oc | Wednesday 26th February

Steady as she goes on low auction stock levels

The Traffic Controllers: Simon Shrimpton () sells 66 Delbridge Street, Fitzroy North, under the hammer, 6 bidders

At 6.00 pm on Saturday the James Clearance Rate for Melbourne’s $M+ was 74% on the 34 auctions we covered. The Bidderman, our bidders per auction measurement, was 2.2

  • Ducks (no bidder auctions) – 25%
  • Lone Rangers (1 bidder auctions) – 9%
  • Norms (2-3 bidder auctions) – 47%
  • Volcanoes (4+ bidder auctions) – 19%

A win to the Norms!

This weekend was again quiet in terms of the number of auctions. Next week will be our first real test for early Spring, with around 100 $1 million plus properties scheduled for auction next Saturday. The following week we are back to around 75.

Biggest Sales:

  • Balwyn North, 34 Aquila Street, Maurice Di Marzio (Hocking Stuart), under hammer, $2,800,000, 2 bidders
    The crowd literally lined the street to watch Maurice Di Marzio auction this recently built contemporary offering and there was a feeling of real expectation here…(See More in Auction Reports)
  • Camberwell, 86 Through Road, Paul Williamson (Jellis Craig Bennison Mackinnon), under hammer, $2,400,000, 3 bidders
    All eyes might have been on auctioneer Paul Williamson as he stood in front of 86 Through Street, but there were no hands waving at this auction…(See More in Auction Reports)
  • Hawthorn East, 34 Anderson Road, Glen Coutinho (RT Edgar Boroondara), after auction, undisclosed above $2,350,000, 2 bidders
    Straightforward Glen Coutinho auction. Glen gave his usual concise, on time spiel and then called for bids…(See More in Auction Reports)

Biggest Pass Ins:

  • Armadale, 29A Adelaide Street, passed in $2,500,000, no bidders
    On a cold morning Tim Derham’s signature raspy delivery introduced us to the auction of this sizeable townhouse off High St. The scattered and windswept crowd of 40 were impassive in reply…(See More in Auction Reports)
  • Hawthorn, 47 Brook Street, passed in, $1,720,000, no bidders
    ‘A park to the left of me, a park to the right, a park behind and one over there’, auctioneer…(See More in Auction Reports)
  • Balwyn, 13 Paisley Street, passed in, $1,950,000, no bidders
    According to auctioneer Maurice Di Marzio recent sales have been reaching around $1.4-1.5 million in Balwyn…(See More in Auction Reports)


  • Fitzroy North, 66 Delbridge Street, Simon Shrimpton (Jellis Craig), under hammer, undisclosed, 6 bidders
    An eclectic crowd of 105 neighbours and prospective buyers congregated around this humble home in Fitzroy North today to observe how the for the unrenovated bungalow, 57 years off the market…(See More in Auction Reports)
  • Fitzroy North, 276 Rae Street, Antony Woodley (Collins Simms), under hammer, $1,250,000, 6 bidders
    Six bidders! Strength for good inner-city properties well and truly on display at this double storey home. Bidders one, two, three and four out of the race quite early…(See More in Auction Reports)
  • Surrey Hills, 23 Barton Street, Robert Ding (), under hammer, $1,410,000, 4 bidders
    Robert Ding’s voice carried far and wide today (might have been the near sub-zero temperatures?!) as he extolled the virtues of this pretty period home…(See More in Auction Reports)

Are you wearing tails Maurice?: Maurice Di Marzio (Hocking Stuart), sells 34 Aquila Street, Balwyn North under the hammer for $2,800,000, 2 bidders

What is happening at the Top  $3M+ End?

Number Street Suburb Method Sale (approx) Agency
164 Mont Albert CANTERBURY Private Sale $5,000,000 + R T Edgar
40 North Expression of Interest $4,000,000 + Nick Johnstone
11 John KEW Private Sale $4,000,000 ish R T Edgar
32 Walpole KEW Private Sale $4,000,000 ish Jellis Craig
3785 Frankston Flinders POINT LEO Private Sale $3,500,000 + R T Edgar
334-344 Drummond CARLTON Sale by Tender $3,400,000+ Jellis Craig
12 Pearson CAULFIELD NORTH Auction Sale $3,400,000 + Gary Peer
6 May BALWYN Private Sale $3,400,000 + Jellis Craig
108 Sackville KEW Auction Sale $3,100,000 + Marshall White & Co
84 Canterbury MIDDLE PARK Auction Sale $3,000,000 + Cayzer


A smattering of $3m+ results for July are starting to trickle into the public arena. July was a bit more lively in this segment than is usually for this month. But then June was absolutely huge for most agents in this segment. June was also the busiest company month we have ever had, both in number of buys and turnover.

