a vendor bid of $3,200,000. More than 150 people watched Mr Di Marzio field bids from another two bidders before passing the property in at $3,425,000. Both interested parties headed inside after the auction for further discussions.

Albert Park – 139 Beaconsfield – $3,250,000 — 0 Bidders
James Auction Report: Auctioneer David Wood from Hocking Stuart was seriously up against the elements today as he tried to make himself heard against the traffic noise and the wind coming off Port Phillip Bay. The preamble was short and to the point, before he asked for bids. No one was prepared to open the bidding and he immediately entered a vendor bid of $3,250,000. Still no response, so half time was called. After the think music was up, the question was asked again and still no bids. The property was passed in on the vendor bid.

Gowan Stubbings of Kay and Burton successful at 29 Scott Grove Glen Iris

Kooyong – 711 Toorak – $3,190,000

In fact the only auction sale over $3,000,000 we covered was 29 Scott Grove Glen Iris (Gowan Stubbings of Kay and Burton) for $3,032,000 – 3 Bidders.
James Auction Report: A triangular battle developed right from the word go, and auctioneer Gowan Stubbings orchestrated the bidding superbly to maintain momentum throughout. Only when the $3,000,000 mark was eclipsed, did one of the bidders drop out. $32,000 later and the property was secured. Good naturedly, the two bidders shook hands to acknowledge the end of the contest. A riveting event.

However a few strong private and off-market sales show this market is not completely morbid. There is still some pulse. There were three very solid such sales in Bayside this week:

Brighton Golden Mile: Scene of 2 big sales over $10,000 per sq metre in February 2011

Shandford Avenue – Nick Johnstone of JP Dixon – $7.3m for 600sqm approx – which translates to $10,000 sqm for Golden Mile beachfront

Chatsworth Avenue – Stewart Lopez of Kay and Burton – $11m+ for 1100 sqm approx – again, $10,000 sqm for Golden Mile beachfront

Kerferd Road – Andrew Stuart of Hocking Stuart – $4.9m off market – 440 sqm approx

Continuing with February Sales:

While we have seen no sales over $3m reported in Boroondara and only the long suffering and difficult to see what you can do with it 13 Como Sth Yarra finally sold (Jeremy Fox of RT Edgar) we have seen a reasonable amount of mopping up action in Brighton – a sort of summer clean out.

New and old Brightonians like to buy New in Brighton

1 Inner Crescent Brighton with Justin Follett of Kay and Burton for an undisclosed amount – proved difficult to move and while it was an impressive residence it must have been price that proved the sticking point. Having said that line it up against a number of apartments and I thought the final result was fair value.

This type of offering sold well over Summer

2 William St Brighton – cnr St Andrews –scene of the all the helicopter noise in recent weeks saw a similar offering to 1 Inner Crescent also sell –reportedly through Kay and Burton.

2a Mulgoa also with Kay and Burton and a similar offering got a lot of it’s 50% better price basically because of its golden mile location.

Another good result  in the Golden Mile this time for the dynamic duo Regina Schmidt and Brian Devlin saw another of the Glyndon apartments (no 4) bought for $3,200,000 which continues to emphasize the demand for “retiree” offerings and it shows the selling appeal for Friedrich designs.

The Buxton duo again  – 1/188 The Esplanade with waterfront views but unlike the Golden Mile also some traffic noise – bought for $3,500,000.

And finally also Buxton in Brighton – David Hart got away a very popular 62 Dendy when we  went through it (but for us main road, south facing , tight block) for a smidge under $2,950,000. And increase of just over 28% from the depths of the GFC,  2 years ago.

THE LEOPARD: Auctioneer Jason Scillio watching, thinking, testing, watching. 1 Stawell Kew bought afterwards for an undisclosed amount. 2 bidders.

At 6pm on Saturday the final James $M+ Clearance rate for the year on the 35 auctions we covered was 69%. You may be interested to remember that back in our first Marketnews report for 2010 it was 83%. Those figures point to the year that was.

Bidderman, our demand indicator, was a strong 2.1 bidders per auction – which only confirms what those in the market know: we have had a bounce and that while the hot market has continued to cool, it has not lost all its warmth on the good homes. Our first market news in February 2010 had Bidderman at 3.0.

This Weekend’s Market:
This weekend the market continued its bounce which began two weeks ago. Bidders were there to meet those sellers who chose to meet the market. They were even prepared to fight a little harder than they were in October. Maybe it’s the need for buyers to be in a home by Christmas or maybe it’s the need for sellers to have money in the bank at Santa time – or probably a bit of both, which is normal for this time of the year. The market was in a bit of trouble a few weeks ago following Super Saturday and something had to give. And something has: sellers have given. Which is why the market has bounced in the last fortnight and is looking healthier. Sellers are now pricing their homes to meet the market. They are listening to their selling agents and they are getting the job done. In return buyers are responding, especially when a good home is placed on the market at a reasonable price. Yes, that reasonable price is 5% below September’s reasonable price and maybe 10% below April’s. But it’s still about the same as this time last year and that is how the market works. It goes up and it goes down and it does that every week on every type of property in every type of market. It’s just the median price stats and some media commentators which encourage the uninitiated to think property is a slow moving beast. It’s not. Footnote: over the long term the property market goes up more than it goes down.

Meet the market – what does that mean?
While our focus is homes over $1 million, many of our purchases are over $2 and $3 million. We also have an investment division – headed up by Valuer David McMillan. This weekend we witnessed a great example of a product that met the market and one that didn’t. They were a kilometre apart and finished around the same price – circa $850,000. Both had competent agents managing their campaigns, both have 2 bedrooms.

• Home 1: 1/45 Thanet Street Malvern with Tim Bennison, had 7 bidders and sold for $880,750.
• Home 2: 102 Sutherland Road Armadale, had no bidders and passed in on a lone vendor bid at $850,000.

The market embraced one home and completely rejected the other.

What to do now?
With basically one weekend of auctions left and two weeks of private sales and off-markets, you basically have around ten more sleeps to find what you want – or sit back, relax and wait till just after Australia Day 2011 for a burst of new stock (hopefully).

Try and make good decisions not emotional ones. If you have to rent then so be it, it’s better to rent than buy badly. But good decisions also involve reading the market and it has stepped up a bit so we do not recommend being too cute on price. Sure, don’t overpay, but don’t be too cute either.

