Fresh Market News

May 17th & 18th Weekend, 2008. Melbourne.

Overall Clearance rate: 63% on 560 properties to auction.

Million Dollar Melbourne.

Market Comment.

The market seems to be stabilising at this stage although it’s a little too early to call as there are still many results that don’t fit into the expected boxes.

Around $1million – we are seeing some sales and a large number of pass-ins if the property is a low James Home Rating that is unattractive to buyers. However if the property is a high rating and no major negatives then it is almost at all times hotly contested. Two good examples this week are 37 Eglinton in Moonee Ponds which had 7 bidders and eventually sold for $880,000 and 17 Allison St Richmond which had 10 bidders selling for $1.32million.

Why is this happening? Even though the market has dropped and people are nervous at this level they still have to find a home – there is nothing discretionary about their needs – they need a roof over their head for their family. They have to buy.

Between $1.5 and $3.5 million – this has been the dollar segment hardest hit in terms of non sales and other trading difficulties. Evidenced by – look at our rated properties section at www.james.net.au or check the newspaper results each weekend. Poor properties are not getting any interest whatsoever and price becomes the only bargaining tool; however some good properties are also being passed over for what we see as reasons relating to the buyers not the home for sale.

Why is this happening? At this level, a number of homebuyers are affected by the interest rates and the concerns about selling their current home as they try and trade up or find a new home maybe in need of a renovation. However, unlike many first home buyers in the under $1m segment they have choices. They can simply do nothing, that is, stay where they are - delay – and many are.

$4million and over – this market is not really affected by interest rates – the main reason this segment has eased in 2008 has been the number of buyers willing to compete. There are less buyers owing to our recent stock market drop. However the buyers that are still competing are still doing so with some strength as properties of quality at this price level are rare and will forever and a day attract interest from those that can afford them without borrowing money (interest rates).

AUCTIONS ATTENDED THIS WEEKEND

Our opinion of the market at present is volatile but possibly stabilising.

Three auctions this weekend of some note – no photos this week as auctions were held inside (rain) and we respect privacy in those situations.

Moonee Ponds – 37 Eglinton St. This was a home we rated 728 out of 1000. It did have some negatives in that it was south facing and the floor plan had some issues. However it was a house with a great vibe – a real warm and welcoming feeling and its location was sensational being within walking distance of Union Road and Puckle St shops. The area is simply stunning with regards to period homes. Finally the views were panoramic, sensational and not easily built out. The quoting was always accidental at high 600’s to low 700’s. The campaign was well conducted by David Hutchinson of Nelson Alexander and the auction held  inside by Milo Rasinac was strong and well conducted. Property opened with a vendor bid at $680,000 –was on the market in the high 700’s and there was a fury of bidding from 7 bidders until it sold at $880,000. There were still 3 bidders at $870,000. We don’t think this sets new standards for all single fronted homes in the area but it does send a message to many that Moonee Ponds has some great properties. Many of the bidders we believe would have been ones from outside the area such was the pull of this home.

As we said the result was expected and continues along the strong,  sub million theme for good quality period homes that we evidenced at 9 Malakoff St St Kilda East last week.

Hampton – 19 Hoyt Street. This was one of the highest rating homes we have looked at and despite not being everybody’s cup of tea it was from a practical point of view and therefore our rating a great family home. We rated it 936 out of 1000. The auction was held inside and conducted by Phillip Kingston of Gary Peer who is one of the best auctioneers going around in terms of getting bidders into rhythmical bidding patterns. There were only 25 people being the shocker of the day that it is was, but 3 of the 25 were bidders. Opened at $1.6million with a real bid and with the three bidders this was one of the longest auctions of the day rising in $5000 increments with an eternity between bids to sell at $1,905,000, Sally Zelman conducted the campaign with her usual efficiency with a good result for all parties.

