Melbourne investors offload properties at auction to cash in on rising market
An investor in Melbourne’s inner west “wanting to capitalise on Melbourne’s rising property market” has sold his Yarraville home for $1.080 million – $120,000 more than he paid for it just over three years ago.
The unrenovated three-bedroom home at 40 Drew Street was initially listed with a price guide of $980,000 to $1.020 million but was revised upwards during the week after a buyer made an offer of $1.050 million.
The house, which requires a full renovation or re-build, went to auction on Saturday morning with a price guide of $1.050 million to $1.080 million, with five registered bidders expected to vie for the property.
However, the auction was over within minutes with just one single bid – the same offer of $1.050 million from the same interested buyer.
It was passed in and sold shortly after for $1.080 million.
The house was one of 803 auctions scheduled for Melbourne this weekend.
By evening, Domain Group recorded a preliminary clearance rate of 78.2 per cent from 601 reported results.
Hocking Stuart Yarraville director Leo Dardha, who sold the Yarraville home, said the new owners were likely to knock it down and rebuild.
“Renovated houses on blocks of land like this, of around 450 square metres, are all selling for around $2 million in this pocket of Yarraville at the moment,” Mr Dardha said.
“So what we are seeing is lots of local families who are looking for more space buying blocks like this for circa $1 million, building a new house for $500,000 or $600,000, knowing that the resale value straight away is circa $2 million,’ he says.
On the other side of town, an Elwood investment property owned by Melbourne Football Club midfielder Jack Viney sold under the hammer for $1.9 million after four bidders pushed the price $100,000 above the reserve.
It has been reported that Viney and his wife Charlotte, who have a daughter Mila, were looking to offload the home while the property market was hot.
The renovated three-bedroom, three-bathroom home at 46 Rothesay Avenue, which the former Dees co-captain bought in 2014, was purchased by a downsizing family.
Listing agent Torsten Kasper, from Chisolm & Gammon Elwood, said it was one of four auctions on Saturday that had all sold over the reserve.
“We are still seeing an undersupply of properties and there’s no question that is driving prices at the moment,” he said.
However, he said another weekend of strong auction results would lead to more properties hitting the market in the coming months.
“I think people will have been taking note of these strong results and sellers who have been waiting to see what the market is doing have probably realised it’s a good time to sell and we might see more coming onto the market in the next few months,” he said.
Over in Wheelers Hill, in Melbourne’s outer south-east, a luxurious four-bedroom, three-bathroom home with a swimming pool and views of the Dandenong Ranges sold at auction for $3.195 million – almost $400,000 above the reserve.
The lavish home at 35 Grantchester Road, which is set over four levels with a top-floor study and four-car basement garage, also features a children’s wing with a teen retreat and a dedicated theatre with an underwater window looking into the pool.
Husband-and-wife team Chris Cao and Ellie Gong from McGrath Box Hill listed the eight-year-old home for sale and said two local families battled it out on auction day for the keys.
Mr Cao said in recent months he had seen many large family homes in the area sell for well over their reserves.
“We are finding the home-buyer market is very, very strong at the moment. But we are not seeing as many investors. I think after the borders open we will see even more strength right across the market,” he said.
Meanwhile in Maidstone in the city’s west, a deceased estate, which had been the home of one family for 50 years, sold under the hammer for $986,000 – $111,000 above the reserve.
A crowd of 60 people watched on as four active bidders pushed the price of the three-bedroom home at 14 Pullar Street well above the expectations of the vendors – three siblings, selling the home on behalf of their parents.
The home was bought by a builder who planned to knock it down and build two or three townhouses.
“It was a very emotional day for the vendors. It’s been the family home for 50 years. But they are very happy with the result,” said listing agent Patrick Jamroz from Ray White Seddon.
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