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Bidderman continues its stellar run leading into the Finals

Forty minutes from the Dominator: Robert German (Beller), at 150 Kooyong Road, Toorak, under hammer, $3,290,000, 6 bidders (read our auction report)

At 6.00 pm on  Saturday, the James Clearance Rate for Melbourne’s $M+ was 76% on the 37 auctions we covered. The , our bidders per auction measurement continued its impressive run at 2.6.

Overall Summary of Melbourne’s Million Dollar Plus Auctions:

  • Ducks ($M+ auctions with no bidders) 13%
  • Lone Rangers ($M+ auctions with one bidder) 8%
  • Norms ($M+ auctions with 2 or 3 bidders) 44%
  • Volcanoes ($M+ auctions with 4 or more bidders at auction) 35%

There were more Volcanoes than Ducks again this week.

Bidderbuzz Volcanoes:

  • Brighton East, 22 Bright Street (Peter Kakos, Marshall White), under hammer, $2,401,000, 7 bidders
    Around 80 people had gathered in the glorious sunshine for the auction of this 4 bedroom, 3 bathroom home in its “enviable” location…(See More in Auction Reports)
  • , 55 Erica Avenue (Mark Dayman, Marshall White), under hammer, $2,025,000, 6 bidders
    Auctioneer Mark Dayman stood in front of a crowd that wasn’t huge, but had no shortage of bidders…(See More in Auction Reports)
  • Hawthorn East, 13 Victoria Grove (Richard Earle, Jellis Craig), under hammer, $1,741,000, 6 bidders
    Situated across from lush parkland, I bet few were expecting the scrappy 6-way Battle Royale for 13 Victoria Grove….(See More in Auction Reports)
  • Brighton East, 15 Comer Street (Bill Stavrakis, Biggin & Scott), under hammer, $1,650,000, 5 bidders
    If I were wearing a hat, I would take it off in deference to Bill Stavrakis…(See More in Auction Reports)
  • Elwood, 2/135 Ormond Esplanade (Sam Gamon, Chisholm & Gamon), under hammer, $1,355,000, 5 bidders
    A small crowd doesn’t always indicate a quiet auction. And here at Ormond Esplanade the small crowd…(See More in Auction Reports)
  • Hawthorn East, 21 Fletcher Street (Mark Dayman, Marshall White), under hammer, $1,340,000, 5 bidders
    The crowd of 50 settled in the sun as auctioneer Mark Dayman got things underway…(See More in Auction Reports)

What a lovely day. What a lovely man. What a lovely auction. Isn't the world lovely! Oliver Bruce (Marshall White) sells 6 St Vincent Place, Albert Park, after auction, $1,850,000, 3 bidders

Market Summary

There has been an underlying strength since October 2012, but right now it looks like it has gone up a notch again, as evidenced by Bidderman and Clearance Rates today. Over the last year or so we have talked about the staircase market in the Auction Scene; meaning for a month or so it seems to go hot, go incredibly strong and then it flattens out for a while, before giving another burst again. There is no doubt that in late August 2014 we are in another rise.

And at James Buyer Advocates we think it has little to do with the lack of stock (in fact we don’t even think there is a serious lack of good stock right now, remember the stock drought of 2012, today is nothing like 2012). No, we think the current market is all about the strong waves of demand on the right homes.

Bidderman today was 2.6  and again this weekend there were more Volcanoes than Ducks. As well, as we said last week, it’s not so much about the Bidders who bought, but the ones who didn’t. What will they do next week or next month when they return to the fray on the next they choose to compete on?

Chinese Nationals – Scripts and Dialogues and Fear

Where is this strong demand coming from? In our opinion it’s coming right across the board and it is the Chinese Nationals who are squeezing the hardest, that is, pushing the records.

But it is not just their actual bidding that is creating the near frenzied bidding response that we are seeing out there right now.

Since 2007 and the FIRB law changes, Chinese Nationals bidding have been the single most dominant reason why the Melbourne market has done what it has done (basically outperformed almost everywhere else in the world) and right now in 2014 their influence as a bidding group remains unabated.

