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.

A key focus for many buyers at the moment is to not pay too much. Fair enough -  it’s a healthy focus But if this is the only focus, then as a buyer of a good home or a good investment you may miss out on the main game – to BUY WELL.

Take a golfer who is totally pre-occupied with looking at the flag, until his partner points out the water hazard to the left. That’s good factual information and healthy to focus on if it makes  you change your aim a little to the right. But it’s an unhealthy focus if it becomes so encompassing that you end up duck hooking into the very hazard you are trying to avoid.

The hazard that all buyers, whether emotional home-buyers or first time investors, are trying to avoid is making bad decisions that don’t achieve their outcomes.

Let’s say your desired outcome is to buy a good home for your family, but also to make a good investment  purchase. In this market is that best serviced by a focus on buying a good home at a fair price or  by beating the agent and getting a discount? Of course both aims are worthy, but in my opinion the former is a more important focus than the latter.

Here’s a question: When are you more likely to be buying a good home? When the selling agent tells you a property is bargain? When you find yourself negotiating at 10% below the asking price? Or when you find you are competing against multiple bidders in an “on the market” auction?

The fact is that when there are multiple bidders for a property, it’s a clear signal that the property is likely to be a good future investment.  Multiple bidders signal consensus on price and that is good for capital growth; multiple bidders also signal that there is a high chance this is a good home.

Meanwhile, an obsessive focus on not paying too much is actually not a buying strategy and could even be counter-productive in a competitive auction situation.

Take this recent auction at 7 McClaughlin Sandringham.  This was a roughly 30 year old home on 1000 sqm plus, with an older-style facade, a bit dated but with a classy floor plan and internals. It was a good home and I was interested to see how it would sell.

Well after an opening bid of $1,500,000, a second bid came in at $1,550,000 and a third at $1,650,000. Another bid came in at $1,660,000, and then finally we were “on the market” at $1,710,000 – but by this point people seemed to be running out of money. Bidder number two was slow to bid while bidder three responded more authoritatively, nearly buying the home for $1,719,000. A fourth bidder then came in at $1,720,000, but didn’t look that strong and this seemed to allow the third bidder back in with a bid of $1,751,000. The final result: $1,752,000.

Not bad, and the under-bidders probably thought they’d given it their best shot, but my thought was that at least two of them looked weak and that was what let the winning bidder back in each time.  I can’t help thinking that there might have  been a different result if the other bidders had gone in with a different mindset.

It’s human instinct for others to battle on when they think the other party is injured and almost out of the race. If you’re the weak one, you may end up paying more or even worse missing out on the property,  when it is quite possible that the winning bidder would have stopped $10,000 below you if you had put in a stronger bid. The fact that you showed you were gone was what energised him for one last final effort.

So what are the real issues in this market?

1)     Get your main goal clear in your mind.

2)     Understand value before you start bidding. Why? Because uncertainty makes us all look weak.

3)     Sure don’t over pay – but don’t miss out either (as long as it’s worth it)

4)     Don’t assume you will have no competition

5)     Have multiple bidding strategies to deal with pass-ins, vendor bids etc but also have ones to deal with bullet bidding, strong competition, weak competition and so on.

Printed each week in The Weekly Review – Melbourne’s Million Dollar Plus Magazine

National Breast Cancer Awareness Month was celebrated at the auction of 12 Sunnyside Grove, Bentleigh (Andrew Chisholm, Buxton). Elmo was on hand to watch as the home was bought under the hammer for $1,165,000, 4 bidders

Key Points

• Ascot Vale, 13 Fisher – Ray White – With views over the Maribyrnong River, this was bought for $2,000,000. Land value $2,000+ per sq metre
• 8 buys over $1m in Caulfield and Elsternwick this week, including in the heart of the Bagel belt – 31 Aroona with Rochelle Butt of TBM at $2,511,000
• Templestowe, 70B Newmans – Robert Sordello – Bought Before for over $2,000,000
• Warrandyte, 31 Oakland – Spiro Drossos – Private Sale over $1,700,000

Agent Q & A

What advice would you give a buyer wanting to purchase a property between now and Melbourne Cup Weekend?
Bill Stavrakis, Biggin Scott, Elsternwick: “My advice to any genuine buyer would be to look at purchasing a property that suits their requirements, if the price is right. Procrastination might very well lead to buyers being ‘caught out’ through the lack of new listings coming onto the market post Melbourne Cup. Stock levels seem to be nowhere near the volume of last year and this may very well result in very few buying opportunities leading up to Christmas.”
David Oster, Jellis Craig, Ivanhoe: “I would suggest to a buyer that wanted to purchase between now and Melbourne Cup… to go for it. There are (higher) stock levels and the opportunity to enjoy a more balanced market.  If you are the highest bidder and it’s passed in to you, make sure that you enter into a reasonable negototiaion. Don’t outsmart yourself.  Be flexible.  And you aren’t paying or competing with the same market as 12 months ago. Enjoy it, as the market can swing again such as it did from 2008 to 2009..and it wasn’t in a buyer’s advantage.”
James Davis, Miles Real Estate, Ivanhoe: “With rates having stabilised, it’s a good time to solidify your position and take the next step on the property ladder and upscale. As the market keeps steamrolling on, now is the perfect time to buy property…today…if not yesterday!!”

