2016 has started off strongly in the Melbourne property market, with higher numbers of listings than the same time last year. This weekend in Melbourne there were 438 auctions held, with a clearance rate of 78 per cent recorded, compared to 73 per cent last week. Of the auctions held, 270 sold and 96 were passed in, 39 of those on a vendor bid.
Interest in the property market is strong, and the listings are tracking significantly higher than this time last year. With attendance up at open houses, auctions over the next four weeks will be a good indication of where the market is placed for 2016.
Upsizing families are returning to the market after not being successful in late 2015, yet the supply still has some catching up to do. On the other hand, first home-buyers are in a good position right now, with apartments being in good supply.
The past few weeks have also seen some activity amongst Bayside residents with Dendy Beach bathing boxes becoming hot property. The standing record for a bathing box has been broken, going under the hammer for $295,000.
More than 900 auctions are expected to be held in Melbourne next weekend.
Auction Results
226 Essex Street, West Footscray. Sold for $861,000
A hot auction took place at this renovated three-bedroom home with significant period character and superb modern elements. The first genuine offer of $740,000 quickly attracted another two interested parties into the bidding pool. As the house reached its $800,000 reserve, a fourth bidder joined in, but it wasn’t until the price reached $825,000 that a fifth would-be buyer stepped in causing a collective gasp from the crowd. The final bidder walked away with the keys after a challenging 16 bids, with the house selling for $861,000.
340 Howe Parade, Port Melbourne. Sold for $966,000
A one bedroom cottage on 283 square-meters of land, only three blocks from the beach was recognised by six hopeful buyers who saw the potential. The property comes with a planning permit to upgrade the property to a three-bedroom, two-storey home. A vendor bid of $740,000 started the auction, and bids proceeded quickly after that until the property was announced on the market at $810,000. The final bid was $166,000 above the reserve, and it came from an owner-occupier.
7 Harper Street, Northcote. Sold for $975,000.
An unrenovated single-fronted Edwardian, set in an exclusive cul-de-sac with a functional design, original period details and untapped renovation/extension potential (STCA) attracted fierce competition. Bidding began at $850,000, with bids flying at $10,000 increments taking the price all the way up to $970,000 in less than one minute. Gathering his breath during a quiet moment from the crowd, the auctioneer announced that the property had surpassed the reserve price, and there would be no half-time break. A fourth bidder attempted another offer with a $2,500 rise, yet it was another bidder who offered $2,500 more to become the new owner.
A clearance rate of 71 per cent was recorded in Melbourne from 1209 auctions, compared to 64 per cent last week. Of the auctions held, 865 sold and 349 were passed in, 153 of those on a vendor bid. In addition to the auctions, there were 430 private sales reported.
It was the final “Super Saturday” of 2015, and the market has proved again to be quite strong, even at this late stage of the year. The question we are being asked of late is “what do you think the market will be like next year?” Well, that depends on what happens with stock levels. There are still a lot of buyers in the market and the increased stock levels over Spring have allowed property prices to stabilise, however, this may be short lived if stock levels do not keep to the same levels in February and March next year.
The REIV have reported a record $27 billion worth of residential property has been sold by auction in Victoria, so far this year – up 27 per cent ($6 billion) on last year.
This will be our final market wrap for 2015. We are looking forward to seeing the new rush of homes on the market in late January and February. We hope you have a wonderful summer break!
Auction Results
70 Albert Street, East Melbourne. Sold for $1,825,000
This 1884 Victorian double fronted property in Melbourne’s most liveable suburb went under the hammer on Saturday. One keen buyer immediately offered a bid of $1.4 million, prompting a second bidder to offer a rise of $25,000. Two more bidders joined in, helping the price push past the reserve of $1.6 million. A late entrant made a solid offer of $1.8 million, but it was a downsizer who secured the property for $1,825,000.
2/5 Collington Ave, Brighton. Sold for $856,000
A terrific entry level property into Brighton caught the attention of many potential purchasers. This art deco apartment with large courtyard would suit investors, professional couples and downsizers. The auction started on a genuine bid of $750,000 with strong bidding from four interested parties. The property was announced on the market at $840,000 and sold for $856,000.
