Market Soars As Buyers Jump In For A Piece Of The Auction

The Age

Monday May 28, 2007

Kate Nancarrow

AS CLEARANCE rates head towards 90 per cent, up 15 per cent on almost identical auction numbers this time last year, agents across many suburbs have reported price rises of 15-20 per cent since Christmas, with no signs of stopping.

In the western suburbs, Craig Stephens of Jas H. Stephens said his firm sold eight of nine properties it auctioned, including a house at 31 Nicholson Street, Footscray, that was fought over by first-home buyers as well as investors.

The auction, overseen by an inspector from the Office of Consumer Affairs, drew five bidders and sold for $520,000 to an investor from Chatswood in Sydney.

Mr Stephens said the western suburban market was strong, with four or five bidders at most auctions. "I'd say the market has risen 10-15 per cent since Christmas, right across the board," he said.

Hocking Stuart's clearance rate was almost 90 per cent from 76 auctions across a broad sweep of Melbourne.

Director Andrew Stuart said sentiment was strong, boosted by strong employment and stable interest rates, and while that confidence remained there was no hope of prices falling. "Buyers hope it's all going to stop or slow down, but I don't see that." He auctioned two trophy homes on Middle Park's Beaconsfield Parade yesterday, with numbers 182 and 296 selling for a total of more than $8 million.

Mr Stuart said price records were being broken everywhere. The firm's Carnegie office reported a record for the area from an unrenovated Edwardian weatherboard on a large block at 22 Byron Street. The property attracted four bidders before it was sold to a young couple from St Kilda East for $970,000.

Local agent Gary Walton said Carnegie prices had risen by about 10-15 per cent since the vendor decided to sell in March. "When we met the vendors, we were all expecting somewhere in the $800,000s," he said.

Luxury and lifestyle agency Abercromby's sold all nine properties it auctioned, bringing a total of $19 million. A house on 2.4 hectares at 504 Tucks Road, Shoreham, sold yesterday for $1,850,000 after competition from four "young families looking for a weekender", the firm's Rob Vickers-Willis said.

A 1940s house at 15 Stewart Street, Brighton, sold for $2.7 million yesterday, above a reserve of $2.55 million. Mr Vickers-Willis said the market had grown 10-20 per cent this year, boosted by young buyers' "confidence to pay an extra 5 to 10 per cent if they really want it".

LISTINGS

Weekend 642

Yesterday 23

Last Sunday 32

This weekend last month 594

This weekend last year 639

CLEARANCE RATES

Weekend 87 per cent

Yesterday 91 per cent

Last Sunday 97 per cent

This weekend last month 83 per cent

This weekend last year 72 per cent

Total volume (auctions) $340.21 million

Total volume (private sales) $322.18 million

TOP 5 HOUSES

1. 30 Montalto Avenue, Toorak $4,250,000

2. 149 Kooyong Road, Toorak $4,210,000

3. 296 Beaconsfield Parade, Middle Park $3,175,000

4. 46 The Avenue, Windsor $2,660,000

5. 6 Stonehaven Court, Toorak $2,610,000

TOP 5 BARGAIN HOUSES

1. 19 Eumemmerring Drive, Eumemmerring $178,000

2. 14 Nathan Court, Pakenham $190,000

3. 39 Crevelli Street, Reservoir $210,000

4. 9 Alma Street, Craigieburn $216,300

5. 5/25 Ligar Street, Sunbury $220,000

TOP 5 APARTMENTS

1. 2A Campbell Street, Brighton $1,490,000

2. 72A Wilson Street, Brighton $1,310,000

3. 1/91 Grange Road, Toorak $1,250,000

4. 5 Canberra Parade, Port Melbourne $1,030,000

5. 16 St. Anthonys Place, Kew $961,000

TOP 5 BARGAIN APARTMENTS

1. 7.12/133 Jolimont Road, East Melbourne $95,000

2. 7.11/133 Jolimont Road, East Melbourne $135,000

3. 5/39-41 Hyde Street, Footscray $153,000

4. 16/20 Strathearn Avenue, Murrumbeena $158,250

5. 5/30 Vincent Crescent, Noble Park $164,000

© 2007 The Age

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