October. MEL’s windiest, wettest, month.
And so … some observations and forecasts.
Ob 1: The end-of-year-rush is underway
… with an influx of new entries — but still little choice over $8m. (Behind closed doors? Different story.)
Ob 2: Land is still the litmus test
Toorak land moreso.
Saturday’s result at Tahara Rd — $4.9m/$700/ft. — is enough to raise eyebrows.
4 hands waving, all local. Most were builders looking for a development site.
Ob 3: Chinese nationals are doing things quietly
Now seen only infrequently at auctions. Really busy in private but rarely in person.
2 Glenverbie Rd. Put up for Expressions Of Interest last year at ” $6m+”
“+” turned out to be a reserve of $8m.
The agent was … unimpressed — and tore the board down within a day.
The vendor had another crack with another agent and another $30k went down the drain and then…
“We told you so,” we said.
But then they came again and then, straight off a plane from China came $7,720,000
And then the locals stared and said that’s $1m more than we though was right.
Forecast: We’ll see more of China
There’s a similar story around 50 Hopetoun Rd.
More to come? Catch 4 Corners tonight: “Compared to Shanghai property, Sydney property is not that expensive,” says one Chinese investor.
This is not just about China, but when foreign values are greatly out of kilter with our own and we appear too cheap to pass up, there has to be upward pressure on prices for everyone — locals and foreign nationals alike.
And that’s not just at the top end, because upward pressure anywhere is eventually felt everywhere.
We’re told the local MP and Parliamentary Secretary to the Treasurer is onto it (and has been for months).
One way or another, we should know our government’s views.
Forecast: Tears before bed-time
There’s an awful lot of EOI’s popping up and an awful lot of agent quotes that are popping straight into the clouds — often on homes that have already been around for months on the quiet.
Ob: EOI 2. The Sequel. Can it work?
26 Kooyonkoot Rd. Good house, one issue:
Obs: Pre-auction trembles
Pre-auction offers are being accepted, even in the hot lower/mid range.
Why? Worries that the Spring onrush will swamp the market. It’s safer to go with the bird in the hand.
Obs: Golden Week ain’t
The traditional Chinese holiday has in the past created flurries of activity. Not this year.
Obs/Forecast: Busloads in Monomeath Ave.
In 10 minutes, nine minibuses of tourists checking out every house n the street.
Is this the new Gold Rush?