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The Block Triple Threat 2015 Auction Results

Last night Channel Nine’s The Block handed out $3.165mil in prize money to the four couples, representing the biggest prize pool received on one single TV episode in the world.

Crazily enough, all teams left the show with at least a $665,000 boost to their bank balances, a stark contrast to the disappointing results of last season.

theblockThe auction results of the designer apartments on Darling Street in South Yarra were:

  • 1st – Dea & Darren – SOLD $2,290,000
    Reserve set at $1.455mil
    Profit of $835,000 plus $100,000 for winning
  • 2nd – Josh & Charlotte – SOLD $2,200,000
    Reserve set at $1.39mil
    Profit of $810,000
  • theblock23rd – Tim & Anastasia – SOLD $2,175,000
    Reserve set at $1.42mil
    Profit of $755,000
  • 4th – Jess & Ayden – SOLD $2,000,000
    Reserve set at $1.335mil
    Profit of $665,000

 

The four auctions were all fast paced and over in a matter of minutes with opening bids exceeding the reserve prices. In a split second Jess & Ayden made $365,000 thanks to a generous opening bid of $1.7mil smashing their reserve.

The winners and almost instant millionaires Dea & Darren were crushed last year after taking home just $10,000 for their hard work on The Block’s Glasshouse series in Prahran, what a turnaround!

theblock3The question every viewer was asking, were the reserves set too low? Or is it the market in Melbourne driving up the selling prices, especially for popular brand new furnished designer apartments in one of South Yarra’s most prestigious streets?

In Sydney, the citywide auction clearance rate hit a staggering 91% last week (APM), while the same week last year saw clearance rates at 71%. With median property prices in Sydney exceeding $900,000, it’s no wonder the auction clearance rates have jumped significantly in the last year. Sydney has led the Australian housing price growth with property values rising 14.1% in the last year, double that of nearest rival Melbourne with 7.2%.

In Melbourne, 87% of homes were sold at auction last week compared with 63% last year, so were The Block’s crazy results a truthful representation of the market? The market is definitely booming but we have to keep in mind that it is a TV show and they really did take a hit last season so reserves were probably on the conservative side.

Next season The Block returns to Prahran with the upcoming series to be filmed at the obsolete Hotel Saville on Commercial Road.

 

References
http://news.domain.com.au/domain/real-estate-news/the-block-winners-darren-and-deanne-jolly-pocket-almost-1-million-at-auction-20150429-1mw74e.html
http://www.news.com.au/entertainment/tv/the-block-result-what-happened-when-the-cameras-turned-off/story-fn8yvfst-1227088392377
http://www.news.com.au/entertainment/tv/deanne-and-darren-jolly-take-out-the-block-with-record-breaking-profit/story-fn8yvfst-1227327454814
http://www.news.com.au/finance/real-estate/record-for-sydneys-highest-auction-clearance-rate-smashed-again-amid-drop-in-volume-of-sales/story-fnd91nhy-1227322875446
http://www.theaustralian.com.au/business/property/sydneys-housing-market-auctions-set-record-clearances/story-fniz9vg9-1227322111435

 

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Great Time To Buy

soldhouseIt’s a great time to buy real estate, right now

Now you wouldn’t have heard this from me a month ago and you probably won’t hear this from me in a month’s time but, today, this week, and this weekend, if you are in the position to buy a property then go out there and give it your best shot. ASAP.

The property market in Sydney has been going crazy and prices have increased dramatically in this first half of the year but several, very recent factors are coming into play right now which have created a little pocket of opportunity for buyers.

10348231_10152459011644312_7862929635639049698_nHave you noticed that the auction clearance rates have dropped significantly in the last 3 weeks?  It won’t last and let’s face it, the clearance rate is still quite good compared to previous years. It’s a short term phenomenon.

The things that have changed in the last few weeks:

Firstly and possibly most importantly buyers who have been looking this year and have been thus far unsuccessful are now jaded, tired, fed up, cranky and many have taken a month off to refresh, i.e. they are not going to open houses, instead they have decided to take a real estate break and get their lives back for a few weeks, gone away for a weekend, gone to see the kids play soccer etc instead of going from one open house to the next, all day Saturday.

1911606_10152289518374312_646615506_nSecondly, the media has now been reporting for a few months that things have been selling for $100,000, $200,000, $300,000 in excess of the reserve and painting the picture that buyers will pay whatever to get into the market. The media is usually several months behind reality too but buyers have started to feel completely ripped off and are taking a step back to consider what they are paying.

1264281_10151917506959312_1923611023_oThirdly, vendors expectations have been going up and up and up as each sale achieves a new benchmark sale price.

Fourthly, the budget announcement, again this is just short term jitters but it’s to do with confidence, confidence in the economy, in our government, in securing employment to keep paying that mortgage.

So now is not the time to give up, some vendors have bought and need to sell so they must quickly meet market expectations, the budget will iron itself out and buyer confidence will be back. Then you will be again competing with too many buyers and not enough sellers as is normally the case in the winter months in a great market. So, don’t stop looking now buyers, get out there and secure that property before it’s on the move again, and I think you only have a couple of weeks! Good luck!

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Auction Sales Before Easter

This week all the auctions are midweek to avoid the 4 day long weekend which is traditionally a poor weekend to choose to auction your property. Most agents encourage vendors to schedule an auction prior to Easter or go for a longer campaign and hold the auction the following weekend. Thus last Saturday was a huge weekend for the Sydney property market with overall a clearance rate of 71% with 485 properties going to auction (Australian Property Monitors Sydney statistics).

With the weather still unseasonably warm, along with the ocean temperature this weekend has all the ingredients for a perfect getaway to that weekender on the South or North Coast before winter sets in. If you are staying at home there are plenty of distractions with the Easter Show coming to Cronulla!

