How often do you hear that phrase, rapidly followed by “… is up.” “… is down.” “… is directionless.” “… is (add your own description here).”

Truth is, Melbourne is not one real estate market. There’s a myriad pockets and the view you hear is very much from the perspective of the pocket of the viewer; and too-often distorted by wishful thinking or self-interest.

One of last weekend’s views: “Melbourne is the centre of the real estate universe!”

Yes. But only if you were at a certain property in Hawthorn; and especially if you were one of the five or six under-bidders. Pockets of Hawthorn may now be staring into the mirror and seeing Toorak North (3142 and-a-half?); at least in the prices being paid.

But that’s pockets, not trends. While there have been some extraordinary results, they are property-specific. Extrapolating from those could lead you to some very unkind places.

And while the sudden deluge of trophy properties has been getting a great deal of attention, that should be seen against a background of what came before the flood. There has been (and we have been remarking on it for much of this year) a virtual drought at the very top. Some catch-up is now in evidence, but in fact sales volumes are still well behind what is a typical year.

And then …

And then (at last) came the recent deluge of properties on offer, not just at the top but in pockets across the market. With deluges come new growth which is now sprouting new opportunities.

Vendors who have been persuaded that people will buy anything are suddenly staring at reality: the sale they are counting on may not happen before Christmas. At the same time, we know of people who are seriously ready to buy who believe the heat will go out of the market and are prepared to wait till next year.

That’s an equation that equals passed-in properties; and every property which is passed in presents an opportunity for someone.

Wait, watch, pounce.

Some recent life in the pockets:

44 St Georges Road, Toorak. Land, land, land. Prime land: 6,345 sq feet. A deceased estate, a motivated vendor and only two bidders. It sold for $2,710,000. That is $425/sq foot. In St Georges Road. Really. Based on recent results for similar small blocks, $500/sq ft would not have surprised.

Contrast that with:

14 Riversdale Court, Hawthorn. Good land, 10,060 square feet with a view. Five bidders. It sold for around $4,440,000. That’s more than $1.1 million above the reserve. Land in Hawthorn is worth more than one of the best streets in Toorak? Is that a trend or a pocket? Will it lead to an acute case of buyer’s remorse?

And while the tom-tom beat of agents’ chest thumping can be heard across Melbourne, consider some of the hollow rings of properties passed in on vendor bids:

• 121 Beaconsfield Parade, Albert Park. Vendor bid: $7 million
• 24 Clendon Road, Toorak. Vendor bid: $2.5 million
• 20 Central Park Road, Malvern East. Three vendor bids: passed in at $2.8 million.

And while we cannot see the logic of bidding against a vendor (that is, bidding agin yourself), from time to time along comes someone to make an agent’s day. 5 Ultimo Court, Toorak opened with a vendor bid of $4,800,000, which was then topped by $25,000. Why? It was (inevitably) passed in with the reserve yet to be disclosed.

And (we live in hope) our efforts to clean up the industry continue. As reported in the Financial Review last week, we are again asking the ACCC to look into another practice which we believe increases distrust in auctioneers while working against the interests of buyers. When an auctioneer suggests a call is a last call, we believe it should be as advertised. Not the charade some employ of calling a property down four or five times.

A little truth for Christmas. Is that too much to ask?

David Morrell

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Bayside: Bumper, with bumps.

As expected, the bumper number of auctions offered this weekend resulted in thinning crowds of both onlookers and potential buyers, with bids in many cases non-existent or lackluster. The frenetic bidding that has been commonplace in recent months was noticeably absent. Prices in most cases were about as expected.

Brighton had 28 properties listed for auction on the weekend. 20 sold, representing a more modest clearance rate of 71%.

The notable results were not so much the sold properties but several of the pass-ins.

23 Cosham Street, an extensively rebuilt 50′s style house on 1000 sq m, and with an impressive architectural pedigree, failed to raise a real bid. It was passed in on the auctioneer ‘s call of $5 million. This property has been available for most of this year and was first offered at a figure closer to $7 million. The reserve? Undisclosed.

A new single-level house at 49 William Street on almost 1100 sq m also failed to excite. It was passed in at $2.95 million without a real bid. We hear a later offer of $3.1 million was received, but there is still a lot of daylight between that and the $3.55 million the vendor is asking.