We have bought eight homes in the past eight days – five of them outside the auction hammer. Highlights include the purchase of Munro St Armadale post auction, Kyarra Street Sandringham off-market, and Avenue Road Camberwell before auction. As well we have had solid new enquiry. So internally and externally we are seeing market indicators that point to a bounce. As we at Marketnews leave you for the year we think the market could well be in a healthier and more sustainable shape than it was when we first reported to you in 2010, just 10 short months ago. Let’s hope that is good news for 2011.

Auction in a Garden: Tim Derham, a rose amongst the thorns, passes in to the third bidder for $2,970,000, 4 Mathoura Toorak.

$3m+ market

While the highlights point to a number of successes in the $3m+ market there have also been a number of pass-ins. Which suggests that this market too is cooling or cooled and now seems balanced and healthy and this week has a bit of pep again.

This Weekend’s Highlights:

• Brighton 4/23 St Ninians, Stewart Lopez  Bought at auction for $4,825,000
• Balwyn 32 Stephens, Maurice Di Marzio, Bought under the hammer for $3,800,000 – 4 bidders
• Armadale 17 Denbigh, Justin Long, Bought under the hammer for $3,890,000 – 4 bidders
• Balwyn 12 Knutsford, Tim Derham, Bought under the hammer for $3,520,000 – 4 bidders
• Kew 1 Stawell, Gowan Stubbings, undisclosed Bought after – 2 bidders
• Kew 3-5 Rimington, Scott Patterson, Bought After above $3,650,000 -  2 bidders
• Malvern 376 Glenferrie, Iain Carmichael of Benmac passed in $4,300,000 and bought after $4,415,000 – 0 bidders

Off Market

• Hawthorn 26 Fordholm, Michael Armstrong, Over $5,000,000

Not so Highlights:

• Canterbury 34 Maling, passed in $4,600,000
• Brighton 29 Sussex (this seems to be for sale each year), passed in for $3,350,000 – 0 bidders
• Middle Park 280 Beaconsfield, passed in $4,400,000 – 0 bidders
• Toorak 83 Clendon, passed in – 0 bidders

*For more $3m+ results please go to our weekly updated $3m+ section

Bidderbuzz Auction: 43 Motherwell St, South Yarra, Joseph Allan (Chisholm & Gamon); Bought under the hammer, $1,860,000, 7 bidders
“As I rocked up you could feel a number of people had come to play – and play they did under Joseph Allan’s direction. On the market at $1,400,000. 7 bidders, all with a variety of techniques and wallet sizes provided some sparkling entertainment until there was only one left at $1,860,000. This home needed some serious work. Sorry – did I hear somebody say the market was gone?” (Mal James)

Biggest Sale: 17 Denbigh Rd, Armadale, Justin Long (Marshall White); Bought under the hammer, $3,890,000, 4 bidders
“On a magnificent day in Melbourne, auctioneer Justin Long left it to the energetic crowd for a starting bid. Within a few seconds an opening bid was made from a gentleman in the crowd for $3,300,000, which was quickly followed by a bid $25,000 higher. With four separate parties vying for the Armadale home, the price flew past $3,500,000, then $3,600,000, then $3,700,000, and finally slowed at $3,850,000. Mr. Long extracted the maximum from the bidding parties, managing to squeeze out a final bid of $3,890,000 from one very interested gentleman, and the property was sold at that price. All in all, a very well conducted auction with 80 or so people in attendance, and all participating parties walking away very satisfied.” (Daniel Ehrenreich)

Biggest Pass In:280 Beaconsfield Pde, Middle Park, Andrew Stuart (Hocking Stuart); $4,400,000; no bidders
“A large crowd of 80 sought refuge from the hot sun under the shade of the trees scattered on the nature strip.  In his preamble, auctioneer Andrew Stuart spoke enthusiastically about the property, the ‘outstanding lifestyle’ and it being in ‘Melbourne’s greatest location’.  Mr Stuart looked to the group for an opening bid, but all remained silent, so he opened with a vendor bid of $4,400,000.  Despite Mr Stuart’s best efforts there was no bidding on the day and the property was passed in at $4,400,000.” (Kate Agnoleto)

Market News TV
This week’s video auctions are at 25 Bateman St, Hampton with James Paynter (Hodges) and 19 Ferrars Place, South Melbourne with David Wood (Hocking Stuart). This week Gina, whom many of you would know as she co-ordinates all our new clients, and Jen, our Market News Co-ordinator, step in for Klarity Kris and Adam the Architect – click on the live action this Sunday.

*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 filmed, there are designated no-video zones. See our co-workers or ask the auctioneer.

June 2010: Our favourite Pic for 2010: Susan McGlashan (right) of Bennison Mackinnon leads some very happy buyers inside for the sign up of 2/9 Shipley South Yarra. Bought under the hammer $2,195,000. 2 bidders. Strong.

Summary of 2010

Early 2010 started where 2009 left off, with sellers successfully getting buyers to accept their courageous asking prices, and buyers only too happy to hop on board the train, no matter the price.

Why was that?  After the 2008 Global Financial Crisis many buyers had feared further falls. Instead, by the end of 2009 the market had recovered what it lost in the GFC – and then some. And it seems buyers who missed out in 2009 were putting their hands up at auction with a sense of urgency and even panic, determined to get on the train this year.

For sellers this meant champagne and truffles, a situation that continued until Anzac Day when the market turned sharply downwards. It seems that both buyers and sellers realised that while the property market was booming, the economy – and especially the world economy – wasn’t. The Greek economy was in collapse, the Dow Jones went into a slide, and here interest rates started rising. Sellers decided it was time to rush their home onto the market to make hay while the sun still shone. But buyers were already taking a more guarded approach and were no longer prepared to pay big prices.

Properties were increasingly being passed in, adding to an already substantial overhang of stale unsolds. Where previously the market had been feeding on buyer panic, now it began to slip down on buyer apathy. The market increases of November 2009 to April 2010 were wiped off within a fortnight or so, cutting prices by around 10%.

April 2010: Strange. Very strange. Yes Glen we can see you, but check out the guy to the right. I'm not sure if he was there for marketing or to revive injured buyers. Maybe he will be mandatory at all auctions soon. Camberwell: 52 Athelstan Road: Glen Coutinho. Passed In.

A chilly winter saw a shortage of good quality homes, with only those selling who had to. And even when a good home arrived on the market, it had to compete with a growing overhang of stales (unsolds) that had been building up since May.  But people still need to buy homes, and the shortage now fueled buyer demand, which led to a bounce in early spring. It was surprising  because there were distractions – the August federal election and subsequent postulations and the footy and Collingwood’s replay victory (got it in) The first days of Spring brought out the instinctual buyers who need to move nests as the sun warms their hearts.  The sun also loosened their wallets, creating a small fillip on quality stock. But it only lasted the month.

