A massive crowd of around 240 people turned out to see what would happen at 43 Willis St, Hampton (Rowan Thompson, RT Edgar). And they weren’t disappointed. Bought under hammer, $2,550,000, 4 bidders

At 6.00 pm on Saturday the James Clearance Rate for Melbourne’s $M+ property was 63% on the 30 auctions we covered. The Weekly Review Bidderman, our bidders per auction measurement, was 1.9.

Market Summary

Welcome back after the Easter break.

Wow! What a finish we saw to the market pre Easter – it was strong in numbers on all fronts, stock levels, Bidderman and clearance rates.

The big question pre-Easter was: will it continue after Easter? Well, here we are. So what is happening in Inner Melbourne $M+?

This weekend, auction stock numbers were down to around a third of what we have been experiencing pre-Easter and also around half of what we will see for the next three weeks (100 $M+ each weekend in Bayside and Inner East). Overall stock quality was also more B-grade than A grade – not too many good homes start their selling campaigns between Good Friday and Easter Sunday.

So it was steady as she goes on smaller numbers and perhaps an unrepresentative sample.

In terms of bidder demand at auctions, the breakdown was:

• Ducks (no bidder auctions) – 20%
• Lone Rangers (1 bidder auctions) – 20%
• Norms (2-3 bidder auctions) – 50%
• Volcanoes (4+ bidder auctions) – 10%

Looks like it was a win to the Norms.

ROUND THE GROUNDS

Bayside

Clearance Rate – 50% of 12 auctions

Klarity Kris says there have been some good results in Bayside so far this year – with 39 properties selling for over $2 million in 2013 so far, seven of those for over $4 million and four of those for more than $5 million. But a few are remaining unsold – including 17 Seymour Grove and 18 Victoria Street – all in Brighton – even though they are period homes with good land content, good orientation and proximity to amenities. Given that buyers are keen, it may be price that is holding those properties back.

Stonnington

Clearance Rate – 71% of 8 auctions

Call Gina says there has been an unexpected dearth of homes in the $1 to $2 million range immediately after Easter – a bit of a surprise given the good run of sales in the first quarter, which you would think would have prompted more vendors to put their homes up for sale. She says this is leading to buyer frustration, especially given that most of the homes that have been listed lately are compromised in some way – situated on a busy road or needing a major renovation.

Port Phillip

Clearance Rate – 86% of 10 auctions

Vino Guy says we are finally starting to see some momentum in terms of listing numbers as a well as lift in the quality of homes on offer. Numbers through open for inspections are strong and some agents are reporting clearance rates of 100% – but of course that is on small numbers.

Boroondara

Clearance Rate – 75% of 17 auctions

Architect Adam says numbers are good at opens – apparently 40 groups went through 12 Bellett Street, Camberwell (Jacinta Tatti & Alastair Craig, Jellis Craig). Hamish Tostevin from Marshall White (Melbourne wide) says that May listings are up about 25% on last year. Two strong results in Hawthorn show that buyers are keen to buy, and are consequently a bit less discerning. Michael Hingston (Jellis Craig) sold 149 Rathmines Road Hawthorn East for the full asking price of $1,649,000 and 137 Robinson Road in Hawthorn for $1,536,000. Both properties were period homes but not perfect.

Carlton, 71 Drummond, Tom Roberts gets the job done under the hammer at $1,686,000. 2 bidders

In the North

P.P. P. Peter says more than 20 sales at around $1 million have been reported in Essendon and Moonee Ponds this year. And the year has also started strongly in Eaglemont and Ivanhoe with at least thirty reported sales above $1 million, including a couple above $2 million.

$3m Market

Mal in the Hat says the $3m+ market is running strongly – evidenced by a few strong sales in the boardroom, a couple of Expressions of Interest getting away, and some private sales being completed, not to mention some strong auction results that you can read about below. As a company we have noticed a marked increase in inquiry at this level, and this market has moved significantly from this time last year in terms of deals done.

All the $3m auction deals were all interesting this weekend. Amongst them were 40 Howe Crescent, South Melbourne (Rob Vickers-Willis), which was a case study for both the buyer and the agent on how you can dance when there is only one real partner on each side. It was bought for $4,525,000 after auction. Have a read of the auction report.