The vendor of 2 Ballara Court, a 1960′s single level house on a corner allotment of almost 600 sq m – with only pull-me-down-and-start-again appeal – probably thought they had timed their sale to perfection. Following runaway recent results at 3 Horton Close ($2.2 million) and 7 Armfield Street ($2 million odd), the expectation of close to $2 million may have seemed achievable. But on the day there was not a real bid and only the vendor’s own $1.6 million on the table.

Bayside’s priciest were both in East Brighton:

• 68 Shasta Avenue, a brand new townhouse on 400 sq m sold for $1.855 million
• 41 Binnie Street, a traditional clinker brick on 923 sq m sold for $1.85 million

Most other results were at or below the Brighton median level, indicating that lower range properties sold while the more expensive offerings were left at the altar.

They were not alone. It’s estimated there’s a queue at that altar which adds up to over $130 million in above-median properties and just three weeks to clear them before the door clangs shut on this season. For some, this will be a very good time to be buying.

Hampton had two standouts:

• 10 Beach Road, overlooking the bay, was 751 sq m of development potential. It sold for $2.45 million. That’s $3367/sq m or just over $300/sq ft; which is about where we expected it to be.
• A seven years old builder’s house at 52 Linacre Road with a basement garage and pool sold under the hammer for $2,437,500.

Sandringham notables were 27 Codrington Street, a rendered 10 room house on a modest 621 sq m which went for $1.82 million and, nearby, 4 Keats Street – passed in at auction last week and sold this week for $1,555,000.

Beach Road, Beaumaris and Beach Road, Black Rock both failed to attract buyers. “… four incredulous levels”* of townhouse at 21 Beach Road, Beaumaris fell heavily: the best-on-the-day offer of $1.75 million still a long way shy of the vendor’s anticipated $1.985 million. Also with more work to do is 340 Beach Road, Black Rock. Not a bid to trouble the auctioneer and the property passed in on a vendor bid of $2.4 million. The asking price is $2.575 million.

Less incredulous are the vendors of 9 Bayview Crescent, Black Rock. Their timber house on 741 sq m sold for $1,725,000.

Bentleigh continues to power along. Of 25 auctions, all but four found new owners. Within that, the number of sales topping a million dollars continues to grow.

29 Renown Street fell over the line at exactly $1 million, followed by 21 Wood Street at $1.055 million, then 14 Bruce Street at $1.1 million. Standout was the townhouse at 1/51 London Street: sold privately for $1.3 million.

*could we have a quick whip around and buy the real estate industry a dictionary?

Damian Taylor

M&K in the News:

Auction clearances steady despite big jump in stock – Australian Financial Review (subscription required) – Buyer’s agent David Morrell noted a change of mood: “It had a bit of a Panadol … you could see a caution…”

Enough already, drop that hammer – Australian Financial Review (subscription required) – …the practice has driven Melbourne buyer’s agent David Morrell to file a complaint with the Australian Competition and Consumer Commission. He says the “third and final call” often happens four or five times.

Flush with cash and loos – The Age – ??We are absolutely gobsmacked,?? buyers advocate David Morrell says. ??It isn?t worth that sort of money, any way you look at it.”

Toorak mansion sets record – Australian Financial Review (subscription required) – David Morrell said local buyers were again dominating Melbourne’s top end…

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Time to re-set the speedometer? In thirty-something years, we have never seen a market as unpredictable as this. Not at the top end.

Yes, it’s booming and if it’s a good property it can hurt to get in. But why? Who is buying these houses? And why are so many top-end properties suddenly on the market prior to Christmas?

And is excess the new norm?

The highlight (probably of the year) is last week’s sale of 13 Albany Road, Toorak for north of $18 million. Yes, it is a good house, but there’s no room for a tennis court and, any way you look at it, this transaction is extraordinary. If the vendors are not singing the agent’s praises from the top of the Eureka Tower, they should be. We ran our ruler over it and there was no way we could justify paying anything like $18 million. And there was another party who just missed out.

First question for the crystal ball: Is this a one-off, nailed at the top of the market, or is a re-calibration due?

