Melbourne auctions: Fitzroy North home soars $915,000 above reserve on biggest auction day in three years
Melbourne’s hot auction market has passed a major test, recording a strong preliminary clearance rate of 81.2 per cent on Saturday even as more properties were offered for sale.
There were 1562 homes scheduled to go under the hammer in the third biggest auction day on record, on Domain figures, with Melbourne’s housing market rising fast amid low interest rates and a recovering economy.
By evening, Domain Group recorded a preliminary clearance rate of 81.2 per cent from 1,247 reported results.
A high clearance rate points to strong price growth. An auction clearance rate of 70 per cent is usually correlated with annual price growth of about 10 per cent.
Home buyers were out in force on Saturday as the city hosted its busiest auction weekend in three years, with one spending $3.915 million on a Fitzroy North house – an eye-watering $915,000 above its reserve.
Close to 200 people watched on as a large, period home in need of a makeover and owned by the Clifton Hill Presbyterian Church for 95 years found a new owner.
The three-bedroom home at 103 Rowe Street, the former manse for the church, had a price guide of $2.6 million to $2.86 million and was declared on the market with an opening bid of $3 million – well above the top end of the price guide.
Listing agent Steve Earl from Harrington Earl Estate Agents in Clifton Hill said three active bidders pushed the final selling price to $3.915 million.
The successful bidder was an owner-occupier who plans to renovate the home, which has housed several of the church’s former ministers and has been rented out as a share house since the early 2000s.
“We did have a few other bidders out there amongst the crowd but I think that big opening bid threw a few people out,” Mr Earl said.
“The house needs a full renovation but it’s on a large 565 square metres of land … and it’s got this really airy feel about it.”
Mr Earl said the church would use the profits from the sale to “undertake renovations that are required on the church, and the remainder will be invested to ensure the financial viability of the parish”.
Meanwhile, in Heidelberg, close to 100 people gathered to watch a renovated, two-bedroom home with a big backyard rise $101,000 past its reserve as six bidders fought it out.
The listing agent for the home at 1 Bronte Street, James Labiris from Nelson Alexander Ivanhoe, said the combination of low interest rates, strong buyer demand and, most significantly, a lack of stock, was driving such strong results and fuelling Melbourne’s fast-rising property market.
Figures released earlier this month show Australian home values are rising at their fastest rate in 17 years, with Melbourne up 2.1 per cent in February on CoreLogic data and strong gains expected in March. ANZ has forecast a 16 per cent price rise this year.
In Heidelberg, bidding for the two-bedroom brick home kicked off at $850,000 with three bidders pushing the price above the $900,000 reserve within minutes.
A further three bidders soon joined in and it wasn’t long before a bid of just $500 pushed the price to $1 million.
A young couple offered another $1000, which proved just enough to secure them their dream home in the north-eastern suburb for $1.001 million.
“Supply and demand is way out of whack at the moment,” Mr Lipiris said after the auction. “That’s what is driving these kinds of results. There are a lot of people out and about wanting to buy something but there’s not enough stock.
“And I can’t see stock levels getting any better anytime soon.”
Matt Davis from Kay & Burton South Yarra is more hopeful that stock levels will increase after the Easter break.
“I think post-Easter we should see some stronger stock levels,” said Mr Davis, who on Saturday sold a luxurious four-bedroom home at 12 Portland Place, South Yarra for $640,000 above the reserve.
The classic two-storey Victorian home with a plunge pool and an alfresco courtyard, was declared on the market at $2.7 million and eventually sold for $3.34 million after competitive bidding by four parties.
“I think if we keep seeing these kinds of positive results it will certainly translate into more stock becoming available,” he said.
“I’d say if this confidence continues we’ll have more stock to offer after Easter.”
In Doncaster East, a couple selling the family home they built back in 1965, cried tears of joy as bidding by five parties pushed the price of their beloved home past their $1.35 million reserve.
The four-bedroom home at 46 Celeste Street was bought by Australian residents currently living in Hong Kong, who had a buyer’s agent bidding on their behalf, for $1.645 million – $295,000 above the reserve.
The successful bidders outbid four other families for the large family home, which is located in a quiet cul-de-sac within the much sought-after East Doncaster Secondary College school zone.
Listing agent Peter Kakos from The Agency said the vendors, who will bring 56 years worth of memories with them when they move into a retirement village, were “just so happy” with the result.
“It was a big day for them. They are such a beautiful couple and they couldn’t be happier,” he said.
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