Is the Top End easing a smidgen?

Toorak: 44 Mathoura Road, Justin Long (), after auction, undisclosed above $4,050,000, 1 bidder

Week Ending Saturday, September 13:

Market Summary

The Market is splitting as it normally does when adjusting to the Spring Influx of properties.

This week the market has sent buyers and sellers two very clear messages.

  • If you’ve got a well priced, ready to move in home with some WOW in the $1m to $5m  range, then you have a home that is attracting a lot of interest or you have a home you will have to compete on. Look at the near volcanic Bidderman of the last two months and again today – despite the stock surge (Super Saturday – eg 150 $M+ Inner East and Bayside).
  • If you have a home that is overpriced AND above $3m AND less than perfect – eg it needs a reno; then you not travelling as well as the rest of the market right now, nor are you travelling as well as this market segment was travelling just a little while ago. Check out the pass-ins below.

Look at Bidderman – a win to the Volcanoes – when you’re hot, you’re on fire. Compare this with the James $M+ Clearance Rate (in the 60’s) showing that when you’re not hot, and priced as we say courageously, then you are now experiencing a real kick in the guts as a seller or you are Robinson Crusoe as a buyer at above market levels.

However please make no mistake for us the market is still incredibly hot – all we are saying is now Spring is here – recognise the difference between a good home and a bad home – a market priced home and a courageously priced home.

$3M+ Auctions: The $3m market was one we were knee-deep in today, as many advocates were.

Here are three, they absolutely flew and warrant comment:

13 Edro Avenue East (Peter Kennett and Tam Whelan) under hammer, undisclosed above $3,250,000, 4 bidders James Home Rating 720/1000 click here to see rating. The third East Brighton home to go past $3.5m in the last few months. This sale is no longer a fluke, an outlier, an anomaly like many said of Binnie and Shasta.

222 Esplanade West Port Melbourne (Maddy Kennedy and Oliver Bruce) under the hammer, 5 bidders. James Home Rating 719/1000  click here to see rating. This was by any measure a single fronted home and it achieved just a tick under $3m. Don’t get me wrong, it was worth it if your goal was to buy one the best homes of this type going round. A massive crowd of nearly 200 people lined Esplanade West to see what would transpire at auction…(See More in Auction Reports)

14 Mercer Road Armadale ( and Warwick Anderson) under hammer, $6,100,000, 4 bidders. James Home Rating  675/1000 click here to see rating. This was a blank canvas in the true sense of the word. Over 120 people gathered around the perimeter of the big front yard of this big home on big …(See More in Auction Reports)

Some More $3M+ Results

  • Armadale, 46 Stuart Street (Gowan Stubbings, Kay & Burton), after auction, undisclosed above $3,500,000, 1 bidder
    As I approached this scene I noticed the big crowd (120 people) and wondered if they had all walked here…(See More in Auction Reports)
  • Brighton, 142 & 142A The Esplanade, passed in, $4,700,000, 2 bidders
    To the 40 people crowded into the bare sitting room…(See More in Auction Reports)
  • Toorak, 44 Mathoura Road, (Justin Long, Marshall White), after auction, undisclosed above $4,050,000, 1 bidder
    A grand Victorian brick home is on offer and auctioneer…(See More in Auction Reports)
  • Kew, 44 Studley Avenue, passed in, $4,000,000, no bidders
    Despite the picturesque city views and lush setting auctioneer…(See More in Auction Reports)
  • Malvern, 4 Mayfield Avenue, passed in, $3,800,000, 1 bidder
    Warwick Anderson was our auctioneer on this bright and sunny morning…(See More in Auction Reports)
  • Brighton, 23 Tennyson Street, passed in, $3,650,000, 3 bidders
    What a glorious day for an auction and what a glorious setting.  More than 40 people had gathered…(See More in Auction Reports)
  • Malvern, 40 Thanet Street, passed in, $3,400,000, 2 bidders
    The smell of cut grass was in the air and the sunshine was drying off clothes on washing lines with ease…(See More in Auction Reports)
  • Middle Park, 86 Nimmo Street, passed in, $3,000,000, no bidders
    Geoff Cayzer says this one has got the lot – accommodation, orientation and a big block of land…(See More in Auction Reports)

Canterbury: James Tostevin (Marshall White) sells 66 Alexandra Avenue under hammer, $3,020,000 2 bidders

Week Ending September 6

Are Stock Levels causing this current market to do what it is doing?