While, suddenly, there is a plethora of properties available at the top end, high price does not always translate to high quality. There are still more lemons than gems, so there’s cause to tread warily.

One of the signs that this is a running market is the re-birth of expressions-of-interest campaigns seen over the past four weeks. Be warned: if you’re a buyer, expressions-of-interest can be a minefield:

• they allow vendors to avoid the public scrutiny of an auction while keeping the price they will accept private
• because you don’t know who you are competing with, there’s a great temptation to over-pay
• there’s no guide to what the real market is
• they’re the equivalents of an agent saying “Show me your wallet.”
• your bid is due by a certain date, their response is not
• the vendor may be testing the market and not a genuine seller at all

Yes, the tide is high. But there are always some swimming against it:

• 2 Brookville Road, Toorak passed in on a VB (not the beer, a vendor bid) of $2,750,000, reserve undisclosed (echoing our associate, Damian, why? Are they afraid that if they publish the reserve, there’ll be someone prepared to pay it?)
• 17 Dunraven Avenue, Toorak passed in on a VB of $2,500,000, reserve $2,950,000 (given the $450,000 difference, it’s likely they’ll be drinking VB at Christmas)
• 103 Caroline Street, South Yarra VB $3,100,000, no reserve.
• 25 Hawksburn Road, South Yarra VB $2,000,000 but the reserve is a more digestible $2,150,000

Come down a rung and you’ll find a market which is also re-defining gravity: between $1 million and $2.5 million there is huge competition for quality houses and it’s not just one or two bidders going hammer and tongs, it’s six or seven in a feeding frenzy. Logic and reserves left in tatters.

Why the panic? Christmas looming has to be a contributor. Families with kids at school and in need of a back garden or an extra bedroom have to buy before the man in the red suit shows up or it will be May or June before they can move.

And now to our second preoccupation: cleaning up the industry.

Another round in our war on underquoting finally got to court and resulted in an agent with a blood nose. Bennison McKinnon “… has promised a court that it will ensure it does not underquote on properties it auctions.” (Herald Sun, Nov 19) An interim order has been granted to Consumer Affairs Victoria following allegations the agency underquoted on properties in the Eastern suburbs. Civil proceedings are pending for breaches of the Fair Trading and Estate Agents Acts. Interestingly, the same agency is again in court over a disputed late bid. Do their lawyers offer seasons tickets?

Buying before Christmas? Good luck. You’ll need it.

David Morrell

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Bayside: busy, busy, busy.

Just when it seemed that buyers were showing the first signs of caution, along came the weekend.

Bayside was particularly active. Brighton in the lead, with all but six of 24 auctions finding buyers, followed by Bentleigh with only three passed in from 15 scheduled.

The sense we get is that concerns about higher interest rates and job security are well and truly offset by fears that the burgeoning Melbourne population and consequent fierce competition for property will continue to drive prices. Better to dig deeper now rather than move inland a few suburbs to meet a budget? The attraction of living near the beach with good choices of schools, public transport, shopping facilities and even a decent coffee are not new; it’s just that lifestyle factors come at a price and that price has spiralled very rapidly, catching many unawares.

That said, all was not roses in Brighton. Those still waiting at the altar include:

• a sprawling builder’s house at 17 Huntingfield Road failing to secure a buyer. On 850 sq m in a quiet cul de sac near Church Street, the best on the day was a vendor bid of $3.65 million against a reserve of $4.15 million. $500,000 is a fair bit of daylight between vendor bid and vendor desire.
• 3 Maysbury Avenue was another property not troubled by a real bid when it was passed in at $2 million on the auctioneer’s bid; but with the vendor’s expectation within range at $2.15 million.
• A very prettily renovated Victorian cottage at 113 Male Street did attract one bid of $1.42 million, but that was insufficient on the day and the reserve now sits at $1.48 million.

It will be interesting to see the results of other top-end auctions and private sale campaigns over the coming weeks. As we remarked last week, there’s a rush for the exits and an awful lot of property to clear before the Christmas stumps are drawn.

The appetite for new house and building sites in Brighton continues unabated with the very strong result of the 645 sqm at 7 Armfield Street. With a North facing rear, in a court and overlooking a park, it ticked all the boxes and was sold for a tickle over $2 million; that’s $3120/sq m; or $290/sq ft in the old money.

