Developers strike early to snap up properties before auction
Impatient developers joined forces to swoop on two separate properties before they had a chance to go under the hammer, submitting bids for both blocks on the same day.
Early deals were struck at 61-63 Whitehorse Rd, Blackburn for $3 million and 318 Springvale Rd, Forest Hill for an undisclosed sum just below $1 million.
Now the developers are on the hunt for more.
“They’re looking to spend another $3 million in the next month or so — we’ve been searching around for the right property for them,” Ray White Forest Hill director Hugh Francis said.
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The Blackburn site, which was listed with a price guide of $2.9-$3.19 million, had interest from four groups, Mr Francis said.
“We had numerous interested parties. This particular buyer was a clear frontrunner. It made sense to negotiate prior,” he said.
Mr Francis said the two developers would likely seek a new permit for the property.
“The site has plans and permits for a multi-level apartment block with a basement carpark. They don’t love those plans, but they’re looking at modifying it.
“It’s going to be a lengthy process — some form of mixed use potentially, so they might try and get something semi-commercial and residential, instead of just residential.”
The Forest Hill block had a price guide of $890,000-$979,000, with both sales finalised on April 27.
Mr Francis said there were still buyers looking for opportunities in a cold market, but agents needed to work hard to create sales.
“We’re being more active to try and achieve the same result (you would get) in a warmer market,” Mr Francis said.
“The agents that don’t adapt are going to be left behind.
“Even just the simple things: we’re opening properties more, we’re pushing more private inspections through the week, we’re getting more bidders to auctions.”
Mr Francis said agents shouldn’t fall into the trap of setting price guides too high to appease vendors.
“As soon as we market a property correctly and it’s in line with where the buyers see value, that’s where you create the competition.”
A glamorous Warrandyte home sold for an undisclosed sum in a private sale within its price range of $1.75-$1.9 million on April 27.
The five-bedroom 2 Aylesbury Way property was picked up by a Ringwood family looking to move straight in.
“We had three families who were keen and it sold within three weeks. It was quite popular,” Jellis Craig Eltham director Chris Chapman said.
“It’s a very usable acre — reasonably flat land, which is not all that common in Warrandyte.”
Mr Chapman said the vendor planned to remain in the area.
“They’re planning to stay reasonably local, but they decided to find a bit more land.”
A six-bedroom home in Mitcham sold ahead of auction after receiving strong investor interest.
No. 2 Meerut St attracted multiple offers before selling on April 24 following a winning investor bid of $1.116 million.
The Mitcham home, which had a price guide of $1-$1.1 million, was attended by 73 groups, mostly made up of investors, Harcourts Mitcham agent Alan Zou said.
“That one was an investment property, so it’s got a high rental return,” Mr Zou said.
“We got multiple offers and the vendor received an offer she was happy with.”
A Box Hill North home sold for $1.015 million at an April 27 auction, after being declared on the market at $920,000.
No. 13 Inglis St received 21 bids from four groups, with a Chinese family winning the keys to the property ahead of developers.
“We had three developers and investors interested in the property — but they didn’t pay the best price,” Buxton director Jim Chen said.
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