oc | Wednesday 22nd January

2014 First Super Saturday – The Early Birds are out in force!

Super, Super Saturday: 1 Dryden St, (Paul Williamson, Jellis Craig). Bought after auction, undisclosed above $3,300,000, 4 bidders and a huge crowd of 150 people

At 6.00 pm Saturday and the James Clearance Rate for Melbourne’s $M+ property was 71% on the 42 auctions we covered. The , our bidders per auction measurement, was at 2.6. All three of those numbers are exceptionally strong – there is no other way to read them!

This weekend was the first big auction week back for 2014, a Super Saturday in fact (around 150 Million Dollar Plus Auctions in Bayside and the Inner East).

Has the mood changed from the good times for buyer () and seller (competition and price) pre Christmas times to a more challenging market? Absolutely not – in fact it has gone up a notch for now and especially at the higher end!

Overall Summary of Melbourne’s Million Dollar Plus Auctions:

  • Ducks ($M+ auctions that had no bidders) 15% – meaning 1 in 6.5 auctions had no bidders
  • Lone Rangers ($M+ auctions that had one bidder) 15%
  • Norms ($M+ auctions that had 2 or 3 bidders) 36%
  • Volcanoes ($M+ auctions that had 4 or more bidders at auction) 34% – meaning 1 in 3 auctions had 4 or more bidders. WOW!

Volcanoes made up over a third of the auctions we covered! WOW! In down markets you see a large number of ducks and almost no volcanoes, in a strong market the majority of auctions are norms and you will see a fair proportions of volcanoes. What we saw this weekend can be read no other way than Bang – Strong, a very strong start. If the market  continues at this level, prices will rise quickly and substantially.

Of course, we do need to wait and see what happens once the traditional first flush of the new year dissipates a little.

But it is certainly the case that this time, leading up to Easter, is a good time to be selling a $3m+ home. Why? Well, because after the long Christmas break, after Australia Day has been and gone, a number of buyers and sellers are fired up ready to do something, anything, just to get a home sold or buy a home now!

This weekend’s Super Saturday proved this commonly-known fact within the industry.

So the old girl (the market) has started like a train, house on fire, out of the blocks fast, whatever cliche you want. But let’s see how she settles before we declare that the sky has fallen in, or you’ve hit the jackpot – depending on which side of the transaction you sit. Let’s see how she settles now that this first wave of activity has satisfied a number of the early birds.

Surrey Hills: James Tostevin (Marshall White), under hammer, $2,000,000, 3 bidders

If this is your first time to James Marketnews  – welcome to our weekly trusted, independent buyer information reports!

1) Buyer Advocates – We are buyer advocates reporting from a buyer’s point of view and we average up to 5000 Bayside and Inner East $M+ readers each reporting weekend. We receive no paid advertising from sellers or selling agents and we have no financial connection with sellers of selling agents – just solid, respectful (where justified), always arms length, professional working relationships.

We at James were out there in some force this weekend in our hats and jackets at over 40 auctions – a great market cross section. In the past week, we have bid on properties in Sandringham, Ashburton, Malvern East, Mont Albert, , Elwood, Middle Park and – we bought 6, missed 1 and are still working on 1. Bidders numbers at each of these were 1, 4, 2, 4, 3, 3, 6 and 3 – our company average Bidderman was over 3.

2) Blogs – Below you will see a summary of what we witnessed, then some snippets from each auction – you will be able to find what you want to know under each heading of Boroondara with Architect Adam (Hawthorn, Kew, Canterbury and surrounding suburbs); Stonnington with Call Gina (Toorak, Malvern and surrounding suburbs); Bayside with Klarity Kris (Brighton, Hampton and surrounding suburbs) and  with Cafe Guy (Elwood to Albert Park and nearby suburbs). As well we have a Masterclass and $3m+ blog with Mal James (the original man in the hat) and Apartments blog with Call Gina.  If you want even more detail go to our blogs and detailed auction reports which you can access through our grey navigation bars at the top of this page.