40 Black Street also surprised. A would-be knockout opening bid of $2 million (against a quote of $1.55-1.75 million) farewelled most other bidders. Not quite all, however, as the final price was $2.05 million. All for an unrenovated Victorian on 600 sq m.

127 North Road, an attic-style period house on 700 sq m sold for its predicted $2.18 million. Around the corner at 21 Montclair Avenue, a solitary bid was enough to secure negotiating rights after the property was passed in at $1,410,000. It sold soon after for $1,445,000.

29 St James Park Drive was sold for $1.7 million. It has 11 main rooms but only 500 sq m.

Another land-only sale was made at 121 South Road, on the corner of Roslyn Street. For 645 sq m, it realised $1,445,000. That’s $195/sq ft, or just over $2,000/sq m. Certainly main road value.

An unusual property at 2 Wellington Street was harder to assess. A reasonably current single level villa on just 375 sq m, it boasts a 6-car basement garage. It’s directly opposite the Brighton Savoy Hotel, a position which appears not to have fazed the ultimate buyer who paid $1.85 million; a marked premium to the quoted estimate.

Three sold prior to auction:

• 10 Byron Street for $1.65 million
• a two-storey townhouse at 6/57 Carpenter Street for $1.65 million
• 94 Dendy Street for land-only value (645 sq m). It brought a modest $1.2 million.

A lesser number of private sales were made during the week. One of the more notable results was at 74 Halifax Street. It sold for $2.58 million.

Land sales were the flavour of the week in East Brighton:

42 Comer Street finally found a buyer. A vacant allotment of 710 sq m backing onto Brighton Golf Course, it sold for $1.5 million just on two years ago at the giddy heights of the then market. Patience was rewarded with a face-saving offer of $1.45 million being gratefully accepted. At $190/sq ft or $2042 sq m, while obviously not a record, it is the highest rate per sq m/ft in the current market.

An unusually wide allotment at 5 Lysander Street had the builder/developers salivating. Suitable for two town houses side-by-side, it has a frontage of 23.5m and an overall size of 715 sq m. Several bidders competed before the property was knocked down for a respectable $1.28 million.

Not so successful was the auction at 14 Churchill Court on 725 sq m. Again being close to land-only value, the site was squeezed into the bowl of the court and its South facing rear garden obviously didn’t excite. It was passed in with a reported later offer of $1.22 million against an asking price of $1.28 million. Close, but no cigar.

The standout offering in Hampton for the weekend was a strikingly coloured two storey residence at 26 Avondale Street. Extravagant and luxurious and probably overcapitalised, the property was passed in at $2.4 million with a later offer of $2.45 million. The reserve is yet to be revealed and the painter is nowhere to be seen.

There was more joy at 80 Thomas Street, which sold for $1.26 million and 66 Mills Street, sold for $1,232,500.

And in private:

• 13 Avelin Street, $1.52 million.
• 78 Orlando Street, $1.225 million

Sandringham had a mixed day and relatively modest turnover.

Surprisingly the prime offering for the day was a fizzer. “Veronique“, an imposing Victorian on 1200 sq m with great spaces and potential to update, failed to excite. The highest bid was the auctioneer’s at $1.9 million and from there it’s still a long way to the vendor’s reserve of $2.2 million.

A superb new house opportunity or a major, major renovation project awaits the buyer of 46 Sims Street. It’s an old house that has survived more seasons than it cares to remember, it’s on a generous 808 sq m with an extra wide frontage which obviously appealed. It sold, as expected, for $1.65 million in a private transaction.

As ever, we close with the obligatory mention of the ongoing resilence of Bentleigh. Ever since we dared to suggest a few weeks ago that its slip was showing, just to prove us wrong, this area continues to defy.

A sale prior to an auction scheduled for the very busy 28th November at 31 Lilac Street, EAST Bentleigh has had the neighbours choking on their Weeties. Apparently a record price for this part of town, the buyer made sure they finally snared a property with the classic Godfather offer. $1,355,000 was proffered and very sensibly accepted by a grateful seller. Sounds of sleigh bells and ho ho ho’s were also heard.

And so to next weekend, when a much larger number of properties will be offered. After that it’s almost all over for the year for some.

