Prestige property recovers, but bargains still available

Prestige property is back on the agenda with two large mansions in the Melbourne suburb of Toorak entering the market, with both expected to sell for upwards of $15 million.

The sales come as a property expert says while the bottom of the prestige property market occurred in the June quarter, there are still bargains above the $3 million mark.

The “Dunraven” estate, which was the home of World War II veteran Martin Clemens and his wife, is reportedly going up for auction with an expected selling price of approximately $15 million.

Additionally, as reported in The Age, the “Miegunyah” estate is set to enter the market with an expected selling price that could be as high as $23 million. The mansion is owned by former Pacific Dunlop chief executive Philip Brass.

The highest price for a home in Melbourne was paid in 2007 by art dealer Rod Menzies, who spent $18 million for the Malvern Stonington mansion.

Australian Property Monitors senior economist Matthew Bell says the two listings come as the prestige property market is getting back on its feet, but warns there are still good bargains above the $3 million range.

“I think we saw the bottom of the prestige property market in the June quarter, the market focusing on properties up to $3 million. It was weak, but we’ve seen the bottom.”

“But in speaking to agents, people can still pick up a bargain. My view is that there is not really enough left in that $1-3 million dollar range, but when you look at the stuff that’s above that market, there may be some good bargains there still.”

Meanwhile, auction results were weaker this weekend as the market takes the shock of the reduced first home owner’s grant and the first interest rate rise in months. But Bell says the market is holding steady.

“The results were a bit weaker, a bit softer than they have been. But having said that they are still above their 60s and are relatively healthy given we’re coming off the first home owner’s grant, and an interest rate rise. I suspect they won’t go too much lower.”

In Melbourne, Real Estate Institute of Victoria chief executive Enzo Raimondo said in a statement the market has continued to hold up despite an interest rate rise, with 1,000 auctions schedule for next weekend.

“This fortnight before the Melbourne Cup has the most auctions scheduled this year and results from today show that demand remains consistent with the performance in the last few months. The REIV expects that while they will not welcome increases in interest rates, most buyers will have priced this into their budget.”

The city recorded 621 auctions, of which 498 were sold indicating a clearance rate of 80%, with sales totaling $390.97 million.

Sydney had 195 properties on the market, with 141 sold indicating a clearance rate of 66%. Total sales reached $97.22 million.

Brisbane saw just 21 properties on the market with 15 sold, resulting in a clearance rate of 68%. Adelaide had 30 properties up for sale, with only 17 sold resulting in a 57% clearance rate.