“Hi its Kim Easterbrook with the Elite Buyer Agents market wrap, this weekend there was 692 Auctions of which 73% sold, we are seeing a rise in vendor’s price expectations were over 70% of properties that passed in were on genuine bids but did not sell immediately after.

We are currently seeing huge pressure on the prices of high quality free standing homes which seems to be the segment which is outperforming the rest of the market.

An auction we attended on the weekend in Moonee Ponds saw a 2 bedroom, 1 bathroom period home with no car parking sell in excess of 1 million dollars.

Our tip for this week, make sure you understand the value of a property before entering into negotiations a lack of understanding can put you at risk of over paying by a large sum.

I’m Kim Easterbrook remember at Elite Buyer Agents – we’re on your side.”

It is no wonder a buyer can get swept into buying an off the plan property.  It sounds appealing.  Stamp duty savings… its brand new…small deposit now pay later.

But when you dig deeper down into what an off the plan property is you will understand there are many pitfalls.

Whether it be buying for investment or for owner occupied purposes, a buyer should truly understand the ins and outs of an off the plan property.  Some of the negatives are:

–         When the property is completed and the bank is ready to settle (after being purchased say one to two years ago), the bank will need to value the property before it will hand over the money.  Unfortunately bank valuations are quite commonly coming in less than what the buyer paid for the property. This can lead to issues, especially when the buyer is borrowing most of the property purchase.  We have seen time and time again of buyers not being able to settle on their property for this reason, and end up forfeiting their 10% deposit.

–         At times, builders/sales persons can over promise and under deliver.  Being a property off the plan, you don’t get to physically see the end result, and at times can lead to let down.

–         Paying a premium for being brand new at the start can lead to sluggish or even negative capital growth.  Buying an established property usually results in much higher capital growth rates.

–         No guarantees that the builder will meet deadlines, at times, projects can go on for much longer than previously anticipated.

So before leaping into an off the plan property, do your research, they sound good in theory, but the negatives (especially for an investor) far outweigh the positives.

BEAUMARIS – is a prosperous suburb located approximately 20 kilometres south-east of Melbourne CBD boasting approximately 4.5 kilometres of beach front, including the picturesque Watkins Bay making this the ideal suburb.

The main shopping precinct is the Concourse Shopping Centre just off Reserve Road, although there are many boutiques and cafes, you just to explore and you will discover them. In Beaumaris you will find beautifully maintained parks with lots of recreational activities to keep you busy or simply relax in and enjoy the ambiance.

Beaumaris is well known for its prominent landmarks such as the Beaumaris Cliffs, Ricketts Point Marine Sanctuary (make sure to visit the café which overlooks the bay), and Table Rock Point being the reason people love to live in this suburb pushing property prices straight up! Beaumaris really is the perfect place to live or invest!

Fewer than 500 auctions were held in Melbourne on the Anzac Day long weekend. A clearance rate of 77 per cent was achieved from 472 auctions this weekend, with 365 properties selling and 107 being passed in, 58 of those on a vendor bid. There were an additional 466 private sales reported.

The suburbs with the top clearance rates during April are Mill Park (100 per cent from 15 auctions held) and Richmond (88 per cent from 17 auctions held).

Real Estate has become a hot topic in the lead up to the 2016 federal election, potentially causing some vendors and buyers to delay participation in property transactions. The issue in question is federal Labor’s plan to limit negative gearing tax concessions on residential property; and how this will impact property prices and the economy as a whole.

However, it was a typical holiday weekend for the Melbourne auction market, with the inner suburbs having a lower than usual proportion of auctions held, while the outer suburbs supplied higher numbers.

Kim Easterbrook provided some good news for buyers who read her comments in The Sunday Age – Domain, with listings on the increase and auction volumes for May set to be quite strong.

Next weekend we will start to get a taste of those higher volumes, with the market back to full strength and around 1300 auctions scheduled in Melbourne.

2/32 Bringa Avenue, Camberwell. Sold for $840,000
A large crowd gathered in the driveway of Bringa Avenue to watch unit 2 of a neat and tidy 60’s development of four go under the hammer on a somewhat ordinary grey Autumn day. After spruiking the benefits of Camberwell and the desirable Bringa Avenue location the auction got under way with an opening bid of a modest $650,000. An advocate was quick to reply with a bold bid of $710,00. From there it was on, only the 2 parties, until it was on the market at $800,000. From there the battle continued until finally the first bidder won the keys and beat her opposition with a strong $840,000 bid. The entire process took just 6 and a half minutes leaving the auctioneer plenty of time to write the script for his next exciting engagement.

368-370 Station Street, Carlton North. Sold for $1,980,000
This unrenovated character filled solid brick period home retaining many original features is being offered for the first time in more than half a century, with an executor’s auction held on Saturday. The 4 bedroom home sits on a prime corner position across 2 titles and located in a desirable pocket close to Rathdowne Village and had a price range of $1.5 million – $1.6 million. The auction attracted multiple bidders, and was won by a man who made one of the first bids for $1.89 million.

