Fresh Market News

Melbourne June 14th & 15th, 2008.

 

Overall Clearance rate: 67% on 608 properties to auction.

Million Dollar Melbourne.

Mal James Principal Buyer Agent 0408 107 988.

Market continuing to stabilise at all price levels.

Market continuing to stabilize at all price levels and we may even see small increases in the clearance rates as number the of quality homes coming on the market across all quality areas is the weakest it’s been this year. Add to this is the fact the number of homes that were overpriced or not selling has reduced in the last month or so and we may see prices increasing slightly over the winter as is traditional. However please note we are not saying the market has turned upwards in terms of prices – what we are saying that for the latter part of May and early part of June we have seen a stabilising of price after significant falls in March and April. However, Bayside suburbs such as Hampton and Albert Park are still really struggling with selling properties under the hammer at auction. But a number are selling after price adjustments in the weeks following. Blue chip inner suburbs such as East Malvern, Hawthorn and Kew are very solid at auction and maybe that is because the selling agents have “adjusted” their vendors to the market well. Outer lying areas such as Balwyn North are now beginning to sell when the vendors realise the buyer’s market is no longer there for prices per sqm matching Balwyn, Camberwell and Canterbury.

Outer East (Donvale, Templestowe and Warrandyte to name a few) – which is not really an auction market and perhaps doesn’t get as much weekly reporting from us as it should, is surprisingly strong for the right, million dollar properties. If you are away from the power lines or views thereof, in the right precinct, and deal with a good, competent agent such as Margaret Bland from Margaret Bland Real Estate, Spiro Drossos from Barry Plant or Andrew Kelleher from Philip Webb, then you have a good chance of being involved in one of the 30 or so million dollar plus sales we are aware of in the last year.

AUCTIONS WE ATTENDED THIS WEEKEND - 14th, 15th June 2008

Overall on the quality front that is $1million plus it was a tale of two cities or better defined two areas for the weekend. We attended five auctions in Bayside and none sold under the hammer but a few since have. We also reported on five auctions in the Inner East and all 5 sold.

 

5A Muir St Hawthorn. This is one the best town residences going around – great location and views and smart building with a lift to keep all the over 50’s interested in living there. We rated this property 854 out of 1000 using our Long Term Growth KPI’s a 4 star rating.

There were 120 people at the auction conducted by the very professional duo of Tim Picken of Jellis Craig and Jason Scillio of Kay and Burton. A Vendor Bid kicked it off at 2.7 million and 3 bidders took it to the ½ time break at $3.1 million. A further break saw it on the market when a fourth bidder joined in at it sold under the hammer at $3.17 million. The bidders were there and it was put on the market.  A very good result and a fair way of doing business; instead of the all too often seen underquote and pass in and negotiate trickery. In our opinion if there was no lift in this property, it would have passed in and sold later in the mid to low $2milions as some of the bidders did not look like young marathon runners willing to cope with the 4 levels of stairs. A good build for the ageing population we are.

 

3 Ross St Kew. This is a property we rated a few weeks ago at 676 out of 1000 as land value only. This was an interesting sale on the weekend – it sold in August last year at $1.7 million was sold again after auction on Saturday. There were 40 people in attendance and the bidding was lacklustre and passed in at $1.78 million. It sold within the hour in excess of $1.8 million. The two interesting things -

1. It is a home needing major work and lately they have been really struggling in this market. However it sold on Saturday for more than was paid in August. It was not undersold in December.
2. The purchaser on Saturday was not the person who made the highest offer – as we keep advising – it’s not always about the final dollar amount – in the end this deal was deal on settlement not highest price.

 

5 The Pines Kew. We rated this property 488 out of 1000 and 60 people attended the auction.  Our main concerns were with the land itself, south facing rear and poor street frontage. However to our surprise this sold at $2.96 million after a pass in at $2.91 million from 3 genuine bidders. The house itself was unusual and had a bit of “Warrandyte feel” about it in terms of design. James Tostevin was the auctioneer and we would say this was a very strong result.

