Bidderman 2.4
by Gina Kantzas, Mal James, Simone Clarke, Kathy Russell, Phoebe James, Randall Smith, Maddie James, Ellen Russell, Catherine Ross, Jo Gallagher
Ready to bid
Her first auction. Her first bid – $5,000,000 and we are away @ 62 Kinkora Hawthorn with Maddie James. Thank you to Phil de Fegely, Richard Earle, Tim Picken, Simone Clarke, Chris Barrett, Campbell Ward and Chloe Quinn.
More high calibre women are needed in real estate. Better people managers, better negotiators, more empathy with the decision-makers.
If you don’t have more than a token female on your public negotiating team, you’re missing a trick and starting behind the eight ball.
It’s about more than equality, image, political correctness – it’s about your result.
Bidder focus
Today was not quite as robust as last week (91%) with 75% clearance, making an 83% average clearance rate on our 3 weekend 100 auction test to date.
STRONG.
Today we are focusing on Bidderman or bidders per auction. This stat when combined with clearance rates gives you the true market picture.
Today at the 32 auctions we attended, we counted 77 bidders or 2.4 bidders per auction.
RISING.
The winning bidder tells you something, but the wounded underbidders tell you more.
For instance, at my first auction for the day at 62 Kinkora Road Hawthorn, there were 4 bidders and the home ended up $1.25million over the top end of the quote, at $6,550,000.
Although that says a few things, it also tells you there are still 3 bidders at or near this level looking for a home. It is human nature, that all things being equal, they will go harder next time – we call them wounded underbidders.
A stronger example of wounded underbidders: at least 9 buyers are still looking in Hampton for the same $2m to $3m home after 2 auctions today.
It’s the wounded underbidders that are a large driving force in any rising market – they push the prices up, they are emotional, they are in pain and next time most will pay more to avoid that pain.
Oh c’mon, how many of you who have recently missed out, are now on higher budgets than you were six weeks ago? Yep, the wounded underbidders drive the frenzy in a rising market.
Bidderman history
Bidder measurements.
- Less than 1 bidder per auction and we are in a recession.
- Approaching 2 bidders and we are in a rising market
- Consistently 2.5 to 3 bidders per auction across the board and history shows us we are in a roaring market and prices will rise whilst this stat remains current.
Bidding highlights
Geographic Bidderman – Boroondara continues to be on fire and why? The return of the Aussie Underbidder of Asian background. Back in force. Bidderman was well on the way to 4 today – 4, that is buyer scary. This geographical market is very hot – no question.
Boroondara Bidders today: 4, 7, 2, 3, 2, 3, 5, 3, 3, 5 and two bought befores
Dollar Bidderman – Hampton and the $2m to $3m price range – 11 bidders – that’s at least 9 who didn’t buy, who will be looking again next week. This is a big issue if you are trying to buy a half-decent home at this price level. This dollar segment is hot – no question.
Bidder Spread – Drill down to the duck auctions. They are at our limit, where we say it is an across the board even market – this market may prove to be more volatile than the headline numbers portray. Drill down stats can lie, so not sure about the evenness of the market issue yet.
CLEARANCE RATES in the 70 and 80 percents tell us the market is STRONG.
BIDDERMAN @ 2.4 across a wide range of auctions tell us the market is also RISING.
Kew
17 Sackville Street, Kew
Agent: Peter Vigano, Jellis Craig
Open: $3,600,000
On Market: $3,910,000
Under Hammer: $4,001,000
Bidders: 5
Crowd: 80
Lots of chuckles and mutterings under masks during this protracted auction. Bidding halted at $3,825,000 before taking off in $10,000s. A newcomer stepped in at $3,920,000 after it was announced on the market. A string of $1000 rises with big pauses in between unfolded in the final stage and squeaked the price over the $4 million mark.
Malvern
26 Parslow Street, Malvern
Agent: Fraser Cahill, Marshall White
Open: $3,200,000
On Market: $3,640,000
Under Hammer: $3,675,000
Bidders: 3
Crowd: 120
A large crowd of 120 people lined Parslow street, Malvern, clustered around the many cars and Plane trees with coffees and dogs and all looking very neighbourly. Fraser Cahill from Marshall White placed a vendor bid of $3,200,000 and although the crowd was slow to get going, two bidders quickly drove the price to the reserve of $3,640,000. A third bidder then helped the sale to the final, winning bid of $3,675,000 and a delighted young couple with a baby kissed while everyone clapped.
