The Albo Pep?
Photo: Nat
HAMPTON, 18 Bolton Avenue. $4,500,000 – $4,850,000. Kaine Lanyon and Robin Parker. Crowd: 50. Open: $4,700,000. On Market: $5,100,000. Hammer: $5,850,000. Bidders: 5
Market improvement this week? Yes!
We covered 35 auctions today in Week 2 of our 3-week May Season – the second buy/sell major of 2022.
Bidderman (bidders per auction) was at 1.7 – a real improvement over the last fortnight and whilst we saw the same sorts of percentages of duck auctions 1 in 4 (25%) – we saw 4 volcanoes instead of the 1 a fortnight ago – still a very low base – but positive in that no across the board volcanic distortions of Bidderman improvement.
Clearances were a healthy and balanced 74% on slightly improved, but certainly not usual for this time of the year stock levels.
1.7 and 74 were solid stats and our measurements for a balanced market if they continue.
So yes, the market noticeably improved this week. In fact, today was the first noticeable overall up lift or stabilisation since Cup Day 2021. Whilst we are nowhere near where we were on Cup Day 2021 in terms of price (5%-10% off), nor does one rosella make a spring – however it was a good week, relatively speaking… the ALBO PEP maybe!
Question? Is the ALBO PEP a sugar rush or a longer lasting market dietary improvement?
For most of the year 2022, there has been a NOISE battle going on in the overall Melbourne Market. Like two tectonic plates – HEAT v ICE – interest rates, stock markets, business forecasts, media commentary – opposing noises grinding away.
And to date in 2022 we have seen the market noises mostly cooling, meaning ICING up.
That’s ON – as for OFF MARKET – it’s more FROSTY – fewer transactions than in previous times. Right now, an off-market is much harder to excite/ignite than an equal on-market, at all levels, except the TOP of the TOP END, where almost all are off-market anyway.
Talking of the TOP of the TOP END, it’s at these $ levels where the HEAT EMBERS have been in recent times – especially if you are talking about A-Graders and no reno’s required. Yes, campaigns are still hard to spark but when a deal catches fire, its occasionally incendiary, unlike the lukewarmness of other $ market segments.
TOP of TOP is the most HOT!
In summary it’s one week, so let’s be real BUT there is no doubt this last week has been a break in the downwards direction, possibly on the path to balance. Fingers crossed. Enjoy!
Below on the TOP of the TOP, a note to valuer, Trevor Crittle, as we debated (fair hearing) the why’s and wherefores’ of pin the tail on the price donkey, for high-end A-graders.
Photo: Phoebe
MALVERN EAST, 14 Erica Avenue. $4,200,000 – $4,400,000. Rae Tomlinson. Crowd: 45
Open: $4,200,000 VB. On Market: $4,610,000. Hammer: $4,900,000. Bidders: 4
$10m+ has hotspots!
Note in a discussion with a valuer on another home we bought north of $10m
I accept the market overall is declining – but at this $ segment (high) what evidence is there?
Recent Buy/Sells
Others SOLD land size and quality – 4 bidders last week – $13million
We SOLD same land size and quality – 4 bidders – $22million
We BOUGHT – 2 bidders at auction – $10.1million. How much do you discount a home built in the 1850’s – it’s a 170 years old? Is it worth nothing due to age? How does that stack up against a home built 20 years ago and reno’ed recently?
When a home is quality – proven quality – is there a value? So as for building costs – if you are saying the market (land?) is going down and I agree it is – would you say that building costs are going through the roof ….?
Photo: Kieran
GLEN IRIS, 33 Grandview Avenue. $3,000,000 – $3,300,000. Zali Reynolds. Crowd: 120
Open: $3,250,000. On Market: $3,380,000. Hammer: $3,500,000. Bidders: 3
Reno's = no sale @ $2m-$6m
The middle level TOP END – $2m to $6m – is where the ICE has been forming – especially on B/C Graders, especially off-market and especially on courageous pricing. Cooling forces have solidified, with more homes remaining unsold (STALES) and/or subject to price reductions.
PRICE CAN BE THE ICE.
In particular homes that need building works, that are not perceived ready to move in, are not only cool, they’re downright freezing. RENO’s ARE LIKE GLACIERS.
The middle of the TOP END where a buy and a sell + significant building works are involved is ICE. The 3T’s = TRADIES and TIMBER PRICES are TERRIFYING.
Photo: Jo
KEW, 7 Mortimer Street. $2,650,000 – $2,850,000. Nicholas Franzmann. Crowd: 20
Open: $2,650,000. Passed in: $2,925,000. After Auction. Bidders: 2
Did you feel this week?
G’day,
This week I felt comfortable to be a small spec in the collective Australian skin. This week I moved back into an Aussie consciousness; where I re-noticed Australians.
This week I felt proud of us.
Whether you voted Liberal or Labor, Teal or Green, National or other, you restored my faith in Australians, in myself and in me. Thank you.
My feelings this week make me think that for a while I must have been subdued, to the point where I actually didn’t feel. I wasn’t fully conscious; meaning on everything there was a light veil of heaviness with strands of negativity, but I hadn’t noticed them, until this week when they have lifted.
This week for the first time in a long time, I feel like as Australians we acted in a way, that said we cared about others and we were prepared to contribute rather than to just expect and/or get.
This week I feel something deeper within……I feel more alive to others…..I am conscious, aware, sentient (well I think I am ha!)…. and it feels ok.
I have a sense of pride in myself, in you, in us. Thank you.
………
I began to really understand or notice, when yesterday Gina and I had a beautiful work lunch and a wonderful dinner……the lucky ones.
At lunch I was sitting across from agents Simone Howell and Matt Pillios. I rarely do this. In the past I may have judged us as worlds apart…..but yesterday I felt connected ….. Matt is a really nice, sincere, full-on guy…….now, my feelings… was it me or him….. of course, it would have been me! Thank you, Matt, for lunch and thank you Simone Howell for your bonhomie and sincerity, we equally enjoyed your company.