And it wasn’t strong enough to absorb the surge of 200+ $ million plus properties going to market on October 23rd’s Super Saturday. In the weeks following, rather than risk passing-in their property to the unsolds list where they might wait weeks for a buyer, vendors initially tried to hold their prices. However, after a few weeks of denial and a Melbourne Cup interest rate jolt they finally began to revise their prices downwards. By end November clearance rates were back at a healthy, if unspectacular 65%.

And so we end 2010 almost where we started in terms of price, but vastly different in terms of what we expect for the start of next season. The heat of last summer is over, but it is still warm in parts. (Inner city quality homes are particularly still in high demand). Overall it’s a more healthy balanced market. For now. Stay tuned for next year.

2010 Awards
Most of our year-end efforts have gone into our 2010 yearbook due out before Christmas (downloadable from this site). Our legend section and their pearls of wisdom are contained within this 2010 marketnews yearbook. The two inductees into the Marketnews Legends Hall of Fame are Alastair Craig and Rodney Morley. However as this is our last 2010 marketnews it is customary to put up our 2010 awards. Consider them like Mike Sheahan’s footy awards – a bit of fun.

Auctioneers: we chose who we chose because we saw these auctioneers consistently quote sensibly (well 6 of 7 anyway), give buyers and sellers a fair go at auction, provide great entertainment and handle the sticky situations well. Other three hat auctioneers were Marshall White’s John Bongiorno, Andrew Hayne and Justin Long, Kay and Burton’s “Hollywoods” Jason Scillio and Gowan Stubbings, RT Edgar’s Jeremy Fox and Abercromby’s Tim Derham, all of whom we really enjoyed watching under pressure, who are brilliant at their job, but had a number of quote malfunctions – a Stonnington malaise for much of the year. Jeremy Desmier and Tim Heavyside are ones to watch and if Fletchers could be less conservative in their high-end auction quotes they would be right up there. Phillip Kingston mainly works the day we like to take off but when we see him we like what we see. We think Mark Earle and Craig Williamson of Buxton, Glen Coutinho, Peter Kennett, Andrew Stuart, Andrew James and Nick Renna of Hocking Stuart, Rodney Morley of TBM, David Oster, Damien Davis, Peter Batrouney and Richard Earle of Jellis Craig, Lachie Fraser-Smith of Benmac and Tom McCarthy of Biggin and Scott all put in two/three hat performances during the year.

Agents: These are the standouts for us – agents who are particularly strong in their market segment. Off market we think Marcus Chiminello from Marshall White is the one to watch.

Young agents: we dropped this segment because they are getting older.

Agency: Jellis Craig was a unanimous choice. Their comparable sales system, their attitude to buyers and general respect for all parties meant for us in 2010 they were our agency of the year.

Each year it’s a different format and each year we offend everybody we leave out – so please try not to take it too seriously.

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Thank yous
I would like to thank my fellow co-workers Adam the Architect, Klarity Kris, Value Dave, Cafe Guy and earlier in the year Ralph and Stephen and our market news co-ordinators Jen, Julia, Sim and Peter. A big thank you to our editors Karin and Melinda, organizer Gina and Michael our MD. You’re a champ Michael.  Thank you to our behind the scenes people in Peter, Dan, Julie, Jason and Naomi and our Board; Peter, Adam, David and Chrisso. Thank you to Phil for your insights as well.

I also would like to thank all the selling agents who despite being on the “other side” allow access to almost all results and auctions, assist with quotes and smooth over ruffled buyer and seller feathers which occasionally happen. There are a few agents who are extra helpful friends of Marketnews and our advocacy business. In no particular order Mike Gibson of Kay and Burton; Rob Vickers-Willis of Abercrombys; Mark “Lama” Dayman, James Tostevin and John Bongiorno of Marshall White; Iain Carmichael, Kaine Lanyon and Elliot Gill of Benmac; David Oster, the Richard(s) James, Winneke and Earle of Jellis Craig; Tom Roberts of Nelson Alexander; Ladies in Red – Jenny Dwyer and Barb Gregory and Andrew Stuart of Hocking Stuart and Geoff Cayzer – thank you. Thank you to the agents at Marshall White who let us join some of their open training sessions – it is most appreciated. There are others and I apologise for leaving you out. Three agents who have helped us a great deal and whom we would like to single out are G-E-R-A-L-D Delany of Kay and Burton, James Connell of Marshall White and Scott “Pretty Boy” Patterson of Jellis Craig. An extra big thank you.

Thanks to our trusty reporters and photographers who come rain, hail or shine are out there in their jackets – ducking and weaving, listening and recording. Thank you to Amy, Daniel, David, Doug, Sue, Kate, Tom, Linda, Nikki, Dustin and Joshua – see you all for a great lunch in a week or so and well done.

We also wish our competitors at Morrell and Koren seasons greetings – enjoyed the battle.

Thanks to our readers and the people who come up at opens and auctions and say G’day.

Finally a big thank you to all our clients who have supported us during the year.

Have a safe and happy Christmas holidays period.

Until next year then (our office closes on December 17th and re-opens Monday January 17th)

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

Week Ending November 27th:

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

Highlights:

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

$3m+ not so highlights:

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

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

Week Ending November 20th:

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

$3M+ Highlights

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

$3M+ not so Highlights:

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

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

Week Ending November 13th:

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

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

Highlights

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

Lowlights

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

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

Week Ending November 6th:

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

Click on video to see $3m auctions live

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

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

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

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

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

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

John Carter (Hocking Stuart) is all smiles at 14 Ruskin St, Elwood. And why wouldn't he be? Bought under the hammer, $1,200,000, 2 bidders and a crowd of 50.

Key Points:

• Stock levels lower than last year.
• A relatively quiet auction day in Port Phillip.
• Ten homes were bought this week over a $million – with 3 in Port Melbourne, South Melbourne and Elwood
• We covered three auctions, with only one selling under the hammer – 14 Ruskin St, Elwood (John Carter, Hocking Stuart), $1,200,000.
• Crowds were down on last week with an average of 50 people at each of the auctions we attended.
• Only 3 bidders across the three auctions.

AgentQ & A: Stock levels and Premierships?
Kaine Lanyon, BenMac, Albert Park: “Stock levels appear to be ‘reasonable’ for October but certainly not at the same levels as this time last year.
A combination of a long lasting election result, market not as buoyant as last year and footy finals, would appear to have many vendors sitting on the fence with a wait and see approach for now. Geelong will win the Grand Final this year as they have the most finals experience when it counts, plus little Gary needs to win one more premiership for the pussy’s before he takes off to Qld (and) line his pockets !!”

