Art lovers, this is a week made for you.

Much staring into space, looking for elusive meaning. Finding gems where others see only confusions of colour.

Hot on the tail of Fred Williams, we took off for 2 Hyde Hill Road, Harkaway. in Williams, the aware mind is struck by its rural truth, right down to the waft of summer eucalyptus. Which makes rather easier sense than the abstract expressionism we found. Bizarre. Eight hands fluttering skywards in a mortgagees’ auction in these doomy days. Count ‘em! Eight! $4.4 million! Is there something we don’t know about the Harkaway water?

Meanwhile, back in town it looked more like a John Firth-Smith landscape. Doom and gloom spiked with – when the offer was outstanding – more fluttering hands and a picture auctioneers dine out on: She who had not raised her hand even once did so at the last minute and bought it. Husband at the footy. Unaware. “Darling, you’ll never guess what I did today…”

Then came 30 St Vincent Place. Definite contender for under-quote of the year. “$4-5 million” for a classic on over 1,000 sq m on one of the most desirable streets in this or any other city? Yes. Definitely. Never any doubt. Was anyone surprised when it went for $6.62 million? You? Then there’s a picture by Picasso we’d like to show you…

Across town, 66 The Broadway, Camberwell. Good house, four bidders. $3.83 million. Sensibly priced and indicative of the true market. Last year it would have topped $4 million. It’s another indication that reality has broken out in Hawthorn, Camberwell and Canterbury to a greater degree than has yet reached the inner suburbs.

And then we come to the truly bleak. The Peter Booth end of the market. Those who spent their tens of thousands promoting their wares and failed to attract even a cheeky bid. Look now upon:

• 63 Davis Avenue, South Yarra – Vendor bid $2.2 million, reserve $2.495 million – oops!
• 142 Kerferd Road, Albert Park – Vendor bid $2.350 million, reserve $2.5 million – ouch!
• 52 Armadale Street, Armadale – Vendor bid $1.7 million, reserve $1.85 million
• 21 Glassford Street, Armadale – Vendor Bid $1.650 million and a reserve which is, presumably, too embarrassing to disclose.

So there you go. When the house is right and the price is right, the hands still fly. Get either wrong and prepare to wait. And wait. And if you’re buying with the intent to sell, take your time. Get it right. Today’s mistakes will make for very expensive tomorrows.

Journo’s, come news or lack of, still have papers to fill. We’re in a happier position. Staring at the end of the financial year and no prospect of anything earth-shattering over the school holiday break, we’re taking the cue from our clients and won’t be back for a couple of weeks.

Unless, of course, the earth does shatter.

David Morrell

Bayside underwhelms

Tadeusz Kantor has a reputation for works of dynamic imbalance and Bayside is following suit. In the imbalance. Dynamic? Not.

It’s still out of whack: average stock labouring under above-average price expectations leading to everyone staying home – even the neighbours. Who can blame them? Underquoting and over-pricing leading to no sale is hardly a show worth crossing the street to see.

With stock levels down until the Spring we anticipate more of the same.

Bleak in the Brightons

Over the weekend in the Brightons, only eight out of 20 found new owners. Last week’s lion became a mewling pussycat at all its price levels. Even the lower end had its pass-ins.

9 Lindsay Street, Middle Brighton. The highest result on the day was undisclosed (OK, close to $2.2 million).

The highest pass-in was also in Middle Brighton: 14 William Street. A single level brick Victorian on 1000 sq m, it limped in on a vendor bid of $2.7 million, reserve undisclosed. Our guess is that any reasonable offer will be gratefully considered.

It’s an indication of where this market is at when properties in signature Brighton East streets, such as 100 Canberra Grove (passed in at $1.1 million, reserve $1.15 million) and 37A Plantation Avenue (passed in at $1.4 million, reserve $1.535 million) not only do not sell, but between them do not attract a single bid.

Slumber in The Bentleighs

The Bentleighs had a quiet day by their lofty standards with only 10 auctions scheduled for a 60% success rate.

Although the misleading and deceptive price quoting by one of the area’s high profile gavelmen put the spotlight on him and the suburb last week, it really is a matter of tell us something we don’t know. Bentleigh will survive. Bentleigh always does.

Bowie and Black Rock nod off

Beaumaris and Black Rock battled on gamely; with only eight on offer and just four sales. Highest on the day was 45 Stanley Street which sold for $1.6 million, followed by 425A Beach Road in Beaumaris at $1.205 million. Despite the brave claims of one of the agents, the chill of winter has meant an early hibernation for many down by the sea.

Sandy and Hampton shut the shop

A season low of one sale from six auctions: only 30 Cowper Street troubling the scorer. It sold for $1.245 million.

The real gem, a hop and a skip toward town from Bayside, was 30 St Vincent Place – as noted above by our colleagues from South Yarra. While the end result of $6.62 million with a number of interested and competing parties was impressive, one swallow does not make a Spring.

Damian Taylor

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The top end continues to work in mysterious ways. A very expensive, very silent submarine.

Secrets rule. We’d tell you but they’d have to kill us and we’re too busy to go to that funeral.

