Proof of how quickly the market has moved ?
5 Berenice Terrace, Toorak, sold less than six months ago for $2.4 million, sold again on Saturday for $3,450,000 – a $950,000 gain on land and a record $508 per foot. This is ?B Grade? Toorak, not St Georges or Albany Road and that kind of number has never been seen in these parts before. Another land sale at 7 Burnie Street, Toorak, saw $2,110,000 against a $1.5 million reserve with 11 separate parties competing for the honour. Land in Toorak is always the litmus test to what the market is doing and this is proving in spades the adage ?good property doesn?t come cheaply?.
With only one more weekend until the school holiday winter slowdown, there were multiple bidders at all auctions we attended. Clearly there were many purchasers who were trying to get on the merry go round in a hurry as prices are still heading north. We sense that many of them believe the market still has room to grow and are prepared to bid far beyond what comparable sales would suggest.
There is a lot of energy, a lot of urgency, to secure a property. This, with the lack of choice at the top end, is the combination fuelling the market.
Need more proof?
44 Lisson Grove, Hawthorn ? the agent originally quoted high $2?s and then moved up to $3 plus with an ?out there? expectation of $3.5 million. The opening bid (and attempted knock out) at $3.6 saw the property later sold for $3,790,000. 10% above vendor?s expectations is almost par for the course.
From the buyers’ perspective, we hope that the ?Spring Rush? of properties onto the market (if it comes at all) will become a flood and at least cool the upward pressure on prices.