Fresh Market News

May 24th & 25th Weekend, 2008. Melbourne.

Overall Clearance rate: 64% on 581 properties to auction.

Million Dollar Melbourne.

Market Comment.

More of the same this week as we have seen for the last few weeks – the good ones below a million are selling well –the rest is a bit hard to pick.

One thing we feel buyers need to consider is their post auction or long term private sale negotiation strategies. At the beginning of this week we had 6 properties in negotiation and at the end of the week those same 6 properties were still in negotiation. This was unheard of last year. However with the market in the 2 to 4 million range and the outer area market being not as strong as the sub million it does pay on a risk v reward basis to consider how you negotiate. You actually may be able to buy a better property than you first anticipated or you maybe able to buy what you want well below the asking price.

However some old adages still apply – quality will always sell (and it should be to you not the other buyer) and you still need to pay more than other buyers to purchase. We are not talking about taking big risks(missing out) to save a few thousand, we are not talking about missing out all the time- what we are talking about is taking understood risks when the situation and evidence warrants it.

AUCTIONS ATTENDED THIS WEEKEND

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

Four auctions of some note this weekend.

Black  Rock – 60 Arkaringa Street. This was a home we rated 678 out of 1000. It is a big family home and to some it will be seen as a place for heaps of children to be, for others it will be viewed as a home with floor plan issues that are not easily fixed – eg a bit of a hotspotsch. Being on the non beach side of Bluff Road and being priced in the current difficult segment of $2m plus we expected this to struggle – not through any fault of the owner or agent but simply because the buyers for this type of property are thin on the ground at present.

The auction opened with a vendor bid at 1.9m - then passed in with another vendor bid at 2.06m. There were 40 people present

Elwood – 102 Addison St. This home we rated 616 out of 1000. As per a lot of homes in Elwood, it is surrounded by flats – however it is in a great street only a short walk from the beach. The property itself has good land and it looks good from the street. However when inside the property does not have a good floor plan. Sam Gamon was the auctioneer and his usual over the top self with his sidekicks and after much humour, cajoling and begging got a real bid of $1,260,000. It was passed- in to that couple however they refused the reserve and it was sold for $1,350,000 to somebody else later in the day. The buyer was at the auction but did not bid. There are some important lessons there for all parties. Overall a good result for all concerned.

9 Kimber St Richmond. This home we rated 856 out of 1000 – a very high rating for what seems a fairly nondescript home from the street. But it does work – it does tick a lot of boxes for Richmond’s groovy buyers and that was evidenced by the 90 people who attended the auction and the 4 bidders who started at $650,000 and finished at $830,500. Russell Cambridge was the auctioneer and gave his usual upbeat performance. After 2 referrals inside Russell did not put the home on the market because there was one strong bidder and he wanted to perhaps negotiate with her afterwards. However it eventually went on the market at $830,500 and sold with no further bidding at that price. A strong result.

Fitzroy North – 11 Seacombe St. This home rated 768 out of a 1000. We really liked the feel of this home – you could tell it was a loved home and had a lot space and places for sunshine to come in. Close to everything that is good in Fitzroy North, we anticipated strong bidding and there was from the two bidders that fought it out from 960,000 after a vendor bid at $950,000 till its eventual sale at $1.245 million. There was a crowd of 80 at the auction and perhaps more than the two bidders were there but things moved quickly under the guidance of the auctioneer Arch Staver.

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.

Some more added off markets added this week with no sales results filtering though to us. As per auction over the weekend at the top end of town it was a very quiet week.
Booroondara - 10
Stonnington - 7
Bayside - 6
Port Phillip - 4
Glen Eira - 1
Other Councils - 3

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

ALBERT PARK

S 72 Barrett St WB 7rm 215sqm $1,250,000 Hocking Stuart

ALPHINGTON

S 24 Broomfield Av WB 6rm 529sqm $1,005,000 Collins Simms
S 4 St Gothards Rd WB 9rm 20mx40m $1,100,000 Nelson Alexander

ASPENDALE

PI 12 Roycroft Av BV 8rm 489sqm $1,500,000 VB res undisc Century 21 Wilson Pride
PS Nepean Hwy $1,160,000 Brad Hollingsworth First National Real Estate Pt