Camberwell -  2 Lorne Grove – We rated this 702 out of a 1000 with its main negatives being closeness to railway line and volume of renovation required. We estimated renovations in excess of $1million dollars. However it was a home with magnificent potential- a grand lady in need of some work, but the buyer who nurtures this home with love and care (and money) will be rewarded. Lorne Grove is a Camberwell Top 10 street with a recent $3m plus sale and even after $1million or more is added to the sale price (in excess of $2.6 million -we were asked for it to be undisclosed) we don’t think you will be in any way over capitalising. The campaign was run by Helga Fialides of Noel Jones and the auction was well conducted by Geoff Hall. 80 people present Lorne opened at 2mil then was followed by a vendor bid of $2.2m. Two bidders fought this out to sell for (undisclosed) and it was on the market at $2.4million.

OFF MARKET – QUIET SALES - In our comments we feel it important to respect privacy hence some of our vagueness.

Current Off Markets and Quiet Sales that we feel are genuinely for sale over $1m
Booroondara - 8
Stonnington - 4
Bayside - 5
Port Phillip - 2
Glen Eira - 1
Other Councils - 3

In the last week a number of quiet and off market sales took place.

Monomeath Avenue Canterbury – Large land, modern house but with floor plan and flow issues - sold to an overseas buyer at $9,000,000 for 33,000 sq feet for an average of $270 per sq foot including improvements. This property had been on the market with a number of different agents for many months and last year the asking price was considerably higher. Tim Derham of Abercrombys was the selling agent.

Scotch Hill Hawthorn – 22,000 sq feet with a very solid Federation/Edwardian period home in need of substantial renovation sold end at the end of last week for a price believed to be over $6million. This was a strongish result as this sort of price would have been expected last year – however it was a good property in a good position and these kinds of properties always attract interest. Michael Armstrong and Michael Gibson of Kay and Burton were the selling agents.

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

ASCOT VALE

PS Fisher Pde 8rm 590sqm $2,250,000 Brad Teal

ASHBURTON

S 19 Fakenham Rd WB 6rm 551sqm $1,010,000 Hocking Stuart

BALWYN

PS Evelina St BV 7rm 1234sqm $1,230,000 Christopher Russell
PS Yongala St $1,160,000 Hocking Stuart

BALWYN NORTH

PI 24 Jacka St BV 9rm 1350sqm $1,280,000 lo $1,305,000 res $1,380,000 Marshall White & Co
PS Aquila St B 8rm 730sqm $1,240,000 Jellis Craig

BENTLEIGH

SA 38 Lindsay St BV 7rm 686sqm $1,265,000 Buxton

BLACK ROCK

PI 4 Arranmore Av B 7rm 788sqm $1,000,000 VB res $1,100,000 Hocking Stuart

BRIGHTON

PI 116 Roslyn St B 6rm $1,050,000 res $1,160,000 Hocking Stuart
PI 21 Holmwood Av BV 6rm 320sqm $1,400,000 VB res $1,525,000 Hodges
PI 6 Orchard St B 10rm 1728sqm $3,050,000 VB res $3,400,000 Buxton
SB 4A Alimar Ct B $1,920,000 J P Dixon Brighton
SB 89 New St WB 7rm 696sqm $1,700,000 Kay & Burton
PS Cadby St BV 6rm s/div $1,272,500 R T Edgar
PS Cole St B 604sqm $1,850,000 J P Dixon Brighton
PS Grantham Ct v/land 1112sqm $2,700,000 Buxton
PS Lewis St B 8rm irregular $2,300,000 Kay & Burton
PS Rothesay Av B 8rm 964sqm $2,562,500 Buxton
PS St Kilda St B $1,900,000 J P Dixon Brighton
PS Well St Rend 5rm strata $2,025,000 Buxton

BRIGHTON EAST

S 51 Binnie St BV 7rm 416sqm $1,110,000 Buxton
PI 24 Taylor St B 6rm 632sqm $975,000 VB lo $1,000,000 res $1,090,000 Buxton
PI 35 Bourneville Av BV 7rm $1,100,000 VB res $1,250,000 Hodges
PS Dendy St $1,015,000 Hocking Stuart

BRUNSWICK EAST

S 19 Jarvie St WB 6rm $1,035,000 Thomson

CARLTON

PS Swanston St B $1,100,000 Thomson

CAULFIELD

PI 17 Clarke Av B 10rm 697sqm $1,592,000 lo $1,605,000 res $1,650,000 Gary Peer & Associates

