Melbourne auctions: buyers pounce on $1.11 million Collingwood cottage in ‘undersupplied’ spring market
On the first weekend of spring, auctioneer Luke Chisholm was feeling doubtful.
“I don’t think we’re going to have a spring in 2019,” he announced before taking a Collingwood Victorian cottage to auction on Saturday.
On such a cold, windy and rainy morning in September, with a relatively low number of properties going to auction, his remarks could have been a weather forecast, or a prediction for the fate of the property market.
The house was one of 704 auctions held in Melbourne on Saturday.
By evening, Domain Group had recorded a 74.5 per cent clearance rate from 531 reported results.
The Nelson Alexander agent needn’t have worried. After he placed a vendor bid of $920,000 for 12 Charlotte Street, bidding picked up immediately.
Three bidders contended for the two-bedroom home, knocking the price up in $10,000 increments all the way to the final figure of $1.11 million, $110,000 more than its reserve. The auction was over in less than five minutes, with about 20 bids placed and two parties going head-to-head towards the end.
The home sold to a family from Adelaide to rent out to their son, Andy, who already lives in Melbourne.
Andy, who gave only his first name, said they picked the home because of its inner-city positioning.
“Mainly for the location. I live on Johnston Street, I ran here this morning hungover with two minutes to go,” he said, with his hair still wet from the shower.
“I’ll pay the rent. I’m in a very fortunate position, [that] a lot of people can’t be in.”
Post-auction, Mr Chisholm had changed his mind about spring’s approach.
“That’s the heat in the market, both buyers wanted it. I didn’t even get a chance to declare it on the market,” he said. “Spring’s here, it’s time to sell. Maybe a result like this will bring spring on.
“We’re undersupplied, absolutely.”
Later in Abbotsford, a warehouse conversion had a similarly quick auction, with another three buyers lining up with hopes of making the unit home.
The two-bedroom apartment at 2/2A Mollison Street had a mezzanine level and large windows in most rooms, leaving it light-filled and popular with cashed-up young professionals.
“They’re the younger generation, usually looking for a second home,” Hocking Stuart selling agent Ben Chrimes said. “It’s a former textiles factory, a warehouse conversion about 20 years ago.
“It’s a beautiful two-bedroom, recently updated kitchen, a true natural warehouse conversion. A really beautiful design.”
The auction started at $1.15 million, the bottom of the quoted price range. Not long after, the home sold to a business owner for $1,275,000.
“Over the past six months [he] had only been looking for a warehouse conversion,” Mr Chrimes said.
He agreed stock levels were low, leaving buyers to fight hard for the more sought-after properties.
“Stock levels are quieter, which makes [conversions] quite special,” Mr Chrimes said. “In a time when general stock is low, these really stand out.”
In Kensington, another Victorian home had a strong result at auction, selling for $104,000 more than its reserve price.
The auction for 19 Collett Street kicked off at $820,000, about the middle of the quoted price range, and sold for $964,000 after spirited bidding.
“I reckon that’s prices we saw 18 months ago, that’s a really good result,” Nelson Alexander’s Ryan Currie said. “We had four bidders in the mix … it was literally over in 15 minutes.”
An investor beat out a cohort of home-buying underbidders to purchase the two-bedroom.
Mr Currie said like other parts of Melbourne, Kensington was undersupplied.
“Especially in that $800,000 to $1 million range, it’s still quite slim pickings for good homes,” he said.
“That’s a sign of a strengthening market. Everyone’s more confident and people are just going for it, both the sellers and the buyers.
“Everyone’s feeling that confidence is returning and everyone’s a bit upbeat, which is good.”
In Fitzroy North, a polychrome-brick terrace sold for at least $135,000 more than the reserve after a strong auction.
Property Bureau director Kristy Caskey said there were seven bidders vying for 97 Rowe Street, which had a price guide of $1.35 million to $1.45 million. One of her staff was working as a vendors’ advocate for the seller. Nick West of Nelson Alexander had the sale of the three-bedroom home.
Ms Caskey said the price guide had been revised up during the auction campaign because of strong interest.
The home was declared on the market at $1.55 million and then sold for $1,685,000 to home-buyers.
“This result is a clear indicator of the strength of the home-buyer market for top quality properties in good locations close to in-demand amenities,” Ms Caskey said. “There is a lack of decent quality stock so buyers are bidding with a vengeance.”
In South Melbourne, another two-bedroom found a buyer after another tightly contested auction.
The single-fronted home at 72 Palmerston Crescent sold for $1.21 million, $100,000 more than reserve.
Marshall White’s Sarah Wood had the sale. She said the auction market had improved markedly in the four weeks since listing the property.
“It’s quite mixed and we are seeing good interest and there aren’t a lot of properties for sale,” she said. “I would have thought at the time of listing, $1.1 million would buy it but I think market sentiment is good and there are a lot of buyers keen to secure [something like this].”
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