Auction & Sale Report

Melbourne August 16th Weekend 2008

The clearance rate was 66% from the 449 auctions held this weekend

CLEARANCE RATES IN PERCENT

WEEKEND AUCTIONS AT A GLANCE

8 Young Street
BRIGHTON

PASSED IN

4 Seymour Avenue
ARMADALE

BOUGHT AFTER

18 Edro Street
BRIGHTON

PASSED IN

53 Power Street
HAWTHORN

BOUGHT AFTER

2 Burne Court
KEW

PASSED IN

4 Burne Court
KEW

PASSED IN

27 Wanalta Road
CARNEGIE

BOUGHT AFTER

68 Pakington Street
ST KILDA

BOUGHT AFTER

25 Evelyn Street
BENTLEIGH

PASSED IN

5 Redcourt Avenue
ARMADALE

BOUGHT AFTER

34 Foam Street
ELWOOD

BOUGHT AFTER

10 Francis Street
SANDRINGHAM

BOUGHT AFTER

53 Athelstan Road
CAMBERWELL

PASSED IN

7 Frederick Street
BALWYN

PASSED IN

31 Campbell Road
BALWYN

BOUGHT

Market Insight

Mal James

Million Dollar Melbourne

Mal James 0408 107 988
Principal Buyer Agent

Continuing on from our comments last week about the increasing overhang of unsold properties. Of the 80 pass-ins (at around a million and above) we examined between April and now less than ½ have since sold after an auction pass in.

The current unsold pass in and private sale hangover and the increasing home stock numbers coming onto the market in Spring (as reported to us by selling agents) could see a number of property’s prices remain fairly stagnant to perhaps dropping even further despite any uplift in sentiment that may come, due in part from interest rate cut murmurings. Now please we are not making blanket predictions; what we are saying is “ all homes must be looked at on a case by case basis and at one extreme a hot home with multiple buyer interest priced correctly coming onto the market now will create a lot more positive market spin than a home that has been to auction three months ago and has failed to sell”. BUT

Which is the better property for you? If the unsold one has a North rear orientation with good land size close to transport and although a little tired has a very workable floorplan and is coming in at $6000 per improved square metre and the other is a glitzster with all the bells and whistles and ILVE stove, french doors leading to a courtyard, polished boards, granite benchtops on small land within hearing distance of freeway and is coming in at $12,000 per improved square metre then....... And hold on again if one is being sold through a TOP END marketing machine and the slightly older tired one is being marketed with a selling agent whom we have never heard of before then ....

Which one is better? Well of course depending on your specific needs one may have greater appeal (emotional and that is very important) than the other. Longer term financially one clearly may be better than the other.

So from a buyers point of view monitoring a number of failed auctions can be a good idea – who knows in a few weeks or months that property you really liked but could not afford may in fact become affordable if you know how to approach the agent or seller. And you do need to have a plan (ps one that works)

Having said that a bit of balance is required. In Bayside last week a large $2m+ property in Hampton was well sold quietly by Robin Parker of RT Edgar for a price we considered normal for last year but in excess of what we expected

in the market of this year and add to that several strong $4m+ sales in Brighton reported in the press last week, an improving $1m+ clearance auction rate and you can see all homes are not being given away.

While the market may have taken a break from its freefall of April, May and July what does this mean for the future? If nobody can reliably predict the future from a timing point of view why spend so much time worrying about it. Our advice to buyers is if you are buying for the long term then in the future there will be ups and downs. If you are buying for the short-term like a developer does, then as the Americans say it’s a crap shoot. In any market there are good and bad buys however the market is working in favour of those that are trading up as our gap diagram of last week tried to highlight with many higher end homes dropping more severely than lower priced homes.

Finally comments on the market.

Under a Million:
Stunning Homes under a million are still selling very well however overpriced homes that need attention or in less than perfect position are nowhere near as strong as last year.

1-3 Million:
This is the hardest section of the market to read. Why is that? Because this section of the market is the most unpredictable? Why is that? The buyers and sellers involved have multiple decisions to make in a tough environment. Will I renovate; will I be able to sell my home if I buy this one? Should I take that price or hold?

Over $3 Million
This market has cooled considerably unless there are multiple bidders ready to buy at the time of the considered offer.