9/14-18 Howitt Street, South Yarra. Sold for $855,000
This large apartment with two balconies is located in a really convenient and quiet location in South Yarra. This location has the convenience of Hawkesburn train station and trams on Malvern Road. Three bidders participated in this auction to try and secure this piece of real estate. The auction started on a strong bid of $800,000, was announced on the market at $840,000 and sold for $855,000.
A clearance rate of 67 per cent was recorded in Melbourne from 1236 auctions, compared to 65 per cent last week. Of the auctions held, 825 sold and 411 were passed in, 161 of those on a vendor bid. In addition to the auctions, there were 413 private sales reported.
The market held firm this weekend, with plenty of properties going under the hammer. There were also about 20% of this week’s vendors who accepted offers before their scheduled auction time, which happens more commonly as the end of year approaches.
Buyers have been taking advantage of the perceived value available in properties in the north-east, an area which had been flying under the radar due to the emphasis on the popularity of the inner-east. Recent figures have shown that price growth and clearance rates had risen on the back of demand in 2015 in areas such as Ivanhoe.
There are more than 1,400 auctions scheduled next weekend, which will mark the final Super Saturday for the year.
Auction Results
60 Milton Street, Elwood. Passed in
In a sought after pocket of Elwood, this majestic two bedroom Edwardian with its high ceilings, two living spaces, open fireplaces, lead-light entry and Baltic pine polished boards had plenty of admirers. The auctioneer took an opening bid of $1.23 million, which was answered quickly by a second bidder offering $1.25 million. But this is where the auction stalled, and the auctioneer took an early break to talk with the vendors. Upon his return, he made a vendor bid of $1.3 million, and received no further whisper from the crowd so it was passed in and further negotiations were taking place.
517 Dryburgh Street, North Melbourne. Sold for $1,650,000
Around 40 people attended the auction of a beautiful 3 bedroom double storey terrace in North Melbourne; a stones’ throw from the Melbourne Zoo. The auctioneer received a real bid of $1,500,000 to kick it off, however went straight over the top with a Vendor’s bid of $1,550,000 then was calling for $50k rises. No one else was willing to put their hand up… it seemed as though they were waiting for it to be on the market. The auctioneer went in for his half time break and threatened to pass the property in on his bid. The first bidder then offered the auctioneer a real bid at $1.55m, which he accepted with obvious dissatisfaction. The property was later negotiated and secured for $1,650,000
27 Pilgrim Street, Yarraville. Sold for $900,000
Quoted $730,000 plus before auction. This pretty Victorian home was sure to attract strong competition to secure. A strong crowd was present and obvious many bidders were there to put their hand up, but never got a chance. The opening bid was $730,000 and two parties went head to head until they dropped out at $850,000… another party jumped in quickly when the property was announced on the market at $870,000. The property was knocked down to the bidder who started the auction at $900,000.
It was the biggest auction day in Australia’s history, with approximately 5,800 auctions taking place in all of the capital cities, 1,467 of those occurred in Melbourne. A clearance rate of 67 per cent was recorded in Melbourne on the weekend, compared to 65 per cent last week. Of the auctions held in Melbourne this weekend, 981 sold and 486 were passed in, 218 of those on a vendor bid. In addition to the auctions, there were 428 private sales reported.
Buyer’s wishing to snap up a bargain before the end of the year had their best chance this month – with high auction numbers and clearance rates below 70 per cent, the conditions were definitely in favour of buyers. It has been a record month, with about 5,700 auctions held, 300 more than in November last year.
The surge in listings this month has been a benefit to buyers, particularly in the eastern suburbs and some inner-city areas of Melbourne. In these areas, the market has relaxed a bit and the high prices that were being achieved between March and May have slowed, with many properties only just making their reserve price at auction.
With a few weeks left of the 2015 market, there are still plenty of opportunities for buyers to make their move.