Good luck to those vendors selling mid week and we hope everyone enjoys their 4 day weekend, we know we will!

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Misleading and Incorrect Auction Reporting

I have just read the Sunday Telegraph’s property section and in particular under the “Sales action: South”, after attending several of the auctions reported here on Saturday and taking into consideration that I must be objective, there are several discrepancies but none more glaringly obvious as the paragraph regarding the property result in Lilli Pilli.

One of my staff attended this auction. If there were 3 bidders they must have all have introverted personalities to the extreme as no hands were raised which therefore makes it very difficult to pass the property in to a bidder at $3.1mil? Which begs the question, which auction did the writer of this editorial attend? From the article I would say none and definitely not the one in Lilli Pilli which had only one bid, a vendor bid of $3.1mil. I had assumed that these pieces were written by journalists that had attended the particular auctions they focused their articles on. Now that I understand that reporters are reliant on getting the information 2nd hand from the agent it explains why reporting of general market conditions can be so off the pulse and so far from reality. Any buyer/seller/person interested in real estate reading that article would think that 3 bidders competed for that property up until $3.1mil at which point negotiations stalled. In actual fact, no bidder put up their hand.

It is an offense of the Property, Stock and Business Agents Act 2002 for an agent to report that a property passed in when in fact it passed in with a vendor bid.  Since launching our auction tracking system we have noticed many discrepancies with what results are recorded for in the Sunday papers but none has been so inconsistent from an editorial piece.

To be fair when I checked the Sun Herald’s real estate section, the Home Price Guide’s auction results show the property passing in, no figure available but at least they didn’t embellish the  result in a paragraph of incorrect, misleading reporting.

I think the media has a responsibility if they are going to report on the real estate market that some effort is made to check accuracy.

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Local auction clearance rate beats Sydneywide

Things improved last week for the auction local clearance rate with a final score of 61.5% compared with Sydneywide of 54%.  This weekend there are no auctions scheduled in the local area because of the Easter long weekend but there are 4 midweek auctions tonight which we will update you on tomorrow.

Interest rates have been left on hold by the Reserve Bank today but petrol prices are supposed to drop this weekend? That will be a first for an Easter long weekend!

Happy Easter and let’s hope this fantastic autumn weather continues!

Autumn sunset at Cronulla

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Surplus land at Caringbah High sold!

Caringbah homeowners are awaiting the verdict on whether or not a flood of residents will move into the proposed development site on Willarong Rd in the near future. The 29.7 hectare area declared as surplus land belonging to Caringbah High School went to auction last Tuesday 13th December with a compatibility certificate allowing for 269 new dwellings.

Bidding between two parties started at $18 million, however neither reached the reserve set by the Education Department, therefore the site was passed in at $19.4 million. Negotiations were said to continue after the auction, leading to a deal signed with one successful party. The final sale price has not been revealed.

The main cause of concern for residents of Willarong Rd is that “there is nothing to stop the new owner from seeking a bigger development or one that varies in other ways” (Murray Trembath, The Leader).

 

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Whatever you do don’t skimp on preparing your house for sale!

Recently I sold a house that had a makeover before it went on the market for sale.

The gardener/handyman was called in for minor maintenance, furniture was removed and then the stylist waved her magic.

The spend was less than $10,000 including skip bins, cleaning, gardening, painting, styling and furniture hire for 4 weeks. Preparation took a few weeks but the the results were stunning.

The money spent on preparation then helped the owners to save money on marketing expenses which were almost a 5th of the preparation costs.

The property sold for a price well beyond the owners’ expectations in 10 days.

If you are wondering if your house is ready to go on the market, there is one phrase that clients always say to me without fail when their house is ready and the photographer is at the front door, “I don’t think I want to sell now it looks so good!” If you can say that then you are ready for sale!

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A Bidder’s Guide For Auction Day

Most people know that you need to register prior to bidding at a residential property auction. You don’t have to bid, once registered, but if there is even the remotest of chances that you might be tempted to put up your hand and bid you need to register prior to the Auction.

The NSW Office of Fair Trading has a Bidder’s Guide that explains what ID you need to register and the finer details of who should register if say, you are a couple, or you are bidding on behalf of another party. The agent selling the property also has Bidders Guides on hand at the auction.

The main things to remember are:

  • Bring proof of identity which shows your name and address and is a government issued or financial institution card or document, most people bring their driver’s licence
  • Other options are council rates, vehicle registration papers
  • Remember passports do not have your address included
  • See the Bidder’s Guide for other options

At registration:

  • When you register the agent will take your name, address and number of proof of identity and give you a bidder’s number
  • If you register with the agent prior to Auction day you need to show your proof of identity again on the day and the agent will give you a bidder’s number
  • If you arrive late, you need to register with the agent but you can put up your hand to let the Auctioneer know you want to make a bid once you are registered

Some points that you might not know:

  • The agent is not allowed to use your details for marketing purposes ie sell to a 3rd party
  • The agent can not show the vendor your details, or anyone else
  • Post auction the Bidder’s Record is stored securely by the agent

If you are not comfortable or confident about bidding on the property of your dreams you can employ a “Buyer’s Agent” to do this for you. More on that in a future blog…

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School Holidays – Auction Results

Today 2 out of 6 properties sold in our area. Both properties were strata properties in Cronulla. One of these sold prior to auction. This brings the auction clearance rate to a low 33% this week. There were actually 9 properties scheduled to go to auction but 4 of these were auctioned in one line (211 & 213 Willarong Road and 149 & 151 Caringbah Road, Caringbah). A dismal day for seller’s but it is the first weekend of the school holidays, perhaps buyers are in holiday mode.

sandy-beach-03cronulla auctions

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