Melbourne auctions: Glen Waverley house sells for $120,000 more than reserve before a crowd, despite restrictions

A crowd of people gathered to watch an auction in Glen Waverley on Saturday, despite restrictions limiting attendees to 10. 

Although only 10 participants were standing in the yard, socially distanced, about two dozen stood on the street outside to watch.

It was one of only 79 auctions scheduled in Victoria’s first weekend of on-site bidding for almost two months. It was one of the quietest weekends for auctions yet outside Easter, AFL grand finals and the traditionally slow January period. 

By evening, Domain Group had recorded a preliminary clearance rate of 52.9 per cent from 49 reported results.

The four-bedroom house sold for $1,317,000 after a long and drawn-out auction, $120,000 above its reserve. 

Ray White Glen Waverley selling agent Calvin Huang said the crowd gathered outside 2 Olympic Court despite being warned only 10 could be present for the auction. 

“We tried our best to stick to the restrictions, only allowing 10 people on-site and we didn’t advertise an open for inspection,” he said. “But the neighbours have seen the board and the listing and they wanted to see what the market was doing.

“Auctions are a part of life in Melbourne, if they’re walking or going for exercise and see some theatre, they’re welcome to come and watch, but we only let 10 people onto the site.” 

The rule is in place to allow the resumption of in-person auctions, which were banned in March when social distancing restrictions were introduced to slow the spread of coronavirus. 

Mr Huang said the number of extra spectators was a sign buyers were itching to buy, and frustrated by a lack of houses for sale. 

“I don’t think we would have had as many buyers as today, pre-COVID,” he said. On Saturday 15 buyers registered to bid, 10 in person and five online. 

Mr Huang said he didn’t think the coronavirus restrictions would lower prices too much, given buyers were still looking and competing for fewer homes. 

House prices are forecast to fall as the economy recovers from forced hibernation to combat the COVID-19 outbreak. ANZ last week tipped a 13 per cent drop in dwelling prices in Melbourne and Sydney, while NAB predicts a 15 per cent fall. 

Commonwealth Bank this week released modelling for an 11 per cent drop, as well as for a worst-case scenario of 32 per cent falls.