 

 

2 Hawthorn Grove Hawthorn. This was a home we rated 756 out of 1000 and was auctioned by the “Hawthorn Grove expert” Paul Keane from Jellis Craig – having auctioned according to himself 26 properties in Hawthorn Grove in his career including this when it last sold in 2002 for $1.41 million and nothing has been done to it except the addition of a spa. Two bidders saw it passed in and sold for an undisclosed amount just over $2.7m. A healthy return over 5 years. This property does have issues such as south facing and floorplan but again emphasises that period features in a great location sells almost no matter what (when of course the seller meets the market).

 

49 Mathoura Road Toorak. We rated this property 559 out of 1000 and rated as land only – most of the lost rating points were because of risk – please let us explain below.

There are four main issues involved in this project – Your Needs, Capital Growth, Cash flow and Risk.

Your Needs

1. If it’s for investment then I think we can give a tick to growth – Superior Road, Premium Suburb, Reasonable Land and Period Facade. However to achieve this growth I think in your personal circumstances Cash flow and Risk are big issues.

Capital Growth

1. It has the fundamentals in its current form however after renovation to bring it to say $6m you will be on $3m of land and $3m of quality house or 50/50. Still works for me but its getting away from 80% land.  Of course it maybe apartments but the car parking I think will make that difficult – however there is a market.

Cash flow

1. This is a $6M-$7M project. Say $4m to buy and $2m to renovate . Adam our in house architect has costed the proposed plans at around $2m. So $6m of debt plus holding costs – this is a 2 year project. Here is a example of a finished $7m project on similar land size – not the same look – it just sold for $7.2m – Adam went through and rated it here. Here is another example of a $7- $8m completed period home which was bought 2 weeks ago week at 45 Chrystobel Hawthorn. Location is not Toorak, but it’s still sensational on bigger land, great reno and job done.
2. Rent wise – I think the owner will not care about the rent as there are better investments for returns.

Risk

1. With such a large development there are risks and strains – town planning risk, interest rate holding risk, building risk and overall finished project risk.

Overall I would be comfortable in recommending this for a client who had $6-$7M on light borrowings who wanted a major project and understood the risks.

 

Show Me The Money

Peter Sinclair Principal Buyer Agent  0423 778 774

 

 

 

Auctions attended this weekend.

 

4 Scotts Street Bentleigh. A small crowd of about thirty people attended this auction, which last sold in 2001 for $537,000. We rated the property 631/1000. The home is appealing from the street, land size is good (723 sqm approx.) and location is great, 50 metres from parkland and not much more to Bentleigh shops and train station. The property was passed in yesterday on a vendor bid of $970,000, without one bid from the crowd. It does have a couple of shortcomings that may have held the rating back a little; south facing rear and the pool takes up a considerable proportion of the back yard. The floor plan is not perfect, but overall this is a great family in a very good street and in an even better location. Buyers are very picky at the moment, no doubt thinking that with slightly less than average clearance rates they can afford to be. Agent Calvin Reid from Hocking Stuart was quoting $920,000 - $1,020,000 prior to auction.

 

22 Glyndebourne Avenue Toorak. This property sold on Saturday for $3,170,000, against an agent quote of $3,000,000 - $3,300,000 prior to auction. We rated the property 656/1000. Could you ask that in a flying market a nice home in a very good Toorak street may have seen a stronger result? Probably. Negatives in my mind, south facing rear, block on a considerable slope back to front; these facts hinder natural light to the kitchen and living areas and no downstairs bedroom. Positives - good floor plan (apart from the no downstairs bedroom), good sized bedrooms, great living spaces, good car accommodation, pool and nicely landscaped gardens.

 

77 Chatsworth Road Prahran. Certainly one of Prahran’s better streets, but the renovation probably not to everybody’s liking and there are stairs everywhere. We rated the property at 636/1000, its original period features, good off street parking, facade, good land size for the area and location meant it still rated reasonably and these features alone will sell the property. The property was passed in at auction on Saturday and agent Paul Denver reported a reserve price of $1,250,000.