3) James Home Ratings Here you will see numbers like 745 and 789: these are quick snapshots or our thoughts on the homes we have visited. We visit hundreds of homes every month on behalf of our buying clients. If you want to find out more detail, either google the address and then click on the James Home rating or go to our site at www.james.net.au and type in the address. You can also go to the grey navigation bars at the top of this page.

The detail you will see is only the tip of the iceberg on what we to clients. We also provide detailed due diligence, values and negotiation strategies for EOI and private sale negotiations and bidding and auctions, pass-ins and boardroom auctions – as well as off markets (unadvertised homes)

Out in force: A big crowd of 150 people watches Glen Coutinho (RT Edgar) in action at 29 Munro Street, Kew. Bought under the hammer, $2,815,000, 6 bidders

Biggest Auction: 6 Wilks Avenue, Malvern (Jeremy Fox, RT Edgar), after auction, above $4,200,000, 2 bidders

$3M+ Biggest Auctions and Others (for the week):

  • Malvern, 6 Wilks Avenue, Jeremy Fox (RT Edgar), after auction, undisclosed above $4,200,000, 2 bidders
    They couldn’t get a sniff in on this last year! James Home Rating 738.
  • Canterbury, 1 Dryden Street, Paul Williamson (Jellis Craig), after auction, undisclosed above $3,300,000, 4 bidders
    A 3pm auction and it is almost the end of the day for most of those involved in real estate. It has been a big day……
  • Brighton, 29 Sussex St (David Hart) – Difficult and regularly on the market home bought before for $3,600,000. James Home Rating 627
  • Canterbury, 168 Mont Albert Road (James Scoones) – On the market regularly in the last few years. Bought towards $5,000,000
  • Middle Park, 64 Harold St (Michael Szulc) – Needed an imaginative and substantial reno see our rating, bought before over $3,300,000 – James Home Rating 723
  • Hampton, 25 Bridge St (Mark Earle) – Bought before for a big number for Hampton/Sandringham – over $3,000,000 – James Home Rating 732
  • South Yarra, 117 Millswyn Street, (Andrew Baines), undisclosed above $3,200,000 – James Home Rating 744
  • South Yarra, 33 Rockley Road (Jock Langley) – I really liked this townhouse, brilliant design. James Home Rating 722 and sold at auction around $3,200,000
  • Toorak, 65 Heyington Place (Jock Langley) – Bought before over $3,000,000 – read our James Home Rating 535

BUT WAIT THERE’S MORE

  • Boardroom Malvern, 50 McKinley (Madeline Kennedy and Andrew Hayne) – due for auction next week and sold in a pre Auction, Boardroom Auction  – it was on the market for $3,400,000 and 4 bidders took the price to …… wait for it……. as she drops to the floor in disbelief……. well not really…….. but Wow! This was a landmark result that will change the price paradigm for the Wheatland Road and Cabrini precincts (Call Gina) –  James Home Rating 738.
  • EOI Toorak, 206 Kooyong Road (Mike Gibson). Big home with court bought at Boardroom auction, mid week for over $8,000,000. James Home Rating 733
  • EOI Toorak, 220 Kooyong Road (Ross Savas). I thought this may be a difficult home to sell, but what do I know. Bought before over $5,000,000. James Home Rating 555

This is a quick snapshot of the weeks $3m+ activity and gives you an indication that this market is solid right now. For privacy reasons we have not listed the off market activity we and others have been involved in this last week – but that market is healthy as well. As is the EOI (on the right homes) – see our Masterclass on what you need to consider before you open your mouth on an EOI.

