Bubble, bubble. Is it all toil and trouble? (Sorry, Will.)
The word of the week, of the month, of the year is bubble. Bubble or bust? Bubble or the new normal?
At the top it’s now sounding more like pfft.
There’s not a heap of choice, but that’s what happens when winter shows up. Everywhere you look blue suits are heading for the cleaners and the kerosene canary is pointing north laden with agents anxious to spend it all on drinks with islands in them.
If you have a spare $25m, 100 Walsh Street is going begging (still) (it’s the price, people).
2 Glenbervie Road also has designs on you; or will at least be highly attracted by your spare $7,950,000 (we have history on that one, an EOI or so ago we suggested $6.5m was about right. We’re still to be proved wrong.)
But there’s always talk of whales with loose wallets. There’s always talk.
Example for the day:
Price $13m. On the quiet market for two weeks. Sold. Quality will do that.
Pinch me, I’m dreaming
The really bubbling bubble is the free-for-all at $1-5m. No more than in 39 Lambeth Avenue — a street where anything starting with a 4 would be hard to justify. When the smoke cleared it was gone for $4.66m. Go puzzle.
Following Mr Hockey’s considered advice, a 19-year old went out and got a good job and bought Hastings Road, Hawthorn East for $3.55m.
All her own work? Really?
To FIRB or not to FIRB?
There’s still a lot of OS interest and, recently, Chinese agents selling Toorak to Chinese buyers when the locals have come up with zero. 3 Glenbervie Road had been in the hands of more than one local agent for more than 12 months and has just sold for $8.7m. Yes, it’s a weighty discount on the original $10m ask, but that’s still a weighty commission that won’t be lining the pockets of those who usually stand in line.
SYD bubble is not like MEL bubble
We spent much of last week marvelling at SYD’s bubble (and buying into it). Theirs is more property-specific while ours is supply and demand. That said, our demand is regularly renewed. Each year there’s another group of surgeons, barristers and business people who cross the threshold from need to want — and have the necessary wherewithal.
There will be ebbs and flows but in the leafy suburbs the underlying pressure is consistently up.
The Skip Measure
When overflowing skips are outnumbering For Sale signs you know the market is still tightening and the renovator’s dreams are becoming reality. Add to that the increasing number of off-market sales and you can see why the Weekly Review is on a diet (and now that the agents have sold out … well, draw your own conclusions).
We’ll be back when …
… there’s something new to say. It’s still the same old story goes well to music, but let’s leave it there.