Hesitant buyers splash $1,122,000 on Bentleigh East townhouse in drawn-out auction

Keen buyers fought it out for the few properties taken to auction on Saturday, with the lack of stock tipped to buoy the winter market.

Two parties chasing a four-bedroom Bentleigh East townhouse were reluctant to bid, yet also reluctant to let the home go.

A drawn out auction for 8A Lois Court saw auctioneer and Buxton agent Simon Pintado struggle to attract bids, but it took some time for the underbidders to give up.

SOLD - $1,122,000

8A Lois Court, Bentleigh East VIC 3165

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The proceedings slowed to a crawl when the price for the townhouse reached $1.1 million, and a few hesitant bids later it sold for $1,122,000 to a family.

Mr Pintado said buyers were still nervous because the market had only just begun to shift in the wake of of two Reserve Bank rate cuts and a loosening of lending criteria by the financial regulator.

“People are starting to realise the market is turning,” he said. “They need to see social proof and we’re in the early stages of that.”

The buyer paid $22,000 more than the vendor’s reserve at auction, which Mr Pintado said was a strong result in the winter market.

“I think buyers are acting a bit more aggressively than what they were because of the lack of stock,” he said.

It was one of 338 auctions held in Melbourne on Saturday, about 100 fewer than last week.

By evening, Domain Group had recorded a 68 per cent clearance rate from 237 reported results.

Last week’s clearance rate was 69 per cent, revised down from a preliminary rate of 73 per cent that was the highest in close to two years.

Later in Thornbury, a deceased estate in need of renovation sold to a young couple, in what the agent called a “fairy tale” purchase.

SOLD - $935,000

295 Gooch Street, Thornbury VIC 3071

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The three-bedroom home at 295 Gooch Street had belonged to its former owner for about 60 years, and Jellis Craig selling agent Nigel Harry said one of his last wishes was to see the home go to someone who would cherish it the way he had.

It had fallen into disrepair over the years, with damaged carpets and walls, and a dated kitchen.

Four bidders wanted to be the ones to fulfil that dream, and fought tooth and nail to make it theirs.

The auction opened at the bottom of the quoted price range of $800,000 to $880,000.

Bidding was initially slow but sped up toward the middle. The winning couple were upgrading from an apartment. They bought it for $935,000, $85,000 more than reserve.

“They plan to live there as long as he did,” Mr Harry said of the buyers.

Mr Harry said buyer interest had stepped up in recent weeks, out of season for the traditionally slow winter period.

“[The auction] was fairly typical of what’s happening of late. We think it is transitioning into a seller’s market.”

In Glen Huntly, a modernised Art Deco home was well received at auction, attracting six bidders and smashing its reserve by $112,000.

SOLD - $1,362,000

20 Augusta Street, Glen Huntly VIC 3163

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The three-bedroom home at 20 Augusta Street attracted a diverse mix of buyers, Woodards agent Ruth Roberts said.

“It was immaculate, semi detached with beautiful period features, with all the mod cons,” she said. “It had a beautiful open living room at the rear and the location is amazing.”

The auction opened at $1.2 million, which was close to the top of the quoted price range of $1,125,000 to $1,225,000.

The reserve was $1.25 million, and it sold to a young couple for $1,362,000.