Around the grounds
Moonee Ponds, 135 Park St, Brad Teal, Bought Under the Hammer, $1,230,000, 2 bidders
“A crowd of around 60 gathered to watch Brad Teal auction 135 Park Street, Moonee Ponds. A vendor bid of $1,050,000 opened the proceedings and things progressed slowly with the half time break, which occurred after one actual bid of $1,070,000. Then the sale was fought between two parties aggressively until a final result of $1,230,000. Solid result for the vendors.” (David McMillan)

I give up! Milo Rasinac (Nelson Alexander) at 15 Jacka St, Essendon. Passed In, $2,500,000, no bidders

Essendon, 15 Jacka St, Milo Rasinac, (Nelson Alexander), Passed In, $2,500,000, no bidders
“Just as the auction started the heavens opened up on 15 Jacka Street, Essendon and despite auctioneer Milo Rasinac’s best efforts no bidders emerged from the 100 strong crowd. The property was passed in on a vendor bid of $2,500,000.”(David McMillan)

Ivanhoe, 51 Robbins St, Rod Watson, (Jellis Craig), Passed In, $1,050,000, no bidders
“By the scheduled auction time at the Robbins Street auction, only a sparse crowd was evident, obviously having been frightened off by the torrential rains earlier in the day. Just as the sun was slow to come out, so were the spectators slow to gather. Yet assemble they eventually did, to witness a largely uneventful auction, despite the quality of the property up for offer. And, despite his best efforts, auctioneer Rod Watson was unable to elicit a response from the crowd to his numerous requests for an opening bid (unless a dog casually sauntering his way through the crowd can be taken as interest!?) and the home was subsequently passed in on a vendor bid of $1,050,000, leaving the surprised crowd silently stunned.” (Nikki Hills)

Templestowe 20 Edwin: Passed In $2,600,000: 1 bidder: Auctioneer Adrian Santini:

Templestowe, 20 Edwin: Adrian Santini of Barry Plant: Passed In for $2,600,000, 1 bidder:
They breed ‘em tough out Templestowe way. This was a knock down, drag it out affair and I was exhausted just watching it. Forty minutes – seven or more vendor bids and one genuine bid. Adrian Santini passed in this home at $2,600,000, having started it at $2,000,000 with a vendor bid. One bid from the crowd at $2,300,000. Next time I’m taking a cut lunch and if it’s that cold again – a sleeping bag as well. I’ll be honest I didn’t see why it took so long to achieve the result it did. A crowd of around 50. (Mal James)

Canterbury 23 Chaucer: James Tostevin of Marshall White: Great atmosphere with three bidders over $3,800,000 - a strong result. Bought after; undisclosed price.

At 6pm on Saturday the James Million-Dollar-Plus clearance rate was 50% for the 38 auctions we attended. Of note is the fact that only 1 in 4 sold under the hammer.

On Sunday the post-auction clearance rate rose to 66% on all 61 monitored properties. That tells us that the market is right on the brink, but still limping over the line. We’ve been seeing these kinds of significant differences between “under the hammer” and “post auction” clearance rates for a few weeks now (see last week as well), a very different situation from earlier this year. As buyer agents, and for you as buyers, that tells us a number of things about post auction and private sale negotiations.

Bidderman, our Demand Indicator, has dropped significantly to only 1.2 bidders per auction. Almost 1 in 3 auctions had no bidders at all. This was our most significant stat of the weekend and a key indicator  going forward – let’s see if it bounces back in two weeks.

Market: The REIV clearance rates might not show it – but the market was soft this weekend. Many agents and reporters described a real hesitancy amongst buyers and the $M+ Clearance Rate and Bidderman confirms that. Now is possibly the start of another downward price trend, especially with stock numbers on the rise. Possibly it’s an election slowdown or maybe buyers are seeing more choice coming into Spring and are acting accordingly with reservation and only when it makes sense. Wow! September has more excitement on offer than just Collingwood.

But conditions are varying widely across the different council areas. If you are in Bayside, for instance you may be thinking that very few buyers bid at auction any more. You would also be seeing plenty of stock around, some which has been there for a long time (especially over $2m). So with plenty of new homes coming on, you are probably thinking prices are likely to be weak in Spring in Bayside.

If you are in Boroondara you are probably seeing some heat building up in the market, with good stock attracting good competition and most things selling on the day or soon after. You can see more stock coming on but you know you are probably in for a fight. But you can also remember May and you know if too much comes on it could well be a buyers market in Boroondara this Spring.

If you are a buyer in Port Phillip you may be thinking that the market is still a bit sleepy and hasn’t started any sort of Spring run – either in auction numbers or new stock.

Finally, those of you in Stonnington are probably a bit confused – some things are selling that shouldn’t and some aren’t that should. You are likely aware that the market is very price sensitive but you haven’t as yet seen the Spring stock surge start and like all of us you are not sure if and when it will.

Agent Opinions: This week we followed up on the $3m+ market asking agents: “Where is it?” Their full answers are in the Market wraps, but here is a sample of what agents are saying:

Richard Winneke, Jellis Craig: “Three auctions this weekend all over $3m – that will be a true indicator  – if only one or two sell then sellers will be cautious putting property on the market. Buyers out there at that level, but they are also cautious. Market at lower level is very different. Not seeing a great amount coming on in the higher level – 8 properties over $2m in September for Jellis Craig which is not huge, at least a third down in terms of numbers compared to last year.”