Michael Coen, Hocking Stuart Albert Park “Stock is coming on now but still well below last years volume.”

Bidderbuzz Auction of the Day: 14 Ruskin St, Elwood, John Carter, Hocking Stuart, Under the Hammer, $1,200,000, 2 bidders.
“There were more observers than bidders at Ruskin St, with many onlookers casually perched on fences watching as enthusiastic auctioneer John Carter sold the lifestyle of the location. There were two strong bidders, both very keen, and with the property on the market at $1,175,000, the property was bought for $1,200,000.”

Monitor Results:

Stock Levels:

 We Only Buy Homes

A sea of umbrellas was all that could be seen at 97 Graham St, Albert Park. Around 90 people watched as Andrew Stuart (Hocking Stuart) brought down the hammer at $2,630,000. Two bidders.

Key Points:

• We focused on Albert Park today and there were reasonable bidder numbers across several auctions. However, Port Phillip has still started Spring very slowly.
• Prices had been falling during Winter and the factors are there for that to continue; especially if any sort of Spring stock level surge is not met by a corresponding increase in bidder numbers – our only proviso is this is a small dynamic market and things change very quickly in Port Phillip.

Biggest Buy:
97 Graham St, Albert Park, Andrew Stuart, Hocking Stuart, Bought $2,630,000.
“Despite threatening skies overhead, and persistent drizzle, Andrew Stuart bravely started proceedings outside with a vendor bid of $2,400,000. After a relatively slow start, a battle between two keen buyers ensued. After Mr Stuart declared the property on the market at $2,617,500, the bidding quickly soared to the selling price of $2,630,000 – a strong result for Mr Stuart and the Hocking Stuart team.”(Jen Milligan)

Agent Comments:
Oliver Bruce, BenMac, Albert Park: “There is a reasonable selection of properties available in Albert Park. A good mix of terraces, small and large, modern and liveable. There are a few unrenovated and three or four land offerings too. There is a shortage of double fronted homes and there are fewer properties on the market in Middle Park. South Melbourne is quiet and there is a shortage in the Howe Crescent/ Lamaro precinct. I am seeing a lot of the same faces around at opens and auctions. Reasonable numbers are attending both for correctly priced opportunities. As always, price is a driving factor for both vendors and buyers. I have seen some absolutely phenomenal prices in every price bracket. These big prices have been driven by competition. One can only assume that the buyers are flocking towards the better homes, or the better priced homes. I am seeing very few offers for properties prior to auction. Buyers are sitting back playing the waiting game thinking that no one will bid, only to see two or three motivated buyers pushing prices well above everyone’s expectations.”

Adrian Wood, Cayzer, Albert Park: “The market is fair at the moment. There is a lack of stock and looking into Spring is like looking into a crystal ball – who knows what will happen. Demand is higher than supply at the moment. Bidder numbers have been down overall, but good quality, well priced homes are still bringing outstanding results.”

Bidderbuzz Auction of the Day:
25 Longmore St, St Kilda West, John Bongiorno, Marshall White, three bidders:
“Having to hold the auction indoors due to wet weather, John Bongiorno asked serious bidders to enter one room and anyone else to stand down the hallway. His invitation to the sitting room was taken up by around a dozen people which looked promising for Mr Bongiorno and the Marshall White team. Out of that group, there were three bidders who fought it out, taking the price to $1,075,000 which, unfortunately, wasn’t enough to buy the property under the hammer. Mr Bongiorno, instead, passed the house in at this amount. Bought after for an undisclosed amount.”(Jen Milligan)

Clearance Rates & Monitor Table: Spring start has been slower than a Mark Webber one.

We Only Buy Homes

Phil DeFegely (for JC Street) brought the action indoors at 347 Dorcas St South Melbourne. Passed in $980,000. Two bidders.

Sam Gamon (Chisholm & Gamon) looks for some bidders at 36 Shelley St, Elwood but to no avail. Passed in for $940,000, no bidders.

Key Points:

Analysis: This was Spring’s first test for Port Melbourne to Elwood. As far as auction homes go it failed badly. The quality was questionable and some newer stock coming on is visible – so there is a high chance buyers are holding off until then. Even so this was a poor start to Spring for Port Phillip. This $M+ market is smaller than the others we cover weekly and has a history of responding dynamically to minor changes in circumstance, so the next few weeks will be viewed with interest.

Agent Comments: In  fairness this election question was asked just prior to this weekends’s results.

Joseph Allan, Chisholm & Gamon, Port Melbourne:“When I heard about the election, I thought it was not going to be ideal for the market. But so far, I have had no indication that it has affected it at all. I guess the big question is: will it affect stock levels coming up? We’ll wait and see.”

Kaine Lanyon, BenMac, Albert Park: “I don’t believe the actual election result itself will affect the market in any real direction. It’s more the waiting around, the ‘holding pattern’ until we see a final result of who will next govern the country, that seems to be affecting the market in a positive sense.  Many vendors will still not yet commit to a selling campaign, so there is  less stock on the market – which in my view is largely why some of our results have been so strong over the last four weeks. That is limited choice for the current bunch of buyers to choose from if they miss out on the only property they like that is currently available”.

Sam Gamon, Chisholm & Gamon, Elwood: “I haven’t seen any impact due to the Election.  Buyers are realising they’re not on a ‘deserted island’ and that other people are making decisions. In essence, I feel buyers are very decisive for the right property. If anything the Election may hold back some sellers from listing as they’d like the assurance of a definite outcome. The warmer weather is bringing renewed positivity to the market place and buyers are keen to move forward when they find something they relate to”

We Only Buy Homes

David Wood (Hocking Stuart) successfully sold 80 Neville St, Middle Park, after auction for an undisclosed amount. One bidder, small crowd of 30.

Bit of traffic at 6 Tribe Street South Melbourne both before and during the big game. Bought under the hammer for $1,493,000. Geoff Cayzer and 4 bidders.

Key Points

• 41 sales for the month of July – only one over $3m.
• Albert and Middle Park combined reported only six $M+ sales in July
• Two BidderBuzz Auctions – both with four bidders and both bought under the hammer in the $1.4 millions. 367 Dorcas St with Gerald Betts and 6 Tribe St with Geoff Cayzer.