ELSTERNWICK

PI 19 Orrong Rd B 10rm 587sqm $1,400,000 VB res undisc Biggin & Scott

ELWOOD

PI 3 Glenhuntly Rd BV 4rm 190sqm $1,100,000 VB res $1,250,000 Wentworth
PI 320 Barkly St B 7rm 350sqm $1,100,000 VB res $1,250,000 Hocking Stuart

HAWTHORN

S 4 Palmer Pl B 7rm 625sqm $1,818,000 Jellis Craig
PI 504 Glenferrie Rd B 7rm 1012sqm $1,250,000 VB res $1,350,000 Jellis Craig
PS Manningtree Rd B 7rm 1102sqm $2,400,000 Jellis Craig

HAWTHORN EAST

S 47 Pleasant Rd B 6rm 701sqm $1,100,000 Jellis Craig

IVANHOE EAST

S 224 The Boulevard B 6rm 735sqm $1,545,000 Miles RE/Aspc Property P/L
PI 8 Otterington Gr B 9rm 1122sqm $1,255,000 lo $1,260,000 res $1,350,000 Jellis Craig
PI 35 Wallis Av B 7rm 1203sqm $1,350,000 VB res $1,425,000 Miles RE

KEW

S 22 Wimba Av B 8rm 16mx54m $1,760,000 Changing Places South Melbourne

MALVERN

S 4A Haverbrack Av B 10rm 1000sqm $4,430,000 R T Edgar
PI 10 Valetta St B 6rm 372sqm $980,000 lo $1,000,000 res $1,175,000 Jellis Craig
PI 1 Mary St B 10rm 901sqm $2,400,000 VB res $2,800,000 Marshall White & Co

MALVERN EAST

PI 2/52 Paxton St B 5rm strata $980,000 VB res $1,090,000 Jellis Craig

MARIBYRNONG

PI 17 Saltwater Cr BV 10rm 447sqm $1,700,000 VB res $2,100,000 Barry Plant

MCKINNON

S 23 Hall St WB 8rm 650sqm $1,560,000 Hocking Stuart

MELBOURNE

PS St Kilda Rd C 3rm $2,580,000 Colliers International Melbourne
PS St Kilda Rd C 3rm $2,650,000 Colliers International Melbourne

MIDDLE PARK

PI 42 Mcgregor St B 7rm 220sqm $1,400,000 VB res $1,495,000 Cayzer

MONT ALBERT

S 11A Rostrevor Pde BV 6rm 584sqm $1,170,000 Jellis Craig

MOONEE PONDS

S 6 Ardmillan Rd B 5rm 747sqm $1,050,000 Nelson Alexander

MORDIALLOC

PI 3-5 High St B 12rm 2637sqm undisc res $2,800,000

MOUNT MARTHA

PS Irvine Av 3718sqm $1,085,000 Warlimont & Nutt Mt Martha

PARK ORCHARDS

PS Williams Rd BV 10rm 4045sqm $1,310,000 Coldwell Banker Napoleone Realty

PARKVILLE

PI 5 Barak St B 9rm 519sqm $1,200,000 res $1,300,000 Nelson Alexander/Weda Property

PORT MELBOURNE

PI 409/49 Beach St Rend 6rm strata $960,000 VB lo $980,000 res $1,100,000 Hocking Stuart

PRAHRAN

S 26 Willis St WB 5rm 270sqm $1,200,000 Marshall White & Co

RICHMOND

S 17 Malleson St WB 5rm 12mx30m $1,320,000 Biggin & Scott

ROSANNA

S 1-4/52 Jones Cr B 14rm 1479sqm $1,370,000 Sutherland Farrelly East Melbourne/Miles Re

SANDRINGHAM

PS Green Pde B 7rm 598sqm $1,011,000 Buxton

SOUTH YARRA

PI 17 Ralston St B 8rm irregular $2,100,000 VB lo $2,250,000 res undisc Hocking Stuart

ST KILDA

S 4 Crimea St B 7rm 779sqm $2,100,000 Cayzer

ST KILDA WEST

S 1 Longmore St B 7rm 400sqm $2,260,000 Hocking Stuart

SURREY HILLS

PI 63 Empress Rd WB 7rm 674sqm $1,000,000 VB res $1,200,000 Marshall White & Co

TEMPLESTOWE

SB 3 Tuscany Rise BV 11rm $1,334,000 Philip Webb

TOORAK

S 10 Myrnong Cr B 8rm 577sqm $1,570,000 Marshall White & Co

WILLIAMSTOWN

PS Bayview St B 6rm 290sqm $1,300,000 Compton & Green

1st and 2nd Homebuyers

In Search of Home Sweet Home - Part 4.