Activity and Stock Levels – The graph below shows New Stock ($million+) in Boroondara, Stonnington, Bayside and Port Phillip. To note:

• Consistent big stock levels until end of May
• Big drop in mid June stock levels
• Steady build from mid July

Highlights and Lowlights

• No bidders in Sandringham today at the three auctions we attended. At one of them Steve Tickell, of Hocking Stuart, curiously said he was testing the market by not offering an opening bid, or any vendor bids…and passed the property in without announcing any amount at all… Stephen, what did we all learn here?
• The biggest result was at 23 Chaucer Canterbury with Marshall White’s James Tostevin firing up 3 bidders to reach over $3,800,000.
• Check out the video auction of John Bongiorno at 10 Walerna Glen Iris in the Auction Reviews Section.
• Credit where credit is due: Auctioneer Kaine Lanyon of Bennison Mackinnon deserves mention today for achieving a great result for his clients while keeping the crowd well entertained at 76 Spring Street, Port Melbourne. He did so with a combination of wit, charm and humor that only a skilled auctioneer can execute. In my opinion he did affect the outcome and I am sure many people left the auction convinced he single-handedly pushed at least one of the parties over and above what they intended to spend – Author David McMillan.

BidderBuzz Auction of the Day

64 Maud St Balwyn North – Julian Tonkin, Jellis Craig – 4 bidders, sold under the hammer – $2,015,000 Maybe it was auctioneer Richard Earle’s comprehensive preamble, or maybe it was the comfort of an indoor auction. Whatever it was, this auction got off to a flying start with a genuine opening bid of $1,800,000 from the 60 people present. Two more bidders joined in, resulting in an intense three horse race. When it seemed to all that the property was going to be bought at $2,000,000, a fourth bidder jumped in out of nowhere to be the successful buyer at $2,015,000. A strong result.

The wind was up, their tails were up and so was the price. David Lack gets a solid result post auction - over $2,250,000. 2 bidders. Port Melbourne, 2 Swallow.

Are Special Conditions costing sellers BIG MONEY?

Sellers may be costing themselves big dollars all in the name of legal “protections” they would never agree to if the buying shoe was on the other foot.

One prominent conveyancing company claims to be protecting their selling clients with a list of clauses in their selling contracts – but in fact their efforts and attitudes are causing buyers to walk away from deals. In this market that is not a good step for sellers.

If you watched the two latest episodes of Channel 7’s “ Under the Hammer”, particularly the one about the Yarraville auction which featured one of our buyers, you’d be interested to know that the real drama wasn’t what you saw on TV but what happened behind the scenes with the 20 or more phone calls and emails between auctioneer Adrian Butera and our company just to get our buyer to the starting line. It was all about this conveyancer’s Special Conditions.

In Victoria when we buy or sell a home the paperwork we are required to agree to is made up of a number of sections. These include the particulars of sale price, settlement arrangements and chattels; normal contractual conditions governed by the REIV and the Law Institute; and Special Contractual Conditions.

With regards to the Special Conditions sections the conveyancing firm we are referring to is putting in clauses or conditions that are interpreted by our clients’ buying solicitors as meaning that:

• If the home burnt down, the buyer would still have the pay the seller the purchase price in full.
• If the seller couldn’t provide title (we thought that is what you were buying) – they would still have to pay all the money to the seller. (We’re sure the banks would love that idea – NOT!)
• Some of these special conditions may affect the buyer’s ability to insure the home they buy.
• If the buyer had a dispute with the seller, they would still have to pay the seller in full and only after could they dispute.

Back to the Yarraville auction: it took three days and all those phone calls and emails, but the sellers finally agreed to strike out the special conditions.

Even though things have been quiet, we still managed to get 5 $M+ homes over the line this last week in Malvern East(post auction), Balwyn North (off market), Malvern East (under the hammer), Port Melbourne (pre campaign) and Canterbury at auction. One of them (Port Melbourne) could have been very, very different as our client had to walk away from an acceptable deal; owing to this conveyancer’s special conditions. It was only when the seller ignored the conveyancer and crossed out these additional onerous special conditions that the deal was revisited and consummated.

We think sellers need to know about this practice because buyers’ lawyers are increasingly refusing to accept these special conditions, which means that $M+ investors are simply having to walk away from a deal – even on good properties. It’s a practice that could be costing them tens of thousands of dollars.

To illustrate, see our chart below where in Identical Auction One Bidder 3 was able to have the Special Conditions removed but in Identical Auction Two Bidder 3 was not. He did not bid, which reduced the purchase price significantly.

We are hoping to name the conveyancing company, pending legal approval.

Sellers who read this need to be made aware of these issues so they can decide whether they have hired the right conveyancer.

And buyers be aware of what you are signing up for if you come across these kinds of contracts. Make sure you get good professional advice, or you could be up for something more (or less) than you bargained for.

James Buyer Opinion: This week our James Buyer Opinion is on “Carrot and The Stick and Other Negotiation Styles.” Next week in Buyer Opinion we have a special Buyer Agent Conversation – Getting Info to Make an Offer.

Also next week, Election Saturday, we will have a reduced coverage; but there will be a Market Insight – just no wraps - owing to significantly reduced auction numbers.

We Only Buy Homes

Mal

Took this photo at an open at 59 Studley Road Ivanhoe - Liz Walker Jellis Craig - all laid out on the kitchen table. Just want buyers want - fair dinkum information. Sellers - Liz Walker and Jellis Craig Ivanhoe provide what buyers want - reasonably accurate information.