Auction Results
9 Davies Street, Newport. Sold for $1,379,000
A renovated four bedroom Victorian with a price guide of $1.2 million went under the hammer on Saturday. On offer was an entertainers delight with two outdoor areas and a large designer kitchen. There were five bidders vying for the property, with the first offer of $950,000 immediately being topped by a $1.1 million vendor bid. The bidding then picked up as the other four eventually chose to raise their hands. The property sold for $54,000 above the reserve, to a woman who outbid the other hopefuls with a final price of $1,379,000.
6 Jenkins Street, Caulfield South. Sold for $1,426,000
It wasn’t just the quote prior to auction of $1.15 million to $1.3 million that attracted buyers to the auction of this contemporary four bedroom, three bathroom home – the flexible floor plan, location within the Caulfield school zone and proximity to public transport and amenities made this property a winning purchase. It was two young girls who made the first bid of $1.15 million, on behalf of their mother overseas. They were challenged by a woman who offered $1.2 million, but the young girls continued to outbid every offer the woman made. The price sailed past the reserve of $1.3 million, and the girls won the keys at $1,426,000.
39 Spencer Road, Camberwell. Sold for $1,755,000
The prized leafy location of this weatherboard home with 3 bedrooms and plenty of room to extend, or rebuild was surprisingly slow at auction. With no movement the auctioneer put forth two vendor bids, the second at $1,425,000 attempting to awaken the sleepy auction crowd. It seemed to work as three hopeful bidders made themselves known. At $1.72 million, the property was announced on the market, and it was a late entrant who joined in and won the keys with only one bid of $1,755,000.
A clearance rate of 67 per cent was recorded in Melbourne on the weekend, compared to 69 per cent last week. There were 1172 auctions held on the weekend with 780 properties selling and 392 being passed in, 153 of those on a vendor bid. In addition to the auctions, there were 376 private sales reported.
Listings are up, and the clearance rate has dropped, showing that buyers have the advantage and vendors are running out of time to sell before Christmas. Popular among buyers was period homes in high amenity locations close to transport and schools.
In the wake of the recent Government crackdown on foreign home owners, auctions on Saturday offered plenty of opportunities for local buyers. Less competition and more choice can only be a good thing for buyers looking to grab a late spring purchase.
Next weekend Melbourne’s auction market will face a massive test with its expected 1,750 auctions scheduled, one of the highest on record.
Auction Results
59 Walter Street, Seddon. Sold for $770,000
Well-located near the cafes and restaurants of Seddon, and with a pre-auction quote of $590,000+, this renovated two bedroom Victorian was popular with young buyers. The crowd of 120 included many first home buyers keen to get their foot in the door of the inner-west lifestyle. Two vendor bids started the auction before a strong genuine bid of $650,000 came through. The bidding quickly continued too fast for the auctioneer to even announce that the property was already on the market. The first bidders, who looked like first home-buyers were outbid by a second home buyer who became the new owner after paying more than $120,000 above the reserve.
4 McLachlan Street, Northcote. Sold for $3,100,000
This elegant Italianate tower residence, constructed in 1879 for Northcote pioneer Peter Orr, has been restored to its former glory to offer a versatile floor plan combining modern comfort with exquisite period detail. 200 onlookers watched as the five bedroom home, with a price guide of $2.5 million to $2.7 million received a strong opening bid of $2.6 million. The auctioneer briefly went inside to talk to the vendors after no challenge was made, however things started to heat up when a second buyer began offering $50,000 rises. The property was announced on the market at $2.8 million, then a third bidder joined in. The property was sold to the final entrant for $3.1 million – almost a record for the suburb.
12 Athol Street, Prahran. Sold for $1,555,000
Immaculately presented, in a stylish location walking distance to Greville Street, Fawkner Park and St Kilda Road. This double fronted Victorian residence in a pretty garden had a quote prior to auction of $1.5 million+. The auctioneer opened the bidding for this renovated, two double-bedroom, two-bathroom house with a vendor bid of $1.5 million. The first bid of $5,000 was rejected, as the auctioneer asked for $10,000 and received it from another man. The first bidder again offered a rise of $5,000, which was accepted this time, and it only took one more $5,000 rise above the second bidder, for him to win the keys. The property was announced on the market at $1.54 million, and sold for $1.555 million.
