Essendon home passes in at auction, sells after for $1.1 million as buyers dig their toes in
A three-bedroom townhouse in Essendon with stunning views of Moonee Valley passed in at auction on a single bid of $1 million on Saturday morning, then after a short negotiation sold for $1.1 million.
The period-inspired home at 72A Tennyson Street sold at the top end of the advertised price range, a type of result that agents say is becoming more common as Melbourne’s property market shifts gears and buyers refuse to pay huge sums over the asking price.
Nelson Alexander Essendon partner and auctioneer Paul Harrison called for bids from the crowd of about 20 people who stayed silent except for the eventual buyer, a professional woman, who made the $1 million bid.
Harrison asked for a $20,000 rise, but the crowd remained tight-lipped and the agents paused to consult the vendors. When they returned, and no other offers were made, the auction passed in and negotiations began.
Harrison said a new trend was emerging of homes selling either within, or at the top end of, the price range.
“We’ve been seeing a bit of a trend that the quoted range is what is being achieved,” he said. “We’re not seeing these runaway results that we used to.
“I’m still of the opinion that the market is holding up – we’re very lucky because it doesn’t drop off a cliff like some markets, so we are seeing more of a balanced market.”
The sale comes four days after the Reserve Bank raised interest rates for a third time and agents say the rises are now affecting buyers at the more affordable end of the market.
It was one of 544 auctions scheduled in Melbourne on Saturday. By evening, Domain Group recorded a preliminary clearance rate of 54.5 per cent from 393 reported results, while 59 auctions were withdrawn. Withdrawn auctions are counted as unsold properties when calculating the clearance rate.
In Northcote, a two-bedroom home at 1 Henderson Street also passed in but sold for $1,477,500 after a short negotiation.
Jellis Craig Northcote agent and auctioneer Nigel Harry said the property passed in on a bid of $1.37 million, before the buyers, a young couple trading up from an apartment, made their offer.
The Edwardian home with original features sold just above the price range of $1.35 million to $1.45 million.
“We’re still seeing properties sell at the top end of the range, but with all the uncertainty in the market, buyers are unwilling to bid aggressively,” Harry said.
He said recent interest rate rises had been affecting the lower end of the market, usually first home buyers.
In Albert Park, a three-bedroom home passed in at auction, before it sold to the underbidder for $2.65 million.
Three bidders competed for the single-fronted property at 374 Montague Street, which passed in on a bid of $2.545 million – just below the top of the $2.4 million to $2.6 million price guide.
The bidders who made that offer refused to up their bid during negotiation and it became a competition between the remaining bidders, Jellis Craig Port Phillip director Warwick Gardiner said.
Though interest rates had risen, Gardiner said there had not been a huge impact on the market at the higher price ranges.
“I think people knew it was coming – it’s now built into everyone’s DNA, and they know that the emergency [historically low] interest rates were just that, and now they’re getting used to rises, they’re factoring it in.”
On the other side of the city, in Langwarrin, it was a different story when a home sold under the hammer for $1.995 million – $145,000 above the reserve. The buyer was a downsizer who wanted to spend time with her grandchildren.
Ray White Frankston principal agent Ashley Weston said five bidders registered and three made offers on the four-bedroom, luxury home at 21 Peter Chance Crescent.
An opening bid of $1.65 million set the scene, followed by a flurry of $20,000, $10,000 and $5000 bids that sent the price flying. Weston said a lack of homes for sale in the area had resulted in some strong sales, though this may change as the weather becomes warmer.
“The real challenge will be in spring because of the usual spring flurry of properties coming on to the market and the supply/demand ratio will favour buyers,” Weston said.
In Camberwell, a two-bedroom villa unit also had a strong result, after six bidders competed for the keys. The property at 2/34 Orange Grove sold for $1.206 million, above the reserve of $1.06 million.
An opening bid of $1 million started a whirlwind of offers from buyers including investors, downsizers and families looking to upgrade.
Belle Property Glen Iris principal agent Steve Burke said the buyers are a young family, competing as fewer properties come up for sale in the sought-after suburb.
“There’s a bit of a scarcity of property, but good properties are still in demand,” Burke said.
We recommend
States
Capital Cities
Capital Cities - Rentals
Popular Areas
Allhomes
More
