'It just went bang': Enthusiastic buyers return to Melbourne auction market

Melbourne’s property market has rolled into spring on a high. Clearance rates hit 75.7 per cent – up 3.6 per cent from a week ago.

Experts believe enthusiastic buyers have returned to the market, and are keen to nab a bargain before prices rise again.

“Buyers are seeing now as a good time to buy because the common perception is now is the top of the market,” said Eliza Owen, Domain property market research analyst.

“Prices are sitting 8 per cent below their peak in Melbourne as of the June quarter, and, with prices expected to start rising, buyers recognise that now is the best time to get a property.”

A haul of 718 properties went up for auction at the weekend, making it the highest number Melbourne has had in three months.

The large volume of properties to go under the hammer and healthy clearance rates were a sure sign of the improvements in the market, Owen said.

“Melbourne has had an average clearance rate of about 70 per cent over the last four Saturdays, which represents continued strength in the market’s recovery,” she said.

At the top end of weekend auction action, a four-bedroom Edwardian house at 25 Manning Road, East Malvern, sold for just under $4 million.

Saturday’s sunny 18-degree weather drew a crowd of more than 120 people, who watched three bidders tussle over the keys to the residence.

“The under-bidder was very strong in his bidding, he was quick to respond from his opponent, but he missed out,” Marshall White Stonnington director and auctioneer John Bongiorno said.

“Again, the day’s results consolidates the strength of the market that we’ve seen in recent weeks.”

The weekend’s most affordable sale was $210,000 for a renovated one-bedroom unit at 18/436 Geelong Road, West Footscray.

At South Melbourne, five bidders vied for the keys to an unconventional four-bedroom home that eventually sold for $335,000 above reserve.

The two-storey, late 19th century house at 145 Park Street had a reserve of $1.1 million but sold under the hammer for $1.435 million.

“We had an opening bid of $1 million and then the next bid was $1.3 million, so it just went bang,” said David Wood, Hockingstuart Albert Park director and auctioneer. “It’s spent a lot of its life as a commercial property – as a podiatry clinic and a bakery.”

“It had a broad cross-section of appeal, right from buyers who felt they could just do a quick refurbishment and start enjoying it, right through to the eventual purchaser who is going to do a major renovation over the years.”

A young couple who had been leasing in Middle Park found their calling at 1/109 Canterbury Road, Middle Park. The fully renovated two-bedroom apartment sold above reserve at $1.32 million.

The Agency’s Michael Paproth said the strong result was reflective of the market’s rebound.

“I think the market is now back to within 5 per cent of the highs of 2017, and by the end of the year we’ll see prices back to where they were prior to the carnage of 2018,” he said. “I think we’ll see double-digit growth in 2020, 2021.”

A much-loved home at 64 Marion St, Altona North, sold for $1.05 million, $260,000 over its reserve.

Ray White Werribee director Domenic Belfiore said a couple had owned since their wedding 55 years ago.

“My vendors are a lovely couple who are downsizing, so it was the first time offered in 55 years,” he said.

“We had 10 buyers who turned up and the first bid was at $750,000 and five bidders pushed it to $900,000 and then two bidders batted it out to $1.05 million.

“My vendors are over the moon.”