Selling your house can be a tricky thing. You don’t want to end up doing a deal that makes you feel like you didn’t get enough return, nor do you want to scare buyers by a price too high. Here are four things that will help you get you the best deal for your house.
- Expensive refurbishments might not necessarily increase your selling price
If you are planning on doing any expensive changes to your house before selling it off – hold your horses! You should first do a thorough analysis on the neighborhood. Even if you have granite countertops and stainless steel appliances, it would not mean that you can get a higher price for your house. Your price also depends on the prices of neighbouring houses. Therefore, only make changes that are fitting to the market rate.
- Marketing is key to getting the best deal
Putting up a “For Sale” sign on your yard and a photo you took through the phone up on the internet, doesn’t guarantee success. Getting the highest price for your house needs an extra effort to make your material look good. Therefore, get a professional photographer to get a picture of the house when the grass is green and the sun is out, and find the right price two months before you are planning on putting it up for sale.
- Fix things that are broken
The last thing you want is for buyers to walk into your house and notice stuff that needs repairing. The question running through their minds will be – how well have you maintained what’s not visible? If there are any obvious repairs that are necessary, attend to them first and make sure the place looks perfect for someone to move in right then and there.
- Don’t let emotional attachments get in the way
Selling a house can be an emotional experience for some – mainly because many people shed blood sweat and tears to get it to exactly how they want it to be. But if you have unique decorations added, or anything that gets in the way of making a buyer feel neutral about the house, you could lose a good sale. You need to make the house feel like a place that anyone could instantly move into. Have a friend or a realtor take a look at your house and give you feedback on what needs to be changed so that you will attract the attention of a wide range of customers.
This weekend Melbourne recorded a clearance rate of 71 per cent, compared to 68 per cent last week. There were 1243 auctions held on the weekend with 880 properties selling and 363 being passed in, 141 of those on a vendor bid. In addition to the auctions, there were 349 private sales reported.
The REIV have released figures stating that there were about 11,800 residential sales in the month of October – up eight per cent from the same time last year. And November is also on track to achieve strong results.
With stock levels at the highest levels we’ve seen in months, buyers are being sensible about prices and determined not to overpay. Many auctions have been receiving small increment bids, which is one sign that the market has relaxed a bit.
There has also been a shift in the number of international buyers recently, with activity from Chinese buyers slowing down. This could be good news for many buyers who still have not purchased this Spring – in the countdown to Christmas, there is still plenty of stock coming on to the market.
Auction Results
64 Victoria Street, Brunswick. Sold for $1,062,000
Only a stones throw from Lygon Street cafes, this brick federation home on 251sqm attracted a crowd of 50 to witness the auction. Auctioneer Simon Shrimpton called for an opening bid and found a reply in the form of a cheeky passer by who offered one dollar! Shrimpton decided to take the offer and called for a rise of $799k. The silence that followed prompted the auctioneer to eventually make a vendor bid of $800,000. The auction slowly gained momentum with five bidders helping the sale price reach $1.062m. The man who bid $1 was clearly disappointed.
5/1 Hughenden Road, St Kilda East. Sold for $639,000
A grand and spacious period-style top floor apartment filled with character ticks all the boxes for a lifestyle choice or an investment in a thriving area. Only 20 people attended the Saturday auction which opened with a vendor bid of $500,000. Bidding was slow to start, but the first hand that went up offered $510,000. A second bidder eventually joined in, and the auctioneer had a very difficult job of pulling further bids out of them. The half-time break arrived quickly at $520,000, and from there the two bidders brought the price to $610,000 after being announced on the market at $600,000. Two more bidders jumped in to the mix, one man with small but strong and intimidating bids. He was able to secure the property by offering $1,000 more than his opponents, at $639,000.
4/15 The Esplanade, Elwood. Sold for $864,000
With a stunning beach view from this first floor apartment, it was surprising that only 19 people attended the auction. On offer was a renovated interior with period features, and an interesting floor plan with one master bedroom, a smaller bedroom and 2 study areas / retreats. The bidding opened at $800,000, and four bidders helped take the price to $860,000 where it was announced on the market. It wasn’t long after this that the final bid was made, and the hammer brought down at $864,000.