Bidderbuzz: 18 Kintore Street, Camberwell, Hamish Tostevin (Marshall White), after auction, above $2,655,000, 7 bidders

Bidderbuzz:

  • Camberwell, 18 Kintore St, Hamish Tostevin (Marshall White), after auction, undisclosed above $2,655,000, 7 bidders
    An astonishing seven bidders at this Hamish Tostevin auction which reflected the quality of this property…(See More in Auction Reports)
  • Hawthorn East, 23 Cole Street, James Tostevin (Marshall White), under hammer, $2,102,500, 6 bidders
    “A house located in one of the most coveted positions in Hawthorn East,” was how auctioneer James Tostevin…(See More in Auction Reports)
  • Mont Albert, 38 Victoria Crescent, Doug McLauchlan (Marshall White), under hammer, undisclosed above $1,300,000, 6 bidders
    Auctioneer Doug McLauchlan had the street front packed as the 100 or so viewers looked on to see how this pretty refurbished timber home…(See More in Auction Reports)

Biggest Pass In: 18 Mulgoa Street, Brighton, passed in, $6,000,000, 1 bidder

Biggest Pass Ins:

  • Brighton, 18 Mulgoa Street, passed in, $6,000,000, 1 bidder
    Our auctioneer  gave a rousing preamble to the Brighton home and left it to the crowd for an opening bid…(See More in Auction Reports)
  • South Yarra, 281 Domain Road, passed in, $6,000,000, no bidders
    According to our auctioneer, this was a difficult site to construct on and the builder had not compromised on the overall quality…(See More in Auction Reports)
  • Malvern, 39-41 Wheatland Road, passed in, $3,800,000, 2 bidders
    The sun was doing its best to shine through the clouds and onto the large crowd that had gathered outside
  • St Kilda West, 61 York Street, passed in, $3,750,000, 2 bidders
    In front of a crowd of around 50, our auctioneer was quick to start the auction with a vendor bid of $3,500,000…(See More in Auction Reports)

Sea of Umbrellas: The threat of rain didn't deter Melburnians from heading to auctions this weekend. Here, at 1 Fellows St, Kew, (Peter Vigano, Jellis Craig), a crowd of around 40 people sheltered under umbrellas during proceedings. Bought after auction, above $2,300,000, 1 bidder

‘Round the Grounds on Super Saturday

Boroondara: There were 72 $M+ auctions:

  • Camberwell, 18 Kintore St, Hamish Tostevin (Marshall White), after auction, above $2,655,000, 7 bidders
    An astonishing seven bidders at this Hamish Tostevin auction…(See More in Auction Reports)
  • Canterbury, 1 Dryden St, Paul Williamson (Jellis Craig), after auction, above $3,300,000, 4 bidders
    A 3pm auction and it is almost the end of the day…(See More in Auction Reports)
  • Canterbury, 6 Rubens Grove, James Tostevin (Marshall White), under hammer, $2,250,000, 4 bidders
    With an unbeatable location in the Golden Mile precinct…(See More in Auction Reports)
  • Canterbury, 23 Selwyn St, Steven Abbott (Jellis Craig), under hammer, $1,930,000, 3 bidders
    The standard proceedings of an auction were turned upside down…(See More in Auction Reports)
  • Glen Iris, 26 Alfred Rd, Michael Wood (Marshall White), after auction, $1,700,000, 1 bidder
    Not a lot of action at this Michael Wood auction…(See More in Auction Reports)
  • Hawthorn East, 23 Cole St, James Tostevin (Marshall White), under hammer, $2,102,500, 6 bidders
    “A house located in one of the most coveted positions in Hawthorn East,”…(See More in Auction Reports)
  • Kew, 1 Fellows St, Peter Vigano (Jellis Craig), after auction, above $2,300,000, 1 bidder
    The “much anticipated” auction of this “landmark 1888 property”…(See More in Auction Reports)
  • Kew, 23 Fitzwilliam St, Bruce Severns (Jellis Craig), under hammer, $2,667,000, 5 bidders
    A super Saturday sees a ten-year-old period reproduction home…(See More in Auction Reports)
  • Kew, 66A Molesworth St, Toby Parker (Hocking Stuart), passed in, $2,000,000, no bidders
    Auctioneer Toby Parker didn’t need to spend much time…(See More in Auction Reports)
  • Kew, 29 Munro St, Glen Coutinho (RT Edgar), under hammer, $2,815,000, 6 bidders
    A grand Sandstone home, inspired by architect Visegrad Palace…(See More in Auction Reports)
  • Kew, 6 St Johns Pde, Antony Woodley (Marshall White), passed in, $1,850,000, no bidders
    Set in a cottage garden on a large block…(See More in Auction Reports)
  • Mont Albert, 38 Victoria Cres, Doug McLauchlan (Marshall White), under hammer, above $1,300,000, 6 bidders
    Auctioneer Doug McLauchlan had the street front packed…(See More in Auction Reports)
  • Surrey Hills, 13 Lille St, James Tostevin (Marshall White), under hammer, $2,000,000, 3 bidders
    The scattered crowd of about 60 were unperturbed…(See More in Auction Reports)

