Essendon home that failed to sell two months ago sparks $4.27m fight
An Essendon property that had no success at auction before Christmas drew the interest of five families and soared to $4.27 million at auction on Saturday.
The five-bedroom, five-bathroom house at 2 Jacka Street, with north-facing backyard and swimming pool, pushed $620,000 above its $3.65 million guide as Melbourne’s market sentiment shifts.
Bidding opened at $3.65 million with three registered bidders placing sporadic rises of $25,000, $20,000 and a power bid of $50,000 before it slowed to $10,000 bids at the end. On the market at $3.85 million, it sold under the hammer for $4.27 million in front of a hundred people sheltering from rain and thunder under trees on the site. The sun shone post auction.
Jellis Craig’s Christian Lonzi said the downsizing vendor was “absolutely delighted.”
The home went to auction on December 18 and received just one bid of $3.65 million, and did not get to a figure that met the owner’s expectations pre-Christmas.
“Last year…we made a decision, we’re better off waiting until this year and just knowing that we had potential other interests that weren’t quite ready. So just really relieved that we made the right decision.”
The property was one of 831 scheduled to go to auction in Melbourne this week. By evening, Domain Group recorded a preliminary auction clearance rate of 69.9 per cent from 601 reported results, while 52 auctions were withdrawn. Withdrawn auctions are counted as unsold properties when calculating the clearance rate.
In Cheltenham, a two-bedroom single-level villa at 2/24 Follet Road, sold for $862,000. The home is located in the golden triangle of the suburb and is walking distance to schools, parks and transport.
Five parties actively bid and an additional three showed interest but did not put their hand up at auction.
Bidding opened slowly with an eventual bid of $650,000 starting it off before increments ranging from $25,000 to $500 were placed.
Ray White’s Trevor Bowen said “it was a stunning renovation.”
“It was something like you’d see on ‘The Block’. It had a rear deck, and it was a villa unit.”
The buyer was a first-home buyer who had missed out on several auctions over the past eight months. The vendors who renovated the villa will now upsize.
The villa last traded for $656,000 in 2021, records show.
In Carnegie, a four-bedroom townhouse sold for $1,735,000, which was $35,000 above its $1.7 million reserve. The pristine property with a guided range of $1.55 million to $1.65 million at 54B Lyons Street attracted the interest of two local families from the suburb and one from Sydney.
Three actively bid, although five in total showed interest in the home opposite the newly-completed, local swimming pool, sports grounds and off lead dog park.
Bidding opened with a $1.55 million vendor bid with proper bidding starting immediately after that until it sold under the hammer for $1,735,000.
Selling agent Josh Hommelhoff from Ray White Carnegie said “today we saw a bit of activity that would suggest that buyers are expecting a rate cut next week. We’ll obviously see what happens.”
He added that anything that has been “finished well is still performing really well within the suburb.”
The buyer is a local upsizing within the suburb. The vendor will also be staying local.
AMP’s chief economist Dr Shane Oliver said Melbourne’s clearance rate of 69.9 per cent is “now seeing a pickup again.”
“In January and February, as we see, they pick up again. But Melbourne, the result today was 69.9 that’d probably get revised to something like 66 but it’s still up from the lows.”
“We’re still not in boom-time levels. You know, strong levels for Melbourne are in the high 70s,” he said.
“The ongoing talk about an imminent interest rate cut, I think, is what’s fuelling the rebounds. And obviously, if we don’t get cut on Tuesday, then… it could fall back down again.”
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