oc | Wednesday 22nd January

Super Saturday..Again!

Baker's Delight: This former bakery at 1A College Place, Albert Park, fetched $3,705,000 at auction on Saturday. Greg Hocking (Greg Hocking Holdsworth), under hammer, $3,705,000, 3 bidders

At 6.00 pm on Super Saturday, the James Clearance Rate for Melbourne’s $M+ was 74% on the 39 auctions we covered. The Bidderman, our bidders per auction measurement, was at 1.9.

Next weekend there will be a break with the Queen’s Birthday weekend, leaving us only two auction weekends until the June/July school holidays. We can then expect auctions to almost come to a halt until things pick up again in late July and early August. And with August having 5 clear weekends to run campaigns, we are starting to hear of good numbers of listings from agents.

Overall Summary of Melbourne’s Million Dollar Plus Auctions:

  • Ducks ($M+ auctions with no bidders) 22%
  • Lone Rangers ($M+ auctions with one bidder) 17%
  • Norms ($M+ auctions with 2 or 3 bidders) 44%
  • Volcanoes ($M+ auctions with 4 or more bidders at auction) 17%

A win to the Norms – together with the Volcanoes, we saw around two thirds of the auctions we covered attract two or more bidders.

A String of Super Saturdays

In the last 18 months or so, there has been continuous growth in the market, with steady and supply levels. Today was the second Super Saturday in seven days, with 176 auctions above the $1 million mark, after last weeks 145 or so.  That comes after a record number of Super Saturdays for 2014 compared to previous years.

In 2013, the number of auctions grew steadily throughout the year, with a total of three Super Saturdays for 2013 –  two in the Spring and one just prior to Christmas. This year’s auction selling season, from February to May, has had the intensity of Spring. And it feels like the number of auctions has exploded – we’ve already had four Super Saturdays and its only May!

Has the market been saturated with homes for auction?

Perhaps vendors were buoyed by early solid clearance rates and brought their plans forward. But is it a sellers market? The contrasting results  (pass-ins versus volcanoes) suggest many vendors expectations did not meet the market initially or was it good agent work especially in the bought after cases?

With more buyers missing out earlier in the year, these “wounded underbidders” have become the enemy of the other buyer just as much as the vendor. Unlike 2012 when it was the vendor and in 2013 when it was other buyers, 2014 buyers need a way to discern (for each ) who is the enemy and how to combat them.

There have been all sorts of extreme figures this May – at both ends of the spectrum. There have been high numbers of off-markets, higher numbers of bought before auction, and high numbers of auctions and volcanoes (more than 4 bidders at auctions). And our company’s results have mirrored those in the market with our difference being we now have more people working behind the scenes supporting the front women and men at each auction.

Despite the high numbers, clearance rates stayed solid this weekend.

Winter Warming

As we head into Winter, auctions are slowing down and it will subsequently be all about off markets, expressions of interest and private sales, with no more expected Super Saturdays until the onset of Spring when the competition for both buyers and sellers will increase.

It is usual for lower stock levels during Winter, particularly the A-graders. And last year we saw vendors decide to hold out listing their homes until Spring despite the rising market. Given the solid demand right now, a time of limited will mean patience for buyers (I know it’s boring) as well as strategies – strategies to source the right property and strategies to negotiate to buy.

If Winter creates some of the symptoms of (SAD) such as “anxiety & loss of interest in activities you once enjoyed”, then take a break until Spring or employ someone else to do the work. But if you’re interested in buying, then there will always be opportunities if you know how to operate within the market.

Right now there are plenty of off markets and many advertised with forthcoming auction, that is, will sell now for the vendor’s price with limited advertising otherwise vendors will wait for September or later in the year.  Not all Off-market properties are for sale. But is the price? Despite my call to caution, buyers should be aware many are being transacted within days of being available.

Negotiation is more interesting, unless you really want to overpay. Normally in these cases you are the only buyer but normally the seller is a more robust adversary.  The battle can often be a tougher one.