Hawthorn 18 Melville: With the sun in his eyes, auctioneer Alastair Craig took the helm on this crisp, sunny morning in Melbourne. There was a strong atmosphere in the crowd. With three bidders, it was passed in at $1,605,000 and was bought afterwards well above this figure.

As we approach the shortest day of the year, we saw a record number of auctions in Boroondara on Saturday (compared to equivalent weekends in past years). Given the large supply, the market seems to have  some resilience. In fact, there is so much going on that  many key agents are delaying their traditional mid-year holiday by a few weeks.

Of the 11 auctions we featured, two were bought under the hammer, six were passed-in,  one was bought after and two were bought before. Our demand indicator, Bidderman, was 1.4 for the weekend.

The word from some of the selling agents we respect:

Richard Winneke (Jellis Craig) – “The market is patchy right now. There is certainly a lot of stock on the market. Jellis Craig’s clearance rate for the day was around the 65% mark. Hawthorn appears to be holding up quite well.”

Geoff Hall (Noel Jones) – “Good results for the company with 6 out of 7 selling. The one that didn’t sell should sell soon. Not listing too many to sell in the immediate future. There should be some good buying opportunities in the next 6-8 weeks. Then, as property levels dry up going into spring, the market (and bidders and clearance rates) will probably rise back up.”

Paul Keane (Jellis Craig) – “Strong results in Glen Iris, with three sales at the mid-to-late million dollar levels.  Market seems to be steady, yet is struggling a little under the sheer weight of numbers. Glen Iris represents a good option for family buyers in the sub-$2 million bracket – as opposed to Camberwell and Hawthorn East where the same demographic of buyer needs over $2 million to buy.”

James Tostevin (Marshall White) – “The company had a clearance rate of 77% rate which, given numbers for this time of the year, was very good. Most vendors are coming into line with the market.  Australians as a rule are resilient and, despite what is happening elsewhere (and written in the media), are fighting through. Mid August through to late September looks to be an interesting period in terms of market activity”.

A tale of two auction reports - both surprises.

16 VAN NESS AVENUE, GLEN IRIS 577sqm Doug McLauchlan.  Strong Vibe Crowd of 50. Bought Under Hammer at $1,580,000.  6 bidders 19 Jun 2:30pm
Doug McLauchlan, Anthony Reis and James Redfern had a good home here with some unusual features – a lift in the almost ‘burbs and a piano player warming us up prior to the auction. Before half-time it was like pulling hens teeth from the three bidders. However after half-time (when I left –  thanks to James Redfern, who finished the report) it was a very different story – especially once the home was on the market at $1,480,000. Three more bidders emerged and the home was bought for $1,580,000 – something of a surprise. Mal James Reporting

49 PARKHILL ROAD, KEW 810sqm Maurice Di Marzio. Quiet Vibe Crowd of 80. Passed In at $3,200,000. 1 bidder 19 Jun 11:00am
The auction started positively as auctioneer Maurice Di Marzio commented on the size of the crowd (about 80) and the good level level of interest this luxury home had attracted during the marketing campaign. But that interest did not follow through, with most of the crowd preferring to keep their hands firmly in their pockets. Mr Di Marzio opened with a vendor bid of $3,100,000, followed by another of $3,150,000. Mr Di Marzio’s announcement that there would be no further vendor bids was successful in eliciting one genuine bid. The property was passed in to that single bidder at $3,200,000. Overall a very quiet auction. Amy Wong Reporting

Auction Clearance Rates

45 monitored – 26 bought – 58% clearance rate ( last week 52%/week before 70% )

Design Smart

Kew 49 Parkhill: Big crowd - a new home that a few months ago would have had some legs. Passed In $3,200,000. 1 bidder.

Bidders were a bit cold, a bit wet and not in the buying mood at 15 Kirkwood Sandringham. Passed In. One bidder. (Nick Johnstone, JP Dixon)

A bit of gloom maybe an understatement.  We covered 10 properties auctioned in Bayside today over $1,000,000 and saw a clearance rate of  zer0!  That’s right, nothing was bought under the hammer today.   6 bidders in total, and Park Road, Sandringham had two of them.   That’s Bidderman at 0.6. 

Properties to pass in today on vendor bids  included 3 Wellington , Brighton at $4,000,000, 5 Avondale, Hampton at $1,650,000, 66 Littlewood, Hampton at $1,220,000, 42 Holyrood, Hampton at $1,820,000, 15 Kirkwood, Sandringham at $2,400,000. (See live video of this auction on the  Market News home page).

Some of the bought properties include 28 Keats Street, Sandringham which Jenny Dwyer and auctioneer, Stephen Tickell, at Hocking Stuart bought post auction for  $100,000 above the pass-in price, for $1,650,000.   326 Beach Road, Black Rock (Mark Earle, Buxtons) was bought today for $2,450,000 and 5 Rippon Grove, Brighton which Justin Follett of Kay & Burton sold mid-week  around $3,500,000 after initially passing in at auction.

Speaking with Gail Pullen of Kay & Burton today, she thought the number of buyers around for this time of year was exceptional, but so were the number of properties currently for sale – perhaps evenly matched, and although properties may not be selling at auction, transactions were still happening.  This supports our view that alternative methods of sale in the $2,000,000 plus market will continue to increase over the next few months.