6 Leighton Court, Toorak. Sold for $4,200,000
Beautiful and bright, this fully air conditioned contemporary three bedroom residence offers immediate appeal, a flexible floor plan and sensational lifestyle advantages in a prime position close to Toorak Village. The price guide of $3.9 million – $4.2 million should have been an indication of the vendor’s expectations, but the property only received interest from one bidder, who offered $3,925,000. The property was passed in, and later sold to that sole bidder for $4.2 million, after negotiations.

HAWTHORN – is definitely a suburb on the rise with over 20,000 people residing here plus it is conveniently located only 6 kilometres east of Melbourne CBD.

Hawthorn is home to some of the most beautiful homes, but our feature property for the week is the well-known Grace Park Estate which was later developed into small allotments and what remains today are historical homes and the iconic Grace Park where many can stroll through or sit back and relax amongst freshly cut grass and shade provided by luscious trees.

Hawthorn has it all including Grace Park, specialty shops in buzzing streets to supermarkets and a renowned University combined with easily accessible transport via the roads, trains or trams make this the perfect place to live in or invest!

This weekend in Melbourne, there were 761 auctions held with a clearance rate of 73 per cent recorded, compared to 73 per cent last week, and 78 per cent this weekend last year. Of the auctions held, 559 sold and 202 were passed in, 89 of those on a vendor bid. In addition to the auctions held, there were also 232 private sales.

2016 is shaping up to be a good year in Melbourne real estate. Most weekends this year, three out of every four properties auctioned, have sold. In addition to this, Melbourne is also leading other capital cities for house price growth.

The biggest draw-card properties this weekend were the quality family homes in prime locations, decent knock down and rebuild sites and also single level compact homes.

There are 485 auctions scheduled next weekend, despite the Anzac Day long weekend.

1/9 Vale Street, St Kilda. Sold for $725,000

This first-floor north facing apartment is ultra-spacious, with two bedrooms, a wide covered terrace and exposed steel beams reminding us of its former life as a factory. The price guide of $590,000 to $650,000 attracted a range of attendees in the 30 strong crowd, including investors and first-home buyers. One man opened the bidding at $500,000, which was met with a $100,000 rise. Another couple joined in, but quickly dropped out, and a fourth bidder joined in when the property was ‘on the market’ for $680,000. The second bidder won the keys for $725,000.

4 Ardene Court, Hawthorn. Sold for $3,950,000

This 1881 Victorian, embellished with iron lacework and a return verandah combines contemporary spaces with illustrious period integrity, including a section which dates back to 1864. The auction attracted more than 100 onlookers to the elevated five-bedroom property, and the auctioneer had a very slow start, having to place 2 vendor bids before the first offer was made by a man for $2.95 million. Three bidders contested the property after it was announced on the market at $3.45 million, and it eventually sold to the first bidder for $3,950,000.

36 Victoria Street, Footscray. Sold for $885,000

This first-floor north facing apartment is ultra-spacious, with two bedrooms, a wide covered terrace and exposed steel beams reminding us of its former life as a factory. The price guide of $590,000 to $650,000 attracted a range of attendees in the 30 strong crowd, including investors and first-home buyers. One man opened the bidding at $500,000, which was met with a $100,000 rise. Another couple joined in, but quickly dropped out, and a fourth bidder joined in when the property was ‘on the market’ for $680,000. The second bidder won the keys for $725,000.

YARRAVILLE – is a medium sized suburb of around 5.6 square kilometres and is located approximately 8 kilometres west of Melbourne CBD, just off the West Gate Bridge.

Yarraville is well known for the Sun Theatre, a boutique cinema comprising of eight screens which has been operational since 1938 with the neon sign becoming quite the icon of Yarraville.

A large and luscious park called the C.J. Cruickshank Park is found in Yarraville, it is a very popular community park featuring a dinosaur playground, tennis and basketball courts, BMX track and the dogs are allowed to roam around off their leashes, most of the time. The best part is right through the middle is the Stony Creek Trail with walking trails, doggy swimming holes, bridges with plenty of opportunities to stop for a picnic.

With the aforementioned attractions and the ever booming popularity of Yarraville, it is any wonder the next generation are on a purchasing frenzy!

In Melbourne there were 666 auctions held, with a clearance rate of 75 per cent recorded, compared to 69 per cent last week, and 76 per cent this weekend last year. Of the auctions held, 497 sold and 196 were passed in, 83 of those on a vendor bid. In addition to the auctions held, there were also 365 private sales.

With constrained housing stock levels, family buyers had to dig deep to purchase larger homes on the weekend. Four-bedroom houses, or properties on larger land allotments sold for premium prices with hefty competition.

Buyers who are still looking will be relieved to know that more stock will be pouring onto the market in the coming weeks, as school holidays finish and as we near the uninterrupted run of auction dates after Anzac Day on April 25.

Next week there will be 765 properties going under the hammer.

