May 28. It’s tough to find value…

moko T.E.T., Uncategorized

What a weekend!!! It is getting very tough out there and even tougher to find value. Prices paid over the weekend again confounded experts, but what was really surprising was the number of bidders attending most auctions. You weren’t bidding against just one other; often it was four or five. Some of the results were startling – almost beyond comprehension – however it again shows that the market is not stagnant and is moving further forward. There’s still no blip on the radar in sight. 2 Glenbervie Road, Toorak, quoted in excess of $3,000,000, sold for $4,500,000. This was repeated at 30 Montalto Avenue, Toorak. 9,200 square feet and a house which needs work. The expected price was near $3,000,000 yet with multiple bidders the property sold for an amazing $4,250,000. Even in Armadale it was hot in the kitchen; a little weatherboard at 8 Rose Street, quoted at $910,000 plus, sold for $1,370,000 and it didn’t even have a car space. 14 Munroe Street, south facing, not a good house, sold for $2,455,000 against a $2 million expectation. Outside the blue chip areas, in areas such as Kew, it was even hotter. 19 Grange Road sold for $6,600,000 against an expectation of $5 million. Remember, this is Kew – not AAA and certainly not Toorak. Investors were again very noticeable with two of them competing for 7 Perth Street, Prahran – a single fronted weatherboard in need of work. The expectation was high $700’s, the reality was $941,000. The only good news we can report is that we did secure several properties privately. We’re advising our clients that this is a method they should use to avoid paying sometimes horrendous premiums. What is of most concern is the market’s underlying trend, which has been especially evident over the last weeks. If this continues it is reasonable to assume that a further rise of 10-15% before Christmas is a real possibility – the only cloud on the horizon being a possible change of government which may slow the market down.
mokoMay 28. It’s tough to find value…