Spring Market Gears Up
The Age
Tuesday October 7, 1997
NOW THAT footy finals are over and the September school holidays out of the way, the spotlight has turned on to Melbourne's auction scene.
Analysts are predicting the largest number of properties for sale in the lead-up to Christmas since the exuberant selling spree of the late 1980s.
And auction statistics to date indicate that sales of properties for the year are likely to be around 20 per higher than in 1996. Historically, the busiest weeks are mid to late November.
Prices for choice properties in prime pockets within 10 kilometres of the central business district are likely to exceed those achieved during the boom.
Property consultant, Monique Wakelin, says many sellers who've held off for four or five years have finally found the confidence to act.
"We're now seeing a significant volume of property coming on to the market, much to the relief of everybody out there who's looking to buy," she says.
"The low volume has led to pent-up demand from buyers . . . the market's been held back such a long time, but at least part of the demand will be satisfied in coming months."
Despite the likelihood of record prices, Mrs Wakelin believes it is still a good time to invest in property.
"There are certain times in the investment cycle that favor shares, management funds and cash. Simply, the clock has turned to property investment."
She says prices in bayside and eastern suburbs, within 10 kilometres of Melbourne's city centre, have already edged above those achieved in 1988, 1989 and 1990. Other likely growth suburbs are Glen Iris, Burwood, Northcote, Thornbury, Brunswick, West Brunswick, and West and East St Kilda.
Mark Kausman, of Talbot Birner Morely, says the market in the east and the south is likely to retain its heat.
"Interest rates are mooted to fall yet again and this is only good news for those thinking of buying.
"People can finally afford to buy a decent house in the city and vendors are now willing to sell because of the captial gain that has taken places in the past nine months, says Mr Kausman.
"Low interest rates have also made it possible for former rent payers to enter the market."
Agents' listings show a good number of properties earmarked for auction over the next few weekends.
Of particular interest is the long-awaited appearance of some housing stock from the million-dollar-plus top drawer, which until now has been dipped into rather sparingly. The market can now look forward to a comparative bonanza, with around 20 million-dollar auctions already scheduled.
The party will get off to a flying start in the last week of October, when around $12 million worth of Toorak and South Yarra real estate goes under the hammer in the space of only 25 hours.
First on the block will be Heyington Hall, a grand family home at 12 Heyington Place, Toorak, which has six reception rooms (including a ballroom), five/six bedrooms and three bathrooms and is on about 2650 square metres. There is a championship tennis court and a tiled swimming pool.
Agent Kay and Burton Hume expects the auction, on Wednesday 29 October at 2pm, to realise a price in excess of $4 million.
An hour later, at 3pm, conjunctional agents Andrew Baines and R.T. Edgar will auction 204 Kooyong Road, Toorak, an imposing Palladian-style home of 13 rooms by the architects Peter Mackay abd Michael Munckton, with five bedrooms and a live-in flat. This property also has a tennis court and pool, and is on an allotment of around 2043 square metres. The agents expect a price in the order of $3.5 million.
This flurry of top auctions will come a few days after a series of likely seven-digit auction results from other suburbs. Three are expected by the agent Collins Simms in Hawthorn and Kew on Saturday 25 October; from the auctions of Myambeek, at 9 Mary Street, Hawthorn (expected $1.1 million), 20 Stawell Street, Kew ($1.2 million) and 9 Selbourne Road, Kew ($1.2 million).
A number of other top-drawer properties are among those listed for pending sale in the culminating weeks of what has been a fairly successful year for much of the real estate market. However, there is still an element of doubt as to the immediate future and this was emphasised by last weekend's auction results. These continued to show a strong market, with 577 properties offered and 452 sold at or before auction for a total clearance rate around 78 per cent.
However, some agents detected a seeming hint of hesitancy in the market, which perhaps was reflected in a 22 per cent pass-in rate.
Agents have warned of a sudden late rush of stock towards the end of the year.
Should buyers themselves decide to adopt a "wait and see" stance, the supply-and-demand balance could show a sudden, though temporary, shift.
GOOD OMENS
Factors indicating a good selling environment:
* High attendance level at open for inspections.
* Serious offers before auction.
* An increase in pre-auction sales.
* Several bidders at auctions.
* Prices rising above reserves.
* Increases in advertised listings.
* Twilight inspections.
* Increase in mid-week and Sunday auctions.
* High clearance rates (70 per cent and over).
Auction highlights this weekend
65 Davis Avenue, South Yarra. 2pm Saturday. Price: $500,000-plus. A renovated two-storey Victorian terrace offering townhouse-style living. Agent: Marshall White (9822 9999).
7 Salisbury Street, Balwyn.
3pm Saturday. Price: about $1.5 million. A huge two-storey Edwardian house with park-like gardens. Agent: Jellis Craig & Company (9818 2222).
1/87 Marine Parade, Elwood. 2.30pm Sunday. Price: $500,000-plus. An award-winning modern townhouse focused on Elwood's foreshore. Agent: Wilson Pride Ellison Hearnden (9699 4555).
5 Mytton Grove, Brighton.
1pm Saturday. Price: $1 million-plus. New and contemporary. Situated in Golden Mile cul-de-sac. Agent: Hodges (9596 6066).
9 Lewes Drive, Malvern East.
11.30am Saturday. Price: $600,000-plus. A romanesque mansion with a grand facade. Agent: G. A. Thomson (9509 8244) in conjunction with Woodards (9818 3456).
70 Iona Street, Black Rock.
12.30pm Saturday. Price: $400,000-plus. Classic two-storey Cape Cod-style house featuring bay views and colorful gardens. Agent: Hocking Stuart (9521 9800).
14 Green Street, Prahran.
1.30pm Saturday. Price: $400,000-plus. A large Victorian residence voted "House of the Year" by Vogue Living magazine in 1980. Agent: Wilson Pride Ellison Hearnden (9699 4555). -- Simone French
© 1997 The Age