Agent Comments re the question of Spring stock levels and new WOW projects

Kaine Lanyon, BenMac: “Stock levels over the next month are still looking relatively thin. There is a trickle coming on but we are definitely feeling that many vendors are holding off embarking on a sale campaign until the federal election is well out of the way, thus making sure that won’t be a distraction to the buying public;  The really good homes have been missing from the market of recent weeks and while we have some with the “Wow” factor not far away from coming onto the market, that product is as scare as hen’s teeth at present; New homes being built/constructed are almost non-existent in the Port Phillip area mainly due to the heritage overlays, making genuine ‘start-again-from-scratch’ opportunities just not there” .

Nick Yannopoulos, RT Edgar: “Low stock levels at the moment, I think because of the election. After that I think things might pick up a bit but at the moment there is a shortage; Not too many good family properties out there at the moment; Not much building – planning always takes time…development is slow at the moment.”

Michael Szulc, Cayzer: “Stock levels will increase through natural progression towards Spring. Things don’t just triple however in a few weeks  and properties are very tightly held in this area anyway; In this area, there are only ever a few big, family homes with that “wow” factor on the market – this isn’t the area for that type of property; No building going on. Nothing. The landsize doesn’t suit new big, family homes.”

Clearance Rates & Monitor Table

Buying Activity

We Only Buy Homes

Andrew "Comfy" Stuart sells post auction for $1,235,000. 13 Ward St South Melbourne. 0 bidders.

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

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

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

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

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

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

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

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

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

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

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

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

Auction Clearance Rates

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

Know your market

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

St Kilda 35 Vale St: Today with the rain, it's indoors, up close and personal. Matthew Young of Buxton firing up two bidders on the way to a bought price of $1,192,000.

At 6pm Saturday the James Million-Dollar-Plus Clearance Rate on the 35 auctions we attended was 51%. Our Demand Indicator, Bidderman, was up at 1.7 – still hanging in there.

PRICE CORRECTION
There is no doubt the market has eased, “corrected” – call it what you like. One easy word to understand  is “dropped”. On a few properties it has dropped by 10% since Anzac Day.  Some homes – mostly the higher quality ones – haven’t missed a beat. But for the majority, what seems to have occurred are minor falls – although that’s hard to prove specifically.

The statements from the selling agents seem to be leaning strongly towards a “supply based correction”. At this stage we agree. If we keep seeing large amounts of stock come onto the market in June then it’s logical that prices will continue to fall, until some balance returns.

SUMMARY CLEARANCE RATES
Overall the clearance rate was 50% for 124 auctions we monitored in Port Phillip, Boroondara, Bayside and Stonnington. That’s in line with our James Million-Dollar-Plus Clearance rates – confirming it again as an accurate measure of Million-Dollar-Plus Melbourne.

• Bayside – 35 monitored – 14 bought – 40% clearance rate (last week 46%)
• Boroondara – 46 monitored – 24 bought – 52% clearance rate (last week 70% )
• Glen Eira – 9 monitored – 5 bought –  55% clearance rate (last week 55%)
• Port Phillip – 11 monitored – 6 bought – 54% clearance rate (last week 32%)
• Stonnington – 23 monitored – 15 bought – 65% clearance rate (last week 69%)

Highlights

• While 8% were not reported, indicating a reasonably high degree of accuracy for clearance rates, the numbers of unreporteds are increasing.
• Stonnington sellers seem to have made the price adjustments that some Boroondara owners (“wannabe” sellers) have not.
• Some ripper auctions included 50 Hawthorn Grove Hawthorn (Paul Keane of Jellis Craig), 23 Ferncroft Ave Malvern East and 2 Carmyle Avenue Toorak, both with Jeremy Fox of RT Edgar. These auctions saw four or five genuine bidders (well above the 1.7 Bidderman average)
• Selling in Million-Dollar-Plus Melbourne seemed a coin toss – you had as high a chance of your property passing in, as selling on the day – the first time since 2008.

SUPPLY OVERHANG BUILDS
First some stats. Last Saturday’s (May 29) Auction results showed strong evidence of “auction overhang” in Port Phillip where the clearance rate was 32% clearance rate on the 22 auctions we monitored.

Seven days later the reported clearance rate had lifted from 32% to 45%, with only three of the pass-ins and unreporteds reported as having been bought. On this evidence, it seems a stretch to say that in Port Phillip Million-Dollar-Plus homes are being bought soon after auction. There is overhang elsewhere in $Million Melbourne but not as much as Port Phillip. Which suggests the chance of bargains there.

What Supply Overhang means to you, the buyer
1. More choice, given that new stock has to compete not only with other new stock, but with old stock which hasn’t sold yet.
2.  Better pricing on all homes as there is real competition for the first time in a long while – providing of course you understand the negotiating game and know how to play it.

UNREPORTEDS
Practically all last week’s unreporteds were still for sale on Friday – suggesting that the REIV view that 50% of unreporteds are in fact sold does not seems to apply to the Million-Dollar-Plus  market.

ARE METHODS OF SALE CHANGING?
Perhaps in Bayside but not yet in other areas. Look at the latest 50 homes advertised for sale on the website www.realestateview.com.au

THE SEARCH & NEGOTIATE GAME HAS CHANGED
We feel there are at least four things all buyers should be considering:

1. Most importantly – home buying is still about best meeting your needs and taking a 5-10 year longer term view
2. You need to sharpen your methods on checking all homes – especially pass- ins
3. You need to monitor stales (old unsold homes)
4. You need to reconsider offer techniques

Let’s look at point 4 in more detail:

RECONSIDER OFFER TECHNIQUES
Let’s look at a real life example in detail: one particular property we bought today was 27 Eddys Grove, Bentleigh with Chris Hassall from Buxton. It had a quote range of $975,000 to $1,050,000. We thank our client for his permission to publish these exact figures.

From the top:

1. On pre-auction Friday we were told the property was on the market at $1,150,000 and that it would be sold that day (Friday).
2. We checked the website on Friday and saw that it still had a quote of $975,000 to $1,050,000. We asked: Would we buy it if we paid $1,150,000? We were told that we could if no better bid came in.
3. We hadn’t made a bid – so we were trying to work out how it was on the market at $1,150,000.  

First Offer Technique considerations (pre auction). What would have happened if you had bid then based on that information?

Anyway it didn’t sell, and come auction day the quote on the website and in the paper remained at $975,000 to $1,050,000. At the auction there was an opening bid of $1,000,000. Another bidder joined in and so did we – making a bid for $1,040,000. From $1,100,000 onwards we asked auctioneer Craig Williamson if the property was on the market. We were told “No” – despite the fact that each time we asked we were $50,000, $60,000 and then $70,000 above the top end of the quote. (Please note we make no claim this is out of the ordinary or an illegal practice as the REIV and CAV state this behavior is fair enough).