Leigh Hallamore of Buxtons still believes that the auction system brings price to a head and that vendors should consider the price at the time of auction as it may not be present when they come to the realisation that they should have taken it on the day.  He added that vendors need to recalibrate on price to comfortable levels and that some current prices are in no-man’s land whilst the market is in transition.

Clearance Rates Bayside – 35 monitored – 14 bought – 40% (last week 46%)

Expressions of Interest
Kay and Burton are the masters of this form of selling and with the current market and clearance rates it is as expected coming back into vogue. Four interesting homes that Mal has been through recently and rated highly are

• 9 Martin St Brighton (Gail Pullen and Ian Jackson) north facing golden mile land with an art deco maybe.
• 3/9 Glyndon Brighton (Alex Schiavo and Stewart Lopez) – golden mile apartment in the traditional style
• 2a Seacombe Grove (Sturt Hinton) – left field golden mile townhouse  worth a look
• 31 Martin St Brighton (Sturt Hinton and Stewart Lopez) – really good home in that Elwoody North Brighton, Beachy precinct.

Miriam Carraro of Hodges and one of Brighton’s quiet achievers says this about EOI’s. There is an increase in EOI as it suits vendors who would like to sell privately but wish to have an end date to the process (which auctions give you): the vendors selling through EOI can get the best of both worlds using this method. 

If as a buyer, you would like to know more about how to work your way through the EOI method of sale, please give us a ring.

Happy Wife Happy Life

Indoor Auctions were the order of the day. Stephen Tickell and Jenny Dwyer pass in and sell after for $1,650,000. 1 bidder.

Mark Dayman: They call him the "Deli Lama": Why? Because of his pearls of wisdom at sales training and his culinary expertise (eating that is). We like him too and today so did his vendors: Hawthorn 29 Hill: Bought under the hammer: $1,685,000: 2 bidders.

A solid day today in Boroondara – or so it felt.

Of the 8 auctions we covered,  5 sold and 3 passed-in giving a 63% clearance rate. Bidderman was at 1.75 which is still quite good (for what it is worth we did see  8 vendor bids - these are starting to come into play more now as buyer depth thins out).

Of the reported auctions it was 21 from 33 or 64% for $1m+ auctions.

The market is weakening but is that because of stock overload or overall weakening demand? The big question for the next month or so! The true answer determines the length and depth of easing. Supply issues – shorter term and not as dramatic. Demand issues – probably longer term and more dramatic.

There is still plenty happening outside auctions – three $6m+ Hawthorn properties selling in Grace Park, Shakespeare Grove and Berkeley Street during the week. James Scarff and Sam Wilkinson from Kay and Burton.

But let’s give the stats a rest this weekend – what about some opinions.

While there have been huge stock numbers evidenced by record months for Jellis Craig in May and June and Kay and Burton are now reporting big results, there is still no doubt prices have fallen across the board. We asked Paul Keane of Jellis Craig for his thoughts at his 28^th Hawthorn Grove property he has put on the market (No 50). Even arch rivals would have to concede he is the Hawthorn Grove specialist – but I digress. Paul said it’s all numbers. Demand and Supply “You bloody buyers have choice Mal”  – said in complete jest, but the meaning was understood. Paul added if we go back to lower stock levels come late winter then prices may well rise. He finished by noting that now may well be a good time to buy. It may be his is right!

The take from other selling agents -

Glen Coutinho (Hocking Stuart) – “Buyers are more cautious and the market has retracted – this is probably more like a ‘normal’ market and in some ways a healthier market.”

Geoff Hall (Noel Jones) – “Presently it is hard work selling property, given good stock levels and cautious buyers. The days of regular multiple-bidder auctions seems over for now. Vendors more and more are coming in to line and are in touch with the market.” Interestingly Geoff notes there are presently 12  two bedroom units for sale in Surrey Hills alone – he can’t ever remember that happening before.

Hamish Tostevin (Marshall White) – “Pass-ins are much more prevalent now, yet the deals generally happen on the day.”

Jellis Craig’s Scott Patterson: “Some buyers think the market is in free-fall – well they will remain lookers until they realise its has only dipped. Some vendors still have their heads in the April market and this is May/June. For them they will remain owners rather than sellers.

Another big weekend coming up in terms of auction numbers and most agencies have plenty happening in June. Interesting times ahead.

Design Smart.

Maurice "The Crooner" Di Mazio clarifying the position in getting away the thrice recently offered and now finally sold 48 Melville Hawthorn for $1,605,000. Under the hammer. 2 bidders.

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!

Elsternwick: 42 Elster: Bill Stavrakis. What slowdown man! 7 Bidders. Bought $1,460,000.

It seemed last week Glen Eira buyers went into hibernation with many passing in at auction via vendor bids.

Interesting information for buyers. Of  passed in properties at auction last week, 3 from 4 in Bentleigh have been bought post auction assumingly because of good negotiations between agents and buyers.

• 3 Shrewsbury Street BENTLEIGH EAST $1,200,000 Passed In ( Trent Collie – Hocking Stuart)
• 14 Tyrone Street ORMOND  $1,800,000 Passed In ( Ian Whiteside – Hocking Stuart)
• 1 Werona Street BENTLEIGH $1,100,000 Passed In  (Ivan Blow – Buxton)

Some vendor realism may have also set in.

Sophorn En from Biggin & Scott said “ The market at the moment is red hot. There is not enough stock for the demand of buyers.”

This weekend I attended auctions that had Bidderman at 7 and 6, and a few auctions that passed in on a vendor bid.

