Home buyers split over long weekend

Nicole Lindsay

March 12, 2012

BUYERS' strategies continued to keep agents on their toes over the quiet Labour Day weekend, with some bidders trying their hands at knockout bids while others kept their hands in their pockets.
The clearance rate fell to 58 per cent from 171 auctions, reflecting the smaller number of properties on offer and the clear disadvantage of going to auction on a weekend with a public holiday. But there were some good signs: the Reserve Bank of Australia kept its cash rate on hold this week, at 4.25 per cent, and weak economic data raised the possibility they may start to come down again next month.
In Williamstown, two interested parties turned up to the auction of a contemporary double-storey house at 104 Osborne Street overlooking the Botanical Gardens and the foreshore. Williams Real Estate agent Michael Harvey said a knockout bid of $1.6 million opened the auction. ''It was a strong opening bid and I think that got rid of the competition,'' Mr Harvey said.
The house passed in with a reserve of $1.65 million and during negotiations inside, the buyer and vendor ''split the difference and agreed on $1.625 million'', he said.
In Malvern, several bidders competed for 1 Northbrook Avenue, a four-bedroom two-storey house, which Marshall White sold under the hammer for $2.09 million. One party opened with a strong opening bid of $1.71 million but rivals were not deterred and more than 80 bids were made before it sold.
Buyers were wary of showing their hands at all in Deepdene, where a five-bedroom 1920s-era house at 25 Campbell Road went to auction for the second time in six months.
Its vendors had planned to demolish the house and build a new property but had recently bought a larger block of land.
They had paid around $3 million for it last September and were expecting a similar sum on Saturday but it passed in on two vendor bids of $2.7 million and $2.8 million.
Hocking Stuart agent Helen Yan said two parties were negotiating for the property.
''Chinese buyers loved this house because they think it has great feng shui but everybody wants it for a cheaper price,'' Ms Yan said.
''They like to bargain in private rather than show their hands in public,'' she said.
Some potential buyers do not even turn up to the auction.
Hocking Stuart agent Shane Siemers said he took four phone calls after he sold 4/109 Nimmo Street in Middle Park from people who were interested in buying it but could not attend. ''Last year, that worked - properties would stay on the market for a few weeks and you could ring up and buy it after the auction. This year, there's always someone who wants to have a crack at it,'' he said.
At the very top end, in the $5 million-plus price range, houses are not going to auction at all and more than half are for sale ''off-market'', according to buyer's advocate Christopher Koren from Morrell and Koren.
Those vendors who do sell on the market are happy to ''dip a toe in the water'' with an expressions of interest campaign and then offer it privately, Mr Koren said.
A two-storey Victorian terrace at 123 Gipps Street, which was quoted at $6 million-plus, failed to sell through an EOI campaign last month and is now for sale privately at $5.15 million.

Tuesday 13 March 2012

Home buyers split over long weekend

Nicole Lindsay

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