Referee Tim Fletcher (Fletchers) holds court at 11-13 Creswick Street, Balwyn, passed in, $3,600,000

Biggest Auctions:

  • East, 6 Higham Road (Gerald Delany, Kay & Burton), under hammer, $5,200,000, 3 bidders
    About 100 people gather in the front yard on a still morning for this auction. This is alive, you can feel it…(See More in Auction Reports)
  • East Melbourne, 26 Jolimont Terrace (John Bongiorno, Marshall White), under hammer, $4,100,000, 3 bidders
    You could almost hear the crowd in the MCG cheering when standing in front of this home…(See More in Auction Reports)
  • Albert Park, 1A College Place (Greg Hocking, Greg Hocking Holdsworth), under hammer, $3,705,000, 3 bidders
    On offer today an ex-bakery/warehouse conversion that had been transformed into a six bedroom, three-storey character filled home…(See More in Auction Reports)
  • Glen Iris, 27 Howard Street (John Bongiorno, Marshall White), after auction, $3,470,000, 3 bidders
    Perfect setting for this the auction of this great home. Jack Bongiorno is the auctioneer and he is in front of well over 100 people…(See More in Auction Reports)

Bidderbuzz:

  • Camberwell, 21 Kintore Street (Alastair Craig, Jellis Craig), under hammer, $3,227,000, 4 bidders
    The crowd seemed to have come from everywhere as approximately 90 people gathered in the street and driveway to see…(See More in Auction Reports)
  • Hampton, 37 Crisp Street (Peter Kennett, Hocking Stuart), under hammer, $2,510,000, 4 bidders
    “This is not a silent auction!”  Peter Kennett warned the assembled crowd of 100…(See More in Auction Reports)
  • McKinnon, 73 Whitmuir Road (John Pollard, Woodards), under hammer, $1,585,000, 4 bidders
    John Pollard was our auctioneer here, in front of a big crowd of around 90 people…(See More in Auction Reports)

Pass Ins:

  • Balwyn, 11-13 Creswick Street, passed in, $3,600,000,no bidders
    Warm afternoon light and a good turnout for this Tim Fletcher auction. There was plenty to talk about…(See More in Auction Reports)
  • Brighton, 221 Church Street, passed in, $2,800,000, no bidders
    A small crowd of around 20 were on hand to watch David Evans auction…(See More in Auction Reports)
  • Armadale, 24 Northcote Road, passed in, $2,400,000, 1 bidder
    The gathering indoors chatted about upcoming holidays and the mood was relaxed at this 9:30am start…(See More in Auction Reports)

‘Round the Grounds

Bayside:

  • Brighton, 42 Roslyn Street, Chris Carrington (Nick Johnstone), after auction, $2,350,000
    A small crowd gathered out the back for auctioneer Chris Carrington to address…(See More in Auction Reports)
  • Brighton, 221 Church Street, David Evans (Moore Co.), passed in, $2,800,000
    A small crowd of around 20 were on hand to watch David Evans auction this property in the heart of Brighton…(See More in Auction Reports)
  • Hampton, 37 Crisp Street, Peter Kennett (Hocking Stuart), under hammer, $2,515,000, 4 bidders
    “This is not a silent auction!”  Peter Kennett warned the assembled crowd of 100..(See More in Auction Reports)
  • Brighton, 26 North Road (bought before)
  • Brighton, 14 Dendy Street, Sam Paynter (Hodges), passed in, $2,300,000
    Owing to the intensity of the bidding at the previous auction I had attended, I arrived late for the sale…(See More in Auction Reports)
  • Highett, 17 Sydenham Street, John Clarkson (Hocking Stuart), under hammer, $1,370,000, 3 bidders
  • I don’t know what high energy food John Clarkson has for breakfast, but I definitely want lots of it…(See More in Auction Reports)
  • Hampton, 40 May Street, Rob Strickland (Marshall White), under hammer, $1,570,000, 4 bidders
    A crowd of around 80 people gathered to watch  Rob Strickland auction 40 May Street, Hampton…(See More in Auction Reports)
  • Hampton, 22 The Avenue, John Clarkson (Hocking Stuart), under hammer, $1,800,000, 4 bidders
    A cracker auction with John Clarkson at the helm…(See More in Auction Reports)
  • Hear the crowd roar: 26 Jolimont Terrace, just a stone's throw from the MCG, was bought under hammer, $4,100,000, 3 bidders (John Bongiorno, Marshall White)

    Stonnington:

