oc | Thursday 23rd January

Market Is Transacting

Hold the phone buddy: Craig Williamson (Buxton) at 8 Station Avenue, McKinnon, under hammer, $1,295,000, 3 bidders

At 6.00 pm on Saturday the James Clearance Rate for Melbourne’s $M+ was 74% on the 39 auctions we covered.   The Weekly Review , our bidders per auction measurement, was 1.5, which over the last three weeks has been a bit up and down.

  • Ducks (no bidder auctions) – 28%
  • Lone Rangers (1 bidder auctions) – 19%
  • Norms (2-3 bidder auctions) – 44%
  • Volcanoes (4+ bidder auctions) – 9%

Another win to the Norms – and Volcanoes are down.

We don’t like to make big predictions about the property market until we feel confident the evidence is there to support it. But after several months of solid results we are really feeling like this year’s market is back in firmly positive territory and that the conditions could be there for another real lift in proceedings.

While this weekend’s Bidderman did not support our premise today of a building market there was a continuing strong clearance rate which indicates good buyer and seller agreement.

Biggest Auctions:

  • Hawthorn, 27 Kinkora Road, James Tostevin (Marshall White), after auction, undisclosed above $4,000,000, 1 bidder
    One of the last auctions of the day and only a hop, skip and a jump away from popular coffee shop Liar Liar – this property has a lot going for it…(See More in Auction Reports)
  • Toorak, 4 Glen Road, Jeremy Fox (RT Edgar) before auction, around $4,000,000
  • Hampton, 3 Lorraine Street, Jonathan Dixon (JP Dixon), undisclosed above $3,100,000, 3 bidders
    Although only a smaller crowd gathered to watch the 3 Lorraine Street, auction, the bidders hadn’t stayed away..(See More in Auction Reports)
  • , 11 Wolseley Grove, Stewart Lopez (Kay & Burton), after auction, above $3,050,000, 2 bidders
    Wandering through the property there were mixed comments on the four bedroom, five bathroom Nicholas Wright designed and built home..(See More in Auction Reports)

Bidderbuzz:

  • Brighton, 62 Male Street, Campbell Cooney (Hodges), under hammer, $1,507,500, 5 bidders
    A crowd of over 60 people gathered on this popular corner to see Campbell Cooney auction this 1960s villa sitting on a large well shaped block…(See More in Auction Reports)
  • Hawthorn, 64 Manningtree Road, James Tostevin (Marshall White), under hammer, $2,520,000, 4 bidders
    The agents at Marshall White sure know how to draw a crowd with a coffee stand providing free flow coffee to the crowd of about 80 that attended this James Tostevin auction..(See More in Auction Reports)
  • Malvern, 1 Cawkwell Street, Karl Fitch (Noel Jones), under hammer, $1,005,000, 4 bidders
    It’s always nice to see a house with a bit history go to auction. The heritage house was originally owned by Henry Cawkwell..(See More in Auction Reports)

Biggest Pass Ins:

  • Glen Iris, 40 Great Valley Road, passed in, $2,300,000, 0 bidders
    A crowd of 50 gathers around the auctioneer as he gives the assembled audience a detailed appraisal of this prestigious home with pool…(See More in Auction Reports)
  • Elwood, 24 Meredith Street, passed in, $2,155,000, 2 bidders
    After calling for opening bids it wasn’t long before $1,900,000 was offered and duly accepted…(See More in Auction Reports)
  • Brighton East, 32 Welwyn Avenue, passed in, $2,100,000, 1 bidder
    Things were looking fairly quiet at the auction of 32 Welwyn Avenue with most of the crowd lined up along the fence line on the opposite side of the street..(See More in Auction Reports)

Going once, twice, three times: Ryan Currie () at 103 Vine St, Moonee Ponds, under hammer, $1,232,000, 3 bidders

Round the Grounds

There is a bit of buzz in the air in Stonnington, with agents declaring they have strong stock levels and convinced that other agents have plenty coming on too. At the there were reports of off-market sales and pre-auction sales. We inspected a few very good off-markets from an unusually bigger selection.

As well we’ve been seeing some solid results on land and homes needing major renovations recently, a further indication that buyer confidence is increasing. A ‘land/major renovation’ sale means that the buyer is prepared to spend more money in addition to the purchase price and stamp duty. In a quiet or down market, buyers prefer to buy properties where there is no uncertainty about the sale price and how much extra money has to be spent to improve it.

In Bayside, two land/major renovation properties that sold last weekend: 9 Loller Street, Brighton (Rob Strickland) on 594sqm, which sold for $2,030,000 with 2 bidders, and 1 Heathfield Road, Brighton East (Campbell Cooney) on 936sqm, which sold for $1,465,000 with 4 bidders. What these properties had in common was good land content, a good rear orientation and proximity to amenities, including shops, schools and the station, and buyers were clearly prepared to bid strongly to secure them.

A land sale of note in Boroondara was 47 Radnor Street Camberwell (Bryan Cain, J.A. Cain First National). This is an average-sized block of land (667m2) in a leafy street. It sold for an disclosed price towards $1.5 million, making for land value of around $2200-2250 per square metre. This is up about 10% on recent sales in nearby streets and is edging close to Hawthorn East prices.

In Port Phillip agents are telling us that the $2 – 3 million market is being driven by buyers wanting to upsize to homes of 400-500 square metre allotments – which are rare. There is still a shortage of quality properties in this segment and vendors should take advantage of these fertile selling conditions.

So all in all it may sound like we are talking the market up.  All we can report is what we feel is happening. This is August and traditionally its meant to be almost a non-event in terms of real estate – however that is not how we are seeing the market right now. If things change then we will say so.

At the moment the market is very healthy for most parties. Good prices, good interest and good choices for many A and B graders. Some B graders and C graders are still not flying out the door – no real surprises there.

 

Agent Survey: Which is performing stronger in your area at the moment – the $1m+ market or properties in the top end, $2-3m+?

Andrew Hayne (Marshall White, ): I believe that the $1m+ market generally is performing well. This is also confirmed by the amount of off market activity we are experiencing. In saying that, all buyers are still being quite discerning and are in search of well-priced offerings. If the property is well priced then it will attract good interest and sell well.

Richard Winneke (Jellis Craig, Hawthorn): At present the $1m + market is still performing stronger than the $2m-$3m(but only just). We are finding that once you start asking a buyer to pay more than $2m they are far more discerning especially East of Burke Road. The Hawthorn/ $1m Plus & $2m-$3m is extremely strong mainly due to the proximity to many leading independent schools & the city.

David Hart (Buxton, Brighton): “In Brighton and Brighton East this financial year to date, about 29 properties have sold in the $1mill to $2mill range, and around 11 properties in the $2million plus range (according to online data). Both markets are performing well. There has been some spirited competition at many auctions between $1- $2 million, and auctions are regularly seeing multiple bidders. The higher the price, the thinner the air gets, but as long as sellers have realistic expectations, the interest is still very good. We had a very high clearance rate last week – if you had just come back from an extended overseas holiday, you could be forgiven for thinking you had returned to a bull market!”

Damian O’Sullivan (Marshall White, ): “In recent weeks, we have seen all segments of the market perform particularly well. Foot traffic has increased significantly in response to the increase in and in preparation for what we expect to be a busy spring. Earlier this year, the $2-3mil+ market performed exceptionally well and if early signs are anything to go by, we expect much of the same in the foreseeable future. I’m not necessarily convinced that this segment will outperform the $1mil+ market but it is certainly indicating that for that is presented and marketed appropriately will attract great regardless of the price point.”

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