 

 

Architectural advisory

Adam Woledge Registered Architect 0413 318 079

Auctions attended this weekend.

 

4 Talofa Avenue Brighton East.

This newly constructed three level modern home has plenty of wow and the auction attracted an audience of around 200 people. James Paynter of Buxton’s opened with a vendor bid of $2.0m and this was matched by one bidder. After some time another vendor bid of $2.05 was placed, then another vendor bid of $2.1m. This remains unsold with a reserve of $2.35m.

 

23 Grosvenor Street Brighton.

Superb location compliments this well renovated single level home. Leigh Hallamore of Buxton’s conducted this auction, which was opened with a $1.35m bid, closely followed by another party with a strong counter bid of $1.45m. A vendor bid of $1.5m was then placed and matched by the second bidder, with the original opening bidder placing a further $10,000 which the auctioneer rejected. A modest crowd of around 50 people watched this pass-in for $1.5m. Property sold shortly after for $1.65m.

 

23 Yuille Street Brighton.

A unique location (what other street in Brighton has so many gum tress?) and a good house with north facing rear was always going to perform well. Again, Leigh Hallamore of Buxton’s conducted this auction, in front of around 50 people. After opening at $1.9m and being followed at $2.0m, this was passed in for $2.1m on a vendor bid. Property sold after this for an undisclosed amount.

 

5 St.Finbars Crescent Brighton East.

A lovely street with a great community feel and a good house with north facing rear. Peter Kennett of Hocking Stuart conducted this auction, in front of around 100 people. An early vendor bid of $1.05m was followed after the half-time break with another vendor bid of $1.075, failing to attract any interest from the crowd. Property was passed in below the reserve of $1.2m and we understand it remains unsold.

 

 

Happy Spouse, Happy House

Melissa Ryan Principal Buyer Agent 0409 409 357

Signs suggesting the market is back on track.

There are good signs suggesting the market is back on track. We are back to normal numbers of auctions with 608 this weekend and saw a rise in the clearance rate to 67%. If there wasn’t the threat of interest rate rises and high petrol prices, the market may be buoyant. Clearance rates above 65% are said to be a good market.

Looking forward to early July we will see a dramatic drop in stock. A consequence of this may be higher clearance rates and prices lifting. Again it is the law of supply and demand.

Bentleigh and Bentleigh East are predominately first home buyer areas and the clearance rates this weekend in those suburbs were high. This is a good sign for the market.

Hampton and Sandringham enjoyed a much better weekend than two weeks ago, with the majority of properties selling. The difference between selling the weekend before a long weekend and waiting until two weeks later – most homes will sell.

However, the positive signs may be restricted to certain suburbs. Across Albert Park, Middle Park and Port Melbourne the market is very tough at the upper end.

28 McGregor Street Middle Park. A terrific, renovated family home at 28 McGregor Street Middle Park was auctioned late on Saturday afternoon. Andrew Stuart of Hocking Stuart conducted a humorous auction while he and the crowd enjoyed a Melbourne winter soaking. Andrew’s upbeat style could not draw a bid from the 25 or so attendees. The property was quoted $2.7 to $3m and opened on a vendor bid of $2.6m. The home was passed-in at his level without a bid and is for sale at $2.75m. In last year’s market this home would have sold extremely well under very competitive circumstances.

 

Properties I rated that went to auction this weekend.

8 Northcote Avenue Balwyn.

A fantastic family home which rated 871/1000. The renovation was faultless. The properties only limitation was its smallish land size and no under-cover car accommodation. The quote by James Tostevin of Marshall White was spot on with the home selling for $1.450m.

 

 

16 Laxdale Road Camberwell.

A pretty period home which we rated 591/1000. Not surprisingly passed-in on a vendor bid of $850,000 with a reserve of $935,000. The home had been renovated but had too many floor levels, had a south facing rear and was on very small land. It is in a good location and lovely street.

