If you read the papers on Sunday or watched the news on TV you would think that all was back to the old ways of 2007. One report stated the market was going very well, the interest rate reduction of .25% has worked and based the story on a $370,000 bed sitter in East Melbourne,(East Melbourne is classic first home buyer territory I don’t think) The block in particular is very tightly held and every time one comes up they always set new bench marks.
Really what happened on the weekend was no different to the past 6 months, the market is subdued and the good properties are selling well. That is, properties that have always sold well and are always saleable even when the property market dips a little.
The classic on the weekend was 23 Irving Rd Toorak. An A+ location in that suburb combined with a very attractive plot of land. Most of the buyers would have been land-only buyers even though the house was in good order. Originally quoted around $3.9 million and sold for $4.905mil that is, $5,703 per m2. Solid money! But how many properties like it are available each year. Rumour is that it was purchased by an expat looking to build a new home down the track, with a little help from a local selling agent.
Go down the hill to Dunraven in Toorak and not a bidder in sight, the big fella from K & B opened with a bullish vendor bid and promptly passed the property in for $3.8 mil. No action, no auction!
Move across the river to Richmond and we see a true test of the market with a property in Malleson Street. It was sold last year for $1,320,000 and settled in February this year. Marshall White marketed the property on a quote of $1.1 plus only to see it passed in just under $1.2. Reserve on the day was apparently $1.5 but has since been revised to $1.4. A great way to make money is trying to sell a property within a year of purchasing. On the bright side the losses should be straight forward tax losses and not capital losses (lets hope). Our calculation is that it takes approximately 3 years to recover purchasing and selling costs in a standard property market – be careful.
6 Glen Street Hawthorn is proof a renovated house with appeal will sell in this market. 4 Bidders fought out this recently renovated property even though it was next to a block of flats. Get the ingredients right, the price right (it was on the market at $1.5) and away they go. It was a classic buy for a young family who likely live in the area looking to upgrade to the longer term family home. Expect to see a trade-in come on the market in Hawthorn in the next few weeks, with a motivated vendor (around the $1.1 level).
David McMillan – Domain Property Advocates – www.domainadvocates.com.au
If interested in learning more about this update please contact me today!
 |
As Domain Property Advocates continues to grow I will continue to provide superior service to those choosing to use property as their investment. It is an important choice of who to choose as the one responsible to look after your property. You can be sure that Domain Property Advocates will always strive to be the best. |  |