Good buying

Auctions We Attended

655/1000

ARMADALE, 4 Seymour Avenue

POSITION	PROPERTY	PRICE/QUOTE
4 Seymour Avenue	Medium Houses	1,400,000
OPENING BID	RESERVE	LAST BID
1,350,000 VB		1,440,000
AUCTIONEER	AGENCY	AUCTION VIBE
Iain Carmichael	Bennison Mackinnon	Quiet
CROWD	BIDDERS	RESULT
40	1	BOUGHT AFTER

OUR COMMENTS

"Iain Carmichael gave his usual strong performance, hampered by the rain at half-time where everybody went inside. One bidder emerged, it was passed into them and sold after for an undisclosed amount believed in excess of $1.45m"

Mal James
0408 107 988
Principal Buyer Agent

701/1000

ARMADALE, 5 Redcourt Avenue

POSITION	PROPERTY	PRICE/QUOTE
5 Redcourt Avenue	Medium Houses	1,900,000
OPENING BID	RESERVE	LAST BID
1,900,000VB		1,905,000
AUCTIONEER	AGENCY	AUCTION VIBE
Jeremy Fox	RT Edgar	Quiet
CROWD	BIDDERS	RESULT
50	1	BOUGHT AFTER

OUR COMMENTS

"Reasonable crowd in a street full of very classy homes, but only one bidder $5,000 above the opening vendor bid. Classic period home sitting very proudly on the property, had its positives and negatives as all homes do, but loads of potential. Sold after at an undisclosed price"

Peter Sinclair
0423 778 774
Principal Buyer Agent

726/1000

BALWYN, 7 Frederick Street

POSITION	PROPERTY	PRICE/QUOTE
7 Frederick Street	Large Houses	2,200,000
OPENING BID	RESERVE	LAST BID
1,975,000VB	2,200,000	2,060,000
AUCTIONEER	AGENCY	AUCTION VIBE
Michael Clark	Noel Jones	Expected
CROWD	BIDDERS	RESULT
180	2	PASSED IN

OUR COMMENTS

"Good auction with Michael Clark - 2 bidders and surprised it hasn't sold as of Monday"

Adam Woledge
0413 318 079
Registered Architect & Principal Buyer Agent

715/1000

BALWYN, 31 Campbell Road

POSITION	PROPERTY	PRICE/QUOTE
31 Campbell Road	Large Houses	2,200,000
OPENING BID	RESERVE	LAST BID
2,200,000VB
AUCTIONEER	AGENCY	AUCTION VIBE
Maurice Di Marzio	Jellis Craig	Very Strong
CROWD	BIDDERS	RESULT
180	3	BOUGHT

OUR COMMENTS

"Strong Auction well conducted by Maurice Di Marzio. Sold under the hammer for an undisclosed amount in excess of $2.4m"

Adam Woledge
0413 318 079
Registered Architect & Principal Buyer Agent

721/1000

BENTLEIGH, 25 Evelyn Street

POSITION	PROPERTY	PRICE/QUOTE
25 Evelyn Street	Medium Houses	1,150,000
OPENING BID	RESERVE	LAST BID
1,050,000VB		$1,100,000VB
AUCTIONEER	AGENCY	AUCTION VIBE
Nick Renna	Hocking Stuart	Quiet
CROWD	BIDDERS	RESULT
70	0	PASSED IN

OUR COMMENTS

"Good crowd but no bidding from the crowd. Land size not too bad for a townhouse, but the ratio of land v building is challenged with this type of development. This is a good home with good living spaces, but perhaps in this area people are not yet comfortable with the idea of paying $1.2m or more for a residence on limited land."

Peter Sinclair
0423 778 774
Principal Buyer Agent

575/1000

BRIGHTON, 8 Young Street

POSITION	PROPERTY	PRICE/QUOTE
8 Young Street	Large Houses
OPENING BID	RESERVE	LAST BID
2,000,000 VB	2,250,000	2,100,000 VB
AUCTIONEER	AGENCY	AUCTION VIBE
Jason Gill	Hodges	Quiet
CROWD	BIDDERS	RESULT
15	1	PASSED IN

OUR COMMENTS

"Very small turnout for a quiet auction on a property that is being re-auctioned having sold earlier this year."