 

Other Off Market and Quiet Sales

- In our comments we feel it is important to respect privacy hence some of our vagueness.

Booroondara - 8
Stonnington - 7
Bayside - 5
Port Phillip - 5
Glen Eira -

 

MILLION DOLLAR SALES (all results can be found at REIV)

ALBERT PARK
PI 348 Montague St B 8rm 340sqm $2,500,000 VB res $2,650,000 Hocking Stuart
PS Richardson St B 6rm 249sqm $1,750,000 Bennison Mackinnon
ASCOT VALE
PS Walter St WB $1,051,000 Biggin & Scott
BALWYN
S 26 May St WB 4rm 705sqm $1,320,000 Fletchers
S 8 Northcote Av WB 8rm 525sqm $1,450,000 Marshall White & Co
PI 2 Para St BV 10rm 581sqm $1,880,000 res $1,980,000 Woodards
BALWYN NORTH
S 85 Maud St BV 8rm 5332sqm $1,760,000 Fletchers
PI 151 Doncaster Rd Rend 7rm 657sqm $1,100,000 VB lo $1,110,000 res $1,180,000 Hocking Stuart
PI 20 Midvale Av BV 9rm 640sqm $1,080,000 VB res $1,100,000 Noel Jones
PI 30 Macedon Av BV 9rm 650sqm $1,750,000 VB res $1,850,000 Jellis Craig
PS Walbundry Av B 10rm 841sqm $1,400,000 Bennison Mackinnon
BEAUMARIS
S 6 Oak St B 9rm 670sqm $1,007,500 Hodges
BLACK ROCK
S 47 Arkaringa Cr B 11rm 836sqm $1,215,000 Buxton
BRIGHTON
S 14 Halifax St B 7rm 808sqm $2,010,000 Hocking Stuart
S 23 Grosvenor St B 7rm 496sqm $1,650,000 Buxton
PI 14 Pine St BV 5rm 623sqm $1,150,000 lo $1,200,000 res $1,290,000 Hocking Stuart
PI 16 Champion St B 5rm 580sqm $1,350,000 VB res $1,495,000 Kay & Burton
PI 522 New St B 7rm $1,450,000 VB res $1,575,000 J P Dixon Brighton
PI 720 Hampton St B 10rm 692sqm $1,250,000 VB res $1,400,000 Hodges
PS Roslyn St $1,572,000 Hocking Stuart
BRIGHTON EAST
PI 4 Talofa Av B 10rm 604sqm $2,000,000 lo $2,100,000 res $2,350,000 Buxton
PI 5 St Finbars Cr WB 6rm 622sqm $1,075,000 VB res $1,200,000 Hocking Stuart
PS Clinton St $1,070,000 Hocking Stuart
CAMBERWELL
S 24 Lynden St WB 7rm 678sqm $1,030,000 Hocking Stuart
CANTERBURY
PI 302/55 Chaucer Cr B 5rm strata $1,350,000 VB res $1,400,000 Ham Kerr Property
PS Mont Albert Rd B 6rm 756sqm $1,500,000 Jellis Craig
CARNEGIE
S 93-95 Truganini Rd B 9rm 1067sqm $1,030,000 Williams Batters RE
DONVALE
S 49-51 Beckett Rd BV 9rm 4021sqm $1,600,000 Barry Plant
PI 33 Berrima Rd 12rm $1,550,000 VB res undisc Philip Webb
ESSENDON
PI 41 Nimmo St 1066sqm $1,260,000 res $1,350,000 Real Diamond Carlton
GLEN IRIS
S 1526 Malvern Rd 8rm 1164sqm $1,410,000 Noel Jones
S 33 Somerset Rd 6rm 929sqm $1,100,000 Noel Jones
PI 135 Finch St B 10rm 869sqm $2,110,000 res undisc Bennison Mackinnon
HAMPTON
