Fewer Bids And Lower Prices In An Unpredictable Market

The Age

Monday June 2, 2008

Kate Nancarrow

MELBOURNE'S patchy auction market once again produced a chequerboard of results, with some over-the-top bidding in Hawthorn, steady demand in Richmond and an unexpectedly strong price in Elsternwick.

In this hard-to-predict market, all that is clear is that there are fewer bidders than late last year and prices are generally lower, but special properties prompt exuberant bids and high prices.

In Richmond, Hocking Stuart sold all seven properties auctioned but the sales came in the varied manner now typical of the market: one sold before, three sold under the hammer and three required after-auction negotiation.

Hocking Stuart director Chris Murphy said numbers at open-for-inspections were down "30-40% compared with last year, when properties were flying. And where you might have had five or six bidders then, now you have two."

His firm sold a free-standing, well renovated weatherboard with off-street parking at 110 Buckingham Street, Richmond, on Saturday for $745,000, well below what it would have sold for last October, Mr Murphy said. "Then, we would have had about 100 groups through with five or six bidders. This campaign we had 42 groups and two bidders."

He said the market was unpredictable. A converted warehouse at 30 Dickmann Street, Richmond, sold yesterday for $1.62 million, way above the reserve, after fierce bidding by two buyers.

In Elsternwick yesterday, Changing Places' Cameron Fisher auctioned a 44-year-old brick house at 342 Glen Eira Road. Its identical neighbour sold last May for $827,500 but yesterday's auction produced $901,000, a surprisingly strong result for a house on a busy road. "Some pockets are still doing very well," Mr Fisher said.

He said Elsternwick was "much stronger than the rest of the market but overall there are fewer people at opens and fewer emails inquiring about properties."

In the east, Jellis Craig had the highest sale of the weekend, selling a large Victorian house at 15 Brook Street, Hawthorn, for $3,811,000.

Director Alastair Craig said the extremely strong sale price reflected the rarity of the property; it was on an enormous block with a north-facing backyard. As well, both the buyer and the underbidder had been looking for up to a year and were prepared to pay a premium for a family home in a great position.

The firm sold 17 of the 22 properties auctioned. Mr Craig predicted prices would increase in winter. There would be far fewer properties available this June compared with last, and "prices are governed by supply and demand".

LISTINGS

Weekend 658

Yesterday 29

Last Sunday 23

This weekend last month 870

This weekend last year 708

CLEARANCE RATES

Weekend 64%

Yesterday 55%

Last Sunday 23%

This weekend last month 61%

This weekend last year 85%

Total volume (auctions) $273.72 million

Total volume (private sales) $286.32 million

TOP 5 HOUSES

1. 15 Brook Street, Hawthorn $3,811,000

2. 687 Park Street, Brunswick $2,420,000

3. 40 Park Road, Middle Park $2,000,000

4. 5 Olive Street, Malvern East $1,840,000

5. 121 The Righi, Eaglemont $1,730,000

TOP 5 BARGAIN HOUSES

1. 6 Etna Court, Coolaroo $196,000

2. 3 Eaton Parade, Laverton $201,000

3. 6 Plantation Avenue, Frankston North $210,000

4. 13 Highland Avenue, Hampton Park $235,000

5. 9 Goodrich Court, Craigieburn $238,500

TOP 5 APARTMENTS

1. 19/156 Beaconsfield Parade, Albert Park $2,500,000

2. 30 Dickmann Street, Richmond $1,620,000

3. 18 Tennyson Street, Richmond $1,532,000

4. 54/546 Toorak Road, Toorak $1,370,000

5. 1 Northcote Road, Armadale $1,342,000

TOP 5 BARGAIN APARTMENTS

1. 37/39 King Street, Dandenong $185,000

2. 11/657 Barkly Street, Footscray West $200,000

3. 2/14 Firth Street, Doncaster $215,000

4. 5/23 Maribyrnong Road, Ascot Vale $217,500

5. 4/42 Gillies Street, Fairfield $222,000

© 2008 The Age

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