Market Wrap – Monday May 2nd 2011

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We have now segregated our market wrap from our market comments.
From now on each Monday morning you will see the statistics that are available and some of the auctions and properties we have attended over the weekend.
On Tuesday we will now write a more comprehensive market comment based on emerging trends and issues fundamental to buyers (and sellers) of real estate in Melbourne

SOLD under the hammer

4/13 Hawksburn Rd, South Yarra

4/13 Hawksburn Rd, South Yarra – a well located 2 bedroom apartment quoted at $430-$480K. This auction attracted a lot of interest with 5 bidders in all willing to show their hand. The agent didn’t have to work too hard to get the ball rolling – opening on a genuine bid of $430K, the bidding progressed confidently in 5K increments until it was announced on the market at $480K. At $522K – just as it seemed the steam had gone out of the bidding and all interest had been exhausted, the initial bidder who opened the auction at 430K came back into the game jumping to 525K. With a final squeeze of the remaining participants budget, the property sold under the hammer for $532,500.

9 Marlborough St, Caulfield

At the other end of the market 9 Marlborough St, in Caulfield also attracted a good degree of interest. An un-renovated single fronted 3 bedroom Edwardian with plenty of room to add value, was a perfect acquisition for someone trying to get a ‘comparatively’ affordable foothold into this $1.350M median location. Opening on a vendor bid of $730K 3 bidders took the challenge – albeit tentatively – pushing upwards in increasingly small increments of 10K, then 5K, until it was announced on the market at a pre-arranged reserve of $810K. With 2 bidders still in the game, the house sold under the hammer for $827,500.

8/94 Lewisham Rd North, Prahran

8/94 Lewisham Rd North in Prahran was perfect suited for first home buyers and investors alike. A one bedroom renovated apartment quoted at 350-380K attracted a crowd of around 50 onlookers, and surprisingly 5 bidders. Opening on a vendor bid of $350K, the price shifted slowly upwards in 5k increments which were gradually broken down until it was announced on the market at $384,000. It sold under the hammer for $401K – a good property gets a good result for both buyer and seller.

Passed in Vendor Bid

49 Jupiter St, Caulfield South

49 Jupiter St in Caulfield South is a 2 bedroom renovated art deco located in a street littered with million dollar plus sales. Judging by the size of the crowd attending, and the number streaming through the open prior to the auction, there seemed to be plenty of genuine interest. However after a relatively long pre-amble the agent failed to inspire anyone to raise a hand. Quoting $660-730K, the auction opened on a vendor bid of $660K and after much effort, ended up passing it in at this level.

8 Loller St, Brighton

8 Loller St, in Brighton also failed to attract a bid despite a large crowd attending. However the auctioneer valiantly worked hard for about 20 mins encouraging buyers to show their hand, before admitting defeat and passing the property in. Quoting 1.150,000 – 1,300,000, he opened on a vendor bid of $1.2 Mil. He followed this with another vendor bid of $1.250 before passing the property in.

Sold via negotiation

63 Grosvenor St, Balaclava

63 Grosvenor St, Balaclava is always a location that attracts a lot of attention. Considered one of the best streets in Balaclava the auction was extremely well attended. Despite the beautiful weather, the agent chose to conduct the auction inside which only heightened the stress for those preparing to bid. An unusual architect designed 3 bedroom townhouse stood this property out from the crowd and 3 bidders were subsequently inspired to raise a hand. After announcing the quoted range was 950K+ he opened on a vendor bid on this number. After a little effort he finally encouraged all interested parties to raise a hand. Going up in increments of 10K however obviously wasn’t fast enough, or close enough to the reserve for this auctioneer. After only two bids, he decided to place another vendor bid at 1Mil (even though it looked as if the bidding would get to this level on its own.) At 1.050 Mil – 100K above the price he quoted initially – and on not yet on the market – he went to have a chat to the vendor, later returning to proudly announce that the reserve had ‘plummeted!’ and we were now ‘very’ close to going on the market!! However another 15K obviously wasn’t good enough for the newly reduced reserve (!) and the property passed in at 1.065Mil to later be negotiated with the winning bidder at 1.1Mil

Ian James and Catherine Cashmore

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