Mal James
0408 107 988
Principal Buyer Agent

654/1000

BRIGHTON, 18 Edro Street

POSITION	PROPERTY	PRICE/QUOTE
18 Edro Street	Land Only	1,200,000
OPENING BID	RESERVE	LAST BID
1,000,000VB	1,150,000	1,040,000VB
AUCTIONEER	AGENCY	AUCTION VIBE
Peter Kennett	Hocking Stuart	Quiet
CROWD	BIDDERS	RESULT
30	0	PASSED IN

OUR COMMENTS

"A quiet auction"

Mal James
0408 107 988
Principal Buyer Agent

661/1000

CAMBERWELL, 53 Athelstan Road

POSITION	PROPERTY	PRICE/QUOTE
53 Athelstan Road	Large Houses
OPENING BID	RESERVE	LAST BID
1,650,000VB	1,850,000	1,660,000
AUCTIONEER	AGENCY	AUCTION VIBE
Justin Long	Marshall White	expected
CROWD	BIDDERS	RESULT
40	1	PASSED IN

OUR COMMENTS

"Justin Long did a good job with only one bidder but still hasn't sold as of Monday"

Adam Woledge
0413 318 079
Registered Architect & Principal Buyer Agent

645/1000

CARNEGIE, 27 Wanalta Road

POSITION	PROPERTY	PRICE/QUOTE
27 Wanalta Road	Medium Houses	740,000
OPENING BID	RESERVE	LAST BID
680,000		745,000
AUCTIONEER	AGENCY	AUCTION VIBE
David Thomson	Thomson	Strong
CROWD	BIDDERS	RESULT
70	4	BOUGHT AFTER

OUR COMMENTS

"Good crowd despite the rain and a good auction, albeit very drawn out. Four bidders, bit a rarity today, only one vendor bid at $690,000, passed in and sold at $10,000 above the highest bid. "

Peter Sinclair
0423 778 774
Principal Buyer Agent

769/1000

ELWOOD, 34 Foam Street

POSITION	PROPERTY	PRICE/QUOTE
34 Foam Street	Medium Houses	2,100,000
OPENING BID	RESERVE	LAST BID
1,900,000VB	2,100,000	1,975,000
AUCTIONEER	AGENCY	AUCTION VIBE
Peter Kennett	Hocking Stuart	Quiet
CROWD	BIDDERS	RESULT
100	1	BOUGHT AFTER

OUR COMMENTS

"Hocking Stuart pulled out the big guns for this highly anticipated auction with Peter Kennett from their Brighton office as auctioneer. The power of the multi office network was evidenced with the team from their St Kilda office also in attendance. A huge crowd of approximately 100 people gathered in the rain and cold as Peter discussed the ‘enormous interest’ in the home and the ‘cosmopolitan lifestyle Elwood offers’. It was a very strong introduction stating that ‘upcoming supply is 40% down on last year’. Unfortunately the commanding spiel did not entice any bidding and the team returned inside ‘to seek further instructions’. This was disappointing as 34 Foam Street rated extremely well with 769/1000 and is designed by one of Melbourne’s leading architects Nicholas Wright. Returning Peter took another vendor bid and one party came back at $1.975mil. The property was passed-in to this bidder and negotiated after for an undisclosed price. The adjoining property at 34A sold in May 08 for $2.35mil with Hodges."

Melissa Ryan
0409 409 357
Principal Buyer Agent

584/1000

HAWTHORN, 53 Power Street

POSITION	PROPERTY	PRICE/QUOTE
53 Power Street	Medium Houses	1,700,000
OPENING BID	RESERVE	LAST BID
1,700,000VB		1,910,000
AUCTIONEER	AGENCY	AUCTION VIBE
Antony Woodley	Collins Simms	Strong
CROWD	BIDDERS	RESULT
60	2	BOUGHT AFTER

OUR COMMENTS

"A strong auction well directed by auctioneer Antony Woodley on a home we didn't expect to sell easily because of the road. However the position and pool obviously overcame those negatives."

