Auction numbers down which means some tough competition for buyers, as 573 properties were auctioned this weekend. A clearance rate of 77 per cent was achieved, with 441 properties selling and 132 being passed in, 60 of those on a vendor bid. There were an additional 315 private sales reported.
Last week’s decision by the Reserve Bank to again cut interest rates to a record low of 1.5 per cent has become a key driver of a strong auction market. These lower rates for mortgage holders will indeed increase buyer confidence as we head into the spring market.
Auctioneers have seen a turnaround in the market recently with less need for vendor bids, and more enthusiastic starts at auctions, particularly in highly sought after areas.
Stock levels are expected to remain relatively low for the next 6 weeks, until the spring market begins to gain momentum
16 Linda Street, Coburg. Sold for $953,000
This renovated two bedroom Victorian family home with high ceilings, polished floorboards and a charming landscaped front yard, attracted six hopeful buyers amongst the 80-strong crowd. With a price range of mid to high $700,000s, the opening bidder believed that their $820,000 offer would be enough to win them the keys, but all it did was immediately put the property on the market. It was a fast-paced auction, and one of the last two entrants after $900,000 eventually became the new owner with a final bid of $953,000.
89 Raglan Street, Port Melbourne. Sold for $1,502,000
A dilapidated Victorian shop presented a blank canvas for buyers to create whatever home they wish to live in, only a short stroll to the Bay Street shopping and cafe precinct, North Port light rail station and the beach. A crowd of 110 watched as auctioneer took bids from six bidders, as the price sailed past the reserve of $1.1 million. It was a very determined couple with a baby who took the keys with their final bid of $1,502,000. They plan to make the property habitable, before renovating it fully in the coming years.
4/113 Cecil Street, Fitzroy. Sold for $810,000
With a price guide of $650,000 to $700,000, it’s little wonder this two bedroom loft-style apartment with sensational city views attracted a crowd of young prospective buyers. An opening bid of $650,000 from a man bidding for a young woman sparked $10k rises from four bidders. At $740,000 the property was on the market and fast competition continued. But it was the original bidder who held on, winning the keys for the young woman who was elated and surprised by the result.
Buyers were out in large numbers on the final weekend of the financial year. A clearance rate of 73 per cent was achieved from 181 auctions this weekend, with 133 properties selling and 48 being passed in, 15 of those on a vendor bid. There were an additional 370 private sales reported.
Only a relatively small number of auctions were held in Melbourne this week, due to the combined impact of the school holidays, the federal election and winter conditions.
In June, a new record was set for a single weekend with a total of 993 auctions held – 40 more than the previous record. This capped off a solid end to the financial year for Melbourne’s auction market.
1/88 Queens Parade, Fitzroy North. Sold for $1,135,000
Perched at the edge of Edinburgh Gardens close to Clifton Hill and Carlton North, this modern, tri-level townhouse was hotley contested amongst four bidders. With 3 bedrooms and the rarity of three, possibly four parking spaces, this low maintenance home had a price guide of $880,000 to $950,000. Bidding began at $750,000 and quickly rose with more bidders joining in as it cleared it’s reserve of $980,000. The price sailed past the $1 million mark and the hammer was brought down at $1,135,000.
10 Spring Street, Coburg. Sold for $662,000
A one-bedroom house near the Merri Creek trails in Coburg attracted three bidders to the auction on Saturday. With polished hardwood floors throughout, a large bedroom and plenty of north facing backyard space, the property would be an attractive purchase for developers, investors or single buyers. The auctioneer fielded bids from three separate parties who helped push the price past the $590,000 reserve. The entry level home, on approximately 390 square metres of land, eventually sold for $72,000 above the reserve for $662,000.
62 Iluka Avenue, Aspendale. Sold for $713,000
Set on approximately 536sqm of land, the existing three bedroom 1970s property is in need of a major renovation. Located within walking distance of the beautiful foreshore, shops & train station or a stroll to either Aspendale or Aspendale Gardens Primary School this family-friendly location offers easy access to it all. Two bidders were willing to take on the opportunity that this property presents. But the price quickly rose past the quoted $575,000 to $630,000 and the hammer was brought down for $713,000.
Melbourne’s market is dividing further into a two-speed market, with house sales soaring higher than apartments. A clearance rate of 74 per cent was achieved from 934 auctions this weekend, with 692 properties selling and 242 being passed in, 107 of those on a vendor bid. There were an additional 361 private sales reported.
Houses in Melbourne are performing better than apartments in the current market. As Kim Easterbrook discusses in The Age on Sunday’s Domain, villa units are the one exception to this trend. Villa units broadly appeal to downsizers, investors and first-home buyers.
The eastern suburbs, particularly the outer east is not seeing as much activity as they used to, as results from other regions outperforming the east more regularly.
Sunshine North achieved its first million dollar house sale, beating the suburb’s previous record of $945,000. While in Brighton, a new record was achieved when four local bidders helped reach the sale of a Dendy Beach bathing box selling for $307,000.
There is an expected 843 auctions to be held next weekend.
5/33 Gnarwyn Road, Carnegie. Sold for $632,500
Conveniently located close to Koornang Rd shops, the train and tram, parklands, schools and Chadstone Shopping Centre, this renovated 2 bedroom villa attracted a crowd of 45 to the auction on Saturday. The opening bid of $500k was met by another party who offered $10k more, and the two took the price up to $600k when a 3rd bidder joined in. The property had a quoted price of $580k to $620k, and was on the market at $630k before selling at $632,500 at this straight-forward, non-referral auction.
169 Were Street, Brighton. Sold for $4,400,000
The auction for this grand family home with four bedrooms plus a home office and brilliant entertaining area was held indoors due to the rain on Saturday. The opening bid of $3 million was rejected by the auctioneer, and another party put their hand up with a real bid of $4.25 million for the 3 level home. The two bidders continued battling it out, until the property was announced on the market at $4.4 million, and it sold for the same price, with no further bids forthcoming.
9 Beckley Street, Coburg. Sold for $1,370,000
A crowd of 60 gathered in the light rain to watch the auction of this Californian bungalow, which held a price guide of $1.1 million to $1.2 million. The first offer for the 3 bedroom home filled with natural light was $1.1 million, and this was met by a rise of $10,000 from a young couple. The two parties battled it out in $10,000 increments until $1.31 million when a third would-be buyer joined in. The young couple won the rights to the keys with their final bid of $1.37 million.