Melbourne auctions: Clearance rate passes 80 per cent but Abbotsford four-bedder just scrapes over the line

August 24, 2019
Auctioneer Andrew Crotty calling 52 Marine Parade, Abbotsford. Photo: Stephen McKenzie

Melbourne’s auction clearance rate has jumped above the 80 per cent threshold as confident buyers jump back into the market, preliminary figures show.

There were 596 auctions held in Melbourne on Saturday, a slight lift from recent weeks as winter draws to a close.

By evening, Domain Group had recorded an 81.2 per cent clearance rate from 456 reported results.

Housing market sentiment has been picking up since the May election result, with two cuts to interest rates and a regulatory move to let buyers borrow more money also boosting confidence.

Preliminary clearance rates have been edging above 70 per cent in recent weeks, picking up from figures below 50 per cent late last year. For the month of July, the final clearance rate was 67 per cent.

Despite commentary suggesting that a lack of homes for sale has pushed up clearance rates, analysis this week showed that historically, the opposite was true, with higher clearance rates in months with more auctions. Auctioneers on the ground have also reported a shift to higher starting bids and faster-paced proceedings.

Even so, some buyers are unwilling to send prices too far above vendor expectations.

Howling winds couldn’t push an Abbotsford townhouse past its reserve on Saturday, despite strong interest and four buyers putting their hands up.

The four-bedroom home at 52 Marine Parade was a relatively modern build, with the potential to renovate further if desired.

SOLD - $1,200,000
52 Marine Parade, Abbotsford VIC 3067
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Biggin and Scott agent Talia Besser said the property had proven popular ahead of auction as it was a rare offering of four bedrooms and two bathrooms on a compact land size of 145 square metres.

“We had 77 through in the campaign,” she said. “You don’t have much opportunity to get that many bedrooms on this much land size. They’re pretty rare; we haven’t sold that many in a year or so.”

The Biggin and Scott team during the auction. Photo: Stephen McKenzie

Bidding began at $1.05 million and ended with a final sale price of $1.2 million, which was the reserve and the top of the quoted price range. The property sold to a young family using buyers’ agent Peter Fox from Buyer Marketing.

Mr Fox said he and his clients were pleased with the final figure.

“My opinion is this could have gone over $1.3 million with stronger attendance today,” he said. “On behalf of the client, we’ve done really well.”

Peter Fox (centre of frame) while bidding. Photo: Stephen McKenzie

He took credit for the lack of further competition after auctioneer Andrew Crotty of Biggin and Scott announced the home on the market at $1.2 million.

“I slowed the auction down with $2500 increments then I rounded it off with a strong bid of $1.2 million,” the buyers’ advocate said.

However Ms Besser said a fifth buyer, who had inspected the property seven times, had kept his arms crossed during the auction. She had hoped he would push the price further, Mr Fox’s tactics notwithstanding.

A gathered crowd watches on. Photo: Stephen McKenzie

Meanwhile in Clifton Hill, an old weatherboard home in need of some work went under the hammer, with two buyers going head-to-head in a slow-starting auction.

The three-bedroom home at 24 Council Street had a kitchen and living area separate from a main structure that housed the bedrooms and a retro-fitted indoor bathroom.

SOLD - $1,460,000
24 Council Street, Clifton Hill VIC 3068
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Nelson Alexander’s Peter Stephens, who had the sale, said the house had never been converted to a more modern floor plan, because of the vendor’s preference.

“I think they quite often used to build the kitchen separate so if there was a fire in the kitchen and it burnt down it didn’t affect the main building,” he said. “[There are] not many left any more, no. We used to see them 25 years ago but not now.”

24 Council Street, Clifton Hill. Photo: Nelson Alexander Fitzroy

During the auction, Mr Stephens said, competition heated up after long waits between the first two bids.

“We opened with a vendor bid of $1.35 million. We waited for a little while then we got a $10,000 increase and then it was also very slow to get the second bidder out of the woodwork.

“After $1.37 million it took off from there; it went quite quickly.”

It sold for $1.46 million, $10,000 more than reserve. The buyers will renovate the ageing home, Mr Stephens said.

“The eventual buyer plans to do an extensive renovation,” he said. “The front verandah gets a lovely view to the city skyline.

“And there’s a decent backyard which is north facing.”

Elsewhere, in Highett, the vendors of an older brick home had more joy, selling for $185,000 more than their reserve price.

SOLD - $1,265,000
12 Beaumaris Parade, Highett VIC 3190
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The old four-bedder sat on 689 square metres of land at 12 Beaumaris Parade, close to parks and schools.

Selling agent from Buxton, Noel Susay said the auction was well-contested, with half a dozen buyers putting their hands up.

“We had a really good attendance and six bidders,” he said. “It’s a good sign of confidence, to get not just two bidders but six.”

Mr Susay expected the buyers would spend hundreds of thousands of dollars building a new home, after paying $1,265,000 at auction.

“They’re considering if they’ll build their dream family home there,” he said. “One just sold down the road for $1.8 million so they’ve got the confidence they can spend that much.”

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