This weekend Melbourne recorded a clearance rate of 71 per cent, compared to 68 per cent last week. There were 953 auctions held on the weekend with 675 properties selling and 278 being passed in, 134 of those on a vendor bid. In addition to the auctions, there were 362 private sales reported
The clearance rate was an improvement on last week’s low of 68 per cent, and the market is currently enjoying a nice balance between vendors and buyers. Vendors are keeping their price expectations in check to keep up with the demand of buyers who are showing that they will walk away from properties that have unrealistic prices.
The affect of the Reserve Bank of Australia’s decision last week to keep the cash rate at 2 per cent should start to reveal itself in the coming weeks. Will it have an effect on buyer’s decisions to purchase? This is unlikely, however it might create more conservative buyers.
There are an expected 8,000 auctions to be held in Melbourne in the lead up to Christmas, and we expect to see some strong results.
Auction Results
1 Dickson Street, Kingsville. Passed in.
This solid brick, superbly renovated 2 bedroom home located in a quiet cul de sac is a unique offering. The home comes with a fully-furnished and self-contained unit next door, making it an astute investment option as well as stylish urban residence. The small crowd that assembled were not very responsive to the auctioneer’s attempts to attract bids. After struggling to get the auction started, a vendor bid of $800,000 was made and from there only one bidder put their hand up with an offer of a $25,000 rise. The property was passed in for $825,000 and further negotiations failed to meet the reserve.
1/69 Spray Street, Elwood. Sold for $630,000
The auction of 1/69 Spray Street, drew a large crowd and competitive bidding. The location of this property is highly sought after being walking distance to Elwood village and Elwood beach. The large, renovated, ground floor apartment with balcony and car parking did not under deliver. It was obvious from the strong opening bid of $570,000 which knocked a few potential purchasers out, but failed to knock out another four bidders who were also hoping to secure the property. In the end, the property was knocked down to a determined lady for $630,000.
10 Maple Grove, Toorak. Sold for $8,350,000
This 1930s art deco house with 5 bedrooms sold on Saturday for more than $1 million above the reserve. A crowd of 70 gathered for the auction, with only four people willing to make bids on the prestigious property located amidst leading schools, exclusive entertainment and shopping districts. One man in a suit made the first offer of $6 million, before two other men talking on phones took over. The auctioneer sought instructions from the vendor, and announced the property on the maket at $7.3 million. From there, it was a buyer’s agent who placed the final bid to secure the property for a local family.
This weekend Melbourne recorded a clearance rate of 71 per cent, compared to 73 per cent last week. There were 1358 auctions held on the weekend with 964 properties selling and 394 being passed in, 181 of those on a vendor bid. In addition to the auctions, there were 383 private sales reported.
Clearance rates have eased since the autumn highs of 77 per cent to 81 per cent, and have continued to remain steady around the low 70 per cent range. As expected, the high volume of choice has resulted in more auctions with only two bidders, instead of the five or six bidder auctions experienced earlier this year.
With talk of prices rising in Melbourne next year by between 5 and 7 per cent, buyers are highly motivated to secure their purchase now.
Has your suburb been included in this list of suburbs that have doubled in property value in the past decade? St Kilda West and Mont Albert have topped the list with their median house values increasing over 200 per cent since 2005.
We would like to thank everyone for their support and kind words about Kim Easterbrook becoming a finalist for the 2015 REIV Awards for Excellence in the category of Buyer’s Agent of the Year.
Next weekend, there is an expected 550 auctions to be held. This is the largest number of auctions held on Melbourne Cup weekend, and more than double the number held on the same weekend last year.
Auction Results
1/35 Hill Street, Hawthorn. Sold for $570,000
Around 30 people attended the auction of this two bedroom ground floor apartment. The large courtyard and private access directly from the street held a lot of appeal as the apartment itself was still in need of some updating. The bidding was opened by a young man around the price quoted prior to the auction ($500K) and a second bidder didn’t waste much time joining the action, going back and forth in $10K rises until it hit $540K. The auctioneer then agreed to accept rises of $5,000 up to $560K where the second bidder dropped out. The auctioneer conducted the customary half-time break and upon return when there were no further bids, the property was passed in to the initial bidder for negotiation.