BALWYN NORTH

S 1/44 Winfield Rd B 5rm $1,043,000 Jellis Craig

BEAUMARIS

S 6 Valmont Av BV 8rm 722sqm $1,030,000 Buxton

BENTLEIGH

PS Tucker Rd BV 4rm 914sqm $1,020,000 Buxton

BLACK ROCK

PI 60 Arkaringa Cr B 14rm 1306sqm $2,050,000 VB res $2,190,000 Buxton

BRIGHTON

54 New St B 9rm 725sqm $1,625,000 Buxton
PI 3 Bridge St WB 6rm 425sqm $1,000,000 VB lo $1,050,000 res $1,200,000 Buxton
PI 63 North Rd 7rm s/div $1,650,000 VB res $1,775,000 Buxton
PI 802 Hampton St B 8rm 618sqm $975,000 VB res $1,080,000 Hocking Stuart
PS Cole St B 6rm 361sqm $1,175,000 Biggin & Scott
PS Grandview Rd B 9rm 724sqm $1,750,000 J P Dixon Brighton
PS Mccallum St C 10rm 672sqm $3,000,000 Biggin & Scott
PS Orchard St B 10rm 1728sqm $3,125,000 Buxton

BRIGHTON EAST

PI 2 Landcox St B 9rm 750sqm $1,675,000 VB res $1,840,000 Hocking Stuart
PI 42 Canberra Gr B 6rm 767sqm $1,150,000 VB res $1,245,000 Hodges
PI 5 Clinton St B 7rm 604sqm $1,020,000 VB res $1,120,000 Hocking Stuart
PS Studley Rd BV 6rm 661sqm $1,090,000 Hodges

CAMBERWELL

SB 29A Inglesby Rd B 4rm 496sqm $1,175,000 Jellis Craig
SB 82 Prospect Hill Rd WB 9rm 648sqm $1,100,000 Marshall White & Co
PS Seymour Gr WB 6rm 662sqm $1,225,000 Jellis Craig

CANTERBURY

S 81 Mont Albert Rd B 7rm 100sqm $1,905,000 Nelson Alexander

CARLTON

S 286 Cardigan St B 7rm $1,010,000 Thomson
S 8-14 Little Queensberry St B 1rm 193sqm $1,130,000 Hocking Stuart
PS Swanston St B 7rm 20mx35m $1,700,000 Nelson Alexander

CAULFIELD

PI 126 Murray St BV 6rm 779sqm $1,150,000 VB res undisc Hocking Stuart

CAULFIELD NORTH

PS Sebastopol St B 5rm $1,050,000 Gary Peer & Associates

CAULFIELD SOUTH

S 35 Spring Rd B 10rm 979sqm $1,312,000 Gary Peer & Associates
S 72 Carlingford St B 10rm $1,350,000 L J Hooker Elsternwick

COBURG

PS Pentridge Village B 6rm s/div $1,300,000 Brace RE Thornbury/Abbott & Dean Coburg
PS Pentridge Village B 6rm s/div $1,300,000 Brace RE Thornbury/Abbott & Dean Coburg
PS Pentridge Village B 6rm s/div $1,305,000 Brace RE Thornbury/Abbott & Dean Coburg
PS Pentridge Village B 6rm s/div $1,300,000 Brace RE Thornbury/Abbott & Dean Coburg

ELWOOD

S 102 Addison St B 4rm 478sqm $1,350,000 Chisholm & Gamon
PS Pine Av B 5rm 312sqm $1,075,000 Chisholm & Gamon

ESSENDON

S 34 Robb St WB 7rm 650sqm $1,130,000 Paul Mcdonald RE

FITZROY NORTH

S 11 Seacombe St WB 7rm 9mx25m $1,245,000 Nelson Alexander
PI 76 Mckean St B 6rm 162sqm $1,150,000 res $1,180,000 Jellis Craig

FLINDERS

PI 81 Barker St B 8rm 1119sqm $990,000 VB res $1,200,000 Kay & Burton

GLEN IRIS

S 18 Vincent St B 7rm 871sqm $1,965,000 Marshall White & Co

HAWTHORN

S 5A Austin St B 5rm 464sqm $1,135,000 Jellis Craig
PI 10 Barton St WB 3rm 329sqm $910,000 res $1,005,000 Marshall White & Co
PI 73 Haines St WB 4rm 210sqm $1,020,000 VB res $1,100,000 Noel Jones

HAWTHORN EAST

S 19 St Helens Rd BV 8rm 646sqm $2,500,000 Jellis Craig
S 23 Ryeburne Av B 8rm 848sqm $1,720,000 Noel Jones
S 45 Pleasant Rd v/land 695sqm $1,160,000 Jellis Craig

KEW

PI 43 Princess St B 9rm 742sqm $1,550,000 VB lo $1,600,000 res $1,800,000 Marshall White & Co
PS Mount St BV 7rm 341sqm $1,325,000 Noel Jones

