Mal James
Buy Sell Agent
0408 107 988
mal@james.net.au
Bang – 3 bidders - $11m
Grace Park is ablaze in early 2024, with homes in the sought-after precinct now commanding a price a million dollars higher than just a month ago.
The adage “a rising tide lifts all boats” doesn’t quite fit the scene at Grace Park, for the overall market isn’t experiencing such a dramatic rise, but the recent sale of 37 Mary for $18.2 million has created a distinct ripple effect. Interest has focused on this precinct, and buyers are paying a premium on a month ago to secure a spot.
Here’s our advice to our client regarding 40 Chrystobel:
It’s a massive undertaking, and if you’re not looking for such an extensive project, it’s best to steer clear. The property comes with inherent challenges like rear laneway car parking, limited light southern exposure, and a significant slope, compounded by the fact that the slope is away from the street—a considerable drawback.
However, if you’re in the market for a substantial project, 40 Chrystobel does have its allure. The front half of the building boasts unique character that’s hard to replicate, coupled with an enviable location. Due to its land size, with strategic architectural interventions, the impact of its major drawbacks could potentially be mitigated.
Mal, thanks for your opinion, but we’re going after it. Where do you see the value?
I see value up from the agent’s quote of $8m, to perhaps early $10 million at most. Beyond that, it becomes challenging to justify the numbers, unless cost isn’t a concern.
My only caveat is the recent sale of Mary, which has recalibrated buyers’ expectations regarding the potential post-renovation value. And as we ascend into this upper echelon of the market, the ability of buyers to secure financing increases substantially.
Realistically, a renovation of this magnitude would likely require an investment of at least $5 million, translating to a purchase price around $15+ million.
So, Mal, I’d love to get it at $8 million, feel comfortable up to $9 million, and will need to reassess on the day if I’ll stretch to $10 million.
Are you sure? Are you sure you want this home? Are you sure you want this project?
Yes, Mal, thank you for your concern. Now, let’s focus on the task at hand.
Grace Park Hawthorn - 40 Chrystobel Hawthorn
Arriving at the auction for 40 Chrystobel a few minutes early, it was evident that anticipation hung thick in the air. This wouldn’t be a lackluster affair; there was a buzz indicating a lively bidding war to come.
“G’day, Jack,” I greeted John Bongiorno with a handshake, half-jokingly seeking assurance of a fair shake in the auction. His response, a characteristic crocodile grin, hinted that mercy wasn’t on the agenda; if my client wanted to secure the property, we’d need to fight tooth and nail.
The crowd, numbering around 100, comprised mostly onlookers. I approached Gina from GK Buy Sell, with whom I was collaborating, seeking her insight. “Mal, it feels robust, but appearances can be deceiving. These properties always draw a crowd, but let’s not forget, this is a major undertaking—a project demanding not just financial commitment but a true passion for renovation and deep pockets to match.“
Engaging in brief pleasantries with industry stalwarts like Hamish Tostevin, Desiree Wakim, and Duane Woloweic, who were all present to facilitate the sale, added to the charged atmosphere.
As the auction commenced, Jack delivered his customary spiel, extolling the virtues of Grace Park, 40 Chrystobel, and the Marshall White team. Amidst his rhetoric, a young couple, gently prodded forward by Desiree, stepped up and kicked off the bidding at $8 million.
Internally, I noted the significance of this move, particularly Desiree’s adeptness at stoking buyers’ enthusiasm. Just months ago, a similar scenario with her, had seen a Grace Park price exceed expectations by a significant margin. With an $8 million opening bid from them (my initial plan was to start at $7.5 million), I opted to bide my time, observing the unfolding dynamics.
With Hamish fielding bids via phone, the bidding escalated to around $8.2 million. While the phone bidder posed little threat, the young couple seemed determined, egged on by Desiree’s subtle guidance. It wasn’t until the bidding reached $8.3 million and on the market, that I decided to enter the fray.
It was at $9m in a heartbeat, our first pain point, and this young family with two children in tow and Desiree pulling the strings looked like they were just warming up, not actually cooling down. Not a great sign for our client.
A few bids later we were at $10m and it was game over, but wow even though I was dead in the water, the other side still threw a $600,000 bid and were at $11million.
Jack looked at me with that engaging smile again and I said that was a good bid Jack; he concurred with a nod.
The jig was up, the crowd was silent, and the hammer came down.