Last night it continued as we dined at Brighton’s Waterfront in Church Street with past clients and current friends Gary, Frana, Cat, Scott, Joe and Mads and I think at times in my recent past, I may have just prior to, taken it down an emotional peg or two……but Iast night I didn’t…..
… Maybe it was the exceptional service…..we asked Waterfront to bring what they wanted to cook us……vegan and seafood and wow ….. 8 out of 8, this is a special restaurant from all of us……..maybe it was this week, as all through the night I actually wanted to be there, not somewhere else…I was fully conscious, as I had been at lunch…..I wanted to listen…… I was genuinely connected, and the collective buzz was…well it was positive and real.
The inner being of my consciousness/awareness I felt has been as a dad first, then a family member, a property human, a Melbournian/Victorian/Aussie and having travelled a lot, maybe a world participator …….. maybe my sense of consciousness stops at our coastline.
But being an Aussie….. an Australian………queens, first nations, rednecks……..left, right…….journo’s and health workers…….pollies, lovers and haters………..agents, buyers and sellers……is good, no, actually it is GREAT……AND this week for the first time in a very long time, for me, it feels good to feel like that Aussie again.
You know the warm and caring and fairer collective, the mature bunch of ancients, rebels and misfits, of course with faults and all sorts of colours and sizes and types, who seemingly are interested in Australia first…..in other Australians yeah…. and then not too much daylight to the rest of the world.
Well done, I feel and I feel others also feel ……again…. that was the vibe last week!
Thanks mate!
Photo: Kieran
CANTERBURY, 32 Avenue Athol. $4,300,000 – $4,600,000. Mark Josem. Crowd: 65
Open: $4,200,000 VB. Passed In: $4,250,000 VB. Sold After.
BIDDERMAN
1.7
CLEARANCE
71%
STOCK
AVG
BIDDERMAN
1.5
CLEARANCE
74%
STOCK
AVG
BIDDERMAN
1.3
CLEARANCE
65%
STOCK
LOW
SANDRINGHAM, 8 Reno Road
SOI: $2,400,000 – $2,600,000
Sales Agent: Kylie Charlton – Marshall White
Before Auction: $undisc – within the quote
Bidders: 1
HAMPTON, 3 Myrtle Road
SOI: $2,400,000 – $2,500,000
Sales Agent: Sam Maley – Buxton
Before Auction: $undisc
Bidders: 1
ALBERT PARK, 5 Dundas Place
SOI: $2,400,000 – $2,600,000
Sales Agent: Simon Gowling – Jellis Craig
Crowd: 50
Opening Bid: $2,500,000
Passed in: $2,620,000
After Auction: $2,800,000
Bidders: 3
A quick auction resulting in the property being passed in with 3 bidders in a crowd of nearly 50.
BRIGHTON, 23 Gray Street
SOI: $3,700,000 – $3,900,000
Sales Agent: Nick Johnstone – Nick Johnstone Real Estate
Crowd: 80
Opening Bid: $3,800,000
On the Market: $4,000,000
Under the Hammer: $4,220,000
Bidders: 3
Three parties battled it out in the rain, bidder 2 came out victorious and purchased the home at $4,220,000.
SANDRINGHAM, 5 Masefield Avenue
SOI: $2,200,000 – $2,400,000
Sales Agent: Jenny Dwyer – Belle Property
Crowd: 40
Opening Bid: $2,200,000
On the Market: $2,500,000
Under the Hammer: $3,050,000
Bidders: 2
The auction started with a strong opening bid of $2,200,000. Two parties battled it out in strong race, eventuating in property being sold for $3,050,000.
SOUTH MELBOURNE, 18-22 Nelson Road
SOI: $5,620,000 – $6,000,000
Sales Agent: Ben Manolitsas – Marshall White
Crowd: 36
Opening Bid: $5,500,000
Passed in: $5,550,000
Bidders: 1
Auction opened on a Vendor bid and only had 1 bid before being passed in.
SANDRINGHAM, 3 Pellew Street
SOI: $2,050,000 – $2,200,000
Sales Agent: Peter Hickey – Buxton
Crowd: 40
Opening Bid: $2,100,000
On the Market: $2,220,000
Under the Hammer: $2,291,000
Bidders: 2
Two bidders took 3 Pellew Street, Sandringham to a successful sale today in light drizzle where hoodies and umbrellas were the feature.
BEAUMARIS, 8 Lang Street
SOI: $3,000,000 – $3,300,000
Sales Agent: Michael Cooney – Hodges
Crowd: 50
Opening Bid: $3,000,000
On the Market: $3,400,000
Under the Hammer: $3,530,000
Bidders: 3
BRIGHTON, 14 Lorac Avenue
SOI: $3,100,000
Sales Agent: Chris Hassall – Buxton
Crowd: 80
Opening Bid: $3,050,000
On the Market: $3,200,000
Under the Hammer: $3,750,000
Bidders: 3
Chris Hassall directed a fast paced auction with three bidders who fought with vigour for the home, and it sold for $3,750,000.
BRIGHTON, 79 Roslyn Street
SOI: $5,000,000 – $5,300,000
Sales Agent: Gary Yue – Buxton
Crowd: 30
Opening Bid: $4,800,000
Passed in: $4,850,000
Bidders: 1
The auction opened with a vendor bid of $4,800,000. With one further bid of $4,850,000 the property was formally passed in.
ELWOOD, 4 Heaton Avenue
SOI: $3,950,000 – $4,200,000
Sales Agent: Torsten Kasper – Chisholm & Gamon
Crowd: 35
Opening Bid: $3,950,000 VB
Passed in: $4,000,000 VB
Bidders: 0
A quiet Auction with an opening vendor bid and the property being passed in with no bids for 4 million.
