Melbourne auctions: Cinderella story as restored Thornbury house soars to $2.31 million
Homebuyers were out in force this weekend with Melbourne’s auction market passing its biggest test of the year so far.
With a staggering 1376 auctions listed across town, it marks the first Super Saturday of 2020.
By evening, Domain Group had recorded a preliminary clearance rate of 77.4 per cent from 983 reported results.
Although the rate is likely to be revised down a couple of percentage points in coming days as more results are collected, it indicates a relatively strong market.
On the equivalent weekend last year, March 2, 2019, the preliminary clearance rate was 64.5 per cent, before being revised to a final 56.2 per cent.
The strong results come on the back of gaining momentum in the property market, despite coronavirus-induced shockwaves sent through the Australian sharemarket this week.
It was a Cinderella story for a restored Victorian home at 63 St David Street, Thornbury. Vendors Ben and Alexa Clark purchased the four-bedder in 2016 and gradually transformed it from dilapidated to dazzling. Their contemporary rear addition included an architect-designed cantilever overlooking an inground pool.
“It was nothing like it is today, it was almost unliveable,” Ben recalled.
Auctioneer Sam Rigopoulos from Jellis Craig told the 80-strong crowd it was one of the most popular homes the agency had put on the market in some time. A whopping 250 groups were shown through the property in the days leading up to the auction.
Bidding got off to a slow start, kicking off with a vendor bid of $2 million.
But proceedings quickly picked up with three parties fighting it out, pushing the home above its $2.05 million reserve. The home sold under the hammer for $2.31 million.
“We’re elated because it’s a little bit more than we anticipated,” Alexa says.
Buyer’s advocate David Wheeler purchased the property for a family looking forward to moving into the Thornbury address.
Confidence in buyers and vendors was continuing to propel the tip-top results in the Melbourne market, Mr Rigopolous said.
“The underlying demand out there is super strong. We’ve got a lot of real estate on the market and the number of people walking through the door is as high as I’ve ever seen it,” he says.
With confidence high, Wakelin Property Advisory director and buyer’s advocate Jarrod McCabe said even if the coronavirus worsens, the Australian property market should be well insulated.
“We typically see when the sharemarket, for whatever reason, takes a hit, more often than not a lot of that money that gets taken out of the sharemarket gets put into property because of the stability that property offers,” he says.
“Applications for mortgages are going through the roof, so buyers are still very much out and about and very active.
“But if coronavirus continues to build and get worse and worse, the property market is probably going to be the least of the worries in terms of stability. There’s going to be other global issues that economies will probably suffer from.”
McCabe purchased a four-bedroom Edwardian house at 87 Abbott Street, Sandringham on behalf of a family searching for a property close to schools, shops and the beach.
Amid a crowd of 120 people, McCabe fended off four other bidders to place the winning bid at $3.105 million – more than $400,000 above reserve.
Noel Jones agent Robert Simpson said he also expects more cash to flow into the property market as a result of concerns around coronavirus.
“Obviously the stock market has taken a bit of a hiding and, if anything, conversations with buyers indicate they are cashing out of the stock market and putting it into good old bricks and mortar,” he said.
“So there may be more money circulating in the market.”
Simpson sold a one-bedroom apartment not far from the banks of the Yarra at 15/125 Turner Street, Abbotsford. With a sales range of between $380,000 and $418,000, it went to an owner-occupier for $435,000 under the hammer.
Only two bidders showed up to the auction amid a small crowd, but it didn’t hinder the result, Simpson says.
“There were probably 25 on the day of auction and we were hoping for a bit more, but it ended up selling for above what we were expecting,” he says.
A fixer-upper at 32 Frederick Street, Brunswick sold for $1.08 million – $30,000 over its reserve. At least 60 years old, the cottage had been held by the vendor for 38 years.
Tim Harris from Boutique Estate Agents says the couple who placed the winning bid have big plans for the rundown four-bedroom house.
“They plan to renovate it and add an extra bedroom upstairs,” he said.
And a two-bedroom apartment at 10/1A Hartpury Avenue, Elwood with a sales range of $850,000 to $900,000 was passed in and later sold for $936,000.
The home offered a top-floor setting in a low-rise block and was listed through McGrath St Kilda.
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