Melbourne auctions: Hawthorn home passes in on $5 million vendor bid on Super Saturday
Melbourne’s preliminary auction clearance rate has dipped to its lowest point since the real estate market reopened, as more homes were listed for sale this spring, giving buyers more choice.
There were 1261 auctions scheduled in Melbourne on Saturday, on the first of two Super Saturday auction events happening this weekend and next.
By evening, Domain Group recorded a preliminary clearance rate of 69.3 per cent from 905 reported results, while 133 auctions were withdrawn. Withdrawn auctions are counted as unsold properties when calculating the clearance rate.
The last time the preliminary figure was lower was on September 18, at 66.7 per cent, the first weekend private physical inspections could resume after weeks of virtual inspections only that reduced buying and selling activity. That day, there were only 285 auctions scheduled.
Since then, the preliminary clearance rate has picked up and held above 70 per cent.
The preliminary figure is likely to be revised down a few percentage points as more results are reported. A clearance rate of 70 per cent roughly correlates to 10 per cent annual price growth.
An elegant four-bedroom Victorian home in Hawthorn passed in on a vendor bid of $5 million at auction on Saturday, without drawing a single bid from the crowd.
Despite 4 Berkeley Street’s desirable Scotch Hill location, 937-square-metre block and glaring lack of a heritage overlay, the 1890s-built home didn’t entice any of the potential buyers in attendance.
Auctioneer Scott Patterson of Kay & Burton asked the 40-odd attendees to get the ball rolling with an opening bid, but it never happened.
In a last-ditch effort, Mr Patterson placed a vendor offer of $5 million in an attempt to encourage the muted onlookers, but to no avail.
Selling agent Matt Davis, also of Kay & Burton, said the lack of a result was surprising, given the Hawthorn family home had garnered some positive interest in the lead-up to today’s auction.
Mr Davis added that there were signs the market was starting to cool down slightly. However, there were still good buyers looking for the right property, he said.
“We’ve noticed it’s tapered off a little bit, but there are still very good buyers out there looking for good quality stock,” Mr Davis said. “So it will be interesting to see how demand translates towards the end of the year.”
The news comes as industry experts predict that Melbourne’s white-hot real estate sector may finally be levelling out after what has been a historic year for housing price growth.
Another property that failed to get over the line at auction was a two-bedroom apartment in South Yarra, which later sold after negotiations for an undisclosed figure.
The sale of 12/384 Toorak Road was held in the arresting courtyard of the mid-20th-century brick apartment, with a group of around 10 prospective buyers in attendance.
Auctioneer Tom Hayne of Marshall White kicked off proceedings with a vendor bid of $650,000, which was followed by a pause and then the first genuine bid of $660,000.
A second party then offered a rise of $2500, but it was quickly countered with a bid of $670,000, at which point the home passed in.
In Melbourne’s inner north, a three-bedroom Fitzroy North weatherboard home also passed in, for $1.85 million – about $200,000 shy of the vendor’s reserve.
According to John Costanzo of Woodards Carlton North, bidding on 5 Newry Street was hampered before the auction began, with the primary interested party buying a different property off-market late yesterday afternoon.
An opening bid of $1.8 million was rebuked by Mr Constanzo, and although subsequent offers climbed to $1.85 million, the sum was still too far off the mark.
The family home was officially passed in, and even though negotiations later followed and a new offer of $1.925 million was reached, it did not meet the vendor’s expectations.
It wasn’t all underwhelming results this Super Saturday, though – some auctions did yield better-than-expected sales.
A three-bedroom weatherboard home in Footscray sold under the hammer for $1,216,000, beating expectations and eclipsing the vendor’s reserve by $216,000.
The home at 30 Coral Avenue attracted strong bids from four engaged parties, ultimately selling to a young first-home-buyer couple.
Pat Jamroz of Ray White Seddon said it was a great result for all parties, adding that the result showed there was still plenty of action taking place in the market.
“It’s still busy and there are a lot of people coming to open homes,” Mr Jamroz said.
In the Whiskey Hill pocket of Ascot Vale, a young professional buying her second home beat a local first-home buyer in the race for a villa unit.
The two-bedroom unit at 21B Elliott Street fetched $789,500 under the hammer in a hard-fought auction.
Proceedings began with a vendor bid of $750,000, at the bottom of the price guide of $750,000 to $790,000.
The parties pushed the price up to $760,000, then the auction was paused for discussions with the vendor, Jellis Craig Kensington selling agent Kieran Moloney said.
After another push, the price rose to $787,000, before another break, and a further rise. It was on the market at $788,500 and sold for $1000 more, he said, adding that the bidding above the $780,000 point had been largely in $500 increments.
“Two-thirds of the market is performing really well … selling before auction or on auction day with spirited bidding,” Mr Moloney said. “The other third is needing a bit more work.”
In Box Hill North, a townhouse sold for $1,168,000 at auction after five first-home buyers fought it out.
The near-new, four-bedroom home at 4/29 Karen Street was listed with a price guide of $1 million to $1.1 million.
Bidding began at $1 million and rose steadily until it reached $1.15 million, selling agent Jack Zhang of Fletchers Blackburn said.
The auction paused for discussions with the vendors, who had left the reserve open, and they decided to put it on the market at that level. Bidding resumed and the parties pushed the price to $1,168,000, when the hammer fell.
“The vendor’s pretty happy with the price and the purchaser is happy as well,” Mr Zhang said.
The owner, a developer, had rented out the home for about two and a half years since its completion and decided to sell this year amid a buoyant market, but original plans to hold an auction in late July were stymied by the winter lockdowns.
Mr Zhang described the housing market now as strong but shifting, as more homes were listed post-lockdown and buyers had more choice.
“For a good property or a reasonably priced property, buyers are still chasing,” he said. “Not every property is popular.”
With Elizabeth Redman
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