S 4 Bendigo St WB 7rm 744sqm $2,900,000 Hocking Stuart
HAWTHORN
S 5A Muir St 10rm $3,170,000 Kay & Burton
PI 5 Wattle Gr B 5rm 304sqm $900,000 VB res $1,000,000 Marshall White & Co
PS Callantina Rd B $2,950,000 Bennison Mackinnon
HAWTHORN EAST
S 16 Heather Ct BV 4rm 759sqm $1,060,000 Noel Jones
PS Condor St BV 6rm s/div $1,495,000 Jellis Craig
IVANHOE EAST
PS Otterington Gr B 9rm 1122sqm $1,300,000 Jellis Craig
KEW
S 1223 Burke Rd B 9rm 1472sqm $1,712,000 Marshall White & Co
S 5 The Pines BV 10rm 996sqm $2,960,000 Marshall White & Co
PI 1 Eglinton St WB 6rm 503sqm $1,425,000 VB res $1,500,000 Jellis Craig
PI 68 Mary St WB 9rm 534sqm $1,450,000 VB res undisc Jellis Craig
KILSYTH SOUTH
PS Cloverlea Dr 8rm $1,320,000 Barry Plant
MALVERN EAST
PI 22 Oak Gr B 8rm 666sqm $1,350,000 VB res $1,425,000 Jellis Craig
MIDDLE PARK
PI 28 Mcgregor St B 7rm 420sqm $2,600,000 VB res $2,750,000 Hocking Stuart
MONT ALBERT
PI 13 Leopold Cr BV 10rm 808sqm $1,300,000 VB res undisc Karen Gornalle & Assocs Canterbury
MONT ALBERT NORTH
PI 84 Relowe Cr BV 6rm 1155sqm $1,000,000 VB res $1,090,000 Fletchers
MOUNT ELIZA
PS Amesbury Rd WB 9rm 4300sqm $1,525,000 TJ Sparks
PORT MELBOURNE
PI 117 Liardet St WB 7rm 330sqm $1,000,000 VB lo $1,075,000 res $1,150,000 Hocking Stuart
PRAHRAN
PI 77 Chatsworth Rd B 5rm 345sqm $1,125,000 res $1,250,000 Denver Real Estate
RICHMOND
S 18 Docker St B 7rm 354sqm $1,700,000 Bennison Mackinnon
PI 285 Punt Rd B 500sqm $2,500,000 VB res $2,700,000 Chambers Fitzroy North
PS Rotherwood Rd $1,000,000 Hocking Stuart
RIPPONLEA
PI 10 Erindale Av B 7rm 17.67mx40m $1,210,000 res undisc Biggin & Scott
SANDRINGHAM
S 17 Mclauchlin Av B 6rm 770sqm $1,225,000 Hocking Stuart
SB 48 Abbott St WB 6rm 612sqm $1,475,000 Hodges
SEAHOLME
PS Wattle Gr BV 8rm 687sqm $1,260,000 Sweeney
SOUTH MELBOURNE
PI 39 Bridport St Rend 7rm 310sqm $1,600,000 VB res $1,750,000 Hocking Stuart
ST KILDA
SB 8 Waterloo Cr B 9rm 465sqm $1,605,000 Hocking Stuart
ST KILDA EAST
S 9 Wenden Gr B 5rm $1,110,000 Gary Peer & Associates
TEMPLESTOWE
SB 3 Annette Pl BV 10rm 4000sqm $2,000,000 Barry Plant
THORNBURY
S 13 Pender St WB 9rm 1132sqm $1,105,000 Brace RE Thornbury
TOORAK
S 22 Glyndebourne Av B 8rm 743sqm $3,170,000 Marshall White & Co
PI 9 Stonnington Pl 6rm undisc VB res $2,850,000 Kay & Burton
TUERONG
PS Wonderland Av WB $1,175,000 Barry Plant
WILLIAMSTOWN
S 63 Victoria St WB 10rm $2,275,000 Williams RE
PI 15 Crofton Dr B 9rm 627sqm $1,700,000 VB lo $1,725,000 res undisc Sweeney