And then a periscope pops up. 21,000 square feet of 12 Albany Road sells – not overnight, it took four weeks – and no-one is saying a word about how much or to whom.

Down the street at 26 Albany? The whole 26,000 square feet is still all yours for the asking. Another Expressions of Interest campaign in danger of sinking without trace.

Not alone. Over the last six weeks or so, most buyers have realised that the helm of that sub is theirs and they’ll steer it where they choose. The frenzy has gone. If the price isn’t right or the offer doesn’t tick all the boxes, they simply sail away.

6 Fullham Road, South Yarra. Sunk with nary a real bid. Vendor requires a new course.

24 Park Street, South Yarra. Two bidders. Found port at $4,850,000. Not bad, not good. Wrong side of the street. About right.

“And what,” you may ask, “are the agents doing when the buyers aren’t coming to the party?”

Some we know of have done the rats and sinking ship trip. First off. Off to parts more to their liking for five or six weeks.

How does that feel? You’re a vendor who has just dropped 50 or 60 large notes on a campaign that couldn’t fail and the agent who was once your very very very best friend is now in some distant time zone? For five or six weeks? You? Relaxed and comfortable? Not.

And then we had a call last week from someone whose house we had looked at – who rang to tell us he’d had an offer and was about to sell. Really? “Does your agent know about this?” Apparently not. “Are you anxious to sell?” Apparently so. “And you have a real buyer just ready to sign?” Absolutely.

Funny thing, that. The house is still for sale. A phantom offer? A phantom buyer? Another reminder that it’s not always the cleverest idea to be rushing for the chequebook the moment a competing offer is mentioned (and, no, we weren’t interested anyway).

And just when we were wondering why the world doesn’t love agents to bits we found ourselves choking on our Weeties. An agent was pinged! For underquoting! 11 times!

It’s right there in the Herald Sun: “This is a stern warning to the real estate industry and agents that any businesses suspected of misleading price advertising will find themselves under close scrutiny…” (Consumer Affairs Minister) Mr O’Brien said.

“Lordy!” we thought, “That agent will be spending the best years of his life on a prison ship.”

Well, not exactly. That agent (OK, Nick Renna, Hocking Stuart, Bentleigh) was sentenced the equivalent of having to stand in the corner for 30 seconds. “Naughty! Don’t you dare do that again!”

Yes. That’ll teach them.

David Morrell

Bayside: All in good time …

After a long weekend with few auctions and fewer private sales, everyone went back to work and tried to read the signs.

How do you like your omelette? Served in the dark, a garnish of this and that and not quite knowing what it really contains? Coming right up…

Seems everyone has an opinion as to what this market is doing – ranging from sinking into oblivion to sunshine just around the corner.

Meanwhile, properties that were expected to struggle sold. Those expected to walk out the door were left waiting.

That’s what’s making this market: the doomsayers selling out now before the end of the world while the glass half-fullers are moving in on what they see as opportunities.

Both can’t be right. There will be winners and losers.

More than ever it’s essential for buyers to thoroughly understand and research their options, to take a measured long term view, to resist the temptation to over-gear and to choose the very best property their budgets will allow.

And in spite of some of the gloom, it is a fact that properties are still selling and, in a few cases, selling quite well.

One prominent Bayside agency is happy for all and sundry to know that the firm has sold one property per day for the past two months. A commendable effort which probably points to their skill at managing their vendors’ expectations better than some of their competitors.

And although transactions are ticking along, they are doing so at a considerably slower pace and predominately in the lower- to mid-level of median value in their suburbs. The upper end is a challenge and has become very sensitive to pricing. If a property is not on the money, expect it to sit there for some time.

So to the week’s action. And inaction.

The attention-grabbers in Bayside were not the mega mansions, but still beach front properties. The City of Bayside offered two recently-constructed bathing boxes at 58A and 58B Dendy Beach.

Each about the size of a mega mansion’s powder room but without light, power or services and with a “title” that is no more than a licence to occupy and which must be renewed annually – none of which proved to be an impediment to the buyer who paid over $260,000 … just $45,000 above the previous highest price paid on this beach last year. The sale of the second box at $221,000 seems a snip. And there’s a prediction of more boxes becoming available.

At the other end of the spectrum, a structure with radical extras including bedrooms, a kitchen, etc., at 2 Lorac Avenue was sold. Again. On three levels, in its short life it has already been sold three times; the last occasion being two years ago for $3.475 million. (For the agents involved it’s not so much a house as a career.) Initially passed in at $3.4 million, negotiations throughout the evening with a second buyer saw agreement reached between $3.6 and $3.7 million.

At a similar price point, the auction of 2 Tennyson Street was short and not so sweet. A cavernous faux French chateau style house, it has a mix of internal finishes well calculated to confuse. After a brief preamble the house was unceremoniously passed in on a single vendor bid of $3.5 million. The reserve is undisclosed, but earlier gossip was of a vendor expectation in excess of $4 million. Don’t hold your breath.

One that should have sold was at 10 Downes Avenue. A comfortable brick bungalow on average land but in a desirable street, it needs some large numbers being spent at the rear. When the best offer at the auction of $1.675 million was increased to $1.8 million, most observers (and perhaps the selling agent) anticipated acceptance. Not the case. The reserve now is set at an ambitious $1.95 million.

