Melbourne auctions: Rush to bring Kensington sale forward as pandemic escalates
Late on Friday, a real estate agent was scrambling to get a deal together.
Nelson Alexander’s Paul Harrison had two buyers who were willing to pay more than the quoted price guide of $1.2 million to $1.3 million for 96 McConnell Street, Kensington.
But one buyer threw down the gauntlet — they would pay $1,315,000 for the four-bedroom terrace, and they wouldn’t be going to the Saturday auction because of the increasingly tense pandemic situation.
It was one of 356 auctions scheduled in Melbourne for Saturday.
By evening, Domain Group recorded a preliminary clearance rate of 62.2 per cent from 235 reported results. There were 40 auctions withdrawn.
Within a few hours, Mr Harrision had managed to bring the Kensington auction forward, arranging for that buyer and another interested party to bid on Zoom before the day was out.
A virtual auction typically takes days to set up.
“It’s usually the next business day we have the auction, but both parties who were interested at this level were happy to do it tonight,” he said on Friday.
“We’re in a real-time market now, so I think the buyers are into the habit of looking at a property and being prepared to buy really quickly.”
The auction was over in less than three minutes. The buyer who made the offer kicked it off with an offer of $1,315,000 and the next bidder, a buyers’ advocate, quickly responded.
In what felt like moments and with no more than half a dozen bids, the home sold to the advocate for $1.33 million.
Seller Tim Solly said moving the auction forward had been a no-brainer if they risked losing one of the buyers by persisting with the Saturday date.
“We thought we’d strike while the iron was hot,” he said. “It’s taken a lot of stress out of the auction thing.
“With the weather turning and what’s happening in the news … you just don’t know who’s going to turn up.”
The decision proved prescient, with a lockdown of Kensington announced late Saturday afternoon by Premier Daniel Andrews.
On Saturday in Thornbury, a more traditional auction saw success.
The three-bedroom house at 102A Collins Street on more than 500 square metres of land drew four hopeful buyers.
The auction opened at the reserve, which was the bottom of the quoted price range of $1 million to $1.1 million.
From there buyers bid fast to send the price to $1,125,000, selling to downsizers who planned to renovate the deceased estate.
Ray White auctioneer and listing agent Alex Ilyn was happy to see so much competition for the home, saying downsizers weren’t the typical buyers of homes in need of renovation.
“I was surprised. We’re competition creators so we were really pleased,” he said. “The buyers wanted a blank canvas, they wanted to put their own stamp onto it.”
Mr Ilyn said he felt buyers were trying to use the uncertainty created by the coronavirus to their benefit.
“No one knows [what’s going to happen],” he said.”Here’s the thing, smart people are buying now and utilising perceived fear in the market.
“They’re taking advantage of all this stuff.”
In Brunswick West, one the postcodes already in lockdown on Saturday, stay-at-home orders did not stop a two-bedroom townhouse from selling at a virtual auction.
Six active online bidders fought it out for 2/30A Mclean Street, Nelson Alexander’s David Vaughan said.
A professional couple won the keys with an offer of $650,000.
“It was a very competitive auction,” Mr Vaughan said. “It was a very affordable entrance point.”
He also cited the low numbers of properties for sale and government incentives on offer as tailwinds for the affordable end of the market.
In Clayton South, a five-bedroom home sold under the hammer for nearly $100,000 more than its quoted price range.
The recently renovated house at 5 Ovens Court had four bidders grapple for the right to call it home, in a hard fought auction.
Bidding began below the bottom of the range of $800,000 to $935,000, at $750,000. From there it went up quickly past the floor and didn’t slow until the price reached $1 million.
The home sold to a family who used a knock-out bid to take the price from $1.11 million to $1,125,000.
Listing agent Ethan He of First National JXRE said the owners had a good result in terms of price, given they paid $755,000 for the home four years ago.
“They renovated the place and they did a great job,” he said. “It’s almost 50 per cent capital growth.”
Mr He was happy to see the home sell for so much more than its range.
“I am pretty surprised, in today’s market,” he said. “A property like this, this is a really good price for a single level family home.
“What we find [buyers] are a bit worried about, is securing the mortgage. But if they have their finances approved they’re happy to bid at auction.”
Earlier in Keilor East, a three-bedroom home passed in at an online auction, and was yet to find a buyer.
The brick, stand-alone house at 25 Neville Street sat on nearly 700 square metres of land.
Just one bidder put their hand up for the home, first bidding at $780,000, just below the quoted price guide of $800,000 to $880,000.
From there the auctioneer placed a vendor bid of $800,000, and the sole bidder went up by another $10,000.
It then passed in and has since been listed for sale with a price guide of $895,000.
Barry Plant listing agent Natalie Drazic did not respond to the opportunity to comment.
With Elizabeth Redman
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