Super Saturday; or another day at the office?

Morrell and Koren, the 1st buyer's advocates In Real Estate World, they love a label (OK, they’re not alone). So what happens when a reasonably consistent flow of properties coming to market is interrupted by school holidays or a long weekend? There’s a catch-up surge in subsequent weekends.

Super Saturdays!

Seems like there are more and more of those each year.

While the weekend just passed had some agents crowing of 80%+ clearance rates, the reported 66% seems about right (but that’s a figure which is likely to fall when the unreporteds finally report in).

[pullquote]Crowds are thinner but bidding was reasonably steady.”[/pullquote]Our experience over multiple auctions? Crowds are thinner but bidding was reasonably steady. That said, there were pockets which should have roused no-one from their slumbers – auctioneers left gasping for breath like trout on a river bank.

There has been talk that vendors are driving the market; but that’s not what we are seeing. There are vendors who have sipped at the cup of reality and who have priced their properties to sell; and buyers whose hands remain firmly in their pockets when the price is not right.

At least something is right with the world.

What went?

  • Armadale: 1026 Malvern Road. Passed in at $3.4 million. Eventually sold for just shy of $3.7 million.
  • Hawthorn: 123 Riversdale Road. Drawn swords between an overseas developer and an owner occupier. The owner occupier prevailed, saving a fair-maiden two storey Victorian from the wicked demolishers.
  • Malvern East: 19 Kingston Street. On 1635 square metres directly opposite Central Park. Passed in at $4.25 million. A Dutch auction led to a Sold sticker half an hour later.
  • Toorak: 737 Orrong Road. On 543 square metres. Sold for $2,510,000.
  • South Yarra: 3/31 Marne Street. Nicely renovated 2-bedroom art deco. Sold for $1.425 – typical of South Yarra over the weekend: nothing to be seen among the trophy homes, all the action was in apartments.

What didn’t?

Rumours:

A couple of properties purchased over the last 3 to 4 months not yet settled. Have some purchasers raised their hands a little too high?

The crystal ball:

A question put by many of the nervous involved in the equity markets: “What is going to happen to Australian property, taking into consideration what is happening in Japan, Libya and the melancholy that this often produces with investment? It seems as far as Melbourne is concerned (Sydney is another storey for another day), it is steady as she goes.

Opportunities around for the patient; and heartburn, dyspepsia and acid stomach for the hurried ones.

Expressions of (Phantom) Interest

As buyers, we’re no lovers of Expressions of Interest as a means of selling. Vendors and agents hold their cards to their chests while buyers are required to put theirs on the table. As suggested in last week’s Top End Trends, the invention of phantom bidders is just too easy. It’s time for the REIV to work out a fair and proper process for closing EOI and private sales; or would they prefer that the government came in and did it for them?

And a note to vendors: We know of buyers who are wary of this whole process and refuse to be involved. Before taking the EOI route, you might like to consider that; and the fact that you will hear only what your agent chooses to tell you.

Christopher Koren

Bayside: All going well, Damian will return next week

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