Recent activity suggests that most will sell, but the jury is still out on the very top end and its capacity to absorb all that is currently available.

Damian Taylor

M&K in the News:

Home buyers fevered as year draws to a close - The Age – Morrell and Koren’s David Morrell, who bought the home for a client, said demand in the $1 million to $2.5 million range was intense…

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With just five selling weeks remaining before one of the most ebullient years in real estate in Melbourne will be going, going, gone, the market still continues to fly. Reported clearance rates for weekend auctions remain at 80% + while at the upper end there’s still strong under-the-radar activity in private transactions.

The pressure is on for buyers. They’re all too aware that if they haven’t signed on a dotted line in the next five weeks, it will be mid to late February before the market picks up again and that means most won’t move house before May or June.

You have probably read that the Wayne Gillespie-designed house at 18 Winifred Crescent, Toorak sold for $4.21 million. What wasn’t reported was that four bidders began at $3.7 million, so there are still three in the market for that kind of property at that kind of price. Panic, anyone?

Unreported was 10 Struan Street, Toorak. It sold prior to auction for more than $7 million; which suggests that if a vendor at the upper end is presented with an acceptable price, a deal will follow. Even in this market, not everyone wants to take a ticket in an auction lottery.

And then …

When agents start selling, is it because they’re trading up, or because they think prices are approaching their peak?

• 6 Elgin Avenue, Armadale: sold by a director of RT Edgar for $2.68 million.
• 26 Barkly Avenue, Armadale: sold by a director of Bennison Mackinnon for $1.95 million (opening bid was $1.55 million).

Under-the-radar, as mentioned above, is about as strong as it has ever been. Over the weekend this office alone completed seven transactions ranging up to $7 million and beyond.

At less stratospheric levels, under-quoting is still problematic. Richmond provided one example: 68 Highett Street was quoted at $700-770,000 and sold for $925,000. The agent, of course, could not have been more surprised. The five or six prospective buyers who had had their time and hopes wasted were less impressed.

The next few weeks will see the platinum end of the market reveal itself when expressions of interest close on ?Dunraven? at 55 Clendon Road, Toorak, ?Avon Court” at 18-20 Shakespeare Grove, Hawthorn, and two new entries: 13 Albany Road, Toorak and 2 Linlithgow Road, Toorak. Interestingly, they’re all to be sold via expressions of interest campaigns. There is still hesitation regarding public auctions at the premium end.

And when that’s all finished, all done? The tribe departs for the Peninsula, where expectations are that discretionary money will be creeping back into beachside real estate.

Santa is going to have to keep his GPS up-to-date.

Christopher Koren

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Bayside: Work, work, work …

The pointy end of Brighton’s  market will be well tested over the next three to four weeks. There’s a spate of $5 million and over properties being actively marketed.

Included are 184 The Esplanade at about $8 million, “Nithsdale” at 316 St Kilda Street for around $7 million, 319-323 St Kilda Street at around $8 million, 1A Martin Street (on the beachfront, not yet listed) at over $7 million, 21 Moule Avenue at $8 million, 22 Glyndon Avenue at over $9 million, 15 Dudley Street at up to $6 million and 23 Cosham Street at around $5 million.

They’re just the homes being advertised. There are another dozen or so at this price level which have been placed quietly on the off-market.

It will take a marathon effort to clear so much high-end property before the end of the year. We predict a severe case of pre-Christmas indigestion.

The high Aussie dollar has blunted the appeal of top-end property to overseas buyers and although the bankers are enjoying the prospect of bonuses this year, it is doubtful they will be sufficiently hefty to meet so many vendors’ lofty ambitions.

Heard the rumour that Tiger is plonking down his appearance fee as a deposit on one of these Brighton gems? Discount it.

Meanwhile, back in the real world …

Bentleigh returned to a 100% clearance rate. Peak result at was 39 Robert Street: $1.28 million, closely followed by 13 Molden Street: $1.175 million.

Brighton was solid: 10 sales from 14 auctions.

A corner site of 788 sq m at 90 Dendy Street sold for a modest $1.45 million; which works out to only $170 per sq ft. Not far away, 737-739 Hampton Street, a brick pair on 980 sq m, received a best offer of $1.57 million which comes to an even more modest $150 per sq ft (the vendor is holding out for $1.72 million).