10 Heather Court, Hawthorn East. Sale price undisclosed.
Steve Abbott of Jellis Craig opened the auction of Heather Court reminiscing about an auction at the same address 8 years earlier when the property was just a dilapidated old brick home. Since then the new owners have largely rebuilt and the end result is a stunning custom designed home with quality finishes. On about 451m2 it is not a massive property but in the heart of Hawthorn East’s family precinct, it is one that is highly sought after. With an opening vendor bid of $1.75m the mostly Chinese crowd remained silent forcing Abbott to deliver another 2 vendor bids before retiring inside for instructions. Once back in front of the relatively small crowd of about 40 or so onlookers Abbott finally received a genuine bid of $1.84m. Another man then offered $1.9m – but that was to be his only bid – leaving the first buyer the advantage of only needing one further bid at $1.92m before the property was passed in to him.
19 St Georges Avenue, Mont Albert. Sold for $1,400,000
Built in 1886, this beautiful church has been treated to architectural design that transformed the property into a majestic three bedroom, two bathroom home. Some of the 80 onlookers at the auction had been married or christened at the property. Downsizers at the auction were keen to put their hands up, and the auctioneer had no trouble getting a $1.1 million offer from one couple. However three other groups joined in to try to gain the keys, helping the price grow. It was a local buyer who managed to outbid their competition, for the price of $1.4 million.
This weekend Melbourne recorded a clearance rate of 74 per cent, compared to 72 per cent last week. There were 1101 auctions held on the weekend with 816 properties selling and 285 being passed in, 124 of those on a vendor bid. In addition to the auctions, there were 371 private sales reported.
The September quarter results have been announced, and there is a new record for median house prices in Melbourne’s property market, with an increase in median prices to $729,500 in the three months to September 30th. The median apartment prices also increased by 2.6 per cent to $532,000. Houses in the middle and outer suburbs experienced the strongest growth – up 4.4 and 5.1 per cent respectively.
Bayside suburbs have attracted strong competition in recent months, with Brighton, Seaford and Dromana topping the list for price growth in the September quarter.
These results are a clear indication of a high level of buyer confidence, whilst sellers are also benefiting from large numbers of auctions, strong clearance rates and lower interest rates.
Westpac’s decision to increase mortgage rates by 0.2 per cent has appeared to have little effect on buyers as yet. Next weekend there is an estimated 1500+ auctions to be held across Melbourne. A busy weekend that will no doubt test the strength of the market once again.
Auction Results
37 Leopold Street, South Yarra. Sold for $2,550,000
Just metres from the Botanic Gardens, this derelict terrace which once housed squatters sold for $600,000 above reserve. As one of the last unrenovated properties in the Domain precinct of South Yarra, this terrace house attracted plenty of building inspections and architect visits with potential buyers in the lead up to the auction. The first vendor bid of $1.5 million was met with $25,000 rises from different directions. Six bidders joined in the heated contest, until the hammer was finally brought down to a local South Yarra family for $2.55 million in front of a crowd of 150 onlookers.
71 Chapman Street, North Melbourne. Sold for $2,780,000
Set on over 500 sqm of land, “KURRAJONG” presents a mix of period grandeur, extended design and family flexibility within this four bedroom Victorian. With a quote prior to auction of $2 million to $2.2 million gave some direction for the crowd after the first offer of $1.9 million kicked off the auction and the auctioneer bravely asked for rises of $100,000. The bids came from several directions, and at $2.45 million the property was on the market before the final bid of $2.78 million was accepted, and the keys were won by the last group to enter the bidding.
8 Balmoral Street, Essendon. Sold for $1,520,000
A versatile design, multiple living zones and leafy garden surrounds makes this 5 bedroom family home with an pre-auction quote of $1.24 million to $1.4 million, a very attractive piece of real estate. The auction was extremely competitive, with four bidders throwing their hands up more than 50 times between them. The bidding slowed down to rises of $2500 before finally being announced “sold” to a family who joined in the bidding quite late, for $1.52 million.
