Melbourne auctions: Buyers have 'hunger in their eyes' amid stiff competition
Melbourne home buyers are fending off stiff competition and stretching past their budgets even as the amount of properties up for auction climbs to its highest level this year.
Bidders fought it out for well-presented homes across the city on Saturday, in the market’s first test of 2020.
Some 1123 auctions were held in Melbourne this weekend, just short of a super Saturday.
By evening, Domain Group had recorded a preliminary clearance rate of 79.1 per cent from 774 reported results.
Frustrated buyers who couldn’t find a home before the end of last year were continuing to drive prices up in the auction market, by going the extra mile to secure a property as soon as possible, Whiting and Co agent Marcus Peters said.
“People will pay a bit more if they get their weekends back and don’t have to spend any money [updating] something,” he said. “They’ve got busy lives, they want to get on with their weekends and so, basically, you can see there is hunger in their eyes.”
Mr Peters on Saturday auctioned a two-bedroom townhouse in Elwood, to a big crowd and five bidders.
He had drawn plenty of interest in 4/33 Tennyson Street and gave out about 70 contracts during the campaign.
It led to strong bidding and the auction opened with a high bid of $900,000 from a buyers’ advocate. The quoted price range was $850,000 to $920,000.
Bidding quickly shot past the reserve of $950,000, and the home sold for $1,042,000. The underbidder, attempting to buy though the buyer’s advocate, shed some tears after losing.
Mr Peters said the buyers were an older couple who intended to live in the home.
He said there were more buyers than sellers, and it would drive up prices again.
“There needs to be more stock,” said Mr Peters. “Vendors need to be told now is the time to sell, don’t wait, now’s the time to sell!”
Earlier in Richmond, a two-bedroom townhouse sold to owner-occupiers for $1,163,000 in another tight auction.
Three bidders contended for 4/79 Richmond Terrace, with bidding opening at the bottom of the quoted price range of $1 million to $1.1 million.
Once the home passed the reserve of $1.08 million and Jellis Craig auctioneer Elliot Gill told the crowd it was on the market, the eventual owner stepped into the competition.
The underbidder, bidding on behalf of someone else via video call, stretched past their limit a couple of times during the auction.
“Some of the bidders here passed what their limit was but that was just how bad they wanted the property,” Mr Gill said. ”That’s the advantage of being on the market; they see the opportunity and they think with every bid they have the opportunity to buy it.”
It sold for $1,163,000, $83,000 more than reserve.
The 40-year-old townhouse needed some improvements. It last sold in 1993 for $162,500 and had been an investment property.
Mr Gill said the vendors were happy with the price.
“It’s been a really good investment for the clients,” he said. “It’s probably a sign of the market now.
“There’s a lot more for sale but there are a lot more buyers in the market than last year, so people have got some confidence to buy again.”
In South Melbourne, a stylish three-bedroom apartment sold for $340,000 more than its reserve, with seven bidders taking a tilt for the title deed.
The penthouse at 603/274 Coventry Street sparked a hard-fought auction, The Agency’s Michael Paproth said.
“We had an opening bid of $1.5 million and they went at it hammer and tongs,” he said. “There were 102 bids and it went for 17 minutes. There were a few attempted knock-out bids.”
It sold for $2.09 million.
The apartment building was popular for its trendy and quality apartments and its location right on the edge of the city, Mr Paproth said.
“It has exposed concrete ceilings, a rooftop terrace, it’s just a quality home,” he said. “It highlights a lack of quality inner city residences that are for sale on the inner city fringe.”
Close by in Port Melbourne a single-fronted home sold for another big sum, $2.21 million.
RT Edgar agent Simon Graf had the sale of 60 Evans Street. The final price was $310,000 more than the reserve, and he said it was a surprising result.
“There’s no car access for that property, so that’s a big price for that,” he said.
Mr Graf said the three bidders were owner occupiers, and they were keen to shell out more than reserve to get into a home.
“The buyers at the moment are happy to fight it out if it’s a good home and well renovated,” he said.
In Blackburn, an investor nabbed an older free standing home for $1,665,000 to add to his large portfolio.
Property Maven’s Miriam Sandkuhler managed the sale of 1A Vine Street as a vendor’s advocate and said it was an interesting campaign because of the home’s zoning.
“The zoning on that one is quite flexible in terms of what the purchaser can do with it,” she said. “They can renovate the house, build townhouses or an amazing house in its own right.
“They can even partner up with a neighbour and put up apartments because the zoning allows that.”
The reserve was $1.45 million, and Ms Sandkuhler said the vendors were pleased with the sale.
“They were thrilled with the result today,” she said. “They have their eye on a property already and they’re hoping to bid on that one in a few weeks time.”
The buyer had no solid plans for the property yet, Ms Sandkuhler said.
“The buyer already has 10 properties in the area but I think he was looking to land bank and see what he could do with it in the future.”
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