One very strong auction was 42 Elster Elsternwick.

James Home Rating 764/1000. You can’t help but be impressed by the charm and free flowing space of this renovated home. Inside you find a grand entry with high ceilings. Master bedroom with walk in robes and ensuite work well. The other two bedrooms are standard in size; unfortunately without built in wardrobes. The Kitchen is positioned well, nearby to the dining and meals areas and upstairs study is good. This is a huge block of land and once at the covered deck you find toward the back the studio/office, which is an unexpected extra. This home is positioned perfectly near by to shops and transport, therefore making it well suited to many families.

James Auction Report: As auctioneer Bill Stavrakis walked out to start proceedings you could sense there were many bidders in the 120-strong crowd. A starting bid of $1,100,000 was quickly surpassed, with two parties taking the bidding to $1,300,000. Then five more bidders entered the fray, with the price continuing to rise until, in the end, two bidders were left and the property was bought for $1,460,000.

James Post Auction Analysis: This specific market segment (family homes sub $1.5 million) still has a lot of depth and therefore these sorts of offerings may well have some strength even if the market does ease.

It’s too early to say where the market is headed – no one has that magic crystal ball to tell the future.

Other properties bought in Glen Eira of Interest:

43 Brett Street, MURRUMBEENA -  (Kelly Evagora, Barry Plant) Bought at auction for $1,110,000

8 Malakoff Street, CAULFIELD NORTH – (Sally Zelman, Gary Peer) Bought at auction for $1,795,000

12 Prentice Street, ELSTERNWICK – (Daniel Ashton, Biggin & Scott) Bought at auction for $945,000

Poor properties are getting minimal interest and price becomes the only attraction.

Stay Focused, Stay Happy

Bentleigh 18 Evelyn St: Auctioneer Sophorn En; asking for bids, then hoping for bids, then making a vendor bid. Passed In $1,200,000

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

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

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

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

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

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

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

Make good decisions and think ahead

Hawthorn: 14 Riversdale Court: James Tostevin indicating it is yours - to the best of the five bidders at $4.44m

Boroondara is awash with property today and while still a strong day Alastair Craig put it best saying buyers were a little thinner on the ground at each auction than they have been over the last few weeks. Jellis Craig sold 33 out of 42 at auction and he felt that shows that with 2 more bumper auction weekends before it shuts down that there may be some buying opportunities pre Christmas. I personally don’t disagree (of course providing it is the right home for your family). There were 13 million dollar plus pass-ins today.

Bidderman, considering the number of auctions was a solid 2 per auction.

James Tostevin of Marshall White got the biggest published result away at $4.44m for Riversdale Court (see report below).

With large numbers of buys comes people now needing to sell and the next few weeks will see a number of quiet offerings with homes being tested and possibly sold before February’s planned restart as the time to set yourself for a pre Christmas auction has now passed.

James Attended Auction Reports below

CANTERBURY, 1 Griotte St – Passed in – no bidders (Marshall White)
Nestled in a quiet street within a short distance from the exclusive Siena College this charming 1930′s period home drew a smallish crowd of 38. Auctioneer Hamish Tostevin from Marshall White opened up the bidding with vendor bid of $1.5 but no offers from the onlookers came with the property being passed in at that price.

KEW, 6 Bramley Court – Passed in – one bidder (Christopher Russell)
This property seemed to have particular interest to Asian buyers, who seemed to give the house their approval. Russell Turner pleaded with interested parties to make themselves know, but the members of the 50 strong crowd were too shy to be part of the action today. Two vendor bids and the property was passed in on a sole genuine bid of $2.25m.

HAWTHORN, 14 Riversdale Court – Bought – five bidders (Marshall White)
In a quiet cul de sac just off Riversdale Rd, this unrenovated Georgian home which backed onto Fairview Park and overlooked the Yarra River drew a good crowd of 55 people. Auctioneer James Tostevin from Marshall White was kept busy and eventually the race came down to two, the bids quickly soared to $4.44m which brought the hammer down.

KEW, 22 Fitzwilliam St – Passed in – no bidders (Fletchers)
A mixed group turned out to see the auction of this house, but there was no excitement or urgency from the crowd of around 70 people and there were no bids received. One couple seemed interested and advised they would be keen to discuss the property after the auction. It was passed in on a vendor bid of $2.7m.

KEW, 3 Stawell St – Passed in – no bidders (Jellis Craig)
This auction started in a relaxed atmosphere with many family groups added to the mix. The crowd of more than 50 people enjoyed an opening speech by Scott Patterson but despite the Jellis Craig auctioneer’s best efforts, there were no bids and the property passed in on a vendor bid of $2.75m.

BALWYN, 3 Stroud St - Bought – three bidders (Noel Jones)
A moderate crowd of around 40 people witnessed a sun soaked auction in quiet Stroud Street, Balwyn. Michael Nolan of Noel Jones got the crowd excited with his pre-auction presentation however really struggled for an opening bid. Two vendor bids started proceedings, with the first actual bid coming in at $1.05m. The property was declared on market at $1.08 million and two parties went tick for tack until $1.15m where one of the bidders ran out steam. Three bidders in total and a final sale price of $1.17m.

GLEN IRIS, 35 Martin Road – Bought Before – (Noel Jones)
This property sold before auction for $2m.