However even when no Chinese Nationals are bidding, it’s the fear of Chinese Nationals bidding that is also pushing prices up. Ask any agent on an Inner East home coming to auction and they will tell you we have some “Chinese Interest” – it is something firmly implanted in many agents’ “buyer scripts”.

In other words, buyers not only bid as they do against Chinese National bidders but also on the fear that Chinese Nationals may bid. The fear issue is also pronounced in Expressions of Interest and Private Sales.

Unless the overall bidding of Chinese Nationals is affected by something, we feel the market will continue to be strong for some time.

My last 10 purchases I have been directly involved in (Kew, Camberwell, East Melbourne, Elwood, Camberwell, Glen Iris, Camberwell, Kew, Camberwell and Kew) saw Chinese Nationals as the direct underbidder on 5, used in the selling agents negotiating scripts twice  and no Chinese Bidding or no mention of Chinese Bidders by agents on the other 3.

Please note we act for a number of Chinese Nationals and they also are affected by the bidding or fear the bidding of other Chinese Nationals.

James Tomlinson (Marshall White), one of the new breed of smart auctioneers manages four bidders at Finch Street, Malvern East. Under hammer, $1,612,000.

Biggest Auctions:

  • Richmond, 43 Erin Street (Chris Burne, Marshall White), under hammer, $4,070,000 3 bidders
    The sizeable backyard of this large period home drew a special crowd today. With only 20 in attendance…(See More in Auction Reports)
  • Toorak, 150 Kooyong Road (Robert German, Brian Hutchins), under hammer, $3,290,000, 6 bidders
    Robert German was our auctioneer, standing in the hot midday sun in front of a crowd of around 80 people…(See More in Auction Reports)
  • Deepdene, 1-3 Palm Grove (Glen Coutinho, RT Edgar), under hammer, $3,180,000, 4 bidders
    The staff at RT Edgar sure know how to draw a crowd: free coffee was served to all who came to view the luxurious Spanish Mission-style…(See More in Auction Reports)

Biggest Pass Ins:

  • Brighton, 13 Wellington Street, passed in, $3,070,000 2 bidders
    Is there a mystery cyclist who pedals around on Saturday mornings to add bit of entertainment to auctions…(See More in Auction Reports)
  • Glen Iris, 36 Ferndale Road, passed in, $2,550,000, no bidders
    Bright afternoon sunshine, kids, dogs and a enormous crowd of 150 plus, is not enough to get this property over the line…(See More in Auction Reports)
  • Glen Iris, 5 Ranfurlie Crescent, passed in, $2,510,000, 1 bidder …(See More in Auction Reports)

Over the next two months in James Masterclass (www.james.net.au), in Domain and The , you will read how you can make decisions that will put a into your pocket by doing nothing other than simply making a decision. A good one that is.

An Excerpt from the first of 6 articles:

Understand there are good homes and there are bad homes (for you).

Below are 3 of the many real life examples we will use in the coming weeks. 3 real people made 3 real decisions in the year 2000. 2000 was time of property spruikers, of “financial planning” and of some big “reputable” firms urging all to buy into Melbourne’s new ; the High Rise Apartment market. Many young buyers did so under the lure of no stamp duty, easy payments, depreciation schedules and promises of riches. Many of those people paid and are still paying a very high price for that one decision.

Young Apartment Buyer
In 2000 a young home buyer could have bought an apartment in Docklands at 15 Caravel Lane for $507,500 and resold it for $576,000 in 2014.

Young Inner Melbourne Buyer
Around 2000 you, as a young buyer could have spent similar money on a family home in Celia Street Glen Iris $493,000 and sold again in 2014 for $1,500,000.

Young Outer Melbourne Buyer
Around 2000 you could have spent a lot less money on a home and still got some in Barrington Drive Pakenham ($134,000 around 2000 and resold for $285,000 around 2014).