MALVERN EAST

S 98 Manning Rd B 9rm 665sqm $1,300,000 Marshall White & Co
PI 32 Tooronga Rd B 9rm 15mx40m $975,000 VB res $1,100,000 Thomson
PS Manning Rd B 7rm 608sqm $1,225,000 Bennison Mackinnon

MERRICKS

PI 19 Yal Yal Rd B 6rm $1,300,000 VB res $1,425,000 Kay & Burton

MIDDLE PARK

S 102 Hambleton St WB 5rm 250sqm $1,525,000 Hocking Stuart

MOUNT MARTHA

PS Pacific Tce BV $1,022,000 Mcewing Partners Mornington
PS Park Rd 10rm $1,560,000 MPRE Harcourts Mt Martha/Mpre Harcourts Mornington

PARKVILLE

PS Story St B 6rm $1,085,200 Thomson

PORT MELBOURNE

S 24 The Crescent BV 6rm 192sqm $1,100,000 Biggin & Scott

RICHMOND

S 18 Dove St B 8rm 172sqm $1,200,000 Bennison Mackinnon

SANDRINGHAM

PI 1 Daly Rd B 9rm 792sqm $1,370,000 VB res $1,480,000 Hocking Stuart

SOUTH MELBOURNE

PI 15/182 Albert Rd B 4rm strata $1,800,000 res $2,050,000 Marshall White & Co
PI 74 Smith St WB 5rm 115sqm $930,000 VB res $1,020,000 Hocking Stuart

SOUTH YARRA

S 11 Tivoli Rd BV 5rm 230sqm $1,173,000 Castran Gilbert
PI 15/286 Toorak Rd B 6rm strata $1,100,000 VB res $1,250,000 Hodges
PS Surrey Rd B 4rm irregular $1,100,000 Biggin & Scott

ST KILDA EAST

S 2 Woodstock Av B 16rm $1,791,000 Gary Peer & Associates

STRATHMORE

PI 33 Windsor Av B 7rm 608sqm $1,285,000 lo $1,295,000 res $1,330,000 Nelson Alexander

SURREY HILLS

S 11 Barton St WB 8rm 753sqm $1,450,000 Noel Jones
PI 436 Whitehorse Rd BV 9rm 780sqm $1,060,000 lo $1,065,000 res undisc Jellis Craig

TOORAK

PI 207A Kooyong Rd B 7rm 1000sqm $3,300,000 VB res $3,600,000 Buxton

VIEWBANK

PS Old Lower Plenty Rd B 8rm 3600sqm $1,180,000 Jellis Craig

WERRIBEE SOUTH

S 200 Diggers Rd BV 7rm $1,130,000 Ray White Werribee

Happy Spouse, Happy House

In Search of Home Sweet Home - Part 5.

Negotiation Practice 101...

Hello Buyers,

Hope your house hunting is going well.

Over the coming weeks you may well notice stock numbers dropping dramatically. There are two reasons for this; we are heading into winter which traditionally is a quieter time of year (some vendors don’t like to sell at this time as their gardens don’t look good) and secondly after the Queen’s Birthday weekend in early June, there will be no more long weekends until Cup weekend in early November.

There will be a more even spread of property and potentially less for you to choose from. The start of 2008 was full of public holidays and long weekends. Consequently you saw a huge amount of property squashed into four week time frames. Agents and vendors prefer not to auction on long weekends as buyers may be out of town; you may notice there is a large number of properties going to auction this weekend. This is because it is the week before a long weekend. A good time to be buying.

I have a practical exercise for you and it involves shopping. Yes that’s right, all of the girls are excited and all the fellas are running for cover and hiding their credit cards.  Don’t worry guys this exercise does not involve the actual spending of your hard earned cash. It’s in anticipation for when you find your dream property. This exercise is all about NEGOTIATING. I can hear the fellas sighing with relief and the girls maybe apprehensive.

The more often you do this exercise the more comfortable you will become with negotiating. The aim of this exercise is to be able to feel confident and in control when negotiating the purchase of your home. Agents negotiate constantly so you need to be on your game when the time comes.

As often as possible, I want you to visit different retailers, such as white goods,  electrical, furniture or computer. Your mission is to negotiate a minimum of $150 off a product. Take a pen and paper so it looks like you are competitive shopping. This gives you the opportunity to walk away after you have negotiated a price, but not transacted!

If you cannot successfully complete this mission, you may not be ready to mix it with the very experienced agents who have taken part in hundreds of negotiations. I’d love to hear how you go. If the exercise becomes easy – raise the stakes.