SANDRINGHAM, 7 Le Fevre Street
SOI: $3,200,000 – $3,350,000
Sales Agent: Kylie Charlton – Marshall White
Crowd: 60
Opening Bid: $3,200,000 VB
Passed in: $3,200,000 VB
Bidders: 0
The auction started with an opening vendor bid of $3,200,000. Following a half time break and no further bids the property was passed in.
BRIGHTON EAST, 142 South Road
SOI: $2,300,000 – $2,500,000
Sales Agent: Alex Schiavo – Kay & Burton
WITHDRAWN
GLEN IRIS, 12 Renwick Street
SOI: $2,100,000 – $2,300,000
Sales Agent: Michael Wood – Jellis Craig
Before Auction: $undisc – above the range
Bidders: 1
CANTERBURY, 46 Hopetoun Avenue
SOI: $3,900,000 – $4,290,000
Sales Agent: Sophie Su – Kay & Burton
Before Auction: $undisc – above the range
Bidders: 1
MONT ALBERT, 8 Earle Close
SOI: $2,500,000 – $2,750,000
Sales Agent: David Banks – Jellis Craig
Crowd: 30
Opening Bid: $2,500,000 VB
Passed in: $2,550,000 VB
Bidders: 0
The rain seemed to put a dampener on biding activity, as two vendor bids weren’t enough to get this sale over the line; so the property was passed in at $2,550,000.
CAMBERWELL, 12 Nevis Street
SOI: $3,100,000 – $3,500,000
Sales Agent: Geordie Dixon – Jellis Craig
Crowd: 35
Opening Bid: $3,100,000 VB
Passed in: $3,125,000
After Auction: $undisc
Bidders: 1
A decent crowd despite the weather. Auctioneer Michael Wood squeezed one bid from the street and the property was passed in and sold after.
GLEN IRIS, 77 Ashburton Road
SOI: $2,700,000 – $2,850,000
Sales Agent: Chris Gillon – Jellis Craig
Crowd: 60
Opening Bid: $2,750,000 VB
On the Market: $2,960,000
Under the Hammer: $3,005,000
Bidders: 3
Well, despite the rain coming down on this outdoor auction, between three bidders, the hammer came down at $3,005,000 on this property.
CAMBERWELL, 1 Judd Street
SOI: $2,300,000 – $2,450,000
Sales Agent: Mark Salvati – Jellis Craig
Crowd: 25
Opening Bid: $2,875,000
On the Market: $2,875,000
Under the Hammer: $2,875,000
Bidders: 1
1 bid and it was on the market and sold.
CAMBERWELL, 15 Donna Buang Street
SOI: $3,400,000 – $3,600,000
Sales Agent: Anton Zhouk – Anton Zhouk Real Estate
Crowd: 30
Opening Bid: $3,400,000 VB
Passed in: $3,400,000 VB
Bidders: 0
Another ’silent’ auction where no bidding activity was forthcoming, causing a pass-in on a vendor bid of $3,400,000
CAMBERWELL, 29 Fairfield Avenue
SOI: $3,900,000 – $4,290,000
Sales Agent: Sophie Su – Kay & Burton
Crowd: 30
Opening Bid: $3,900,000
Passed in: $4,100,000
Bidders: 4
After Auction: $undisc
Auctioneer Scott Patterson was able to entice some back and forth bidding amongst the crowd but wasn’t enough to put the property on the market despite 4 bidders.
KEW, 93 Stevenson Street
SOI: $3,000,000 – $3,300,000
Sales Agent: Scott Patterson – Kay & Burton
Crowd: 25
Opening Bid: $2,700,000 vb
On the Market: $2,830,000
Under the Hammer: $2,960,000
Bidders: 2
Auctioneer Scott Patterson allowed a pause in the auction for a couple to quickly inspect the home – Lucky he did, as they came out and started to bid. However, the property was sold to the original first bidder for $2,960,000.
GLEN IRIS, 17 Watson Street
SOI: $2,000,000 – $2,200,000
Sales Agent: Steve Burke – Belle Property
Crowd: 50
Opening Bid: $2,000,000
On the Market: $2,210,000
Under the Hammer: $2,345,000
Bidders: 2
Two bidders we eager to get going – Back and forth until the home was sold for $2,345,000.
CAMBERWELL, 38 Moorhouse Street
SOI: $2,700,000 – $2,970,000
Sales Agent: Stephen Gough – Marshall White
Crowd: 80
Opening Bid: $2,900,000
On the Market: $2,995,000
Under the Hammer: $3,015,000
Bidders: 3
A keen bidder commenced the proceedings straight off the bat, and was joined by two others, resulting in a sale of $3,015,000.
MALVERN EAST, 60 Emo Road
SOI: $2,800,000 – $3,000,000
Sales Agent: Gowan Stubbings – Kay & Burton
Before Auction: $3,000,000
Bidders: 1
MALVERN, 1a Glendearg Grove
SOI: $3,800,000 – $4,000,000
Sales Agent: Carla Fetter – Jellis Craig
Before Auction: $undisc – within the range
Bidders: 1
MALVERN, 24 Glendearg Grove
SOI: $3,300,000 – $3,500,000
Sales Agent: Carla Fetter – Jellis Craig
Crowd: 54
Opening Bid: $3,200,000 VB
On the Market: $3,400,000
Under the Hammer: $3,400,000
Bidders: 2
As Auctioneer John Morrisby declared the home on the market, bidder two bowed out and the property sold to Bidder One, with a round of applause.
GLEN IRIS (STONNINGTON), 24 Wilson Street
SOI: $2,900,000 – $3,100,000
Sales Agent: James Tomlinson – Marshall White
Crowd: 30
Opening Bid: $3,000,000 VB
Passed in: $3,025,000
Auction After: $undisc
Bidders: 1
One brave bidder placed a bid of $25,000 and the home was passed in.