Armadale: 38 Lambeth Ave, Gowan Stubbings (Kay & Burton), after auction above $2,510,000, 1 bidder

Stonnington: There were 32 $M+ auctions:

  • Armadale, 9 Alleyne Ave, Andrew Hayne (Marshall White), passed in, $1,930,000, 2 bidders
    A decent-sized crowd lines the fences across the road…(See More in Auction Reports)
  • Armadale, 38 Lambeth Ave, Gowan Stubbings (Kay & Burton), after auction, above $2,510,000, 1 bidder
    The buzz from nearby High Street bubbled down…(See More in Auction Reports)
  • Armadale, 44 Stuart St, John Manton (Marshall White), under hammer, $1,670,000, 5 bidders
    Auctioneer John Manton said it beautifully…(See More in Auction Reports)
  • Malvern, 39-41 Wheatland Rd, Andrew Hayne (Marshall White), passed in, $3,860,000, 2 bidders
    The sun was doing its best to shine through the clouds…(See More in Auction Reports)
  • Malvern, 6 Wilks Ave, Jeremy Fox (RT Edgar), after auction, above $4,200,000, 2 bidders
    A crowd from neighbouring streets slowly emerged…(See More in Auction Reports)
  • Malvern East, 14 The Grange, Hamish Tostevin (Marshall White), under hammer, undisclosed, 2 bidders
    One of the first auctions of the day…(See More in Auction Reports)
  • Malvern East, 28 Turner St, Justin Long (Marshall White), under hammer, $1,900,000, 4 bidders
    Stage fright! That’s what auctioneer Justin Long…(See More in Auction Reports)
  • South Yarra, 281 Domain Rd, Jeremy Fox (RT Edgar), passed in, $6,000,000, no bidders
    According to auctioneer Jeremy Fox, this was a difficult…(See More in Auction Reports)
  • South Yarra, 117 Millswyn St, (Kay & Burton), undisclosed above $3,200,000
    We were unable to attend…(See More in Auction Reports)

Brighton: 141 Cole St, David Hart (Buxton), under hammer, $1,340,000, 3 bidders

Bayside: There were 53 $M+ auctions:

  • Beaumaris, 18a Comport St, Lachlan Hosking (Hocking Stuart), passed in, $1,380,000, 3 bidders
    After a very thorough introduction from auctioneer…(See More in Auction Reports)
  • Brighton, 141 Cole St, David Hart (Buxton), under hammer, $1,340,000, 3 bidders
    A very entertaining auction from go to whoa…(See More in Auction Reports)
  • Brighton, 13 Hall St, Nick Johnstone (Nick Johnstone), under hammer, $2,660,000, 3 bidders
    By the pool in the rear garden was the setting…(See More in Auction Reports)
  • Brighton, 18 Mulgoa St, Nick Johnstone (Nick Johnstone), passed in, $6,000,000, 1 bidder
    Auctioneer Nick Johnstone gave a rousing…(See More in Auction Reports)
  • Brighton, 12 Wallace Grove, Jason Gill (JP Dixon), passed in, $2,500,000, no bidders
    Waiting for the auction of this four-bedroom, three-bathroom…(See More in Auction Reports)
  • Brighton East, 25 Binnie St, Greg Costello (RT Edgar), under hammer, $1,500,000, 4 bidders
    This was “quite an opportunity” announced Greg Costello…(See More in Auction Reports)
  • Brighton East, 38 Edro Ave, Peter Kennett (Hocking Stuart), passed in, $1,320,000, no bidders
    A crowd of 40 had gathered to watch auctioneer Peter Kennett…(See More in Auction Reports)
  • Hampton, 3 Bolton Ave, David Hart (Buxton), after auction, $1,640,000, 1 bidder
    W.C. Fields advised us never to work with children or animals…(See More in Auction Reports)
  • Hampton, 1 Hudson St, Steve Tickell (Hocking Stuart), under hammer, above $1,150,000, 3 bidders
    One hundred or so people squeezed into the front yard…(See More in Auction Reports)