Hawthorn
56 Elphin Grove, Hawthorn
Agent: Stuart Evans, Marshall White
Open: $3,700,000
On Market: $3,900,000
Under Hammer: $4,425,000
Bidders: 3
Crowd: 80
The auction started with a strong opening bid of $3,700,000. Shortly after, the second bidder was in play and the property was officially on the market at $3,900,000. With no half time break required, the third and final bidder swooped in to buy the property for $4,425,000.
Albert Park
74 Mills Street, Albert Park
Agent: Simon Gowling
Open: $3,200,000
Pass in: $3,350,000
Result: Sold After ($undisc)
Bidders: 2
Crowd: 120
A noisy, large crowd fell silent once the auction began. The property was passed into Bidder one, who had lack luster competition from Bidder two. Negotiations moved inside.
South Yarra
18 Rockley Road, South Yarra
Agent: Justin Long, Marshall White
Open: $4,500,000 VB
Pass in: $4,500,000 VB
Bidders: 0
Crowd: 15
Just 15 people gathered for the auction in Rockley Road, South Yarra. Justin Long of Marshall White was in full persuasive flight to the audience, highlighting the potential and position. A vendor bid of $4,500,000 was tabled, and although he wanted just a rise of $20,000, no bids were placed and the property was passed in.
Glen Iris
22 Park Road, Glen Iris
Agent: Michael Millington, Shelter
Open: $2,400,000
On Market: $2,800,000
Under Hammer: $3,010,000
Bidders: 7
Crowd: 85
Bidders are dotted all about and enter at points along the way, keeping the price rolling on in a steady rather than feisty auction. Michael Millington proudly announced the home as having reached ‘three, triple zero, triple zero’. A couple more $5000 bids saw it soon knocked down.
Hampton
46 Retreat Road, Hampton
Agent: Jenny Dwyer, Belle Property
Open: $2,300,000
On Market: $2,600,000
Under Hammer: $2,872,000
Bidders: 6
Crowd: 75
The bidding was quick to start and began at $2,300,000, Bidders continued to outbid one another with three more joining and the property selling under the hammer to the final bidder for $2,872 000.
Port Melbourne
19 Rouse Street, Port Melbourne
Agent: Kaine Lanyon
Open: $1,550,000 VB
On Market: $1,770,000
Under Hammer: $1,770,000
Bidders: 5
Crowd: 40
Kaine Lanyon began with an opening bid of $1,550,000 and that’s all it took. Bidders 1, 2, 3 and 4 had a crack at taking the title but it was Bidder 5 with their one and only bid that took home the keys.
Hawthorn East
31 Hastings Road, Hawthorn East
Agent: Richard Winneke, Jellis Craig
Open: $2,500,000 VB
On Market: $2,760,000
Under Hammer: $3,027,500
Bidders: 3
Crowd:35
A bid of $25,000 was rejected. Only $50,000 rises on the opening vendor bid were sought. Two bidders eventually moved until a firm ‘Two point seven’, was called out by a third bidder. This proved to be his only bid and he soon stepped back into his car and drove off. A half-time break was called soon after and then at $2,760,000 the property was selling. The remaining two couples battled onward above $3,000,000.
Bidder test
Methodology: Four times a year (Early, May, Spring and pre Xmas) we at James Buy Sell measure the auction markets over a 3 week period, by covering 100 Top End auctions. We randomly choose the auctions before the weekend and we cover or chase down every result, so the measurements are accurate.
Last week was 32 auctions, here are the second 32 auctions, and then the week after the March long weekend we will complete 100 Auctions. This will tell all where the markets are truly at and how they compare to previous years.
8 Gellibrand Street, Kew
Agent: Scott Patterson, Kay & Burton
Bought before: $undisc
108 Sackville Street, Kew
Agent: James Tostevin, Marshall White
Bought before: $undisc
17 Sackville Street, Kew
Agent: Peter Vigano, Jellis Craig
Open: $3,600,000
On Market: $3,910,000
Under Hammer: $4,001,000
Bidders: 5
Crowd: 80
Lots of chuckles and mutterings under masks during this protracted auction. Bidding halted at $3,825,000 before taking off in $10,000s. A newcomer stepped in at $3,920,000 after it was announced on the market. A string of $1000 rises with big pauses in between unfolded in the final stage and squeaked the price over the $4 million mark.