Until next week, happy house hunting.

Show Me The Money

Apartment and Warehouse Living.

There are a myriad of questions and issues to consider when thinking about moving from the prized family home with the typical Aussie large back yard to the more confined spaces offered by the alternative style of apartments or warehouse conversions. From a longer term investment viewpoint, we understand this type of property to be a lifestyle decision as history shows land outperforms buildings.  Apartments have not had a great history compared to land.

Some of the issues we think about when buying apartments are -

• Suburb – water views, parkland views, or industrial views (if warehouse conversion)
• Street – busy (such as Beaconsfield Parade) or quiet (such as parts of Port Melbourne)
• Position to shops – walking distance to supermarkets and coffee shops
• Position to rail (train or tram)
• Developer/Builder – track record     
• Architect – other projects – well known architects on some boutique projects have performed well reasonably time
• Views – can they be built out
• Quality & finishes & specifications  
• Floor plan - must be logical and work  
• Parking – how many car spots needed – some apartments now have car stackers
• Parking – distance from car park to lift
• Lifts – private (direct to the apartment) or shared
• Amenities & common areas
• Natural light  
• Body corporate fees (now called Owners’ Corporations). Is there is sinking fund or any work scheduled in the near future that could cost you money
• Security gates & intercoms  
• Street appeal - front of building
• Front door. How strong is the security?
• Disabled access  
• Gardens – if you buy on the top floor, how important are gardens in the grounds of the property
• Heating, cooling & insulation
• Rubbish disposal
• Storage
• Noise & sound proofing
• Resident mix - family
• Renovations to be done
• Furniture & power points & data cabling
• Natural air flow     
• Insurances         
• Ceiling heights – important in larger, open spaces
• Window cleaning – exterior

Three properties we visited during the week -

18 Tennyson Street Richmond. This is a serious transformation and one of the best warehouse conversions I have seen. Great living areas, great use of light via the several sky lights, unbelievable kitchens and bathrooms, great use of the original building structure. Three bedrooms, three bathrooms (and powder room), two living areas and separate dining area.

The streetscape is not great, right in amongst factories and warehouses, but these are all normal factors of this style of living. See www.jameshomeratings.com.au for our rating on this property.

Agent Anthony Cantor from Kay & Burton is quoting $1,500,000 and the auction is Saturday 31st May at 11.00am.

15/182 Albert Road, South Melbourne. Want a great view of Albert Park and the lake? Gerald Betts from Marshall White and Robert Marden from Buxton are selling this apartment with stunning views and private lift access, literally across the road from Albert Park. Couple of drawbacks; the master bedroom is smallish, at the rear and has no views. The ceiling height is low and does give a slightly enclosed feeling. However, it has a warm, homely feel that a lot of apartments lack and the real WOW factor is upstairs – a private, rooftop terrace with amazing views, great for entertaining. The pre auction quote was $1,800,000. The property passed in at auction on Saturday 24/5 at $1,800,000 against a reserve of $2,050,000.

19/156 Beaconsfield Parade, Albert Park. Just as the Albert Road apartment had great views of Albert Park, this one has spectacular and uninterrupted views of Kerferd Road beach and Port Philip Bay. The overall living space is adequate but not large, but this offset by a study (with views), a master bedroom with equally as good a view as the main living area, and a balcony made for entertaining. The complex also includes a lap pool and gym.

Agent John Holdsworth from Hocking Stuart is quoting $2,400,000 - $2,600,000 and the auction is next Saturday 31st May.

Architectural advisory

A Great Opportunity!

This lovely property, 23 Ryeburne Avenue Hawthorn East was up for auction this weekend. At first glance many would have seen a lot of hard work and effort ahead here – some may even have looked well beyond the house and sought to buy for land value only.

Achieving a strong rating score of 701 this humble Edwardian property in my opinion had many positives – secluded rear open space with northern aspect, lovely brick period home with wonderful bones, street presence, good frontage width & an overall land size of (848m2). The street itself has a lovely feel and close proximity to Rathmines Rd, Sir William Angliss Reserve, tramline & 2 trains stations were very convenient benefits. 

Unsurprisingly, this sold at auction just over the quote range at $1,720,000. This equates to $188 per square foot, which is quite reasonable.

One option for this property is given above. This involves knocking down the rear extension (not part of the original house) and extending to the rear to incorporate a second storey. By doing this the house now logically has informal and formal living zones, the former being open plan connecting easily to the rear outdoor living space.

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