Brilliant Auction Strategy at St Vincents Place

73 St Vincents Place, Albert Park (Geoff Cayzer) was all about auction strategy. 73 is the second of three in a row of unrenovated but very substantial terraces that have gone onto the auction block in the exclusive St Vincents Place. This street is equal second as Melbourne’s highest land value with the Domain (circa $6000 persqm) and only behind Brighton absolute waterfront (circa $9,000 per sqm). Here Michael Szulc put into play the unusual and brave option of auctioning each of the three substantial properties one week after another. I don’t think people realise how smart a move this was. Well done to Michael. His thoughts were that the homes were always going to be bought by different parties and so he would give the ‘losers’ time to regroup and discuss with their architects after week one.

The middle property was regarded as the cream and it went first, last week, with five bidders at $4.3 million. Our final estimates were $4 million to $4.5 million, so it sold for within the expected realm but well above the $3,250,000 reserve. This week the one to the east, or left, of the middle one sold for $3,970,000 with another five bidders. That was slightly above our $3.6 million to $3.8 million final estimate, revised after last week. Next week will be the finish of this most exciting campaign, with No. 77 being auctioned. So roll up, roll up place your best – what will be the final sale price?

All three sold in 2008 in this same state for a combined price of just over $10 million. So if the third sells next week for just over the mid $3 millions, we are on track for around a 20% increase. The third property  is regarded by many as the weakest of the three, but it is also the last on offer. Hence, the brilliant strategy from Cayzers. Is Albert Park overpriced? With five bidders, there are four people still with money in their pockets. Which indicates that a number of high-end buyers obviously don’t think so. The winner will  be facing a renovation bill of  between $2 million and $3 million depending on their wishes.

And finally, 27 Spring Rd, Malvern (Jack Bongiorno) – which has been an interesting case of ring a ring a rosy, all over the posy and back to exactly the same spot we mosied. Isn’t that how that nursery rhyme goes? No, sorry. Anyway Gina gave 27 Spring a James Rating of exactly 700. It was bought in June 2011 and sold for exactly the same on Saturday  (around $4 million). Interestingly it was auctioned a few weeks ago with no result, and interestingly there is a big development across the road which will seriously affect the view. Despite all this the final number was de ja vu from 2 years ago.

Buyer Masterclass

Our article this week questions the myth that the buyer with the most money always wins. Having bought over 1000 homes we simply don’t believe that to be a true statement.

Click on the Buyer Masterclass article and read why. It’s a good read!

Agent Survey: How is the market shaping up compared to before Easter?

Tim Heavyside, (Fletchers, Canterbury): “The market in Boroondara and Whitehorse is moving ahead in leaps to bounds at the moment and has a sniff of 2010 about it all over again. Put simply, we currently cannot list enough homes to service the volume of buyer demand at the minute. If we had more, we’d sell more.”

Craig Shearn, (Jellis Craig, Clifton Hill): “With the first serious round of auctions post-Easter showing a 74% clearance rate, the market post-spring is showing signs of continued stability off the increase in values in the first quarter. A lack of supply is also adding to this and it will be interesting to see what flows through in the June quarter. There are certainly people making listing decisions as we speak.”

Bill Stavrakis, (Biggin & Scott, Elsternwick): “The market has certainly ‘freed up’ more so than before Easter. Healthy stock levels and strong numbers at our open homes and auction sales are encouraging. We are seeing good depth in the market. Recent auctions have seen three, and up to six bidders competing for properties, with the exception that some ‘compromised’ or ‘overpriced’ homes are being rejected or avoided by buyers. It is safe to say that the market conditions are ‘normal’ with some exceptional and unique properties clearly outperforming the general market place.”

Nick Johnstone, (Nick Johnstone, Brighton): “The market post-Easter is a bit patchy. We have found there is a real shortage of good family homes that are open plan and easy living. Driving around Brighton there are a lot of boards that have been up for a long time. The sub $1m unit market is very strong and we have had a lot of recent success with some strong off market sales in the top end.”

