'I've never seen anything like it': Beachside unit smashes auction reserve by $1.5 million

Fewer homes for sale and more bidders are producing massive results for some selling at auction in Melbourne.

Agents reported several properties selling for well above their reserve at weekend auctions.

Kay & Burton Armadale associate Andrew Smith said vendor expectations had lowered as the market cooled across the state.

“What we’re seeing is vendors prices have come well down and buyers are back in the market, meaning there are these big results above reserve,” he said.

One of the biggest results of the weekend was a three-bedroom, Port Melbourne beachside apartment that sold for $4.34 million – a massive $1.54 million above vendor expectations.

The property at 705/147 Beach Street, Port Melbourne, had two buyers battle it out for the keys, with the opening bid being right on the reserve of $2.8 million.

“I’ve never seen anything like it,” said selling agent and  Greg Hocking Holdsworth partner Peter Zervas. “It was just crazy.” 

The buyers were a local couple downsizing, he said.

Marshall White Stonnington’s John Bongiorno said there had been several auctions with multiple bidders pushing up sale prices. 

“Downsizers are coming back to the market. They are seeing good results and have the confidence to sell their properties and then go and purchase another,” Bongiorno said.

Buyer advocate Miriam Sandkuhler, of Property Mavens, said an auction at 7 Howitt Street, South Yarra, overseen by Marshall White, had strong bidding from five potential buyers.

The property’s reserve was $2.9 million with the first bid from a buyer $3.04 million. The property sold for $3.61 million – $710,000 above reserve.

“This is proof that time and time again, a high-quality property in a sought-after location will generate strong competition and strong returns for vendors,” Sandkuhler said.

Likewise, a five-bedroom, two-bathroom home at 62 Wattle Valley Road, Canterbury, sold for $220,000 above reserve. Marshall White Boroondara oversaw the sale. Three bidders fought it out, with a family winning in the end.

Nearby, 1 Yonga Road, Balwyn, a five-bedroom, three-bathroom home, sold at auction for $2,525,000, $300,000 above reserve.

Selling agent Kay and Burton’s Sophie Su said there were six bidders. An interstate buyer happily secured their beautiful new home, she said. 

At an auction in Parkville, three bidders fought it out for the keys. Two were looking to buy for expat investors from Hong Kong and Malaysia and another was a local buyer looking to own and occupy. 

The property at 146 Gatehouse Street sold for $2.87 million — $370,000 above the reserve — to the Malaysian investor.

Selling agent Andrew Smith said the vendor was selling to move to London. “It was a truly international auction,” he said.

The property proved so popular given how close it was to the University of Melbourne and Victoria Park, he said.

Meanwhile, spirited bidding for 15 Grandison Street, Moonee Ponds, pushed the sale price $125,000 above vendor expectations.

Auctioneer Christian Lonzi, of Jellis Craig Kensington, said there were two bidders battling it out as the opening bid of $1.32 million set the scene. 

The auction had attracted a mix of downsizers and young professionals looking to buy the new property in the heart of the “Toorak of the north”, Lonzi said.

In June, the almost identical neighbouring property at 15A Grandison Street sold for $1.34 million, Domain data shows.

After a big weekend of auctions, Melbourne’s preliminary clearance rate now sits at 75.5 per cent after 757 auctions and 574 confirmed results reported. 

Domain economist Trent Wiltshire said spring auction numbers were still low, and weren’t expected to overtake booming spring markets of previous years.

“Auction numbers are picking up, but still below where they were last year,” he said.