GLEN IRIS, 30 Flowerdale Rd – Passed In at $1.61m

HUGHESDALE, 30 Paget St – Bought – five bidders (Buxton)
A massive crowd of around 100 people gather around to watch a very strong auction in Hughesdale. The property was auctioned by Craig Cox of Buxtons and after a vendor bid of $915,000 the price quickly moved past the million mark. Declared on market at 1.2 million, the property finally sold for 1.28 million with 5 bidders ensuring a good result for the vendors.

Design Smart

Canterbury: 29 Wattle Valley Road: Another big Damian Davis auction with 3 bidders from the 200 strong crowd. Bought $3.65m. Photo: Julia Atkinson

Where the market liked the property they went at it hard. Bidderman 3

Boroondara’s reported $m+ clearance rate on all suburbs except Glen Iris was 77% on 26 auctions. The highlights being the big 3 over 3 by Jellis Craig. Dean St Kew ($3.99m), Wattle Valley Rd Canterbury ($3.65m) and Stoke St Kew ($3.5m). Another notable was 52 Kinkora Rd Hawthorn (Hamish Tostevin) which sold before – good block size, but south facing - needed work. It confirms the $2.72m paid for 49 Chrystobel at auction was market and is now the entry mark for this iconic estate.

But Glen Iris – WOW – we talked about it in market news last week – but what are they putting in the water there – 16 – yes 16 reported campaigns in Glen Iris this week with all bar 2 selling. Since 1 October there have been 39 sales over a million. 39 – 39 – yep 39 over a million.

Sunnyside Estate Camberwell -we talked about good and bad land values getting back to their discounts and premiums and we highlighted it a week ago with the Davis St Sale (bottom of Sunnyside and south facing rear) at around $1750 per sq metre. Well 42 Sunnyside with Peter Batrouney of Jellis Craig (top of Sunnyside and south facing rear) confirmed that at just over $2100 per sq metre at today’s auction.

Kew: 31 Fitzwilliam Street: Scott Patterson keeping an eye on all 4 bidders. Bought for $1.405m

We also spoke to Scott Patterson of Jellis Craig and he said 80% of their 44 auctions sold today with 29 Wattle Valley Road Canterbury $450,000 over reserve at $3.65m and 24-26 Dean St Kew selling for $800,000+ over reserve. Strong numbers and bidders at most auctions according to Scott with the next 3 weeks being huge and in fact December 12^th is a company record for auctions on one day – ever at Jellis Craig. Scott thinks that there is an underlying strength in buyer demand and if December 12^th finishes positive then next year should start the same. At present he can see no cracks

Auctions we attended today:

BALWYN, 24 Clapham St – Passed in – one bidder
Deadish Auction, property passes in with just one bidder. 30 people slowly gathered throughout auction duration. Auctioneer James Batemen spoke of the peaceful, quiet setting and that it was. It felt like being out bush, trees sheltering, birds singing and distant sound of a violin playing in a neighbouring home. ‘You could hear a pin drop’ Batemen comments hoping for someone to ‘talk back to him’ after three vendor bids at 1.4mill, 1.425 and the 1.450. Thankfully one bidder came in at 1.455, saving the silence. The reserve was apparently very realistic and not far off the final bid, wait to see what happens post auction.

HAWTHORN EAST, 20 Caroline St – Bought – three bidders
Auctioneer Scott Patterson was polished and poised at this fast moving auction. Bidding opened at $1.2m and was on the market at $1.410m. There was keen bidding between two parties (three bidders overall) and the property sold for $1.480m. A good crowd of 55 people.

CANTERBURY, 29 Wattle Valley Rd – Bought – three bidders
Presidential address or auction? People flock from every corner – biggest crowd of the day – 200. Damien Davis does his best to speak over the dominating traffic with the air of a softly spoken president, the huge crowd gathers on small street corner to hear and get involved. 3 bidders, strong vibe starting from the word go with the crowd bid of 2.9mill, on the market at 3.2 and sells at 3.65m Chaotic, loud and good energy, mission accomplished. – Julia

GLEN IRIS, 18 Bourne Rd – Bought – five bidders
Auctioneer Paul Williamson stuggled to get an opening bid, but after one bid and a subsequent consultation with the vendor, the bidders came out of the shadows. The property was on the market at $1.22m, five bidders fought it out to reach the final figure of $1.46m.

CAMBERWELL, 17 Crellin Grove – Passed in – two bidders
A talented auctioneer and yodeller to boot, Antony Woodley managed to entertain the 100 strong crowd as he oversaw proceedings. A very multi-cultural crowd – many Asian and European buyers – attended this auction, which was held in the rear garden. There were two bidders and bidding started at $1.9m. The property failed to sell and was passed in at $2.07m. Later sold for $2.1m

KEW, 31 Fitzwilliam St – Bought – four bidders
Scott Patterson greets bidders like friends and he finds a few to play with – 4 bidders, bidding opens from crowd at 1.2 and sells at 1.405. 4 bidders joining in, real mixed crowd. Built to a buzz. The turn out + no of bidders spoke for the strong interest vibe felt for this home. 120 people.

Design Smart

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

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

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

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

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

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

Auctions we attended today:

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

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

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

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

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

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

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

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

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

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

Happy Wife Happy Life

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

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

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

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

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

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

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

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

Bidderman 2.3

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

Auctions we attended today:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

What’s Hot x 2

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

What’s Not Hot

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

De Ja Vu – Not Really – 2008 and 2009

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

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

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

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

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

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

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

Jenny (two auctions – Beaumaris and Sandringham)

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

David (Bayside – Brighton and Hampton)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Buy Well

Mal

Thank you for a huge effort today from many people:

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

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

Camberwell: 21 Christowel: Alastair Craig knocks it down to the best of 4 bidders for $1,530,000.