Brighton East was busy. The standout was the conclusion of an expression of interest campaign at 23 Robinson Street. A new house, built to a level of finish and attention to detail which caused some critics to opine that it was overcapitalised for its street, went on to sell for $2.82 million, suggesting that at least one person disagreed.

A very sound price was achieved for a land-only property at 28 Pine Street. It was knocked down for $1,921,000 – or about $170 per sq ft – for its 1063 sq m. That is, on par with the Brighton-addressed properties mentioned above.

A contemporary house of 8 main rooms and 3.5 bathrooms on over 800 sq m at 1 Baird Street seems reasonable buying at $1.625 million, however at the other end of this well regarded street, number 87 is still available. It failed to attract a bid other than the auctioneer’s $2.1 million (the reserve is reserved for those who contact the selling agents).

11 and 13 Lucas Street – on land totalling 926 sq m – sold prior to auction for $1.8 million. A builder’s sign is expected shortly.

Hampton was busier than in recent weeks: six sales from seven auctions. The highest on the day was 13 Grout Street, a typical Hampton timber house on 623 sq m that had been extensively renovated and extended. It sold for $1.57 million.

125 Linacre Road, a near-new contemporary house with generous spaces and accommodation, sold privately for $1.675 million.

The one pass-in was 10 Holyrood Street, a 1930′s renovated brick house on 723 sq m. It received a vendor bid of $1.35 million – the reserve a whisker above at $1.38 million.

Sandringham had seven auctions scheduled for the weekend, but four were sold prior, all in the $650-800,000 range. Significant? Coincidence?

104 Bay Road sold for $1.1 million

172 Beach Road has been on the market for most of this year and has finally sold for $1.5 million. It is on 789 sq m and is now ready for a total renovation or a bulldozer.

And finally a sign that, for some buyers, the world’s woes are a way away: prior to its scheduled auction, a Dendy Street bathing box sold for $190,000. For that modest investment you get a timber shed with no power, water or sewerage and, more significantly, no title; just a 12 monthly renewable licence. Plus bragging rights.

Damian Taylor

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Hot: Birdcage, Flemington.

Not: The top end.

While the REIV trumpets 80% + clearance rates, up here at the top end it is, as usual, a different story. The weekend at the top had all the thrill of a Britney Spears concert, complete with auctioneers struggling to lip-sync against a considerable number of walk-outs.

Looking for sales above $4 million? You’d have as much luck as David Hayes did in the Cup. But then the field was hardly inspiring.

However …

Over the next couple of weeks, the quality on offer undergoes a radical change. In over 30 years, we have never seen as many six-star properties (today above $10 million) being offered publicly. In Toorak alone, there are 40 houses for sale this week.

But …

Are there 40 buyers waiting in the wings? We suspect not. We also have reason to believe that there are more than a few vendors who have baited some very expensive hooks in the hope of cashing in on interest from mainland China. They could be waiting a long time; when the dollar moved over 90¢, the Chinese desire to buy moved the other way. For how long remains a question, there’s still strong interest in Hawthorn and Kew, but their needs are very specific and don’t spread to the market as a whole.

There’s also some misalignment of vendor expectations and people’s willingness to meet them. All the “good” news about clearance rates has persuaded some to add 20% or more to what we think is realistic; in the increasingly forlorn hope that anything is possible.

Sorry kids, with few exceptions, the top end is more astute than that. Read these tea leaves:

• 21 Glyndebourne Avenue, Toorak. Passed in.
• 6 Brookville Road Toorak. Passed in.
• 6 Grant Avenue, Toorak. Expressions of interest sought. No sold sign seen.

And then …

Suddenly farms and discretionary weekenders are popping up like mushrooms. We have never seen such exotica. Truth is, many buy the dream and then discover the maintenance is endless and the time spent there is less than expected. There always seems to be one reason or another to spend the weekend in the city.

And a wise client said …

“Yes, there is more confidence in the economy than there was four or five months ago, but confidence comes in different forms. Take a look at the cranes on the horizon and that will give you a fair idea of what to expect over the next six months.”

So we did. Quite a lot of cranes about; especially around Hawthorn.