Marshall White’s solid campaign, began with good quoting (no they did not underquote – it was worth the quote 3 weeks ago when this started, see our early values below); and continued with Desiree’s strategic maneuverings. Notably, Desiree spends the time, where most don’t, in working buyers into a position of seeming invincibility, this knack for fostering buyer confidence and inciting competitive bidding can prove instrumental.
Sometimes there are downsides, but here you could feel the competing couple’s determination, proven by the fact that it was all over, but still they pumped another 600 grand into the result – showing how effective Desiree is for her selling client – a testament to her efficacy as an agent.
Congrats to the buyers, it takes some guts to take on such a massive project, but with a young family and some effort and cash, you have the makings of a great project and generational family home. Well done.
Takeaways:
- Grace Park is on fire.
- Builders and Architects are no longer “personas non grata”— renovations are seemingly on the way back.
- An agent who spends the time really prepping buyers is of value.
- 37 Mary’s tide has lifted a lot of boats—it also lifted this week’s price on Lisson Grove (off-market with Mike Beardsley) a million or more, and this really good home hit the mid-teens on the contract. A few months ago, that would not have happened—it would have been more like $12 million to $13 million. Good job Mike.
- Also, period homes are back in favour big time—the Aussie Asian Balwyn Specials of Fake French are no longer the hot ones in Boroondara! Our market has finally begun to mature, and we perhaps could expect a steady stream of these older, tired, decorated boxes to hit the market with a lot less enthusiasm than their glitzy glammy newer versions achieved in 2015-2017!
104 Male Street Brighton
Despite rumours suggesting otherwise, we do more than just come in second or third at Grace Park. Case in point: the successful acquisition of 104 Male Street Brighton, amidst a non-event boardroom auction, following a non-result Expression of Interest (EOI), featuring three bidders and culminating in two nights and three days of intense argy-bargy, involving Stephen Smith of Marshall White, Gina Kantzas of GK Buy Sell, and myself at James Buy Sell. (long sentence it was an even longer negotiation)
Learnings:
Bayside IS significantly more affordable than the Inner East, without any apparent reason, other than lower bidder numbers.
Buy Sell works. Late last year, our clients approached us, expressing their desire to discontinue a renovation project.
Despite their home being halfway demolished since purchase two years prior, we managed to sell it for more than we initially paid, when we bought it for them. Simultaneously, we facilitated the purchase of a move-in ready property with potential for improvement or the option to retain its current state, all while putting money back into their pockets.
Sometimes, a good home—rather than a great one—is the right solution for a family.
104 Male Street fits this bill perfectly. It offers ample space for a larger family and its location caters to all members’ needs, boasting a spacious garden and a functional floor plan. Investing a million dollars in renovations will transform it into an exceptional family home for the next decade or two. However, spending three million would be imprudent, risking overcapitalization. Alternatively, one could opt to forego renovations altogether and simply enjoy life as is.
Not all our endeavors are glamorous, involving selling one trophy home and purchasing another. In this patchy market, we navigated a challenging situation—albeit with a great block—and sold it for an excellent price in a timely manner. Subsequently, we secured a suitable solution for our clients, at a good price, ensuring their teenagers could seamlessly transition into their new environment. After all expenses were settled, our clients found money back in their pockets.
To agent Stephen Smith and Gina Kantzas, commendations are due for a job well done. Selling 104 Male Street has historically proven to be no easy feat, yet Stephen managed it with fairness and transparency, ensuring our clients—as well as his own—were treated equitably and remained fully informed throughout the process.
Thus, it’s been an eventful week, yielding one and perhaps two wins for our clients.
Clients contacted us November about Buy and Sell
Sold February
Bought March
Simone, Kathy and I from James Buy Sell collaborated with Stefan Whiting from Buxton, Zali Reynolds from Shelter and Rob Fletcher from Forbes on the sell – with Gina Kantzas from GK Buy Sell and Stephen Smith from Marshall White and Simone Howell on the buy.
Sometimes you just have to compete, but many times working with a number of agents and looking for win-wins is a superior way to go for your client and for others.
However it is not as simple as ringing a few agents and waiting for a miracle – you need a plan, effort to get out and about and make calls and a history of making buy/sells in collaboration with others work.
There needs to be a high degree of trust amongst all parties and that is a lot easier to talk it than to have it.
BOROONDARA
The Inner East market has definitely lifted since December
Cleverly zoned and incredibly private sanctuary in the prestigious Sackville Ward.
Paul Richards of Bekdon Richards 0414 503 324 or Mal James James Buy Sell 0408 107 988. SOI $5.5m – $6.0m