MALVERN EAST, 6 Wilmot Street
SOI: $2,200,000 – $2,400,000
Sales Agent: Ian McLennan – Jellis Craig
Crowd: 30
Opening Bid: $2,000,000 VB
Passed in: $2,050,000 VB
Bidders: 0
A quiet crowd, consisting of mostly neighbours, offered no bids today. The property was passed in on a vendor bid.
ARMADALE, 36 Barkly Avenue
SOI: $2,350,000 – $2,550,000
Sales Agent: Abby Ines – Marshall White
Crowd: 35
Opening Bid: $2,400,000 VB
Passed in: $2,400,000 VB
Bidders: 0
With no audience participation, the auction was quickly closed.
GLEN IRIS (STONNINGTON), 11 Wandeen Road
SOI: $3,500,000 – $3,850,000
Sales Agent: John Morrisby – Jellis Craig
WITHDRAWN
TOORAK, 17 Turnbull Avenue
SOI: $3,600,00 – $3,750,000
Sales Agent: Rodney Morley – Rodney Morley Persichetti
Crowd: 45
Opening Bid: $3,500,000 VB
On the Market: $3,725,000
Under the Hammer: $3,725,000
Bidders: 3
Opened with a vendor bid and sold shortly after a quick break for the reserve price.
TOORAK, 658 Orrong Road
SOI: $6,100,000 – $6,600,000
Sales Agent: Andrew Macmillan – Jellis Craig
Crowd: 20
Opening Bid: $6,000,000 VB
Passed in: $6,000,000 VB
Bidders: 0
A small crowd gathered inside, no bids were placed, and the property was passed in.
BRIGHTON, 17 Orchard Street
SOI: $3,000,000 – $3,300,000
Sales Agent: Dahli Woosnam – Marshall White
Bought Before: $undisc
Bidders: 1
HAMPTON, 12 Myrtle Road
SOI: $2,600,000 – $2,750,000
Sales Agent: Angus Graham – Hodges
Bought Before: $undisc
Bidders: 1
BRIGHTON, 46 Outer Crescent
SOI: $3,300,000 – $3,500,000
Sales Agent: Nick Johnstone – Nick Johnstone Real Estate
Bought Before: $undisc
Bidders: 1
BRIGHTON, 131-133 Carpenter Street
SOI: $2,600,000 – $2,800,000
Sales Agent: Simone Chin – Atria
Bought Before: $undisc
Bidders: 1
ALBERT PARK, 70 Danks Street
SOI: $2,000,000 – $2,200,000
Sales Agent: Brendan Coburn – The Agency
Crowd: Peter Kakos
Opening Bid: $2,000,000
On the Market: $2,190,000
Under the Hammer: $2,212,500
Bidders: 3
A small scattered crowd watched as two bidders swiftly traded bids. A third bidder joined briefly toward the end and then marched away, leaving bidder one with the winning bid.
MIDDLE PARK, 90 Park Road
SOI: $5,800,000 – $6,200,000
Sales Agent: Max Mecuri – Jellis Craig
Crowd: 60
Opening Bid: $6,000,000 VB
Passed in: $6,220,000
Bidders: 1
Only one bidder willing to participate during the auction, the home was passed in
ALBERT PARK, 104 Kerferd Road
SOI: $4,850,000 – $5,300,000
Sales Agent: Oliver Bruce – Marshall White
Crowd: 66
Opening Bid: $5,200,000 VB
Passed in: $5,300,000
After Auction: $5,500,000
Bidders: 2
After only two bids Auctioneer, Oliver Bruce, passed the property in and moved negotiations inside.
PORT MELBOURNE, 220 Esplanade West
SOI: $3,400,000 – $3,650,000
Sales Agent: Matthew Pillios – Marshall White
Crowd: 85
Opening Bid: $3,500,000
On the Market: $3,600,000
Under the Hammer: $3,785,000
Bidders: 4
Downsizers and young families were well represented. Bidder one was steadfast against three others, matching all bids to take the keys.
BRIGHTON EAST, 15 Lucas Street
SOI: $3,500,000 – $3,700,000
Sales Agent: Kate Strickland – Marshall White
Crowd: 25
Opening Bid: $3,500,000 VB
Passed in: $3,500,000 VB
After Auction: $undisc
Bidders: 0
A starting vendor bid of $3.5 mil was placed. The audience was not biting back. It was quickly passed in.
BRIGHTON EAST, 17 Balfour Street
SOI: $2,600,000 – $2,800,000
Sales Agent: Matthew Pillios – Marshall White
Crowd: 85
Opening Bid: $2,680,000 VB
Passed in: $2,930,000
After Auction: $undisc
Bidders: 4
4 bidders with the home passed in at $2,9030,00 and sold during negotiation to highest bidder.
BRIGHTON, 6 Oakwood Avenue
SOI: $2,650,000 – $2,850,000
Sales Agent: Peter Kakos – The Agency
Crowd: 30
Opening Bid: $2,750,000 VB
Passed in: $2,775,000
Bidders: 1
One bidder and the property was passed in at $2,775,000
BRIGHTON, 5 Hillcrest Avenue
SOI: $2,900,000 – $3,190,000
Sales Agent: David Evan – The Moore Company
Crowd: 25
Opening Bid: $2,700,000 VB
Passed in: $2,700,000 VB
Bidders: 0
With no opening bids on the property auction we David Evens placed a vendor bid of $2.7 mil. With no further bids it was passed in.
BRIGHTON, 68 William Street
SOI: $2,000,000 – $2,200,000
Sales Agent: Simone Howell – Marshall White
Crowd: 31
Opening Bid: $2,160,000 VB
Passed in: $2,200,000
After Auction: $undisc
Bidders: 1
Property started with a vendor bid of $2,160,000. One bidder and property was passed in at $2,200,000.