Albert Park: 70 Mills St, Steve James (Find the Best Agent, in conjunction with Gary Peer), under hammer, undisclosed, 4 bidders

Port Phillip: There were 20 $M+ auctions:

  • Albert Park, 41 Graham St, Oliver Bruce (Marshall White), after auction, $1,920,000, 2 bidders
    Oliver Bruce was our master of ceremonies…(See More in Auction Reports)
  • Albert Park, 70 Mills St, Steve James (Gary Peer), under hammer, undisclosed, 4 bidders
    A big crowd of around 150 people gathered…(See More in Auction Reports)
  • Albert Park, 94 Richardson St, Geoff Cayzer (Cayzer), after auction, $1,535,000, 4 bidders
    Unable to get someone in the crowd…(See More in Auction Reports)
  • Elwood, 92 Ruskin St, Sam Gamon (Chisholm & Gamon), passed in, $2,500,000, 3 bidders
    After an exciting introduction from auctioneer…(See More in Auction Reports)
  • Middle Park, 57 Wright St, Tom McCarthy (Biggin & Scott), under hammer, $1,661,000, 4 bidders
    Hot, hot, hot auction!…(See More in Auction Reports)
  • Port Melbourne, 1201/115 Beach St, Gerald Delany (Kay & Burton), under hammer, $2,790,000, 3 bidders
    Views of the bay and city skyline appeared to be a big drawcard…(See More in Auction Reports)
  • St Kilda West, 61 York St, Andrew Stuart (Marshall White), passed in, $3,750,000, 2 bidders
    In front of a crowd of around 50, Andrew Stuart…(See More in Auction Reports)

: 175 George St, Arch Staver (Nelson Alexander), passed in, $2,000,000, no bidders

Results Guide:

If you are new to James Marketnews, welcome again and thanks for reading – you will find a more detailed report of each auction under our Auction reports section.

Stock: Indicates supply levels ie, overall choice. If levels are above 80 it’s a strong weekend stock indicator.

: Indicates the level of agreement on price between seller and buyer and the higher the percentage consistently, the stronger the overall market. If clearance rates are consistently below 60% it’s a cool market; 60% to 70% it’s a normal or balanced between buyer and seller, Inner Melbourne Market and if the market is consistently over 70% (meaning 7 out of 10 homes sold just before, under the hammer or just after auction ) then it’s a hotting up and/or strong market.

Bidderman: This is our own unique market indicator which indicates bidder demand per auction or market depth and when it consistently hovers around 1 it’s a very cold and lacklustre market (GFC); when Bidderman averages up to 2 bidders per auction it’s a solid market. If Bidderman averages much over 2 bidders per auction and up towards 3 (eg in 2007 and early 2010) history shows the market is hotting up and prices are going up. Why? When there are 3 bidders at an auction, there is a successful buyer and 2 unsuccessful ones – those 2 unsuccessful ones go harder at the next auctions, usually against still more bidders (from other auctions) which, human nature being what it is, usually result in .

When you combine a big stock weekend  (supply) with a strong clearance rate (agreement) and a solid Bidderman (demand depth and ongoing demand prediction), then you have a very clear and unambiguous indicator of exactly where the market is at right now.

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