With two big auction weekends coming up – any talk of market strength being solely due to low stock levels will be proved or disproved.

We think it will be disproved as we see an underlying strength across the board – except right at the Top. At the Top the market is not quite as consistent as it is at the lower levels.

Bidderman has consistently been well above 2 bidders per auction each week and that says to us the bidder depth should be able to soak up this first wave of Spring stock – meaning buyers will have to compete.

But if we’re wrong then you’ll read it here soon.

Biggest Auctions:

  • Canterbury, 25 The Ridge (James Tostevin, Marshall White), after auction, undisclosed above $3,225,000, 2 bidders
    Not a cloud in the sky, great day for the auction of this well-updated family home in The Ridge, one of Canterbury’s better streets…(See More in Auction Reports)
  • Malvern, 3 Willow Street (Marcus Chiminello, Marshall White), after auction, $3,300,000, 1 bidder
    This contemporary residence saw the crowd slow to build until Marcus Chiminello emerged to launch into his opening spiel…(See More in Auction Reports)
  • , 44 Clarence Street (John Bongiorno, Marshall White), under hammer, $3,130,000, 5 bidders
    John Bongiorno was our master of ceremonies here…(See More in Auction Reports)

Biggest Pass Ins:

  • Toorak, 8 Carmyle Avenue, passed in, $4,825,000, 1 bidder
    Tim Derham doesn’t need a microphone. On the first sunny Saturday morning in Spring…(See More in Auction Reports)
  • Hawthorn, 50 Hawthorn Grove, passed in, $3,550,000, no bidders
    Drawing a crowd of approximately 80 including a Channel 10 camera crew…(See More in Auction Reports)
  • Toorak, 17 Maple Grove, passed in, $3,200,000, 1 bidder
    Jeremy Fox says that it’s hard to find a single level house, which is much sought after by those seeking to downsize…(See More in Auction Reports)

Malvern East: 44 Clarence Street, John Bongiorno (Marshall White), under hammer, $3,130,000, 5 bidders

Agent Survey: After reading Mal’s article for young home buyers, what is your best tips for those starting out in today’s market?

(Gary Peer, North):” I liked Mal’s article and his focus on assisting people on the start of their real estate journey and creation of wealth. It is hard to get started , but I believe it always was , and won’t get any easier. Mal’s principal , or example/case study , revolves around buying in a great location and buying something underpinned by land – which I fully subscribe to and endorse. New properties offer luxury living , but depreciate ( much like a new car ) , which is why they often have an accompanying depreciation schedule. Conversely older properties , underpinned by a land component , will appreciate…so the old theory of buy the “ worst house in the best street “  still rings true!! My recommended book is “ The Richest Man in Babylon “  an easy to read , light hearted , but very relevant guide to saving and investing wisely.”

John Clarkson (, Brighton): “Young buyers looking to purchase should take their blinkers off and widen their search. If they lived in a particular area, often they want to purchase back in that immediate location . It is imperative to think outside the square and widen their search to adjacent suburbs. It is also vital to go to open for inspections and auctions to get a first-hand view of demand , prices and market activity . But the best tip of all is to be patient and realise you will not buy your dream property in an A-grade location by the beach on your first go!”

Glen Coutinho ( Boroondara, Kew): “My best tip is to get to know a few agents you can trust and ask for their opinion on the property before you buy it.  Like anything 3 independent opinions from agents will point you in the right direction. I would also suggest looking at comparable sales and market history and have a lawyer review the contract first. When buying, always think long term.”

David Wood (Hocking Stuart, ): “My best tip for young home buyers would be for them to decide what is not negotiable and what is negotiable on their wish list.  Invariably, something has to give when you first set out with a wish list, compared to what you can afford.  It could be car parking, location, bedroom accommodation, renovation standard etc. Say if you decide for example that you really want a specific suburb or geographic area, then you may have to negotiate on something else such as parking to achieve that goal. Another example is that you wanted an apartment in a specific area, but wanted to avoid large complexes, then you may need to compromise on the internal condition, that initially will result in a lower rental return, but ultimately give you better . Life is all about compromises, but you should stay strong on what you will NOT negotiate on, and location should be at the top of that list, or very close to it.”

 

$3-Million-Plus September Results

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