oc | Sunday 26th January

Lack of exciting stock on the market brings on a quieter weekend

Come with me! Michael Paproth (Marshall White), 269 Graham St, Port Melbourne, sold after auction, $1,150,000, 2 bidders

At 6pm on Saturday, the James Clearance Rate for $M+ was 61% on the 31 auctions we attended. The Weekly Review Bidderman, our demand indicator, was 1.3 bidders per auction.

That low Bidderman rate reflects how the market felt this weekend – quiet.

This lack of activity is hardly unexpected given that the Melbourne market is still distracted this time of the year by horses. Given how few sellers choose to run to their winning post alongside the Melbourne Cup, it’s understandable that the stock on offer this weekend was nowhere near as exciting as it was on Super Saturday.

Biggest Auctions:

  • Brighton, 33 Sussex St, (), after auction, above $3,100,000, 1 bidder
    “Central Brighton and 1,174 sq m on offer”…(See More in Auction Reports)
  • , 36 Moubray St, Greg Hocking (Greg Hocking), under hammer, $2,270,000, 2 bidders
    “A picture perfect day and the gathered group”…(See More in Auction Reports)
  • , 18 Central Park Rd, Andrew Hayne (Marshall White), under hammer, $2,237,000, 4 bidders
    “The market continues to get some oxygen is the quote”…(See More in Auction Reports)

Bidderbuzz :

  • Glen Iris, 14 Bourne Rd, David Gillham (Noel Jones), under hammer, $1,650,000, 3 bidders
    “Looks like a nice house. Wonder who will buy it?”…(See More in Auction Reports)
  • Brighton East, 266 Dendy St, David Hart (Buxton), under hammer, $1,059,000, 3 bidders
    “Rows of rose bushes in full bloom provided the perfect setting for this Brighton East auction”…(See More in Auction Reports)
  • Albert Park, 96 Merton St, Damian O’Sullivan (Marshall White), after auction, undisclosed, 3 bidders
    “Damian O’Sullivan was at the helm of this Albert Park auction”…(See More in Auction Reports)

Biggest Pass Ins:

  • Balwyn North, 32 Stephens St, passed in, $3,350,000, no bidders
    “A large modern home sitting on a high block”…(See More in Auction Reports)
  • , 37 Airlie St, passed in, $2,700,000, no bidders
    “The crowd of 45, including a couple of celebrities”…(See More in Auction Reports)
  • Brighton, 16 Whyte St, passed in, $1,850,000, no bidders
    “Gerald Delany stood centre stage on Whyte St”…(See More in Auction Reports)

The bid's with him buddy! Bruce Bonnett (McLaren), 157 Eglington St, Kew, under hammer, $1,150,000, 3 bidders

– $3m+

Our focus this week is the $3m+ Top End. After being dead in the water for so long in 2012, this segment has now enjoyed five weeks of consistent sales activity.

A reasonable number of $3m+ properties were put away early in October, and we’ve seen several more sales taking place in and around Cup week:

  • Balwyn, 17 Reid St, Jin Shang – Chinese buyer from Chinese seller – $3,170,000.
  • Brighton, 15 Park St, Ian Jackson for over $7m – A good period home with tennis court (James Rating 870)
  • , 26 Monomeath Ave with Michael Armstrong – Sold for over $4m, putting land at just over $3000 per sqm
  • East Melbourne 123 Gipps St with Andrew Smith – Finally got done around $4m after a few false starts with other agents at $6m. This is a great home, it just had the wrong starting price.
  • South Yarra – Two through – 13/20 Chambers St (Michael Gibson) sold for around $4m and 3/19 Murphy St (Andrew Baines) sold for just over $3m.
  • , 11 Struan St, Anthony Grimwade – Sold on Saturday night for $3,025,000, basically repeating the rescinded sale of a few months ago price-wise.
  • Toorak, 27 and 29 Washington St, Marcus Chiminello – Land of 1040 sqm, with a buy price putting land around $6000 per sqm.

Andrew Baines of Kay and Burton, who has been shining in the Top End recently, summed up the $3m+ market as such:

  1. There’s definitely been a lift in activity and enquiry in the last month (but that’s to be expected this time of the year).
  2. The few deals over $5 million that are actually happening are generally taking at least 3 and even 6 months to put together.
  3. Where the vendor doesn’t have to sell (e.g. no debt wealth) a number of deals are falling over despite good offers, because the seller price is remaining too high. In other words the deals that are happening are the ones where there is motivation on both sides.

We agree with his comments.

Stock:

The sixth and last major or Super Saturday for 2012 is shaping up as either December 1 or 8.

Good numbers of new stock (some of which is actually worth buying) are coming through at the moment – both on and off market.

Here’s what agents had to say:

Agent Survey: What is stock looking like running into , and which will be the big auction weekends?

Jeremy Desmier, Fletchers (Balwyn): Stock levels are reasonable, especially for fresh properties in the lead up to Christmas. Clearance rates in recent months have been much stronger than last year, and those not selling on the day of auction (that are sensibly priced) are generally being sold shortly afterwards. The 17th and 24th of November are all shaping up as large auction weekends, as many vendors avoided the Cup weekend, and have scheduled auctions in the following weeks. The market has been quite dynamic in recent weeks, and there appears to be a quiet confidence emerging from buyers, with strong clearance rates even on ‘Super Saturday’.

Bill Stavrakis, Biggin & Scott (Elsternwick): The stock levels at this point in time seem to be quite healthy. A number of large Elsternwick homes are now coming on given the stable market conditions. It would seem that many of our vendors have come to the realisation that Christmas is only 7 weeks away and they are getting their skates on for the weekend of the 17th November and the 1st and 8th December!

Julian Augustini, Hodges (Sandringham): Auction stock levels seem to be consistent through November and into the second week of December, following the positive outcome of the recent auction ‘Super Saturday’. The next biggest day following Super Saturday will most likely be the 17th November, or the 8th December for those making a last minute dash prior to Christmas. We expect auction success rates will hold steady, setting a positive tone for the market through to Christmas.

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