Second Offer Technique considerations (during auction). What happens if you had not bid, bid differently, or put in a killer bid?

Eventually the property was passed in to us at $1,120,000. We stood there in the sprinkling rain for five minutes before a Buxton salesperson came to us – they were too busy talking to the underbidders and other interested parties. My client, through us, was the last person Buxton spoke to. We are sure there is a perfectly acceptable explanation for this curious behavior. But versions of this happen at many auctions.

(Let’s point out at this point that we have good relations with Buxton Brighton and less than a fortnight ago we bought another $1m+ home through the Bentleigh office and were treated well by Ivan Blow and Craig Williamson.)

This story is not about Buxton or Chris Hassall (whom we think is a solid agent) – after all they got a good price and did nothing that many on the selling side considers untoward.  No – this story is about whether you as buyers have the right offer technique and strategies to best manage your options in this changing market. It shows the importance of good offer technique pre-auction, during the auction and post auction.

Back to 27 Eddys Grove: we were eventually given the reserve of $1,150,000 – with the additional strong advice that if we did not take it, then the underbidders would immediately be given a chance to submit their offers, and that the highest offer would win. While that would have been intimidating to the uninitiated, for us it was no problem. Technically we were being given first right of refusal.

After consulting with our client, we accepted. We felt the reserve was reasonable, we felt we needed to separate ourselves from the other bidders and our client really wanted this beautiful home. It was not a time for bravado but a time for cool heads, was our recommendation.

Third Offer Technique considerations (post auction). What happens if you decline or the stated reserve is a lot higher?

The case of Eddys Grove, like many others, begs the question of why the agent wouldn’t just quote the home at the fair reserve level of $1,150,000? That’s another story and a never ending battle with many agents. But we digress – our focus is Buyer Strategy and Offer Technique.

During any auction campaign you have three very distinct offer times: Pre, During and Post. As the going gets a little tougher for sellers so it will for buyers. So, as the stakes get higher, you will need to sharpen your offer technique before you count your chickens.

OFFER TECHNIQUE – THE CLAYTONS RESERVE  (The false reserve)

1)      What happens if you don’t know how to play the pre and post auction games? Do you join in and just keep bidding against yourself in this market; given you are possibly the only bidder – or do you miss out if there really is another bidder?

2)      What is there to stop the auctioneer at a pass-in telling you the reserve is $400,000 above the quote or their real reserve - and that if you don’t pay it they will offer it to the others? What can you do to defend yourself against a Clayton’s Reserve when you are the highest bidder playing by the stated rules? What strategies do you have?

3)      If, as a buyer you are offered a property with a Clayton’s Reserve and you refuse – does that mean the auctioneer can offer the property at a different reserve to somebody else? Or do the others have to be given the same Clayton’s reserve?  Do they come back to you? How do you as the highest bidder manage this?

For now, in the interests of our clients and to discourage this illegal behavior (The Clayton’s Reserve), in cases where we have won the right to hear the reserve and we consider we have been given a Clayton’s Reserve we will now publish (if we get our client’s permission) the agent’s name and the Clayton’s reserve given to us, We will also send a note of complaint to the REIV and ACCC. If any of our behaviour is as inappropriate as the Clayton’s Reserve, then by all means return our return serve back to any of our advocates.

We have a good many excellent selling agent relationships. They are important to us personally and professionally. We are shown many courtesies and keep many confidences (as we should and will continue to do so). However we are giving fair warning to selling agents, who, by way of example, quote $2 million and then tell us, when we have won the highest bidder right at auction, that the reserve is $2.4 million.

Agents, we would much prefer to deal fairly with you. Why abuse the auction system? If you want to do that why not use Expressions of Interest or some other method of sale?

Our offer technique management, in this instance, is to return the serve right back at you as hard as we can. We will still negotiate, but our relationship on the home in question will continue beyond the buyers and sellers signatures. If you think we are bluffing a Clayton’s Reserve from you will find us both out.

Apologies if this seems a tad emotive or self serving but the Clayton Reserves are continuing and we represent buyers and think these kinds of “Reserves” are legally and morally wrong. Simple as that.

Let’s move on.

Congratulations to Andrew McCann of Bennison Mackinnon on 115 Stanhope Grove Malvern, whose company to our knowledge is still the only publicly declared Melbourne based real estate company with reserves in their quote range. We videoed their auction today – it should be up tomorrow. Their quote was $2,100,000 to $2,300,000. The property passed in at $2,150,000 and with some negotiations was bought post auction for $2,255,000 by the buyer it passed into. That seems solid agent work. Fair buyer quoting; stated reserves.

Now let’s really move on – did you hear the joke about the leprechaun …

Buy Happy

Mal

PS  No Market News next week as its Queens Birthday Weekend and Council Wraps up tomorrow (Sunday)

Toorak 2 Carmyle: Looking like an almost drowned rat - Jeremy Fox from RT Edgar firing 3 bidders up with his banter and a smile. Bought under the hammer for $3,375,000.

Not enough pressure at an auction for you? Then why not add a Channel 7 film crew and a new TV series and it's raining and indoors in a small space and you've got Marcus Peters breathing down your neck. Mate I was scared just watching. One very brave bidder and passed in at $850,000. St Kilda - 23 Mitchell.

SUPPLY OVERHANG BUILDS
First some stats. Last Saturday’s (May 29) Auction results showed strong evidence of “auction overhang” in Port Phillip where the clearance rate was 32% clearance rate on the 22 auctions we monitored.

Seven days later the reported clearance rate had lifted from 32% to 45%, with only three of the pass-ins and unreporteds reported as having been bought. On this evidence, it seems a stretch to say that in Port Phillip Million-Dollar-Plus homes are being bought soon after auction. There is overhang elsewhere in $Million Melbourne but not as much as Port Phillip. Which suggests the chance of bargains here.

What Supply Overhang means to you, the buyer
1.  More choice, given that new stock has to compete not only with other new stock, but with old stock which hasn’t sold yet.
2.  Better pricing on all homes as there is real competition for the first time in a long while – providing of course you understand the negotiating game and know how to play it.

We genuinely believe that there is an air of bargain hunting around at the moment and if you are a little brave or a little flexible on the purchase then perhaps you may consider being a bit more aggressive on the offer. Perhaps you also may consider talking to a buyer agent to show you your real alternatives.

Stock Levels Going Forward – Unlike Boroondara stock does seem to be drying up a bit. Forward auction bookings for Port Phillip are decreasing compared to May. So a quick rebalance is possible.