81 Berkeley Street, Hawthorn
Agent: Nathan Verwoert, Kay & Burton
Open: $3,700,000
On Market: $3,900,000
Under Hammer: $4,005,000
Bidders: 3
Crowd: 80
Auctioneer Gowan Stubbings opened with vendor bid of $3,700,000 and promptly called for 25k rises. Bidding between two parties took the price to $3,900,000; after an interval, Mr Stubbings declared the property on the market. Amid a chorus of birdsong, and a third bidder entering the fray, many more bids were forthcoming, with the hammer finally falling at $4,005,000.
56 Elphin Grove, Hawthorn
Agent: Stuart Evans, Marshall White
Open: $3,700,000
On Market: $3,900,000
Under Hammer: $4,425,000
Bidders: 3
Crowd: 80
The auction started with a strong opening bid of $3,700,000. Shortly after, the second bidder was in play and the property was officially on the market at $3,900,000. With no half time break required, the third and final bidder swooped in to buy the property for $4,425,000.
62 Kinkora Road, Hawthorn
Agent: Campbell Ward, Jellis Craig
Open: $5,000,000
On Market:
Under Hammer: $6,550,000
Bidders: 5
Crowd: 80
A good size crowd would not have been disappointed with the action here. Hot auction with plenty of bidders.
15 Hawthorn Glen, Hawthorn
Agent: Davide Lettieri, Marshall White
Open: $3,700,000
On Market: $4,075,000
Under Hammer: $4,404,000
Bidders: 3
Crowd: 45
Bidders used the fullness of time before making a play after the vendor opening. An on market call came quickly once a two-way battle got moving. A third bidder came in late but disappeared at the pointy end as the initial bidders threw in their final $1000 bids.
6 Gillman Street, Hawthorn East
Agent: Stuart Evans
Open: $1,900,000
Pass in: $2,030,000
Result: Sold After ($undisc)
Bidders: 2
Crowd: 60
The first bidder kicked the auction off at $1,900,000. With a very silent crowd, the auctioneer placed a vendor bid of $1,950,000. Bidder two was then introduced at $1,960,000. The two battled it out, bidder one then placed a bid at $2,030,000 that had the other defeated. However, the house was not on the market. Upon return from a brief half time break and no further bids were placed, the house was passed in to the first bidder at $2,030,000.
31 Hastings Road, Hawthorn East
Agent: Richard Winneke, Jellis Craig
Open: $2,500,000 VB
On Market: $2,760,000
Under Hammer: $3,027,500
Bidders: 3
Crowd:35
A bid of $25,000 was rejected. Only $50,000 rises on the opening vendor bid were sought. Two bidders eventually moved until a firm ‘Two point seven’, was called out by a third bidder. This proved to be his only bid and he soon stepped back into his car and drove off. A half-time break was called soon after and then at $2,760,000 the property was selling. The remaining two couples battled onward above $3,000,000.
7 Suffolk Road, Surrey Hills
Agent: Stuart Evans, Marshall White
Open: $3,100,000
Under Hammer: $3,430,000
Bidders: 2
Crowd: 40
The auction commenced with an opening bid of $3,100,000. With a silent crowd and no further bids the auction entered a half time break. Upon return, a second bidder was introduced. The two battled it out where bidder 1 was successful and bought the home for $3,430,000.
30 Milton Street, Canterbury
Agent: Annabelle Feng, RT Edgar
Open: $2,800,000
Pass in: $3,210,000
SOLD AFTER
Bidders: 4
Crowd: 70
$2,800,00 was the opening bid for 30 Milton Street. Bidder two followed suit quickly and battled it out. Bidder three then entered the race at $3,000,000. The auction continued on with a fourth bidder entering at $3,125,000. With silence from the crowd, the auctioneer declared a half time break. Upon return, the auctioneer explained the house was not on the market. With a last bid of $3,210,000 the house was passed into the second bidder.
22 Park Road, Glen Iris
Agent: Michael Millington, Shelter
Open: $2,400,000
On Market: $2,800,000
Under Hammer: $3,010,000
Bidders: 7
Crowd: 85
Bidders are dotted all about and enter at points along the way, keeping the price rolling on in a steady rather than feisty auction. Michael Millington proudly announced the home as having reached ‘three, triple zero, triple zero’. A couple more $5000 bids saw it soon knocked down.
