Developer muscles in on $1,565,000 Essendon family home to knock it down
An Essendon home that’s been in the same family for some six decades has sold to a developer for $1,565,000 at auction on Saturday.
Six parties turned out in Melbourne’s rain to bid on 40 Deakin Street, which was listed with a guide of $1.35 million to $1.45 million, but just three ended up making offers on the three-bedroom house.
The crowd was hesitant to make the first move, forcing Nelson Alexander auctioneer Mark Verrocchi to place a vendor bid of $1.35 million.
Two bidders then slowly traded offers of $10,000 until bidding reached $1.41 million and a third joined the action.
Bidding stalled momentarily and Verrocchi took a quick break to confer with the vendors before declaring the home on the market at $1.42 million.
One party then dropped out of the race, leaving two fierce bidders to compete for the property, with bids flying back and forth quicker than the auctioneer could count.
Bidding slowed in the final moments of the auction before the ultimate buyer, a developer with plans to build two dwellings on the 647-square-metre block, put forward a final $5000 rise to purchase the home for some $145,000 above reserve.
Verrocchi said the home, a deceased estate, had been in the same family since the 1960s and its large block size had attracted developers. The registered parties were largely keen to knock the house down.
“It’s been in the family for a very long time, and it was great to get a good result for the vendors,” he said.
It was one of 1244 auctions scheduled in Melbourne for Saturday. By evening, Domain Group recorded a preliminary auction clearance rate of 61.4 per cent from 1110 reported results across the week, while 148 auctions were withdrawn. Withdrawn auctions are counted as unsold properties when calculating the clearance rate.
In Albert Park, a dilapidated Victorian terrace in need of renovations sold under the hammer for $1.22 million.
Five parties bid for 388 Ferrars Street, which was listed with a price guide of $1 million to $1.1 million.
One party was quick to put forward an offer of $820,000 before rapid-fire bidding ensued.
The price was quickly driven above the reserve of $1.05 million in increments of $20,000 and then $5000, before the property sold under the hammer to a buyer who has plans to restore the three-bedroom home.
The home, a deceased estate, last sold in 1977 for $53,500, records show.
Biggin Scott auctioneer Andrew Crotty said the property offered renovation potential and a great price point for buyers to break into Albert Park.
“The house served the old owner very well for the last 40-plus years, and it’s now time for the next generation to take it on,” Crotty said.
In Brunswick, an architect-designed home with five bedrooms, a pool and city views sold to a local family for $2.93 million at auction on Saturday.
Two bidders braved the rain to battle it out for the keys to 146 Edward Street in a competitive auction that was slow to start.
Faced with two nervous bidders, Jellis Craig auctioneer Mitchell Boys kicked things off with a vendor bid at the bottom end of the listed price guide ($2.55 million to $2.75 million).
Bids quickly rose in $50,000 increments until the price hit the $2.8 million reserve. From there, bids flew thick and fast until the buyers – a family from the same suburb wanting to upsize – put forward a $5000 bid to secure the stylish property.
Jellis Craig listing agent Anthony Monteleone said the property’s ideal location near Lygon Street and the unique design, including the rooftop terrace, are what drew buyers in.
“The rooftop terrace faces the city,” he said. “That was another feature of the home and a real showstopper.”
Monteleone said the vendors had lived in the home for nearly 10 years and were moving to another property in Brunswick East.
In Gladstone Park, a first-home-buyer couple won the keys to a three-bedroom home for $787,000, beating out five others.
Six keen parties, mostly first home buyers and investors, turned out to bid on 10 Elvin Close, which was listed with a price guide of $630,000 to $670,000.
One party put forward an opening bid of $640,000, which was quickly countered with a $20,000 rise.
Once the home was declared on the market at the reserve price of $680,000, Ray White auctioneer Phillip Mercieca said all six parties began bidding fiercely.
The buyers, a couple from Gladstone Park, put forward a $1000 bid to purchase the home for $107,000 above reserve.
Mercieca said the underbidder, another first home buyer, had missed out at multiple auctions.
“It just shows a trend where first home buyers are trying to break into the market, but it’s not easy,” he said.
“That entry point price has shot up. This is an entry point home, but that [price] has definitely jumped in recent times.”
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