Mal James
0408 107 988
Principal Buyer Agent

693/1000

KEW, 2 Burne Court

POSITION	PROPERTY	PRICE/QUOTE
2 Burne Court	Medium Houses	3,000,000
OPENING BID	RESERVE	LAST BID
2,600,000VB		2,750,000VB
AUCTIONEER	AGENCY	AUCTION VIBE
Stephen Abbott	Jellis Craig	Quiet
CROWD	BIDDERS	RESULT
80	0	PASSED IN

OUR COMMENTS

"Surprisingly no interest on a home that is of good quality and in a good position."

Mal James
0408 107 988
Principal Buyer Agent

690/1000

KEW, 4 Burne Court

POSITION	PROPERTY	PRICE/QUOTE
4 Burne Court	Land Only	1,750,000
OPENING BID	RESERVE	LAST BID
1,400,000VB	1,750,000	1,500,000VB
AUCTIONEER	AGENCY	AUCTION VIBE
Stephen Abbott	Jellis Craig	Quiet
CROWD	BIDDERS	RESULT
60	0	PASSED IN

OUR COMMENTS

"A tough gig for Auctioneer Stephen Abbott after the next door home didn't sell 30 minutes earlier."

Mal James
0408 107 988
Principal Buyer Agent

685/1000

SANDRINGHAM, 10 Francis Street

POSITION	PROPERTY	PRICE/QUOTE
10 Francis Street	Small Houses	1,120,000
OPENING BID	RESERVE	LAST BID
		990,000VB
AUCTIONEER	AGENCY	AUCTION VIBE
Steve Tickell	Hocking Stuart	Quiet
CROWD	BIDDERS	RESULT
30	0	BOUGHT AFTER

OUR COMMENTS

"Steve Tickell of Hocking Stuart Sandringham conducted a light and humorous auction and gave valuable advice to the group of 30 onlookers. He stated ‘we are in a market where opportunity exists and if you are looking to trade-up this is the time to do it, before interest rates come down’. Steve and his team conduct non-referral auctions and are very strong in their convictions of supporting their vendor’s expectations. Steve does not declare vendor bids. It is left to the buyers to ‘get involved’. Steve asked for an opening bid at the bottom of the quote range of $990,000. There was no bidding and the property was passed-in at that level. 10 Francis Street was sold shortly after to a party who showed strong interest in the home throughout the campaign. It sold within the quote range for $1.065mil. It was not surprising the property sold well as it rated 685/1000. This is a very high rating for a small home. Francis Street is very peaceful and family friendly. The property is fully renovated and would suit a young family."

Melissa Ryan
0409 409 357
Principal Buyer Agent

730/1000

ST KILDA, 68 Pakington Street

POSITION	PROPERTY	PRICE/QUOTE
68 Pakington Street	Small Houses	1,300,000
OPENING BID	RESERVE	LAST BID
1,200,000VB		1,210,000
AUCTIONEER	AGENCY	AUCTION VIBE
Andrew McLennan	Bennison Mackinnon	Quiet
CROWD	BIDDERS	RESULT
15	1	BOUGHT AFTER

OUR COMMENTS

"Small crowd for a very funky residence. Auction was held inside due to the weather which does dampen (pardon the pun) the atmosphere. Only one bidder, passed in and sold at an undisclosed amount. "

Peter Sinclair
0423 778 774
Principal Buyer Agent

Million Dollar Sales

All results can be found at REIV

Albert Park
S 18 Kerferd Rd B 6rm 280sqm $1,350,000 Hocking Stuart

Armadale
S 1/22 Mercer Rd B 6rm s/div $1,060,000 Bennison Mackinnon
PI 4/2 Mercer Rd B 5rm 150sqm $1,000,000 VB res $1,040,000 Bennison Mackinnon

Ashburton
PI 50 Eleanor St WB 10rm 676sqm $1,200,000 res undisc C+Weber

Balwyn
S 29 Northcote Av BV 6rm 946sqm $1,211,000 Fletchers
S 2A Georgian Ct BV 10rm $2,550,000 Noel Jones
PI 7 Frederick St BV 11rm 600sqm $2,060,000 res $2,200,000 Noel Jones
PI 17 Northcote Av WB 5rm 780sqm $920,000 VB res $1,030,000 Jellis Craig
PI 48 Linckens Cr B 8rm 898sqm $1,650,000 VB res $1,750,000 Jellis Craig