We looked at 27 campaigns over a million in Boroondara this week – 27 and of those 22 sold. When talking with James Connell of Marshall White he said of his company’s weekend results in Boroondara and Stonnington, 8 sold before hand; 20 sold at auction and 3 passed in. That is 28 out of 31. Makes our Market Insight argument that buyers are turning away from “non quoted auctions” look untrue and to be fair they have a point this weekend.

Glen Iris: 7 Yeovil: The expressive Paul Williamson: Bought $1,740,000. 2 bidders

Three big sales to report on over $3m. 7 Henty Court Kew with Nick Elmore and Tom Aylward of Jellis Craig which was a quality building on an irregular block – we were obviously harsh with our James Control Price – well so the agent and sole bidder thought.

Secondly 17 Deepdene in Balwyn with Nick Franzmann of Marshall White. We like Nick – he is low profile but he gets the job done – $3,806,000. Almost $4m. Home was $1m tops; even though it was big. So that puts land around $2500 per sq metre. No drop off there even if there appears to be a lessening of Chinese interest.  Very solid result particularly given this last sold for $2.95 million back in April 2007

Thirdly Heather Elder of Marshall White, another highly respected agent, managed several buyers into a boardroom auction on Monday and got 4 Hollingsworth Hawthorn away north of the magical 3m.

45 The Boulevard Hawthorn – Tom Ryan and Nick Smith of Jellis Craig
James Home Rating: 650 out 1000. While the floor plan for this house presents some issues, property has great potential. North facing rear and adjoining to  Scullin Park are the major pluses here.  Ths is a good interim home for a young family but could also work for an older couple. You need to see beyond the kitsch.
James Control Price: Dirt $1,249,500 + House $250,000 = $1.499,500
James Auction Report: Opening bid $1.250m On the market $1.410m last bid and bought for $1.540m. Crowd 60 people with 3 bidders. Auction vibe slow start. Bid came by a new bidder as the paper hit the hand, Too late!!!
James Post Auction Examination: As expected

7 Henty Court Kew:  Nick Elmore and Tom Aylward of Jellis Craig
James Home Rating: 522 out 1000. This home has been built for this block and while well built and well thought out will not appeal to all buyers. Land content, backyard size, the block itself and flow of home are not the norm and while this does not make that a fault means that this home is a specific buyer home and future mass appeal (demand) is hard to judge. Really do like the separate wing for home office, older member or teenager. Garage size is excellent, light comes into the right area and rooms sizes are good. If you really like it, then why not – but understand what you are buying – this is an emotional home!
James Control Price: Dirt $1,393,200 + House $1,200,000 = $2,593,200
James Auction Report: Small crowd of 40 witnessed Richard Earle of Jellis Craig pass it into the lone bidder on his one and only bid of $2.85m. Sold afterwards
James Post Auction Examination: Nick and Tom are good at their job

Some random sample auction reports

BALWYN, 17 Deepdene Road – 2+ Bidders
Reported in by agent Mark Dayman – thanks Mark. Opened at $3.1 million, on the market at $3.68 million and ultimately sold for $3,806 million.
CAMBERWELL, 23 Radnor Street – 2 bidders
James Tostevin of Marshall White entertained a substantial crowd of 90 while two bidders took this home to on the market at $1.38million and sold at $1.46 million.
CAMBERWELL, 21 Christowel Street – 4 bidders
Auctioneer Alastair Craig, Jellis Craig. Opening bid $1.2 Actual. On the market $1.310m. Last bid and sold $1.530m. Crowd 90 people 4 bidders. Fast and furious auction in the end between 2 bidders with the successful bidder having made the original opening bid.
CANTERBURY, 38 Parlington Street – 0 bidders
Crowd of about 80 here – Richard Earle opened proceedings with a vendor bid of $1.7 million, then after no response from the crowd 2 furthewr vendor bids of $1.72 and $1.74 million. Passed in and remains unsold at time of writing.
GLEN IRIS, 7 Yeovil Road – 2 bidders
Paul Williamson got off to a slow start in front of 60 people opening with a vendor bid of $1.5M. Finally got a real bid after returning from the mid break of $1.51 and a second bidder came in with a large jump to $1.65 and it’s on the market, settling at $1.74M. The successful bidder flying in from Sydney this morning, viewing the property and buying it. Apparently the home an exact replica of his place in Sydney.
HAWTHORN, 45 The Boulevard – 3 bidders plus a LATE BIDDER
Opening bid $1.250m On the market $1.410m last bid and bought for $1.540m. Crowd 60 people with 3 bidders. Auction vibe slow start. Bid came by a new bidder as the paper hit the hand, Too late!!!
HAWTHORN EAST, 33 Harold Street – 6 bidders
Auctioneer Andrew Macmillan managed and entertained 6 bidders in a smallish crowd of 60 at one of the longest auctions of the day where bids dropped to a $1,000 and stayed that way for for a long time. On the market $1,200,000. Bought $1,393,000.
KEW, 7 Henty Court – 1 bidder
Small crowd of 40 witnessed Richard Earle of Jellis Craig pass it into the lone bidder on his one and only bid of $2.85m. Sold afterwards.

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