Round the Grounds

Architect Adam from Boroondara

Balwyn and North Balwyn (a Boroondara ‘fringe’ area) is rocking along quite well, and there are good levels of properties on offer for auction right now. The auction I attended last week at 8 Lawson Street Balwyn (Simon & Lisa Lord, Jellis Craig) was a good example. This was a fairly standard new house, but a large crowd of more than 100 people saw this sell under the hammer – with three bidders competing. That’s something that really wasn’t happening this time last year.

So where are the buyers coming from? Well apart from those living locally, a good majority are coming from abroad. This is due to a few factors:

  1. The falling value of the dollar against the greenback. It is now under 90 cents and looks to fall further
  2. Interest rates are low and there is talk of another cut next week
  3. Visa applications (mainly from from China) are at very robust levels.

So for ExPats and those looking to live in Australia (mainly from China), conditions are quite positive right now.

Vino Guy from Port Phillip

The stock shortage continues, with only four properties over $1 million going to auction in Port Phillip this weekend. There were six originally scheduled for this weekend, but two were snapped up before auction. Of those properties left on the auction schedule this weekend, two were in , one was in Albert Park, and one in Port Melbourne.

This small number of properties for sale is an ongoing characteristic of Port Phillip.  Given the shortage of stock, buyers determined to buy in Port Phillip are having to be very patient. It also means that those who are very keen on a property might need to start thinking about strategies to snap up a property as soon as it comes onto the market, given the increasing number of buyers who are not prepared to wait to compete at auction.

Klarity Kris from

As a way of determining the strength of the market, it can often be more useful to look at what is happening with the B- and C-graders rather than the A-graders. ‘A’ graders usually perform well not only in boom markets, but they also tend to maintain interest and achieve sales even in the quieter markets where the ‘B’ and ‘C’ graders often cannot. Whereas when B- and C-graders are selling well and with competition, that’s when you know you’re in a rising market.

What we have found this year is that the percentage increase in sales of these lower quality properties has been well above that of the market overall.

If we look at properties on a busy road for instance – which to many people detracts from the appeal of a property – this year we have had 12 $1 million plus reported sales on busy New Street, compared to just four last year. On similarly busy St Kilda Street, Brighton, seven homes have been reported as sold this year, compared to just three for the same period in 2012. That’s an increase in sales numbers of 300% for New Street, and of 233% for St Kilda Street, compared to an overall increase in the number of sales of million dollar plus properties for Brighton of just 13% (with 132 sold in 2012, compared to 149 this year).

PPP Peter’s comment on North Stock levels

Inner North-East
Statistically, the first half of 2013 has seen marginally more million dollar plus sales in Ivanhoe, Ivanhoe East and Eaglemont, than the first half of 2012. The market certainly has had more buoyancy this year, but the demand for this area is very strong and buyers are frustrated with the lack of quality choices.

Inner North
New listings have come in this week to give the market a reasonable choice for 24th August auctions. But the lack of quality offerings tends to be a common theme voiced by the buyers we are in contact with.

Inner North-West.
The level of million dollar plus sales through Essendon and Moonee Ponds has been pretty much identical in the first half of this year as last year.

Rising to the crescendo: Nick Renna (Hocking Stuart) at 20 Gilbert Grove, Bentleigh, bought after auction, $1,090,000, 2 bidders

A funny thing happened on the way to a Million Dollars

Three properties that we covered this week, which featured in www.realestate.com.au as possible $1 million properties, were bought on Saturday for a little under $1 million, all with volcano (4 or more) bidding…can we read something into that?

  • Black Rock, 15 Central Avenue, (Hocking Stuart), under hammer, $917,000, 4 bidders
  • Albert Park, 20 Withers Street, (Marshall White), under hammer, $920,500, 6 bidders
  • Hawthorn, 23 Sercombe Grove, (Beller), under hammer, $904,000, 6 bidders

Agent Survey: How are August and September looking stock-wise?

Richard Winneke (Jellis Craig, Hawthorn): “August and September are great months to sell, given that the weather is a little warmer, and the leaves are starting to sprout. Suddenly owners are talking about selling before the election – whenever that may be! Auction numbers for August are slightly up on last year (approximately 10%). It is too early to call for September yet.”

Kate Strickland (Marshall White, Brighton): “Typically the Bayside market stock levels increase as the weather warms up. This year we have seen lower levels of property in general and aren’t predicting the large of stock that we may have seen in past years as we approach the spring market. So low supply and high demand means buyers will continue to spread their search criteria across a range of suburbs and low interest rates still present buyers with the perfect time to upgrade in the marketplace.”

Torsten Kasper (Chisholm & Gamon, Elwood): “The market has shown some healthy signs of improved buyer participation during August & this has inspired a number of vendors, who had been reluctant to go to market previously, to head toward selling this spring. August & September will provide some excellent variety of properties on a volume level not seen for some time. With future reductions pending, our view is it will be a buoyant spring.”

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