Melbourne auctions: Inner north homes attract huge price premiums in ‘crazy’ start to year
Two inner north terraces smashed their reserves by hundreds of thousands of dollars and attracted huge crowds on Saturday, as pent-up demand from last year created tough competition at auction.
In Fitzroy, a heritage bluestone home beat its reserve by $254,000 in a hotly contested competition, with half a dozen bidders taking part.
It was one of 381 auctions held in Melbourne on Saturday.
By evening, Domain Group had recorded a preliminary clearance rate of 74.5 per cent.
The two-bedroom terrace at 42 Palmer Street had a price guide of $1.05 million to $1.15 million, with its reserve at the top of the range.
Bidding started at $1.05 million, and the price flew past the reserve quickly. After more than 50 bids the home sold for $1,404,000 to Fitzroy local Roz, last name withheld, who said she was something of a bluestone home collector.
“I’m in a bluestone place,” she said. “I’m very passionate about it.”
Roz said she’d use her latest purchase as an investment, with a view of taking care of the home’s history. She added she’d be picky with her choice of tenants.
“I love the originality of it,” Roz said. “I want to keep it as well preserved as it has been.”
Nelson Alexander’s Charlie Barham said the large number of buyers showed they were determined to buy after the holiday period.
“It’ll be interesting to see if things settle down a little bit when a bit more stock comes to market,” he said. “In areas like Fitzroy and Carlton there’s always so much demand and the demand always outweighs the supply.”
Earlier in Collingwood, a two-bedroom terrace on 105 square metres attracted a crowd of more than 100 people, and another big sale price.
The home at 13 Sturt Street drew 10 interested buyers in another blisteringly fast auction.
Bidding started at $800,000, below the quoted price guide of $880,000 to $950,000.
It passed its reserve of $950,000 before long, but eventually sold to an owner-occupier from South Yarra for $1.14 million, $190,000 more than the vendor’s asking price.
Nelson Alexander’s Mason Staver had the sale, and said the amount of buyers about in February was “crazy”.
“Our first open, we had 86 groups through, it was crazy,” he said. “And this was one little house in Collingwood!”
Mr Staver said demand from buyers was strong going into Christmas, and had built over the past couple of months. He said home-buying hopefuls would face stiff competition from their peers.
“They’re dealing with the same competition from last year and a whole lot of new faces,” Mr Staver said.
Hotly contested auctions would be the new normal for some time, he added.
“I think we’ve seen the new base of the market,” Mr Staver said. “For a property that hadn’t been renovated in 10 years, to have people paying almost $11,000 a square metre is phenomenal.”
In Richmond, a two-bedroom home soared past its reserve by $315,000.
The weatherboard house at 14 Fraser Street was on a large block of 300 square metres, with scope to upgrade. The kitchen still retained a 1970s style.
It sold for $1.79 million, and Biggin and Scott agent Andrew Crotty said it was a vote of confidence in the inner-city market.
“It’s just further proof that bigger blocks of land in central Richmond are in high demand,” he said. “[Families] want to stay in Richmond and have a family home.”
Mr Crotty said most properties were going to auction with multiple bidders, with lots of buyers about for this time of the year.
“There’s a huge amount,” he said. “Our opens are getting anywhere between 12 and 46 groups through. It’s across the board. Apartments are hot, houses are hot.
“There’s a fear of what the new year could bring, that if prices take off where will that leave us?”
Out in Ferntree Gully, a three-bedroom home sold to first-home buyers in another competitive auction.
The winning family had to beat out nine other bidders to secure 33A Gaydon Street, which sold for $20,000 more than reserve.
Most of the interested parties were first-home buyers, Ray White Ferntree Gully’s Matt Morris said.
“It was a fast and furious auction which lasted just 11 minutes after opening at $500,000 and moving up in $10,000 increments,” he said. “The home was called on the market at $600,000 and sold at $620,000.
“The owners are over the moon. They had subdivided their block and moved to another house at the back, while the new family will move into 33A.”
Mr Morris said the confidence in the property market from late last year was still around.
Another first-home buyer had some joy in Kensington, taking home the keys to a two-bedroom unit with park views.
She was the sole bidder for 405/60 Speakmen Street and paid $485,000. The quoted price range was $460,000 to $490,000.
Edward Thomas of Edward Thomas Estate Agents said she had been looking close to where she worked, the Royal Children’s Hospital.
“It was mainly the location,” Mr Thomas said. “And the views over the park and the size of the apartment. It was very light-filled as well.”
Mr Thomas said the incentives available for first-home buyers made it a good time for home-owning hopefuls to buy.
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