Listings under-supply unlikely to end soon as Melbourne's top suburbs score impressive auction results

While there were 850 auctions in Melbourne at the weekend, agents are still reporting a genuine lack of new listings as the market continues to recover. 

John Bongiorno, Marshall White director and auctioneer, said the number of homes for sale was still low, a trend that would probably continue through until the end of the year.

Michael Armstrong director and auctioneer with Kay & Burton agreed. He said buyers were swooping on any homes that were passed in at auction to make an offer and buy.

“It just goes to show how tight and under-supplied the market is,” Mr Armstrong said.

After the weekend of auctions, Melbourne’s preliminary clearance rate was 74.6 per cent after 594 results were reported.

Domain economist Trent Wiltshire said that result was likely be revised down to 67 per cent once all results were tallied.

“Melbourne’s clearance rate has fallen a bit over the past two weekends, but clearance rates in the high 60s still point to an ongoing moderate price growth, particularly at the top end of the market,” Mr Wiltshire said.

Auctions at the ritzier end of town got some big results. A two-bedroom Victorian style home at 8 Merton Place, Albert Park, sold for $2.24 million – well above the $1.95 million reserve.

Warwick Gardiner, director and auctioneer with Greg Hocking Holdsworth, called the auction “a cracker.” 

“It was like a verbal tennis match,” Mr Gardiner said.

He said the auction soon turned into a bidding war after a few bidders threw in $10,000 bids directly after each other.

The buyer was a downsizer wanting to live in the area. They had seen the property for the first time only a few days before the auction, he said.

In Hawthorn, a loft-style apartment at 7/48 Oxley Road sold for $350,000 above reserve for $1.36 million.

John Bongiorno said an owner-occupier bought the property, fighting it out against five other bidders.

In nearby, but more affordable Burwood, a four-bedroom Federation-style home at 27 Harrison Avenue sold for $140,000 above reserve, for $1,485,000.

Mr Bongiorno said Burwood had become popular with buyers looking to upsize or be closer to the city.

“A lot of people are looking on the fringes of the inner suburbs like Burwood, Ashburton and Glen Iris because it just provides a little bit more affordability,” he said.

Meanwhile, a five-bedroom, two-bathroom home at 8 Heath Street, Sandringham, had one of the biggest reported results for the weekend, selling for $2.73 million under the hammer.

Selling agent Charlie Darlow, of Buxton Oakleigh, said the opening bid of $2.45 million set the scene.

Three bidders fought it out, with a young family making the winning bid to buy the property, he said.

The property was last purchased in 1998 for $435,000, public records show.

In Richmond, a double-fronted Victorian home was bought by a local family for $2,335,000 under the hammer. 

They were one of three bidders fighting it out for the two-to-three bedroom home at 12 Malleson Street, Richmond. 

Russell Cambridge, director and auctioneer with Biggin & Scott Richmond, said the family would be looking to renovate the home to make the internal space a bit bigger.

Another property in need of renovation, at 14 Bennett Street, Richmond, also above expectations – for $1,525,000. The price was $170,000 above reserve.

Mr Cambridge said three bidders fought it out for the three-bedroom, one-bathroom fixer-upper. 

A unique home in Wheelers Hill, which may need some renovation, sold well on the weekend.

The five-bedroom, two-bathroom home at 3 Rostella Court still had the original colour scheme from the 1970s when it was first built.

Despite its age, the home sold for $1,233,000 – $333,000 above reserve – with a local family making the winning bid.

Nick Strilakos, sales manager with Ray White Rowville, said it was a unique property to auction.

“What’s most unique about this particular sale is not only the fact it’s been in the same family for the past 44 years, but it’s in completely original condition throughout. It’s basically a time capsule of how homes were built back in the mid-1970s,” he said.