Not All Estate Agents Keen On Going Dutch

The Sunday Age

Sunday June 27, 2004

Gary La Personne

Melbourne auctioneers who have long claimed the conventional auction will deliver vendors the best price have a fight on their hands.

Renegade western suburbs agent Alex Bartolo's "Bartolo auction method" - more commonly known as a Dutch auction - could shake up the established order of the property market.

Mr Bartolo has thrown down the gauntlet to Melbourne's real estate hierarchy and the Real Estate Institute of Victoria, saying his method delivers a fairer price and that he's ready to debate its merits with anyone and everyone - the more the merrier.

And his controversial system has Consumers Affairs Victoria's stamp of approval and has been praised by the Law Institute of Victoria.

Consumer Affairs Victoria says that although the method does not, in principle, breach legislation, it will continue to monitor individual auctions.

Christopher Dale, president of the Law Institute of Victoria, says it's an innovative move: "In the market we're facing, enthusiasm has waned, particularly with the law amendments. What this purports to do is introduce some of the theatre back into auctions. That's not a bad thing. Anything that adds diversity and enthusiasm is to be preferred."

In a Dutch auction, the first bid buys. The agent opens with a vendor's bid well above the reserve and continues in ever- decreasing bids until a buyer puts their hand up. Prospective buyers are made aware of the starting price up to six weeks in advance.

Mr Bartolo says of one critic of his system:

"Fancy the REIV CEO (Enzo Raimondo) stating the only problem he can see in it is where to start from? I think that's a joke. Obviously, Enzo must have been stuck for words when he said that. Just like he got confused when he said it was a fad. I've got news for him. It's going to be the longest fad he's ever seen in his life."

Mr Raimondo says: "It is a gimmick and a fad because he's trying to differentiate himself in a tight market. I don't think a reverse auction is in anyone's best interests.

"How do you pick a figure and start? A couple of weeks ago at an auction where the agent estimated the selling price at $600,000 and the property was advertised at $600,000-plus, it got to $900,000 because there were two developers who wanted the site. What would Mr Bartolo do? Would he start with, say, $750,000? Is that in the vendor's best interests? I disagree with Consumer Affairs, too.

"Of course (Dutch auctions) don't contravene the act - because reverse auctions weren't considered when the legislation was written. It was for conventional auctions.

"I think Consumers Affairs should come out and make a statement in relation to how (reverse auctions) should be conducted. It's not in the spirit of the legislation."

Mr Bartolo remains defiant: "I'll take on anyone in a debate. They'll be running away with their tails between their legs."

Any takers?

For the record

A reader says the Dutch auction originated in Amsterdam's flower market, the world's biggest. The method is used there because of its speed, ruthless efficiency and, the Dutch, believe, honesty.

Fit for a Peacock

Former Kooyong colt Andrew Peacock has bolted to a new paddock in search of meaningful employment.

His stint in Sydney as president of Boeing Australia has gained a greater sense of permanence with his purchase of an exclusive waterside flat.

The politician-turned-diplomat-turned-corporate chief and his Texan wife, former beauty queen Penne Korth, have forked out about $4 million for a lavish four-bedroom apartment with water views.

Palatial Gladswood House, in the exclusive suburb of Double Bay, has been extensively renovated and has leadlight windows and high ceilings. Previous owner, car modifier Brian Connell, leased it to the Peacocks when they moved to Sydney, and it changed hands in a hush-hush deal.

After his stint as Australian Ambassador to the United States, Mr Peacock spent time in Berry Street, Richmond. He refused to comment about his recent purchase.

The apartment was once owned by born-again businessman Alan Bond, now flogging mine shares out of Africa.

Community effort

There will be no reserve price when a house built for charity goes under the hammer today. After a massive community effort involving almost 100 people over a year, the four-bedroom home in Serenity Way, Mornington East, will be auctioned at 1pm. The proceeds will go to the Cancer Council Victoria.

Selling agent Kathy Netherclift of Bennetts Property Group says: "We'll be thrilled with anything over $360,000. There's no reserve, it will sell for sure. It was built at cost.

"We're hoping to raise more than $100,000 in net proceeds for the anti-cancer council."

The 22-square brick-veneer house with double garage is on a large, landscaped block of 1040 square metres. It has ducted heating and vacuuming and evaporative cooling.

The Pitching for a Cure project was the brainchild of 68-year-old builder Neil Fullard. His motivation came from being exposed to the tragedy of cancer on many fronts: his wife died of it 25 years ago, he survived prostrate cancer and he has seen its effect on close friends.

In Australia, serious cancer affects one in three people and is the most common cause of death.

"Almost 100 people were involved with the project," says Ms Netherclift.

"There have been overwhelming offers of support over the past year. Everyone from the developer, builder and real estate agent down have contributed their time, either with free labour or discounted goods for the home."

Gives a whole new meaning to the saying, "charity begins at home".

For more information contact Bennetts Property Group on 5976 5933 or Kathy Netherclift 0409 743 326.

Court napping

Heavyweight legal trinity must have the folk at Premier Building & Consulting tearing their hair out. Justices Morris, Bongiorno and Osborne have all bowed out of hearing the case in which the hapless developer is suing the Spotless Group and other companies.

The case concerns toxic chemical spillage from an adjoining property onto the site of a $16 million apartment block built by Premier in Barkly Street, Brunswick.

Although Justice Osborne may sit at the next hearing, he has effectively ruled himself out of presiding when the case begins in the Supreme Court.

Both he and Justice Bongiorno say there's a conflict of interest, while Justice Morris of VCAT cites "judicial comity" as the reason for his withdrawal.

On the rise

All that glass and cold steel in Lonsdale Street is turning out to be a hot buy. The labyrinth QV building complex is bucking the trend towards depressed city apartment prices.

Brett Jarvis, of Hocking Stuart Melbourne, says about 25 apartments have been resold at between 7 and 15 per cent higher than their original purchase prices.

The big attraction is probably the location and 46,000 square metres of retail space that includes one of the CBD's few supermarkets.

Prices range from $220,000 for a one-bedroom apartment to $750,000 for three.

QV, the size of a city block, will eventually have the population of a small town. An estimated 1500 residents, 6000 office workers and 4000 retail staff will weave their way through its laneways and arcades.

The first wave of residents is expected in August.

Ivana's Reef

Ivana Trump has become the latest player in Queensland's construction game. Following in the footsteps of her property tycoon ex-husband Donald, the Czech-born socialite's first venture into the the hotel business will be in Australia.

"It will be called Ivana's Great Barrier Reef Hotel and Complex," she told London's Daily Express newspaper.

"I wanted to open it in Australia because it's the most spectacular part of the world."

But don't go planning your getaway there just yet.

The glamorous 53-year-old added: "I don't know when it will be opened - we've only just started building it."

Ivana has plenty of experience in the hotel trade. She worked side-by-side with Donald during their 13-year marriage helping him build his empire.

She was chief executive of Trump's Castle Hotel and Casino in Atlantic City for five years, followed by four years as president of the Plaza Hotel in New York.

She is also following her former husband into the world of reality TV.

In his TV show The Apprentice, candidates compete to become his protege.

Ivana says: "I can't (say) too much about (my show) yet, but we have started filming, and it has already been picked up by one of the major US networks.

It involves cameras following me around seeing what I get up to."

Nor will she be anyone's apprentice. "It's called Woman On Top!" she says, pointedly.

Czech-mate!

glapersonne@theage.com.au

© 2004 The Sunday Age

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