Apartments
This $M+ market is still continuing to show some signs of life with 3 more reported sales in

• 576-578 St Kilda Road Melbourne at $2,200,000 with Biggin and Scott
• 48 Nelson St St Kilda for $1,300,000 with David Cutler of Century 21
• 3908/7 Riverside Quay Southbank (Eureka)  for $1,200,000 with Georgina Dakdouk of Dingles

A report from Michael Szulc of Cayzers
We had 7 auctions scheduled for today, of which we have sold 5.  1 before auction, 1 under the hammer, 3 passed in and sold shortly after.

The new trend appears  for buyers to be holding back until the last moment and not declare their interest until they have to. It is only when it appears the property will be taken away from them that they show their hand. Whilst buyers are thin on the ground just at the moment, they are still there and it is case of the agent knowing how to deal with the situation……….patience and experience is proving very important at the moment.

Buy Opportunity

Port Phillip – 11 monitored – 6 bought – 54% clearance rate (last week 32%)

Port Melbourne 65 Bridge; Gerald Betts of RT Edgar. 1 bidder and passed into them for $1,810,000

Albert Park 144 Danks: Passed In for $2,410,000; but with 2 bidders there should be a result soon unless the vendor isn't aware of a buyer mood change. Karl Gillon of Buxton

With Bidderman less than 1 – meaning more auctions than bidders  – it may be time for a change of scenery for Port Phillip auctioneers unless things turn very quickly or they can come up with some new ideas. And the post auction sales are not happening either according to reported REIV results, so a pass-in and deal later strategy can’t be justified to a seller who is forking out $10,000 to $20,000 on marketing. But the sellers are not our constituency – buyers are. And buyers: you have opportunities if you can find the right home and it’s a goodie. The opportunity comes with your assessment and negotiations skills.

Port Phillip is a very fickle market at the best of times and May is proving more fickle than usual. Especially if its $2m and over.

If you need some help in getting through the maze of unsolds to find the gem then please consider giving us a call. There is actually a lot on offer and buyers if you can’t recognize this buy signal then we advise a change of medication.

Population and Wealth pressures mean that sometime soon this part of the Bay will again shine – so the smart recognise this an opportunity and those that are waiting for more easing are brave.

Sound a bit “salesmany” but we encourage your participation as some of the market seems to be returning to 2009 pricings – how long that will last we don’t know.

Next month maybe a different story

Port Phillip Auctions – 22 monitored – 7 bought – 32% clearance rate

Buy Opportunity

Port Melbourne 266 Esplanade East: Joseph Allen: Passed In for $1,720,000.

Albert Park: 81 Vincent St: Good Crowd (70) but no action; Passed In on multiple vendor bids for $1,670,000

Not a lot on offer today and despite our headline a few were put away albeit on lower interest levels than last month. Of the reported sales we saw 7 from 13 go under the hammer or sell soon after for a 54% clearance rate. The standout auction was 65 Beacon Vista Port Melbourne with David Lack of Biggin and Scott. In front of a big crowd of 150, 2 bidders fought it out from $2,500,000 to $3,135,000. A strong result by anyone’s standards.

Some Opinions

Michael Szulc from Cayzers believes “the market has dropped right back – peaked back at the end of February”.

Kaine Lanyon of Bennison Mackinnon thinks things have dropped off a lot also.

To quote Damien O’Sullivan of Bennison Mackinnon: “Buyers are perhaps not acting in their best interests”. Implying there are some bargains not being taken up.

Is it demand or supply? At this stage there are a number of single fronted homes in Albert Park, Middle Park and South Melbourne – all around the 900K mark so it maybe supply and lack of qualty, just as much as it maybe buyer caution caused by outside influences.

St Kilda West and 24 York St had a sold result last Sunday just under $2million through Andrew Turner of Cayzers. Again reinforces quality land is anything up to $6,000 sqm with York selling for over $4,500 per sqm with a wide frontage and good redevelopment possibilities.

Dropping further down the bay we see Elwood finding plenty to put onto the market with 5 sales and an off market in the early to mid $1’s being bought. However once the number approaches or exceeds

 $2million it’s a different story. There are few bidders and homes take longer to sell (as a general rule). Cases in point are 2 Kendall and 11 Addison but granted 57 Dickens with Torsten Kasper of Chisholm and Gamon did sell. And what’s with Addison St – I’ve never seen so many homes for sale in this prized stretch before.

Another big week coming with 23 scheduled auctions over a $m. The big question is it lack of quality, quantity of supply (choice) or buyer mood changes from external sources that are currently affecting the market? What will this mean going forward? Lots still happening just in a diferent manner, at a different pace and on a different level to last month!

Buy Opportunity

Port Melbourne: 65 Beacon Vista: BANG: Bought under the hammer for $3,135,000: 2 bidders: Biggin and Scott's David Lack in charge!

Middle Park 85 Carter: Quiet auction for Kaine Lanyon of Benmac. No bidders and passed in at $950,000.

So how is Port Phillip (Port Melbourne to Elwood) travelling in this changing market.

Lets look at some stats on the auction we had scheduled to visit, bid on or review below.

Of the 16 auctions all bar one reported their results so the clearance rates are accurate.

The clearance rate was 50%. That is for every auctioned property that was bought- one was not.

Of the auctions we attended 3 out of 4 passed in and Bidderman was propped up by the Brooke St auction otherwise he didn’t really get a run yesterday.

Good news for agent quoting though ALL that had quotes achieved sales of pass-ins within those ranges. A miracle – not! A solid effort -well done. Being fair Hocking Stuart (Albert Park) and some others in Port Phillip have always had a policy of fair quoting.

Another interesting point is a number of these auctions below we estimated to go over a $1million on first glance six weeks ago when we first began to monitor them.

Longer Term how have the various suburbs and price points been travelling.

Looking above we can see almost identical numbers of sales (over a $million) in identical suburbs for April 1 to May 15th 2007 v 2010. A little anomaly is the Middle Park sales have been replaced by the St Kilda sales – not sure if there was a council line change. Anyway I digress, the median on all sale over a million has been on a rollercoaster during those 3 years and has returned to about the same spot plus a bit (5%).

So what does this all mean. Things have been fairly solid up this last six months, agent reporting has been accurate, quoting seems good but the market is now definitely either flattening or possibly in slight decline. Evidenced not only by a falling clearance rate which is matching other Bayside suburbs; but by agents comments such as the balanced Andrew Stuart who says ” Yes Mal things are tapering and the market is now not as it was a month ago

Prepare for all auction eventualities, maybe even get some advice!

