Any signs of the top end cooling? Regrettably not, however there was one glimmer of hope – 39 Kinkora Road, Hawthorn; a thumping big 2-storey grand Victorian on 13,500 square fee. Exactly what the market has a huge appetite for (it did have a poorly set up kitchen, however). The house was passed in at $5,025,000, $475,000 under its reserve with only one bidder. Clearly the agents overcooked the property when quoting. It sold later for $5,205,000, which was $300,000 less than the vendor’s expectation. Music to our ears.
This cheerful tune was all too short. 14 Monomeath Avenue, Canterbury sold for an astonishing $2,990,000 against a reserve of $2.5 million. This was a land value transaction, which has now set Canterbury at approximately $300 per foot. Only four weeks ago the next street had the record per-foot at $205. Given Monomeath can command a 20% premium, it’s right up there with Toorak prices. It is still an outrageously expensive block of land, but what really surprised was that there were at least 11 bidders prepared to go past the vendor’s reserve!
28 Chrystobel Crescent, Hawthorn (wrong side of the street) a well renovated Californian Bungalow sold for more than $750,000 above its reserve. This was repeated several hours later at 12 Chrystobel, which sold for in excess of $2.5 million for a totally unrenovated home – again on the wrong side of the street – well above its reserve price.
Even over in Malvern, 14 Clarence Street went $250,000 over its expectations at $1.4 million – that surely is a lot of money for a weatherboard in that position!
Off-market transactions still led the way with the top sale in Lansell Road for an average house on 30,000 sq ft for $11.2 million.
Our main concern at present is the volume of bidders attending and bidding at auction. You only have to look forward to the stock over the next few weeks to see that the levels will be at an all-year low (by at least 50%). Those unsatisfied bidders will still be on the look-out, but the houses won’t be there. Therefore, we are of the firm belief that the market still has legs and that after the school holiday hiatus, prices will continue to move up.
Our advice to clients remains: if you see something you like, it won’t be a bargain, its price will hurt, but if it works for you, then reach for your cheque-book. By the end of the year it could be looking cheap.