David Morrell

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Bayside: Bewildered by choice?

With, effectively, only six weeks before the Christmas break, it was apparent from the size of The Age?s Domain property section that late-season sellers finally have their skates on.

However, on the back of a lift in listing numbers and another rise in official interest rates, there are some early signs of caution on the part of buyers.

The “sold before” auction numbers are up, suggesting that some savvy vendors can recognise a sensible offer when they see one. This against background of recent experience of properties passed in without a bid, some with later bids that still did not meet vendors’ expectation. (A vendor who is ahead of a market which is showing signs of reaching a plateau can find it very lonely up there.)

But still (this is real estate) there’s the odd result that continues to surprise: 138 Bay Street, Brighton. The agents expected around $1 million for this one-of-a-pair on a busy part of Bay Street. Strong bidding from some heavy hitters pushed it to $1.31 million before the bemused auctioneer finally dropped the hammer.

An hour or so later, that same auctioneer was left scratching his head at 32 Cosham Street. It’s a typical 1930?s-style Brighton house in a top Brighton street on a generous (1038 sq m) site. The request for an opening bid was met with stony silence and the property was passed in on the auctioneer?s bid of $2.8 million; with the vendor expecting a hefty $3.2 million.

A very similar property at 31 Middle Crescent, but on 1145 sq m, was sold at auction over the previous long weekend for $3.2 million, so lack of interest in Cosham Street suggests that market may have been satisfied.

Also no action at 7 Haileybury Street, a 1930?s attic-style house on about 600 sq m and only a five iron to Hampton beach. It was passed in on the auctioneer’s one and only bid of $1.6 million. The reserve, although undisclosed, is believed to be closer to $1.8 million and at that level you can expect this to be for sale for a while yet.

6 Grosvenor Street, a single level house in reasonable order and on 960 sq m, sold prior to auction at land value only: $2.8 million. In neighbouring Young Street, number 4 – on 830 sq m – also sold (privately) at land value: exactly $2 million.

41 Martin Street, a near-new architect-designed house close to the foreshore and Head Street park, sold privately for $3 million. The expectation was $3.3 million+

The most noteworthy sale of the past week was an expressions of interest transaction at 15 St Ninians Road in The Golden Mile. Recently extensively refurbished and extended – and on 1300 sq m – the property was sold to a neighbour for a price believed to be just over $8 million.

Due to be auctioned over the weekend and in fact sold the week before was a brand new Tuscan (with not-very-Tuscan basemant parking and theatre) at 13 Plunkett Street, Brighton East. It was snapped up on a very short settlement for a price believed to be close to $2.725 million.

Not so successful was Sunday’s auction held in the very next street: 13 Curzon Street – again a brand new house but without the added appeal of basement parking – struggled to attract much interest and was passed in on the auctioneer?s bid of $2.65 million. This was matched later by a real offer of the same amount but was rejected in favour of the vendor?s reserve of a lofty $2.8 million.

Expressions-of-interest racked up a couple of Brighton East sales: 122 Dendy Street: $2.25 million. 53B Glencairn Avenue, a stylish new town house: $1.85 million.

Beaumaris saw the auction of a prime corner allotment at 29 Beach Road. While 1045 sq m presents a lot of possibilities, it had no bidders on the day and is now being offered at $2.5 million

Bentleigh continues to be a litmus test for the mood of the Bayside market just back from the Bay. After months of 100% auction clearances, buyers are now showing some restraint: the weekend clearance rate dipped to a more modest 75%. Interest rate rises are starting to be felt and with the prospect of several more in the next six to twelve months, expect to see Bentleigh?s star somewhat dimmer.

The highest price paid during the week in Bentleigh was the prior-to-auction sale of 29 Wright Street: $1.2 million.

Damian Taylor

M&K in the news:

Footy rivals join forces to sell mansion - WAtoday – South Yarra buyers’ advocate David Morrell said the original asking price of $26 million for Avon Court was now reduced to about $17-18 million. …

Hawthorn home yours for just $16 million - Leader News - Buyers advocate David Morrell, of Morrell and Koren, said five Hawthorn properties sold for more than $2 million in the last weekend of October…

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At the top end? Everyone’s gone to the races. See you next week…

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