‘Back to the old days’: South Melbourne townhouse sells $211,000 above reserve

Dozens of rapid-fire bids flew on a gloomy South Melbourne afternoon on Saturday, with four families vying for the keys to a highly sought-after townhouse.

The three-level home at 240 Moray Street passed its reserve price two bids into the auction, with the price continuing to surge to $1,561,000 before the hammer fell.

Even in the last 10 or so bids three of the four parties continued to go tit for tat with thousand-dollar bids, until the property eventually sold to a middle-aged couple.

Greg Hocking Holdsworth auctioneer Warwick Gardiner said having three bidders hang on so late in an auction was much more common in the boom days.

“It was fiercely fought, back to the old days with this one here,” he said. “In this market, considering we had a reserve of $1.35 million, to get $211,000 above reserve is rare.

“It just shows you good A-grade properties in good spots are still pulling competitive bidding.”

The three-bedroom, two-bathroom home was listed with a price guide of $1.3 million to $1.4 million and had several large, open living areas both inside and out.

It sat beside three similar townhouses, one of which sold last month for $1.65 million. Mr Gardiner said that fetched a higher price because it was renovated, and was just as popular at the time.

There was also appeal in buying unrenovated, which was the case for 240 Moray Street.

“Sometimes people will bid a bit more fiercely for something they can put their own touch to,” Mr Gardiner said. “You can do the kitchen you want, paint it the way you want. Sometimes they can actually sell for more than the renovated one.”

It was one of 747 homes scheduled to go under the hammer in Melbourne on Saturday.

By evening, Domain Group had recorded a 55.6 per cent clearance rate from 584 reported results.

Earlier in North Melbourne, a small, dual-level home sold to first-home buyers after a brief auction and negotiation.

Auctioneer and Jellis Craig selling agent Trevor Gange said one of the home’s best features was its solar panels, which reduced the vendor’s power bills to about $56 per quarter for a five-person family.

Bidding for the two-bedroom house at 2C Harris Street started at $780,000, with four buyers weighing in.

The house passed in at $875,000 and then sold after the highest bidder almost immediately accepted the vendor’s reserve of $890,000.

It had been listed with price expectations of $800,000 to $850,000.

Mr Gange said he felt the market had markedly improved since late last year, when Melbourne saw record low clearance rates. In March, the city’s clearance rate bounced off its late 2018 lows to 48.9 per cent over the month, Domain data show.

“The market has embraced the new criteria the banks have,” he said. “I’d suggest the market is coming back. If clearance rates are about that 60 per cent range, we’d be considered a traditional market.

“We’re coming out of the bottom of the market.”

In Fitzroy, a near-unliveable deceased estate passed in with no bids, despite offering a wide block and a relatively affordable entry into the trendy Fitzroy postcode.

“Under a million for a six-metre-wide brick terrace in Fitzroy – you don’t get this every day of the week,” Nelson Alexander agent Peter Stephens said.

The aged two-bedroom home at 9 Greeves Street had sagging floorboards and crumbling plaster throughout and would require a major renovation job, Mr Stephens said. It was listed with a price guide of $950,000 to $1 million but was then listed for private sale with an asking price of $965,000 on Saturday afternoon.

Another deceased estate in Fawkner sold to a first-home buyer after a two-bidder race.

Barry Plant agent Jarrod Couch said the buyer had family who lived on the same street and was determined to secure 30 Pitt Street.

“It’s a three-bedroom, with a central bathroom. It’s a neat and clean brick home,” he said. “It needs a bit of updating here and there but it’s a good-sized family home.”

The reserve was $645,000 and the new owner paid $653,500 for the keys.

A brick home in Preston was also hotly contested at auction, with five bidders going toe to toe.

The two-bedroom home at 3 Sapphire Street sat on 519 square metres of land and featured a detached studio and shed.

Bidding opened at $800,000, and it was declared on the market at $880,000, the top of the quoted range.

It sold to an owner-occupier for $940,000. Property Mavens chief executive Miriam Sandkuhler was bidding on behalf of a client but missed out.

She said it was tough going in this sector of the market at the moment.

“There is very little good quality stock under $1 million on the market in the northern suburbs,” Ms Sandkuhler said. “Vendors are holding off from selling if they don’t have to, resulting in tight supply.”