BRIGHTON, 27 Arnold Road
SOI: $2,600,000 – $2,700,000
Sales Agent: Kate Strickland – Marshall White
Crowd: 40
Opening Bid: $2,550,000 VB
On the Market: $2,750,000
Under the Hammer: $2,860,000
Bidders: 3
After a few moments of silence from the crowd, the first bidder placed a bid of $2.6. The property was put on the market at $2.75 mil. It was sold for $2.86 to bidder 2.
HAMPTON, 18 Bolton Avenue
SOI: $4,500,000 – $4,850,000
Sales Agent: $4,700,000
Crowd: 50
Opening Bid: $4,700,000
On the Market: $5,100,000
Under the Hammer: $5,850,000
Bidders: 5
5 bidders participated in the auction with the home finally being knocked down at $5,850,000
GLEN IRIS, 44 Bourne Road
SOI: $3,000,000 – $3,300,000
Sales Agent: Fiona Ansell-Jones
Bought Before: $undisc
Bidders: 1
HAWTHORN EAST, 15 Kildare Street
SOI: $2,950,000 – $3,200,000
Sales Agent: James Tostevin – Marshall White
Bought Before: $undisc
Bidders: 1
KEW, 7 Mortimer Street
SOI: $2,650,000 – $2,850,000
Sales Agent: Nicholas Franzmann – Marshall White
Crowd: 20
Opening Bid: $2,650,000
Passed in: $2,925,000
After Auction: $undisc
Bidders: 2
Two bidders competed for this property, however due to the reserve not being realised, it was passed in.
GLEN IRIS, 33 Grandview Avenue
SOI: $3,000,000 – $3,300,000
Sales Agent: Zali Reynolds – Shelter
Crowd: 120
Opening Bid: $3,250,000
On the Market: $3,380,000
Under the Hammer: $3,500,000
Bidders: 3
Dominated by a very verbal Bidder 1, the auction began $250,000 above the suggested reasonable start and was subsequently bought under the hammer after two bursts of rapid-fire $5,000 bids.
SURREY HILLS, 12 Kennealy Street
SOI: $2,600,000 – $2,800,000
Sales Agent: Chloe Quinn – Jellis Craig
Crowd: 20
Opening Bid: $2,600,000 VB
Passed in: $2,625,000
Bidders: 1
Passed in after a very quiet auction with only one bid, not enough to spark competition, so no further activity beyond that.
MONT ALBERT, 3 Blenheim Avenue
SOI: $3,000,000 – $3,300,000
Sales Agent: Duane Wolowiec – Marshall White
Crowd: 20
Opening Bid: $2,900,000 VB
Passed in: $2,950,000 (VB)
Bidders: 0
Opened and passed in on vendor bids without a hand up to get it started.
SURREY HILLS, 33 James Street
SOI: $2,500,000 – $2,750,000
Sales Agent: Hamish Tostevin – Marshall White
Crowd: 30
Opening Bid: $2,500,000 VB
Passed in: $2,500,000 VB
Bidders: 0
Despite repeated attempts to entice bidding, silence reigned, resulting in a pass-in on the initial vendor bid.
CAMBERWELL, 44 Broadway
SOI: $2,200,000 – $2,400,000
Sales Agent: Cameron Edgoose – Jellis Craig
Crowd: 40
Opening Bid: $2,200,000
Passed in: $2,360,000
After Auction: $undisc
Bidders: 3
The auction twice looked like it was over, with last minute bids restarting the back-and-forth. Bidder 1 held the high bid, and the property was passed in.
CAMBERWELL, 10 Brynmawr Road
SOI: $3,100,000 – $3,350,000
Sales Agent: Jeff Gole – Abercromby’s
Crowd: 40
Opening Bid: $3,150,000 VB
Passed in: $3,150,000 VB
Bidders: 0
Despite the 40-strong crowd, this was a very quiet affair, with the property being passed in on a vendor bid.
CANTERBURY, 31 Rubens Grove
SOI: $3,900,000 – $4,100,000
Sales Agent: Scott Patterson – Kay & Burton
Crowd: 60
Opening Bid: $3,900,000
On the Market: $4,250,000
Under the Hammer: $4,250,000
Bidders: 3
Bidder 3 employed a couple of knockout bids to end the competition and bring the property on the market.
CAMBERWELL, 26 Moorhouse Street
SOI: $2,950,000 – $3,150,000
Sales Agent: Nicholas Franzmann – Marshall White
Crowd: 60
Opening Bid: $2,800,000
Passed in: $3,050,000
After Auction: $undisc
Bidders: 2
Two bidders quickly took the price to $3,050,000, from an starting bid of $2,800,000 – however, this wasn’t enough to get the hammer down, so it was passed in.
CANTERBURY, 32 Avenue Athol
SOI: $4,300,000 – $4,600,000
Sales Agent: Mark Josem – Jellis Craig
Crowd: 65
Opening Bid: $4,200,000 VB
Passed in: $4,250,000 VB
After Auction: $undisc
Bidders: 0
Vendor bids couldn’t build to a crowd response. After a vendor referral, a third vendor bid passed the property in.
MALVERN EAST, 32 Beaver Street
SOI: $2,400,000 – $2,600,000
Sales Agent: John Morrisby – Jellis Craig
Crowd: 30
Opening Bid: $2,400,000
Passed in: $2,535,000
After Auction: $undisc
Bidders: 2
2 onlookers went back and forth in small increments but were unable to reach reserve and the property was passed into the first bidder.
GLEN IRIS (STONNINGTON), 3 Payne Street
SOI: $2,800,000 – $3,000,000
Sales Agent: Carla Fetter – Jellis Craig
Crowd: 40
Opening Bid: $2,750,000 VB
Passed in: $2,775,000
After Auction: $undisc
Bidders: 1
The auction commenced with a vendor bid of $2,750,000. Following a half time break and the introduction of bidder 1 at $2,775,000. The property was formally passed in.
