The market survived its first real test on the weekend and seems to have lost none of its steam; but there are some signs that the future may be cooler – the proportion of buyers to properties for sale could be starting to swing. There was more to choose from, but not so many underbidders who can be expected to be back in coming weeks.
Yes, Cup fever officially hit the Melbourne market and 80% plus clearance rates continued – with some outrageous prices being paid – but there were some smoke and mirrors obscuring the results.
If you dissected who actually bought the properties, three of the major sales were to neighbours. 12 Maple Grove, Toorak, was passed in at $6 million last weekend without a bid, then sold to the people next door for $6.8 million, which is considered to be quite a lot of money for a tennis court ($560.00 per foot!).
15 Huntingfield Road, Toorak, on 7,500 sq ft, sold to the neighbour for $3.6 million, again for a tennis court ($480 per foot for a court! Cheap!).
5 Montalto Road, Toorak, also sold to the neighbour for a tennis court for $4,060,000 at (a bargain!) $460 per foot.
A tennis-led market? It’s new. It’s different…
Other strong sales included 25 Denbigh Road, Armadale which was sold before auction for $4.6 million against a $3 million expectation.
In Albert Park, 148 Beaconsfield Parade sold before auction for $3.8 million; a very useful result given it was on only 2,500 square feet.
In South Yarra, 36 Anderson Street, the ground floor of a two-storey house in need of some serious tlc was on the market at $4.3 million and finished at $5.4 million ? and this is not even a house!!
While last weekend all was peace and quiet in Malvern, this week they woke up in a big way. 12 Westgarth Street, East Malvern, a nice double fronted weatherboard, sold for an incredible $2.65 million against a $2 million expectation. 26 Glendearg Grove sold for $2.4 million against a $2 million quote and the other big surprise was 32 Wheatland Road: On the market at $2.2 million, it sold for a whopping $2.61 million, which again illustrates the powerful allure of the school belt.
But the market wasn’t buying everything. 78 Illawarra Road, Hawthorn, was quoted at $3 million plus; it’s a modern home without great character or real appeal and was passed in at $3 million with a reserve of $3.5 million.
Investors are still very active in the inner city and the apartment market is looking solid. Clearly the election and talk of interest rates hasn’t curbed everyone’s enthusiasm.
Woblette passes in Sydney
A range of solid sales over Sydney disguised some localised but likely to be short-lived wobbles in a pre-election market.
The eastern suburbs dominated. Line honours over the weekend went to South Coogee with the sale of 5-7 Garnet Street for $5.4 million.
The same price was paid at auction for 21 Burrabirra Avenue, Vaucluse, earlier in the week. That monster price was achieved despite a raft of restrictive covenants burdening an otherwise immaculate property.
But both sales were eclipsed by the $5.7 million sale prior to auction of 5 Fairweather Street, Bellevue Hill.
Elsewhere in the east, at 13 Carlisle Street, Rose Bay, the buyer paid $3.73 million for a five bedroom home.
Closer to the City at 706/46-50 Burton Street, Darlinghurst, the vendor accepted a second round $2.55 million for a split level north facing three bedroom unit in Republic 2 with city views and directly above the new upmarket Universal Restaurant.
Nearby, a pre auction $1.5 million secured a terrace in a tree lined cul de sac at 19 Richards Avenue, Surry Hills.
A three bedroom home at 41 Denning Street, South Coogee sold for $2.9 million and $2.825 million was paid for a three bedroom unit at 23/22 Wylde Street, Potts Point.
A similar story slightly further to the south in Elizabeth Bay saw $3.23 million picking up a three bedroom unit at 12/93 Elizabeth Bay Road.
No sign of any weakening in the Potts Point / Elizabeth Bay trendy hotspots, especially where water views are involved.
Closer to the coast, we negotiated $2.4 million post-auction for a new four bedroom architect’s home at 17 Mill Hill Road, Bondi Junction – a result achieved despite antics by the auctioneer that we’d seen too often before but may have left some hapless underbidders wondering what was going on.
Activity was more subdued in the north. At 30 Dettmann Avenue, Longueville, a four bedroom home sold by private treaty for $3.25 million and $2.21 million was paid for a three bedroom home at 1 Smith Road, Artarmon.
Not far away, the prices in the sub-$2 million bracket continued marching northwards with $1.65 million outlaid for a three bedroom home at 19 McClelland Street, North Willoughby. It seems that any health scares attributed to the nearby TV towers have long ceased to have any effect on prices in those suburbs.
In the Inner West, $2.76 million bought a five bedroom home at 84 Wallis Avenue, Strathfield and $2.55 million was paid earlier in the week for a four bedroom home in the prestige end at 33 Birchgrove Road, Balmain.
There were also signs of upward movement in ‘the Shire’ with the sale of a big four bedroom unit at 2/18 Coast Avenue, Cronulla for $4.55 million.