Melbourne auctions: First-home buyers battle it out at entry-level properties

First-home buyers made spirited bidding at entry-level properties across Melbourne’s inner suburbs on Saturday, taking advantage of stamp duty concessions and the broader market slowdown.

A crowd of about two dozen gathered to watch an older-style townhouse in Brunswick West sell at auction.

The compact two-bedroom, two-storey home at 3/429 Brunswick Road featured front and back courtyards and drew interest from young home-buying hopefuls.

It was one of 744 properties scheduled to go under the hammer on Saturday across the city. At 6pm, the Domain Group had a clearance rate of 54.8 per cent from 526 reported results.

Two parties fought it out for the home, listed with price expectations of $500,000 to $550,000.

Bidding got underway at $500,000, rising quickly to the top of the quoted range and then surpassing it.

From the $580,000 mark the action went back and forth in fast $1000 bids. It sold for $595,000 to a young couple buying their first home.

“The prices in the up-to-$600,000 range are really holding up,” said underbidder Phil, who was bidding for his daughter and would not give his last name. “As a first-home buyer, it’s frustrating.”

The buyers had been searching for a year and had previously attended an even busier auction a few doors away.

“At this price range it [the market] hasn’t changed as much as it seems like everyone was saying,” said one of the buyers, who declined to be named.

Records show the property last sold for $52,500 in 1984.

Vendor Lidia Callea was pleased with the result and said the campaign had generated a lot of interest.

“I think it’s because of the stamp duty factor,” she said. First-home buyers in Victoria are exempt from paying stamp duty on homes up to $600,000, and have concessions on properties up to $750,000.

Selling agent Andrew De Angelis, of Nelson Alexander Brunswick, said it was a “really strong result”.

“Given what else you find in that price point in Brunswick, I think it had a fair bit to offer,” he said.

Auctioneer Damian Ponte, also of Nelson Alexander, said the market had started to pick up, slightly, in recent weeks.

“Buyers are recognising value,” he said. “They’re starting to see that the market’s come off a little bit and it might be just that bit more affordable.”

Later in the morning, a crowd of well over 100 formed for the auction of a stylish two-bedroom pad in a converted army barracks kitchen in Maribyrnong.

The residence sold for $600,000, $160,000 over the reserve. It had been listed with price expectations of $400,000 to $440,000.

Records show the home at 16 Gatehouse Place last sold for $462,000 in 2012.

Five bidders battled it out for the well-presented home, which featured soaring ceilings, a mezzanine study and outdoor courtyard. Bidding began at $445,000 and rose sharply thereafter.

“It went much higher than what we were expecting,” said underbidder Mark, who was bidding for his daughter and declined to give his last name. “It isn’t worth it.”

The winner was a first-home buyer with help from his parents, according to selling agent and auctioneer Marcus Fregonese of Hocking Stuart Sunshine.

About 300 groups inspected the property, mostly first-home hopefuls plus some investors and downsizers, he said.

“It is unique,” he said, adding that the two levels gave it a New York loft-style feel. “It’s completely different to what else is out there on the marketplace for townhouses and apartments.”

Elsewhere, a two-bedroom Victorian single-fronted terrace in Kensington with no parking space sold under the hammer for $1.08 million.

The residence at 68 Barnett Street drew two bidding parties, an owner-occupier and an investor, with the owner-occupier winning, selling agent Simon Mason of Jellis Craig Kensington said.

“[It] was really interesting to see we’re getting some investor activity back in the market,” Mr Mason said.

It had been listed with a price guide of $950,000 to $1 million. Last time the home sold was in 2014, when it changed hands for $790,000, records show.

Another terrace house in Brunswick lured four registered bidders, including two first-home buyers, an investor and upgraders from a nearby apartment.

Bids started at $750,000 and with two active bidders, 41 Hope Street sold under the hammer to the upgraders for $850,000, selling agent Jamil Allouche of Ray White Brunswick said.

It had been listed with hopes of $780,000 to $858,000.

“You’re starting to see vendors get very realistic on price now,” he said. “The guys that are getting the reasonable prices are the guys that are reasonable on price.”

In Northcote, a crowd of about 120 gathered to watch a three-bedroom residence sell.

Two owner-occupiers fought it out for the home at 56 Andrew Street, which had price expectations of $1.4 million to $1.5 million.

The reserve was set at $1.5 million and the property sold for $1,595,000, Jellis Craig Northcote’s Sam Rigopoulos said.