    • Armadale, 24 Northcote Road, John Bongiorno (Marshall White), passed in, $2,400,000, 1 bidder
      The gathering indoors chatted about upcoming holidays and the mood was relaxed at this 9:30am start…(See More in Auction Reports)
    • Malvern East,  51 Karma Avenue, John Morrisby (Jellis Craig Bennison Mackinnon), under hammer, $1,555,000, 3 bidders
      A very autumnal day in Melbourne, and the bare Plane trees along Karma Avenue…(See More in Auction Reports)
    • Toorak, 95 Mathoura Road, Mark Wridgway (), passed in, $2,115,000, 3 bidders
      Small crowds doesn’t necessarily mean no bidders. Only 20 turned up to the front courtyard but three of…(See More in Auction Reports)
    • South Yarra, 32 Avoca Street, Peter Perrignon (Hocking Stuart), after auction, $3,020,000 2 bidders
    • Peter Perrignon was in charge of proceedings today, and he didn’t have to convince too many of the gathered crowd…(See More in Auction Reports)
    • Armadale, 24 Llaneast Street, Lachie Fraser-Smith (Jellis Craig Bennison Mackinnon), under hammer, $1,699,000, 3 bidders
      A whopping total of 200 groups had been through the opens of this terrace home according to auctioneer…(See More in Auction Reports)
    • South Yarra, 13A Tivoli Road, Mark Konishi (Hocking Stuart), passed in, $1,400,000, 2 bidders
      There was a bit of a buzz in the air as Mark Konishi stood in front of this 3 level townhouse…(See More in Auction Reports)
    • Toorak, 10 Merriwee Crescent, John Bongiorno (Marshall White), after auction, undisclosed, 1 bidder
      John Bongiorno, who I suspect did 5 auctions today, was still in form for his last auction of the day at 10 Merriwee Crescent…(See More in Auction Reports)
    • Glen Iris, 49 Ranfurlie Crescent, John Bongiorno (Marshall White), under hammer, $1,820,000, 2 bidders
      An executor’s auction in Dorrington Estate environs and auctioneer John Bongiorno…(See More in Auction Reports)

    Was that a bid? Indeed it was. Richard Earle (Jellis Craig), sells 125 Peel Street, Kew, under hammer, $1,830,000, 2 bidders

    :

    • Hawthorn, 75 Wattle Road, David Gillham (Noel Jones), under hammer, $1,725,000, 3 bidders
      A buzzing crowd of about 60 stood in anticipation as auctioneer David Gillham…(See More in Auction Reports)
    • Hawthorn East, 6 Higham Road, Gerald Delany (Kay & Burton), under hammer, $5,200,000, 3 bidders
      About 100 people gather in the front yard on a still morning for this auction…(See More in Auction Reports)
    • Kew, 29 Marshall Avenue, Steven Abbott (Jellis Craig), passed in, $2,100,000, no bidders
      A quiet auction despite auctioneer Steven Abbott warning the crowd that the property cycle…(See More in Auction Reports)
    • Hawthorn East, 14 Auburn Grove, Claudio Perruzza (Biggin & Scott), passed in, undisclosed
      “You could hear a pin drop!” Mr Perruzza announced as he started the auction with a vendor’s bid of $1,850,000…(See More in Auction Reports)
    • Kew, 125 Peel Street, Richard Earle (Jellis Craig), under hammer, $1,830,000, 2 bidders
      A nice sunny midday auction with auctioneer Richard Earle at the helm…(See More in Auction Reports)
    • Kew, 47 Walpole Street, Richard James (Jellis Craig), under hammer, $3,065,000, 3 bidders
      1000m2 in the heart of Kew, west rear, flat block. A brick double fronted…(See More in Auction Reports)
    • Deepdene, 14 Campbell Road (bought before)
    • Surrey Hills, 38 Ross Street, James Tostevin (Marshall White), under hammer, $1,867,500, 3 bidders
      70 people gathered to see James Tostevin auction this pretty Californian Bungalow…(See More in Auction Reports)
    • Hawthorn, 4 Harrison Crescent, Peter Batrouney (Jellis Craig), after auction, undisclosed, 1 bidder
    • A unique property up for auction today with Peter Batrouney leading proceedings…(See More in Auction Reports)
    • Kew 22 Carson Street, Mark Wridgway (RT Edgar), after auction, undisclosed
      Mark Wridgway was well aware of the geographical advantages of the property and made this known to the crowd of nearly 80…(See More in Auction Reports)
    • Hawthorn East, 15 St Helens Road, Antony Woodley (Marshall White), passed in, $1,825,000 1 bidder
      Antony Woodley conducts this auction in front of around 80 people on a still, mild day…(See More in Auction Reports)
    • Camberwell, 21 Kintore Street, Alastair Craig (Jellis Craig), under hammer, $3,227,000, 4 bidders
      The crowd seemed to have come from everywhere as approximately 90 people gathered in the street and driveway to see…(See More in Auction Reports)
    • Glen Iris, 27 Howard Street, John Bongiorno (Marshall White), after auction, $3,470,000, 3 bidders
      Perfect setting for this the auction of this great home….(See More in Auction Reports)
    • Balwyn, 11-13 Creswick Street, Tim Fletcher (Fletchers), passed in, $3,600,000
      Warm afternoon light and a good turnout for this Tim Fletcher auction. There was plenty to talk about…(See More in Auction Reports)