ARMADALE, 46 Barkly Avenue
SOI: $2,200,000 – $2,400,000
Sales Agent: Andrew McCann – Jellis Craig
Crowd: 45
Opening Bid: $2,150,000 VB
Passed in: $2,250,000
After Auction: $undisc
Bidders: 2
2 groups joined in the bidding, but it wasn’t enough to put the property on the market.
TOORAK, 19 Turnbull Avenue
SOI: $3,650,000 – $3,850,000
Sales Agent: Justin Long – Marshall White
Crowd: 25
Opening Bid: $3,500,000
Passed in: $3,500,000
Bidders: 0
The auction commenced with a vendor bid of $3,500,000. With a half time break and no further bids the property was passed in.
MALVERN EAST, 14 Erica Avenue
SOI: $4,200,000 – $4,400,000
Sales Agent: Rae Tomlinson – Marshall White
Crowd: 45
Opening Bid: $4,200,000 VB
On the Market: $4,610,000
Under the Hammer: $4,900,000
Bidders: 4
1 bidder quickly became 3 and just when you thought it was over, a late bidder joined the party and secured the property.
MALVERN, 8 Bonview Road
SOI: $4,500,000 – $4,800,000
Sales Agent: John Manton – Marshall White
Crowd: 100
Opening Bid: $4,400,000
On the Market: $4,920,000
Under the Hammer: $5,110,000
Bidders: 3
The auction kicked off with a vendor bid of $4,400,000. Shortly after bidder 1 and 2 followed in a $50,000 rise. The two battled it out where the house was declared on the market at $4,920,000. Bidder 3 swiftly joined the battle at $4,960,000. Bidder 2 was victorious and bought the home at $5,110,000.
MALVERN, 15 Eva Street
SOI: $2,250,000 – $2,450,000
Sales Agent: Grant Samuel – Kay & Burton
Crowd: 60
Opening Bid: $2,250,000
Passed in: $2,530,000
After Auction: $undisc
Bidders: 2
An opening bid of $2,250,000 kicked the auction off. Bidder joined in shortly after and the two battled it before halting at a bid of $2,530,000 where the property was passed in.
MALVERN EAST, 76 Beaver Street
SOI: $4,900,000
Sales Agent: Ian McLennan
Crowd: 25
Opening Bid: $4,500,000 VB
Passed in: $4,550,000 VB
Bidders: 0
Two vendor bids, nothing from the crowd. The property passed in
100 Auction Test is where we randomly select Top End homes before they go to auction and then we turn up and report on all results, so as you can get a true picture of the current Inner Melbourne Top End Market. We do it 4 times a year in the major Top End markets, over the same 3 week period.
Demand – Bidderman. How many bidders per auction? A very accurate measurement of market depth when taken over a wide sample. Number of Bidders / Number of Auctions.
1 bidder average – Falling Market. 2 bidders – Rising Market. 3 bidder average – On Fire
Supply – Stock Levels. It’s a nuanced opinion measurement, more so than scientific, as there can be a flood of unrenovated homes, but the market wants ready to move in.
Clearance Price % – Many data points give exaggerated readings as agents choose to leave out the bad news (unsolds). We choose the sample before auction and track down every result. The higher the clearance rate, the more agreement between buyer and seller on price and if Bidderman is also strong this shows prices are rising.
Measurements: Under 60% falling. 60-70% some stability. 70%-80% rising. 80%+ On fire.
Opening Market usually sets a direction till Easter (sometimes the whole year)
May Market post Easter leading into Winter trends – capricious market usually.
Spring Market is Footy Finals and Pre-Cup – a major buy sell season. Can see a market turnaround either way, coming out of winter.
Christmas Market is from November till Santa comes. Often the hardest market to sell in, due to oversupply relative to unsatisfied demand.
GLOSSARY
PPP’s – All homes and all buyers have 3 characteristics. A good deal for a buyer is when their PPP’s match the homes PPP’s.
Position (land location) + Property (building) + Price = 3P’s. A buyer can adjust all three to get what they really, really want and to meet the market.
Whilst a home has 3 P’s, a seller has only 1 P they can adjust – Price. Although a good seller and agent can, prior to the sale, affect the P of Property through Presentation.
Overall there are 3P’s and Position is most often, the most important.
A-Graders – If the home’s PPP’s are desirable to many in the market we call that an A-Grader. However, it’s all the 3P’s that need to be desirable. You can have a great location, great building and be overpriced in which case you have only 2 desirable P’s – we call that a B-Grader. C-Graders have 1 or no desirable PPP’s and the only usual desirable P is Price – a weak one – this is why C-Graders are poor investments.
Volcanoes – When the market is hot you see increasing numbers of 4 or more bidders on homes. We call that a volcano. 1 or no bidders we call a duck.
Wounded Underbidders – Buyers who miss, go harder (more money) next time to avoid the hurt of missing out again. When there are multiple unhappy buyers, who have missed multiple times (wounded underbidders), the market rises quickly.
Cautious Buyers – Non-Bidders – Potential buyers who see lots of pass-ins, tend to not want to bid because their fear of overpaying is greater than their desire to buy and get out of the market.
Stales – Number and length of time a property remains unsold. The older the stale, the weaker the price (as a general rule). The more stales, the weaker the market as they clog up the market creating an oversupply.
Off-market – Homes that are for sale but are not advertised in the mainstream media like realestate.com.au. Over say $5 million there are considerably more homes off market than on market. More than ½ the homes we buy and sell are off-market.
Pre-market – Homes that some agents say are Off-market. Pre-market homes are homes coming to market but are not yet advertised and are often not really for sale at the moment.
On-market – usually refers to homes sold with major advertising say on Domain or realestate.com.au
Not for sale (and the 4 ducks) – there are many homes that are also said to be Off-market or Pre-market homes that are not really for sale. Why? Seller is testing the market. Agent is testing the market. Agent has no work. Seller wants a free valuation or some company.