A couple of private sales worth noting were 42 Cole Street at $2.36 million and vacant land at 38 Hanby Street that was passed in several weeks ago. It sold for a fair $2.05 million.

Overall Brighton performed reasonably well with 13 sales from the 20 scheduled; although three of those were sold prior to auction.

Elsewhere, Beaumaris and Black Rock hardly raised an eyebrow and Hampton and Sandringham hardly raised a sweat; with the exception of 3 Linacre Road which sold for $1.46 million.

The sensible, predictable and safe Bentleighs posted a solid 13 sales from 18 on offer. Hardly surprising. They’re affordable, well serviced semi-bayside suburbs with vendors who generally have sensible expectations.

Sense. Now there’s a thing.

Damian Taylor

 

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Where did everybody go? Why has the top end … disappeared?

And who’s to blame?

Nobody’s short on theories: It’s the carbon tax, it’s the Oz Dollar, it’s the long weekend (really?), it’s school holidays, the weather, the footy, the…

Our turn: At the top end it’s because there’s next to nothing for sale for a reasonable price.

The buyers are there. They’re aware of all the reasons why this is not a good time to be looking (doom approacheth, etc), yet look they do. And they have their own personal reasons for doing so.

Then why is so little available?

You don’t have to spend a lot of time looking for clues. As we have commented before, you can’t jog far in suburbs such as Toorak without falling into someone’s skip. With so little to move to, those who may have moved on in the past are now staying put and renovating.

It’s a circle: There’s so little available because there’s so little available.

Litmus test of the renovation market is our friend the timber merchant. His trucks are now on the road non-stop.

And all this is playing out against a background of just about everybody telling you they know just about everything. People who were selling cars or life insurance last week are suddenly the oracles of property.

But not only them. The Fin Review reports estate agents numbers being down by 10,000 this year (good start) and a fair whack of those are hanging out buyers’ advocate shingles.

Which is nice. Always room for more. But changing sides also requires changing minds. An agent measures success by transactions done, an advocate by clients whose needs are met. They are not the same and it is not an easy transition.

So. What’s going on in the shop?

Things are still happening out of the public eye; but not at the levels we saw last year. Still, some who have been left alone at the altar have at last found suitors.

And, as always, exceptions:

5 Barnard Road Toorak sold very quickly for $7 million. A good result given it was apparently bought for $6.5 million in a heated market.

Perennial wall-flower Fairlie Court may have at last found love, but not at the $10 million mentioned as its dowry. Patience works. So does reality. Correction: And then we heard that, no, a suitor is still being sought.

51 Chrystobel Crescent, Hawthorn. Good house, good price. Sold. It happens. Correction: Not always. Two bidders saw it pass in at $3.05 million. The reserve is $3.5 million.

3 Towers Road, Toorak. $30 million. No sold sign. No more to be said.

And still there are agents persuading their clients that it’s a good idea to spend $30,000 on advertising now – while those they’re spending it on are somewhere where there’s sun or snow.

Next weekend? Ma’am’s birthday. We’ll be back the week after.

David Morrell

Bayside: If wishes were horses…

… beggars would ride – is an aphorism which has been around since the 16th Century (thanks, Google) and it’s still getting a trot in Bayside.

Rephrased by some local luminaries into: “There’s renewed buyer activity! There are multiple bidders!”

So that’s good. And that’ll be a new BMW in the mail. Promise.

What are we really seeing? Not a lot of action over the past week; and few private sales. With the mid-year long weekend almost on us and winter well and truly here, activity is still slowing on the back of underwhelming buyer confidence and a limited selection of quality offerings.

Which is not an argument to give up the search altogether. There are still gems to be found; but the finding is certainly harder.

And then to the news that was:

The standout auction: 20 St Ninians Road on the corner of Dudley Street in Brighton’s Golden Mile. Last sold just on two years ago for $2.74 million, it’s a presentable single level townhouse on just 574 sq m. The auction produced – remarkably – two genuine but frugal bidders who each put in one bid before the property was passed in at $2.97 million. Following an outbreak of good sense, that offer was accepted shortly thereafter.

Elsewhere in Brighton bidders were ducking for cover:

18 Carpenter Street was passed in at $1.75 million. There was a later offer reported to be $1.8 million and the reserve remains a mystery.

35 William Street was passed in on a vendor bid of $1.75 million and the reserve again confidential.

Among Brighton’s slim pickings was one notable private sale: 4 Belle Avenue, Brighton, sold for $3.62 million.

Elsewhere in greater Bayside the pattern continued with the lower to middle end (up to $1 million) travelling reasonably well, but with the tap turned off for almost everything over a million.

Seems our reports are incomplete without a mention of our favourite performing suburb(s), the Bentleighs.

With a rare zero number of auctions held in Bentleigh, attention moved East with a total of 11 auctions producing just six sales. Even the bullet-proof Bentleighs are not immune from the chilly winds of a cooling market.

Enjoy your birthday, Your Maj. And we’ll see you, commoners, the week after.

Damian Taylor

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