    Every man and his dog: A big crowd of around 80 people at 22 Tribe Street, South Melbourne (Kaine Lanyon, Marshall White), under hammer, $1,915,000, 4 bidders

    Port Phillip:

    • Albert Park, 74 Barrett Street, Oliver Bruce (Marshall White), passed in, $1,650,000
      Set in a gorgeous tree lined street, a single- fronted  Victorian attracts a crowd of 50…(See More in Auction Reports)
    • South Melbourne, 22 Tribe Street, Kaine Lanyon (Marshall White), under hammer, $1,915,000, 4 bidders
      A smallish crowd swells to 80 as auctioneer Kaine Lanyon begins his preamble…(See More in Auction Reports)
    • Elwood, 122 Ruskin Street (bought before)
    • Albert Park, 1A College Place, Greg Hocking (Greg Hocking Holdsworth), under hammer, $3,705,000, 3 bidders
      On offer today an ex-bakery/warehouse conversion that had been transformed into a six bedroom, three-storey character filled home…(See More in Auction Reports)
    • Elwood, 20 Heaton Avenue, Tony Pride (Pride Real Estate), passed in, $2,000,000, 1 bidder
      A brick 3 bedroom with solar heated swimming pool, plus a renovated self-contained cottage on a large block…(See More in Auction Reports)

    With two ‘Super Saturdays’ in seven days, how do you think the market will react?

    Richard Winneke (Jellis Craig, Hawthorn): “The market has reacted very well over the past month post Easter and I see no reason why anything would change over the next fortnight. Clearance rates in Boroondara have been hovering between 75 and 77% and with the lack of coming on until mid August buyers will be keen to secure a home now. I see no reason why these high clearance rates will dip in the next fortnight.”

    Paul Pfeiffer (RT Edgar, Toorak): “The old adage “” is the underlying driver of the property market, regardless of the suburb, the price range and the property style. My interpretation of “Super Saturdays” are dates on the calendar that provide an uninterrupted campaign from the first open inspection through to the auction date or close of Expression of Interest, free of long weekends or major events that can be unwanted distractions during the campaign.

    73% clearance rates last weekend is still a healthy indicator of the market. However, to me, the market feels a little slower than the first four months of the year, inquiry levels have slowed, prices appear to have stabilised and auction dates and expression of interests closures seem to be part of the process and not necessarily the end of the sale campaign. Once again, I feel that this is due to larger offerings of properties and vendors having inflated opinions of given the success of the first part of this year. Combine this with buyer education and you find prospective purchasers that are certainly more educated due to the freedom of information on the internet and are carefully researching property values, rather than getting caught up in the fury and letting their emotions control the spend. The head over the heart.

    I still believe our market is healthy and if a vendor has a sensible opinion of value – their property will sell. I also firmly believe that stabilising property values is a good thing and will ensure that our property values increase at a sustainable rate. My prediction is 68% clearance rate for this Saturday 31st May.”

    David Lack (Biggin & Scott, Port Melbourne): “In Port Melbourne, the amount of premium houses ($1m+) being offered has been quite low over the past 3 months, with demand far exceeding supply and competitive auctions being the norm rather than the exception. Generously proportioned two and three bedroom apartments with water or city views in smaller established developments have also performed extremely well – these offerings are being targeted by empty nesters and retirees downsizing from the big family home in the eastern and bayside .  Two super Saturdays in a row will have little impact on these segments of the market as active buyers know stock levels will drop as we move into winter and they won’t have as wide a selection of properties in the coming months”.

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