139 Finch Street, Glen Iris (Stonnington)
Agent: Andrew McCann
Bought Before: $undisc
18 Rockley Road, South Yarra
Agent: Justin Long, Marshall White
Open: $4,500,000 VB
Pass in: $4,500,000 VB
Bidders: 0
Crowd: 15
Just 15 people gathered for the auction in Rockley Road, South Yarra. Justin Long of Marshall White was in full persuasive flight to the audience, highlighting the potential and position. A vendor bid of $4,500,000 was tabled, and although he wanted just a rise of $20,000, no bids were placed and the property was passed in.
4 Dalny Street, Malvern
Agent: Justin Krongold, Marshall White
Open: $2,500,000 VB
Pass in: $2,500,000 VB
Bidders: 0
Crowd: 30
There were just a small crowd of about 30 people at the Dalny Road, Malvern auction today. Daniel Wheeler of Marshall White headed proceedings but unfortunately could not find any participants despite many entreaties and suggestions. A vendor bid opened and closed the auction of $2,500,000.
26 Parslow Street, Malvern
Agent: Fraser Cahill, Marshall White
Open: $3,200,000
On Market: $3,640,000
Under Hammer: $3,675,000
Bidders: 3
Crowd: 120
A large crowd of 120 people lined Parslow street, Malvern, clustered around the many cars and Plane trees with coffees and dogs and all looking very neighbourly. Fraser Cahill from Marshall White placed a vendor bid of $3,200,000 and although the crowd was slow to get going, two bidders quickly drove the price to the reserve of $3,640,000. A third bidder then helped the sale to the final, winning bid of $3,675,000 and a delighted young couple with a baby kissed while everyone clapped.
5/13 Sorrett Avenue, Malvern
Agent: Andrew Hayne, Marshall White
Open: $2,500,000 VB
On Market: $2,700,000
Under Hammer: $2,755,000
Bidders: 3
Crowd: 80
There was no sun this morning to warm up the bidders – it was slow to start and in fact, it never felt like it got out of third gear. At one point, auctioneer Andrew Hayne quipped that he was counting 11 seconds between bids but he fielded the slow bidding well to keep the momentum steady. Two bidders competed and when the third bidder joined the fray, it was immediately put on the market at $2.7m but eventually sold to Bidder 1.
22 Wheatland Road, Malvern
Agent: Andrew Sahhar, Kay & Burton
Open: $4,950,000 VB
Pass in: $5,310,000
Bidders: 3
Crowd: 75
Kids in prams, dogs on leashes and neighbours leaning on fences – trying to find the perfect position among the huge crowd to watch the auction at 22 Wheatland Road, Malvern. Bids were coming hot and fast after Auctioneer Gowan Stubbings opened with a vendor bid of $4,950,000. After two half time breaks and 3 bidders battling to that on the market number, the property passed in.
74 Mills Street, Albert Park
Agent: Simon Gowling
Open: $3,200,000
Pass in: $3,350,000
Result: Sold After ($undisc)
Bidders: 2
Crowd: 120
A noisy, large crowd fell silent once the auction began. The property was passed into Bidder one, who had lack luster competition from Bidder two. Negotiations moved inside.
49 Greig Street, Albert Park
Agent: Warwick Gardiner, Greg Hocking
Open: $3,000,000 VB
Pass in: $3,000,000
Bidders: 0
Crowd: 85
A quiet auction in Greig Street today. Someone in the crowd scratched their nose and Auctioneer Warwick Gardiner was overjoyed. ‘Was that a bid?’ A shake of the head and the property was passed in to the lone vendor bid of $3,000,000.
6 Draper Street, Albert Park
Agent: Greg Hocking, Greg Hocking
Open: $3,100,000 VB
On Market: $3,310,000
Under Hammer: $3,315,000
Bidders: 2
Crowd: 105
Our two bidders today were initially reluctant. However, they quickly stepped up after Auctioneer Greg Hocking opened with a vendor bid of $3,100,000. After a quick half time break, Bidder 2 was successful with a final bid at $3,315,000.
126 Victoria Avenue, Albert Park
Agent: Simon Gowling, Greg Hocking
Open: $2,400,000 VB
Pass in: $2,510,000
Result: Sold After $2,675,000
Bidders: 1
Crowd: 50
Auctioneer Simon Gowling entertained the large crowd along Victoria Parade, telling them “the more you spend today, the more you will save…if that makes any sense”. Some long silence left Mr Gowling to open with a vendor bid of $2,400,00 which was quickly followed by a rise of $10,000 from bidder 1. After a half time break, a second vendor bid, and another rise of $10,000 by the same bidder, the property was passed in and sold after the auction.