Auction Results

4 Gracehill Avenue, Burwood. Sold for $652,000 This charming property is more like a small house than a unit. On offer a two-bedroom unit with its own street frontage, no shared driveway and a large landscaped rear garden plus deck, located in the Mount Waverley High School Zone. 30 people watched as the opening bid of $500,000 was soon followed up by a question from the crowd asking if the property was on the market yet. Too soon to tell, the auctioneer then received two bids at the exact same time for $520,000, then $20,000 rises to $560,000, then the first bidder offered $10,000 rises and this continued back and forth up to $590,000. At the half time break, the auctioneer hints that $600,000 will put it on the market, and the rises slowed to $5,000, $2,000 and $1,000 until a 4th bidder takes the price to $600,000 and on the market. A 5th bidder joins in with $5,000 rises against the 4th bidder until $625,000, when the hammer was finally brought down to the 5th bidder.

2/26 Loch Street, St Kilda West. Sold for $760,000 This large, two bedroom apartment with under cover car parking was sold on Saturday in a fiercely contested auction. The property is currently tenanted which appealed to the almost all investor crowd. Located amongst multi million dollar homes, the updated property is currently tenanted which appealed to the almost all investor crowd. The property was announced on the market at $680,000, but the bidding did not stop there. Two parties went head to head until the property eventually sold for $760,000.

179 Hawke Street, West Melbourne. Sold for $885,000 This part-renovated two bedroom Victorian cottage on the edge of the city will soon become a park-front terrace, as the auctioneer announced that the City of Melbourne council had just bought the run-down factory across the road to create a new recreation area and playground. A crowd of about 50 people including a mix of young families and investors attended the auction. Bidding began at $770,000 and the price steadily grew in $10,000 increments until $860,000, when things slowed down. The auctioneer managed to entice the bidders to continue until the property was sold to the opening bidding couple for $885,000.

BRIGHTON – is a prestigious and wealthy suburb located 11 kilometres south east of Melbourne CBD with Beach Road being a very popular cycling route which follows the beautiful coastline all the way down to Portsea.

Church Street is one of the main strips in Brighton which is filled with cafes, restaurants, a cinema at Dendy Plaza and high end boutique shops make this the perfect shopping precinct. It is any wonder that this popular location is always buzzing.

Brighton is fortunate to have almost 6 kilometres of beach front highlighting the well-known beach boxes which have been in existence since 1862.  Comparable sales of a beach box in 1999 which sold for $58,000 to one recently selling for $285,000, source Domain – proving to be quite the investment!

21 March 2016

In Melbourne there were 1476 auctions held, with a clearance rate of 75 per cent recorded, compared to 69 per cent last week, and 76 per cent this weekend last year. Of the auctions held, 1113 sold and 363 were passed in, 157 of those on a vendor bid. In addition to the auctions held, there were also 332 private sales.

Melbourne’s property market has had it’s first big test for 2016 over the weekend, it has come through with flying colours. The selling environment is strong, yet there are fewer runaway prices than those experienced in 2015.

Although the vendors of 39 Duke St, Prahran would have been very happy with their sale result of more than half a million over reserve. The historic building, once known as the ‘Red Lion Hotel’ during the 1860s gold rush, sold for $4.85 million after a fiesty bidding war between 6 bidders.

Please note that due to the Easter Break, there are only a handful of auctions and our market wrap will return in 2 weeks.

Auction Results

5/42 Edwards Street, Sandringham. Sold for $744,500

In a one way street directly off Beach Road in Sandringham this 2 bedroom, mostly unrenovated villa unit was a definite draw card in a property starved market, albeit in a somewhat shabby development. A crowd of about 60 watched as an opening bid by a young woman of $610,000 was answered immediately by a buyer’s agent, sparking off a two person bidding battle until the first bidder bowed out at $680,000. The agent lasted to $710,000 when another three bidders joined the game. From there it was on, bids of $5,000, $500 and various other rises flowed until finally another young female bidder won the keys at a respectful price of $744,500. The property was on the market in the mid $600,000s.

6 Carnavon Street, Brunswick. Sold for $1,008,000

This extra-wide period residence, immaculately presented and ready to be enjoyed, offers spacious family living in a quiet street close to schools, transport, parks, Lygon Street cafes and bars. With classic period detail, high ceilings and modern appointments, it has 3 double BRs from a grand arched hallway, good-sized living room opens to a dining area and refitted kitchen with timber benchtops, quality appliances, laundry facilities, and refurbished bathroom with walk-in shower. A young investor beat two other bidders to win the keys for $1.08 million – a figure slightly higher than the agents’ expected $920,000 – $930,000.

42 Alma Street, West Footscray. Sold for $900,000

This very well presented, 3 bed 1 bath California Bungalow was popular and the auction well attended. West Footscray is continuing to gentrify and is popular with both investors, first home buyers, and young families and this property was no exception. Four bidders fought to try and secure this property with a number of others who didn’t even put up their hand. An opening bid of $770,000 was quickly outbid by another party with a strong bid of $815,000, two others joined in the bidding run and eventually the property was sold for $900,000 to an investor.