Balwyn North
S 51 Tuxen St BV 10rm 1220sqm $1,402,000 Jellis Craig

Blackburn
PS Gordon Cr BV 8rm 1060sqm $1,052,000 Woodards

Brighton
PI 8 Young St B 8rm 853sqm $2,100,000 res $2,250,000 Hodges
SB 28 Normanby St B 8rm $3,010,000 J P Dixon Brighton
PS Cole St v/land $1,050,000 J P Dixon Brighton

Brighton East
PI 13 Canberra Gr BV 7rm s/div $1,000,000 VB res $1,095,000 Hodges
PI 18 Edro Av B 10rm 706sqm $1,040,000 VB lo $1,050,000 res $1,150,000 Hocking Stuart

Camberwell
S 2 Christowel St B 6rm 816sqm $1,409,000 Bennison Mackinnon
PI 53 Athelstan Rd C 12rm 859sqm $1,660,000 lo $1,700,000 res $1,850,000 Marshall White and Co
PI 863 Riversdale Rd B 10rm 650sqm $1,000,000 VB res $1,050,000 Noel Jones

Canterbury
PI 1 Balwyn Rd B 8rm 980sqm $1,400,000 VB res $1,450,000 Noel Jones
PI 137 Prospect Hill Rd WB 7rm 930sqm $1,150,000 VB res $1,215,000 Marshall White and Co

Carlton North
S 145 Pigdon St B 6rm 5.5mx39m $1,121,000 Collins Simms

Docklands
PS Lorimer St 5rm $1,725,000 Lucas Real Estate

Donvale
S 24 Beckett Rd BV 13rm 4051sqm $1,120,000 Noel Jones

East Melbourne
PI 171 Powlett St B 6rm 6mx40m $2,200,000 VB res $2,650,000 Dingle Partners

Fitzroy
S 35 Westgarth St B 6rm $1,324,000 Nelson Alexander

Fitzroy North
S 41 Rushall Cr B 7rm 7mx43m $1,850,000 Collins Simms

Hawthorn
S 53 Power St B 6rm 760sqm $1,980,000 Collins Simms

Kew
S 20 Wills St BV 9rm 789sqm $1,480,000 Marshall White and Co
PI 2 Burne Ct BV 9rm 747sqm $2,750,000 VB res undisc Jellis Craig
PI 4 Burne Ct B 8rm 743sqm $1,500,000 VB lo $1,575,000 res $1,750,000 Jellis Craig
PI 48 Park Cr WB 6rm 600sqm $950,000 VB lo $962,000 res $1,010,000 Collins Simms

Malvern
S 70A Milton Pde BV 6rm $1,070,000 Noel Jones

Melbourne
PS St Kilda Rd 4rm $1,430,000 Kay and Burton

Port Melbourne
PS Johnston St C 6rm $1,900,000 Ray White Port Melbourne

Prahran
PI 3 St Edmonds Rd B 7rm 171sqm $2,100,000 VB lo $2,200,000 res $2,400,000 Williams Batters RE

Richmond
S 11 Waverley St B 5rm 170sqm $1,735,000 Hocking Stuart
PI 63-65 Erin St B 3rm 289sqm $1,300,000 VB res $1,495,000 Jellis Craig

Sandringham
S 10 Francis St WB 9rm 338sqm $1,065,000 Hocking Stuart

South Melbourne
SB 25 Palmerston Cr commercial $3,000,000 Gormankelly

South Yarra
S 14 Balmoral Pl BV 6rm 163sqm $1,081,000 Williams Batters RE

St Kilda
PS Blessington St 4rm $1,060,000 Wentworth Real Estate St Kilda

Toorak
PI 242 Williams Rd B 7rm 160sqm $1,360,000 lo $1,380,000 res $1,450,000 R T Edgar

Williamstown
PI 9 Twyford St BV 9rm $1,250,000 VB lo $1,310,000 res undisc Williams RE
SA 5 Hoffman Tce Rend 6rm $1,250,000 Sweeney

Wonga Park
PS Upton Ct 8rm $1,225,000 Philip Webb

Head Office
36 Wilson Street
Brighton 3186
Ph: 03 9591 0199

James Home Ratings
313 Glenferrie Road
Malvern 3144
Ph: 03 9804 3133

Hawthorn office opening late '08.