18 Merton Street, Albert Park
Agent: Simon Carruthers
Open: $1,800,000
Passed In: $1,800,000
Result: Sold After ($undisc)
Bidders: 1
Crowd: 50
A large crowd spilled onto the street at 18 Merton Street, Albert Park. Onlookers held their coffee in one hand and leash to their pooches in the other, awaiting the bidding to begin. The opening bid came from the crowd at $1,800,000. Without any further bids, the property passed into the highest bidder and sold after auction.
19 Rouse Street, Port Melbourne
Agent: Kaine Lanyon
Open: $1,550,000 VB
On Market: $1,770,000
Under Hammer: $1,770,000
Bidders: 5
Crowd: 40
Kaine Lanyon began with an opening bid of $1,550,000 and that’s all it took. Bidders 1, 2, 3 and 4 had a crack at taking the title but it was Bidder 5 with their one and only bid that took home the keys.
143 Cruikshank Street, Port Melbourne
Agent: Greg Hocking
Open: $2,700,000
Pass in: $2,700,000
Bidders: 0
Crowd: 24
Small crowd, no bids, passed in.
47 Ebden Street, Brighton
Agent: Halli Moore, Buxton
Open: $3,500,000 VB
Pass in: $3,500,000 VB
Bidders: 0
Crowd: 40
Everyone lined up but all held question. Auction opened on a Vendor Bid of $3,500,000 and closed at the same one.
94 Asling Street, Brighton
Agent: Julian Robinson, Syme & Co
Open: $2,475,000
Pass in: $2,500,000
Bidders: 1
Crowd: 40
The opening vendor bid of $2,475,000, was met with a bid of $2,500,000. After consulting with the vendors Mr Sinclair invited bids of $10,000 but with no further bids, the property was passed in and the sole bidder, standing front and centre proceeded inside for negotiations.
2 Campbell Street, Brighton
Agent: Andrew Campbell, Marshall White
Open: $2,650,000 VB
Pass in: $2,650,000 VB
Bidders: 0
Crowd: 30
Auctioneer Stephen Smith opened with a vendor bid of $2,650,000. This was repeated to the crowd several times, to ensuing silence. Despite the auctioneer’s assertion that multiple interested parties were present, no one spoke up. After a short interval, Mr Smith attempted to further encourage bidding activity, only to have to pass in the property.
3 Allison Road, Elsternwick
Agent: Bill Stavrakis, Biggin & Scott
Open: $3,100,000
On Market: $3,420,000
Under Hammer: $3,505,000
Bidders: 4
Crowd: 100
You could feel the buzz in the air and as soon as it was over to the crowd for an opening bid, the bids began to flow. Halftime saw the home announced on the market with bids continuing until the home was knocked down at $3,505,000.
79 Littlewood Street, Hampton
Agent: Kate Fowler, Marshall White
Open: $2,550,000
On Market: $2,862,000
Under Hammer: $2,872,000
Bidders: 5
Crowd: 75
Mr. Parker had barely finished his introduction when the bidding commenced at $2,550,000 a second bidder joined the race at $2,600,000. Bidder one declared he was out at $2,820,000, but it was only just beginning, each placing $10,000 bids. Eventually bidder two was outbid by the final bidder described by Mr Parker as “ice man” who waited until the end to bid and subsequently purchased the property under the hammer for $2,872,000
46 Retreat Road, Hampton
Agent: Jenny Dwyer, Belle Property
Open: $2,300,000
On Market: $2,600,000
Under Hammer: $2,872,000
Bidders: 6
Crowd: 75
The bidding was quick to start and began at $2,300,000, Bidders continued to outbid one another with three more joining and the property selling under the hammer to the final bidder for $2,872 000.
Keep your balance
Please: We are not trying to imply that the Melbourne family home markets will not have hiccups in the near and medium-term or that you should be financially impulsive on any home. All markets involving human emotion are prone to rises and falls and good and bad decision making.
However, the longer-term fundamentals of demand increases (returning ex-pats, new wealthy migrants and increased local wealth) combined with limited supply (good homes on good land at good prices – PPP), mean Melbourne with its world-class features of education and politics and pollution and safety and…. will continue to be a far more attractive investment proposition, than what was stated in some parts of the general financial media last year.