Buying at Auction or Private Sale.

Hello Buyers,

Throughout the searching process you will look at properties that are being auctioned and others that for private sale. It is important for you to know, there are differences between the two sale options.

Auction Properties

Auctions are ‘unconditional’ this means as a buyer you must have your building inspection completed, legal documentation checked and finance approved PRIOR to the auction day. You are required to hand over a deposit on the day. Once the Contract of Sale is signed, there is no cooling off period, no “subject to” and conditions at all.

Private Sale Properties

Private sales are ‘conditional’ and this means that you can make an offer on a property, conditional upon certain items. Examples could be; pest and building inspection, approval of finance, a solicitor checking the legal documentation or Foreign Investment & Review Board approval. The vendor may accept your offer based on one or more conditions, but they are not bound to. If for example your offer is conditional on approval of finance and the bank does not approve your finance then the sale is null and void, but by law you forfeit part a small percentage of your deposit. If the sale is conditional upon a satisfactory building inspection and prospective purchaser still wishes to proceed after the inspection, then the sale proceeds. It is important to note that if you place a “subject to finance condition” on the contract, you are bound to provide written evidence that you have actually sought the finance if for any reason you do not proceed with the purchase based on the fact that you finance was not approved.

Weekend Auction in McKinnon
A fantastic auction result from this weekend (17/18th) at 23 Hall Street in McKinnon (our Property Rating is attached). In front of a huge crowd and with spirited bidding the home sold for $1,560,000 through Hocking Stuart in Bentleigh. A new record for McKinnon, eclipsing another property sold in Chalmers Street in March for $1,535,000.  Until next week, happy house hunting.

Architectural advisory

4 Talofa St, Brighton East.

In my travels I look at many, many houses and when you see a good one, it really stands out.  No. 4 Talofa Street Brighton East is a good example, and if not sold prior to will be auctioned by Buxton’s on June 14 at 11.30am.

This house really has everything, and I believe represents a fine example of contemporary urban architecture, embracing the latest technologies and also suiting well the requirements of most families. The style is not trying to be something it is not, which is a welcome change and quality has not been compromised here.

Nice design touches include –

• deep reveals to  window openings – this helps with shading and improves the aesthetic;
• full height internal doors, very effective in accentuating the feeling of space
• large entry door, again this is an impressive statement which also accentuates the space;
• wide stairs and hallways.

Given a fairly average block size of 604m2, this house is quite large and packs in a lot. One of the real keys to this is the four car basement (which also accommodates a home theatre and wine cellar).  This car accommodation does not impose on the ground level building footprint, nor does the garage entrance dominate the facade of the house.

On a minor note, lack of privacy to the front courtyard lets this down a little, however this could be easily rectified with the installation of  a solid fence. The rear yard has a  south-westerly aspect, meaning parts of this area will be in shade.

Sensibly, a ground floor bedroom / guest room is located to the front of the house (this is important in the event that a family member becomes unable to climb stairs) and also provides flexibility for the future of a growing family (ie maybe the parents do not want to share the first floor with growing teenagers). Open plan living is very spacious and connects well to the external living area via large, full height sliding doors – most people would really appreciate and love this house. It will be interesting to see things unfold with regard to its sale.

• Why Use Us
• About Us & Fees
• Our Fundamentals
• Our Philosophies
• Faq's

• Melbourne $1m+
• Family
• Singles
• Couples
• Interstate
• Overseas / Expats
• Major Projects

• Agents & Auctions
• Stress & Emotion

• Investors
• Saving Money
• Timing
• Cashflow
• Capital Growth
• Risk

• Architectural Advisory
• WOW Factor
• Design
• Functionality