369 Dorcas St South Melbourne: Land sale no declared interest. Passed In for $1,200,000.

South Melbourne 69 Napier: Bought under the hammer for $1,425,000: 3 bidders. Checking their scripts Geoff Cayzer and Michael Szulc seemed to be in sync as the result shows.

Port Phillip seems to be firing along on all cylinders with 16 properties sold over a million since our last report just before Easter. You know how we said land in the good parts of Elwood was around $3000 per sq metre before Easter. Well that was before Easter now it’s after Easter and land is also rising into the heavens (for vendors). 92 Ruskin St Elwood sold for $1,400,000 for 408 sqm or $3431 sqm. Torsten Kasper of Chisholm and Gamon handled two very strong bidders to this price. This was one of five sales over a million in this Easter fortnight.

Three $2million plus sales reported were:

(1)    36 Wave St Elwood also with Chisholm and Gamon (Sam) after auction which confirms land north of $3400 for the right block in the best bits of Elwood except on today’s land result at 43 Foam St  $1,600,000 for 566 sqm which shows the negative power of being overshadowed by flats.

(2)    47 Reed Street Albert Park with Michael Coen of Hocking Stuart was sold for around $2,200,000 (post auction).

(3)    502/430 St Kilda Road with Peter Kudelka of Kay and Burton –another one in the Lucient Towers reported sold for around the magic number.

Speaking of Apartments they are continuing to show major improvements – at least in turnover (the jury is still out on recent capital growth) with 5 apartment sales over a million in Port Phillip in the Easter fortnight including 2 reported at 505 St Kilda Road through Icon properties.

During a long conversation with Sam Gamon from Chisholm and Gamon after their 4 out of 4 auction result today he said his company felt the market was still continuing to rise which is in line with the REIV quarterly median price increases as well. Up from $1.2m to around $1.35m. Sam added that stock levels were OK except for the cheaper 2BR flats which are in short supply.

Nothing unexpected happened today with 7 sales but as we said up front the big story was the amount of homes sold since Easter. By the way 2 of those 7 sold at auction today were $m+ apartments – enquiry is definitely increasing significantly in this previously very flat market segment.

The Median Price Chart, courtesy of the REIV, confirms our views that the Bayside markets started to improve ahead of the leafy green suburbs market and you can clearly see the ship started to turn to an upwards price direction about a year ago.

Buy Happy 

Middle Park: 179 Richardson: Bidderman 4. David Wood of Hocking Stuart. Bought for $1,443,000. Good crowds at a lot of Port Phillip auctions.

The two big ones in Elwood didn’t go off under the hammer today. Our top rating home for the year with 904 out of 1000; 71 Addison St Elwood (Torsten Kasper of Chisholm and Gamon) did not attract a bid at the price asked and remains unreported at time of writing. 396 Barkly St Elwood with Robert Harvey of Hocking Stuart had a Bidderman of 2 but passed in at $2,640,000 and remains unreported. However 5 of the other 6 scheduled million dollar plus auctions were bought.

Good crowd numbers at the 5 auctions we went too yesterday with an average of 60 people at each auction. Bidderman was 2

The Table below shows number of scheduled million plus auctions to number reported by the REIV to those reported bought as a percentage of scheduled. Strong, but not invincible looking like a few weeks ago.

248 Beaconsfield Parade Middle Park (David Wood of Hocking Stuart) was Port Phillip’s big buy at $4,750,000 negotiated after auction. And well done in a strong market on a big sale, the agent quote was spot on.

48 Marine Parade St Kilda (Sam Gamon of Chisholm and Gamon) was the only $2m plus sale reported with the other 15 being in the $1million to $2million range.

HISTORY OFTEN REPEATS ITSELF!

Let’s look at a couple of the most common properties in Albert Park. Middle Park and Port and South Melbourne – the Victorian single fronters on smaller blocks of land that traditionally would have been in

• 2000  around $400,000 to $500,000
• 2005 around $700,000 to $900,000
• 2010 around  ???

179 Richardson St Middle Park – Stephen Brooks Hocking Stuart.
James Home Rating 655/1000: It’s all about  a metre. Another metre in width would make this a very good home – as it is it’s just a good home. Another few metres at the rear for car parking would have made this a very good home as it is with the side laneway its OK. It is what it is, a basic Inner Melbourne terrace offering with some provision for car parking at rear. The laneway gives light as does the lightwell running the length of the building to north side. Everything is in the right place including the bathroom of which there is only one. The street is one of Middle Park’s best so no question on position. For many it will be too compact but for the buyer it will be cosy – each to his or her own.

179 Richardson Street Middle Park

James Auction Report: David Wood Auctioneer Sold under the hammer for $1,443,000. Bidderman 4.
A picture perfect home, street and Autumn weather bought many families and their pets to this charming Edwardian home. After a non eventful start David Wood from Hocking Stuart calmly opened the bidding at $1,200,000 on behalf of the vendor. With little animation from the crowd Mr Wood achieved an on the market bid of $1,310,000 with two bidders. The bidding took a turn from hesitant to enthusiastic with a third bidder stepping in. Quickly climbing to $1,427,000, Mr Wood had a vision of a sale however just before the hammer fell a fourth bidder showed his hand with Mr Wood exclaiming “the keys in your pocket felt good, now you have to start again”. Three further bids concluded the bidding, bringing the total bids to 21 with a bought price of $1,443,000, well above the expected.

82 Iffla Street, SOUTH MELBOURNE Max Turnbull of Cayzers.
James Home Rating 648/1000. Good feeling home that has been updated well – no-off street car-parking here may be among concerns for some, but that is fairly typical for this area.

82 Iffla Street SOUTH MELBOURNE

James Auction Report: Geoff Cayzer Auctioneer Sold under the hammer for $1,300,000. Bidderman 3.

A relaxed crowd of approximately 80 were in attendance at this beautiful Victorian home. Lots of locals hovered chatting with anticipation of the impending sale. Geoff Cayzer from Cayzer opened the proceedings with a light hearted quote “lets have a bit of fun, we could be in Ferntree Gully” the crowd laughed loudly in shock. Mr Cayzer opened the bidding with a Vendors bid of $1,200,000, after some cajoling one bid was made before Mr Cayzer announced a further vendor bid of $1,225,000. A shout came forth “is it on the market?” to which he replied “not quite, because I hold the bid and my wife won’t let me buy it”. A total of 12 bids between the three bidders saw the property on the market and bought at $1,300,000. The look on the new owner’s face was of absolute relief.

The old reliable single fronters are still looking pretty good longer term investments but they still need to be the right ones chosen.

Buy Well