Read the full article in The Weekly Review, Domain or James Masterclass (right here on this website) CLICK HERE

http://news.domain.com.au/domain/first-home-buyers/blog-good-decision-making-and-planning-kick-off-property-sucess-20140901-10ayu2.html

http://www.theweeklyreview.com.au/property/news/9910-young-buyers-guide-week-1/#.VAPR-WS1Yuo

Investing in Property is now back in a big way compared to a few years ago. You know that when you see the AMP Self Managed Super Fund TV commercial of today, which is a very different slant from AMP commercials a few years ago when they were “questioning” putting all your eggs in the one basket – eg property. We also know that investor interest has increased  due to the number of clients we have in this market segment now compared to 2012..

For those thinking of DIY or engaging a professional such as James Buyer Advocates to buy your next residential investment property between $1m and $4m we give our readers an introduction to some investment theories in a practical manner through the ratings of three homes below.

We have looked at a specialist medical investment at 43 Erin St Richmond http://www.james.net.au/rating/43-Erin-Street-RICHMOND

A potential development investment at 653 Toorak Road Toorak http://www.james.net.au/rating/653-Toorak-Road-TOORAK

A passive/super fund investment at 11 Scott Street Kew http://www.james.net.au/rating/11-Scott-Street-KEW

Agent Survey: “Last weekend our results suggested the market was hotting up. Do you agree, or do you think it is still too early to call?”

Arch Staver (Nelson Alexander, Fitzroy): “I think last week’s strong results were  due partly  to the quality of the offerings more than a particularly “hot market”. Everywhere you looked, across several suburbs, there were quality period  and contemporary homes going under the hammer. If the quality of stock continues I think the market will remain consistent and hold the 70+ % clearance rate, with one caveat – vendors don’t get ahead of themselves and start elevating reserve prices to unreasonable levels.”

Sam Gamon (Chisholm & Gamon, Elwood): “I agree wholeheartedly, inquiry is up, buyers are decisive and everyone’s talking about spring. We saw a slight contraction in buyer depth just after the Budget announcements but in the last few weeks the competition has been strong and we’ve seen multiple bidders at auctions and properties also selling prior to auction. Buyers are focused on strategies to ensure they don’t miss out and we’re seeing clients upsize and downsize who are frustrated by low stock levels. We’re also having frequent conversations with families who are motivated to sell and buy before school commences next year. Bayside comes alive in the warm weather and last weekend we saw those rays of sunshine exciting people. Spring will be highly active, especially with the current competitive interest rate environment.”

Julian Augustini (Hodges, Brighton & Sandringham): “This year’s trend is that the winter slow season has started later but will go on longer meaning we will see early summer being jam packed. Whereas the last few years it has ramped up in early spring as buyers are looking to buy before summer so they can move over the Christmas period; to get their kids settled into school next year. However the timing has changed and the busy season will now come on post Grand Final and after the Spring Racing Carnival. It will pick up mid-October and go right through to mid-December which is very unusual. All signs at this stage a pointing to a very strong second half of 2014.”

Chris Hassall (Buxton, Bentleigh): In the Bentleigh and surrounding suburbs the market started hotting up earlier this year and it hasn’t stopped. My opinion has been formed from strong sale prices reaching new heights. This year has seen a home in Ormond for over $2.1m, town house sales at $1.4M, two unit development sites for $1.47M, and apartment sites sell for $5.76m. Low interest rates and low stock levels are proving the perfect mix for anyone looking to make a move this year. This month we saw the new records for Ormond and McKinnon’s median sale price’s break through the million dollar barrier. The best news for sellers is that there is still time to this year to take advantage of this hot market”

John Bongiorno (Marshall White, Armadale): “For some time now, in fact most of 2014, we have seen the market gather strength bit by bit. I believe this will continue through spring and in fact through 2015 – due to my long term view that interest rates will remain at historic lows. From week to week we may see fluctuations in the market or the James Bidderman graph, but the trend, in my view will continue upwards for the foreseeable future.”

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