For a home to be really for sale off-market, it needs to pass the 4 Duck Test.
- Agent Authority
- Contract of Sale
- Asking Price
- Easy Access.
Good ól Boring Process – When you are cooking a cake – do you get your best results by making up the ingredients, the amounts and throwing them into together, hoping for the best? If you do great, but I’m not hungry. A good recipe is a good process. And in property a good recipe is 3 Questions starting with what do I really really want? If you can’t work that out, then engage a good agent. When you answer that question, you go to the 2nd and 3rd questions and make good decisions. Good decisions lead to good outcomes – for you.
Market Prices – Every price is supposedly a market price. It’s a lazy concept.
Market price is a living organism – lets imagine it’s like a human. The market is the blood, the circulatory system. The PPP’s are the bones, the skin, the main organs and we agents and agent marketing are the lipstick, perfume, clothes. All 3 – blood, bones and lipstick make up a price and its attractiveness, it’s not just the market.
Market Values – Values are opinions. All opinions have vested interests and biases. What the council, the bank, the agent, the buyer, the seller values a home at will all be different.
Last year two valuers came to a home I was looking to refinance – $4m home – 3 weeks apart the valuations were approx. $700,000 different – that’s qualified valuers – same criteria.
Market Value v Market Price – One is an opinion before the deal and one is the actual result after the deal.
Quote Range: It is thought to be an agent estimate of final price – it is not. See Quoting
Under the Hammer: is when a home is sold to a buyer under the auctioneer’s hammer that is on the street or in the home in front of crowd when we says sold – it can be just clapping his hands together – under the hammer refers to the old gavel now only sometimes used.
On the market: (different from on-market) is a colloquial term that an agent or auctioneer uses to state we are now at a level that it will be sold (now) even if there is no more bidding.
What affects markets?
Demand and Supply – yes sir re – that is what really affects markets.
Some Key Supply Variants
- Government restrictions
- Lag Times in supply of demand changes
- Builders and materials
Some Key Demand Variants
- Money – Bank credit and community wealth
- Overseas Buyers, Interstate Buyers, Migration
- Stock Markets and World Events
Predicting the Future
Economists, banking leaders and other market predictors are like horse race “experts” – entertaining but of little long-term value. In 2017, 2018, 2019, 2020 the pundits on where the market was going got it wrong, dead wrong 4 from 4. A coin toss should have got at least 2 from 4. The only pundit we listen to with respect, is the one that says they don’t really know.
Rising / Falling / Easing – Humans are herd animals.
When there are a number of pass-ins the market eases. When combined with increasing stock coming on and more stales, the market falls more sharply.
Increasing numbers of wounded underbidders and less stock the market edges up – when wounded underbidders combine with loose bank lending and tight stock and increasing migration, then market prices begin to run away.
A home can easily be 5% more or less in a week (1 bidder drops away) and parts of the market can change by 5% in a month. A property can change by 10% during the length of an auction campaign. It is very similar to the ASX in terms of its variability – it’s just not as transparent.
Individual property prices are very fluid, they are far from fixed as many think and claim.
Mexican Waves: Occur at least twice a year – Labour Day to Easter and Footy Finals to the Cup.
It’s about the Ultra Top End, where agent led PR stories begin to appear in the papers, at the end of your phone and on social media; with the point of creating some momentum selling of trophy homes.
It’s a Mexican Wave; a powerful force that lives in the Top End of Melbourne real estate, dormant for much of the time, only to suddenly awake, just as it does at the G.
The Mexican as we call it and how it works.
1.Opening Stanza are side of mouth whispers about what may be coming to market quietly.
2.The Build by the protagonists is a balancing act of credible rumours (sales & prices behind closed doors) with the reality of what the punters can see on the street (sold stickers).
3.The Crescendo ….the results incited (or not) are almost secondary to this living, moving organism ……… however as quickly as it rises, the puff can drift and the intensity drop ….. and so, it lies dormant again until circumstances reignite life ..…. the next time around.
A good Mexican starts gently with some lite prosaic gossip. It is then fostered by those few Ultra Top End agents, who know the proven repetitive actions. They have a passion plan to finish with magic ……… screaming emotions, hands in the air and index fingers on computer screens ……. some on market but most silently (until cooling-off is over) off-market.
The latest result or near miss becomes a new side of mouth whisper and the wave restarts.
A good Mexican highlights the craftsperson’s art of luminating with innuendo a grey path that points to a light in the distance. This illumination brightens as the industry works together (consciously and subconsciously) even though they have competing interests, even though their comments differ, even though in many cases they dislike each other….to show all buyers and sellers where that light really could be, for each buyer and seller.
A living thing of wonderment is clarified during this time. Last year it launched itself into the stratosphere at Easter and again just before the Cup. For the previous few years, others have not left the launch pad or cruised at far lower altitudes until their power faded.
The Mexican with this bi-annual wildebeest migration timing will have either a La Niña or El Niño filtering effect on the rest of the Melbourne market in 2022, as it does each year.
In 2022 if like an MCG Mexican it builds again, then all of us will walk a little taller – as we all like to be in the presence of a bigger force at Melbourne’s Top End.
So mujeres and hombres crank it up and give us some good stories. Good stories for buyers (releasing of new stock), good stories for sellers (offer momentum) and good stories for the rest of us (dreams can still happen).
Market Conundrum – often the best time to buy or sell is when everybody else doesn’t want to – eg counter to the markets.
Buy or sell timing maxims we live by? Assuming it’s an A-grader. If you really, really like it, buy now. If you really, really like it never sell.
Which brings us back to Doe. Doe is dear, a female deer. This is why 10,000 people read Marketnews.com.au. It’s the only property thing that makes no sense (smiley face).