Michael Szulc, (Cayzer, Albert Park): “Since Easter there definitely appears to be a groundswell of optimism in the marketplace. However, I still believe it is a two speed market: (Market 1: $1m to $2.5m; Market 2: $2.5m plus). Market 1 is still very unpredictable. There is an enormous quantity of stock available with lots of variety from apartments, townhouses, terraces. Given the choice for buyers, mixed results are achieved each month, so it can be a mixed bag. Market 2 is a totally different ball game. In Albert Park and district, this generally represents moving towards larger terrace homes, apartments with special views/features, or custom built townhouses. This market is confident, optimistic and shows no sign of slowing up at this point in time. If you can offer the total package, location, land size and potential, then the sky is the limit. Evidence was the 75 St. Vincent Place Albert Park auction last week, selling for approx $1,000,000 (more) than valuations. I can see these two markets continuing this year – the secret to the success of the overall market is to see the number of sales improve in Market 1.

One more bid..please? Balwyn, 7 Madang Ave (Antony Woodley, Marshall White), passed in, $950,000, 2 bidders

Biggest Auctions:

• South Melbourne, 40 Howe Cres, Rob Vickers-Willis (Abercrombys), after auction, $4,525,000, 1 bidder
  Rob Vickers Willis launches into his soft shoe shuffle in front of a crowd of 70 as he auctions this up market terrace home in the exclusive Howe Crescent. Price expectations are given by Rob through a short dialogue on what happened last week at St Vincent’s place…(See More in Auction Reports)
• Malvern, 27 Spring Rd, John Bongiorno (Marshall White), after auction, in excess of $3,965,000, 2 bidders
  The sun was shining, the crowd was friendly and auctioneer Jack Bongiorno started on time. A good start to my final auction of the day I thought. I was eager to see what would result here, the second auction of this property in the last month…(See More in Auction Reports)
• Albert Park, 73 St Vincent Pl, Geoff Cayzer (Cayzer), under hammer, $3,970,000, 5 bidders
  The auction of 73 St Vincent Place Albert Park could have been an anticlimax after the excitement last week that surrounded the sale of 75 St Vincent Place. Not the case at today’s auction though, with a strong crowd of over 300 and five bidders ‘the buzz’ was definitely there..(See More in Auction Reports)

Biggest Pass Ins:

• Port Melbourne, 1 Byrne St, passed in, $2,300,000, 3 bidders
  The boys at Buxton turned today’s auction at 1 Byrne street Port Melbourne into a real social affair with a guitar duo singing up a storm, a sausage sizzle, coffee van and free face painting for the children. And with the tiger supporters coming out of the woodwork auctioneer Karl Gillon…(See More in Auction Reports)
• Balwyn, 13 Winmalee Rd, passed in, $2,210,000, 1 bidder
  Auction flags are flapping in the breeze, and 100 have gathered to see which way fortunes will blow for 13 Winmalee today. There are those texting, or lazing about, and even a few school kids doing an auction assignment. All wait patiently as auctioneer Tim Heavyside steps out front and…(See More in Auction Reports)
• Brighton, 14 Comer St, passed in, $1,950,000, 0 bidders
  All was quiet on the auction front at 14 Comer Street today. The crowd sat quietly along the fence on the far side of the road, clearly spectators not bidders. Auctioneer Leigh Hallamore…(See More in Auction Reports)

Bidderbuzz:

• Toorak, 4a Bellaire Crt, Justin Long (Marshall White), under hammer, $1,430,000, 5 bidders
  Set in an idyllic court in Toorak, this Mediterranean-styled 2 bedroom townhouse attracted a crowd of some 60 onlookers with five serious bidders. Despite the chill in the air, it was a red hot auction…(See More in Auction Reports)
• Hampton, 43 Willis St, Rowan Thompson (RT Edgar), under hammer, $2,650,000, 4 bidders
  Rowan Thompson proudly gathered the mass crowd into the front yard of 43 Willis st, Hampton, to see the historical home go under the hammer. Standing for over 100 years, the community spirit was definitely seen at Hampton today…(See More in Auction Reports)
• Brighton, 21 Anne Cres, Nick Johnstone (Nick Johnstone), under hammer, $1,575,000, 3 bidders
  A crowd of around 55 witnessed a text book auction today at 21 Anne Crescent. A quick start, multiple bidders, then on the market and sold. Auctioneer Nick Johnstone called for opening bids and one was provided straight away at $1,400,000…(See More in Auction Reports)

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Footnote
Several weeks ago we reported that 10 Blairgowrie Ct, Brighton sold for $6m. In fact it sold for an undisclosed amount above $6m. Apologies.