Underquoting – is when an advertised price (an agent quote) is below one of
- Agent estimates of value or
- A written buyer offer or
- The Vendor reserve
An agent quote is not a valuation, it is not a fixed sticker price – a quote is seen by my industry as a vehicle to attract bees (buyers) to the honey (home) and that’s ok, if legal.
However underquoting is unethical but widespread. Underquoting has been endemic in the last week of an auction campaign in the markets of 2015, 2016, 2019, 2020 and 2021 – a new falling market may be different.
Underquoting is a badge of honour for some selling agents – for god sake there is cheering from the rafters with every $1,000,000 over reserve. It’s celebrated not put into balance or condemned in the media. Please note sometimes genuine market forces create $1,000,000 over reserve when it’s not an underquote (celebrate then) – but when it is happening week in and week out and to the same people and same companies, then they must be very unlucky or incompetent agents or they are serial underquoters.
Underquoting can work in a rising market – work for the agent and seller that is, not the buyers.
Underquoting can hurt inexperienced buyers in 4 bidder auctions BUT
In many instances in falling markets and with B and C Graders it actually hurts the sellers – e.g. duck or 1 bidder auctions.
Underquoting is fixable with a buyer education program as to what a quote is and what it can and cannot do AND moveable (not fixed) step up and step down written legal quoting AND timely stated auction reserves say ? days out from an auction AND mostly an industry desire, but there is minimal desire within my industry or the CAV or the government.
Legal Step Quoting: A term we invented to explain moves/strategies in quoting. We used to have a problem with it, but now we see it as sensible practise on behalf of the seller – so long as it is down legally and actually done. Step quoting if done legally is simply moving the written quote during the campaign in line with offers, changing or firming vendor reserves and any changing agent’s opinion of likely value.
Illegal Step Quoting: Is when the agent has a written quote, then tells you a higher quote on the phone and then an even high quote after you offer.
Legal Quoting: It is legal (and we consider ethical and professional) for the agent to quote above the seller’s reserve providing it meets the other two key criteria.
Legal Quoting: When it’s on the market and unexpected market forces take it well past expectations. Our only argument is how often can that happen to one agent or agency before it becomes obviously illegal.
Argy-Bargy – How can a seller ask for more after a pass-in than the quote? It’s a grey area, as CAV says its completely legal.
If it’s below the top of the quote and passed in – then it seems like all bets are off for the buyer and seller to ask and offer whatever they like to reach a deal in their best interests.
If it’s at auction and above the quote then it may be legal, but we consider a pass-in above the quote wrong. It’s a Clayton’s Quote (the quote you have when you’re not telling the truth).
A pass-in above the quote and no sale to the highest bidder is in our opinion wrong on so many fronts (morally), but CAV says it’s ok legally (go figure).
Quoting even with the best intentions (and we have them) is not a perfect science, just as market valuations and your buying estimates are not.
All our most recent sale managed selling campaign quotes.
Range: On market and Sold 1% above the range.
Range: Sold 1% below the quote range
Range: Sold within auction quote range after step quoting to vendors changing reserve
Range: Sold at EOI (Volcano) – 5% above the range
Range: Sold after auction within the auction range
Range: Sold within the range
Range: On market in range and sold 11% above the range (Volcano)
Range: On market 1% above range and sold 5% above the range
Range: Sold within the range
Single Price: Sold within 3%
Range: Sold within the range
Single Price: Step quoted down off-market and sold within 2%
Range: Sold within the range
Range and we auction step quoted up: Sold within the final week range
Range: Sold 2% above the range
Range: Sold 3% above the range
Range: Sold 13% above the range
Range: Sold within range
James Buy Sell Process – Ethical quoting brings more real buyers and sellers to you:
Early Campaign: We quote to attract buyers but not below what we reasonably think the home may go for. Where the seller has a firm price, we do not quote below that price either.
We suggest the seller keeps an open mind on reserve (early days) if their main focus is to sell.
If the seller has a firm fixed reserve and it’s too high, then not only will he or she be unlikely to sell but he or she will get no feedback on price and therefore he or she could compound the selling issue down the track – a double negative for selling – eventually getting a lower price.
Middle of Campaign: We may Step Quote (change the quote, preferably up, but sometimes down to more accurately represent the sellers thought on possible reserve and/or feedback from buyers and/or if we have had an offer that has not been accepted)
Advertised final week of Campaign: We genuinely try and have the quote reflecting a seller reserve and where James Buy Sell now thinks the majority of buyers are. Please note: it is not an exact science, and we cannot predict all buyers (often buyers do not tell the door agent anything or say lower amounts – both sides can be guilty of misrepresentations).
We care about buyers and our quoting reputation. If you do a building inspection in the last week of the campaign and the reserve ends up outside the quote, please ring us and we will probably refund any professional building inspections up to $600.
T
he current Underquoting enquiry’s timing relates to a forthcoming election, is running into a falling market where underquoting is less noticeable.
The best way to deal with underquoting (currently) is through your own quality research or a quality buyer agent or if selling then an ethical selling agent.
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living the dream
It wasn’t the sale price, it was the changeover price. In falling markets advice that matters.
May 22
We engaged James Buy & Sell to sell our Kew Family Home as we both have busy jobs and wanted to ensure the sales process was as stress free and successful as possible.
Mal and Gina are excellent communicators, we were always fully informed and updated on what was going on in respect of the sales process. Their advice and counsel was clear, concise and supported us whenever making decisions in the process and most importantly we never felt under pressure to make a decision which is the opposite to previous experiences when dealing directly with Real Estate Agents.
Most importantly they got us a good outcome in a challenging market and didn’t give up when the sale process got harder as the market dropped.
They then supported us on the purchase of our new family home which was a hotly contested sales campaign – we would have not secured our new property without them. Having someone you know is on your side buying and selling property definitely helps reduce the stress experienced. We could not recommend Mal & Gina more highly !
A & J (Kew)
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