Melbourne auctions: Unliveable Thornbury home sells $130,000 more than reserve despite coronavirus jitters
Melbourne’s auction clearance rate has slipped for the second week running amid the economic uncertainty linked to the coronavirus.
There were 1145 auctions scheduled for Saturday, higher than the 1090 held last weekend as some sellers opted to bring their auctions forward.
By evening, Domain Group had recorded a preliminary clearance rate of 61.5 per cent from 827 reported results.
Last week, the preliminary clearance rate was 68.0 per cent, later revised to a final 65.2 per cent as more results were collected.
A fortnight earlier, before the long weekend, early indications showed 77.4 per cent of auctions sold, then revised to 69.5 per cent.
There were 46 auctions withdrawn, compared with 42 last week.
Even so, sales are powering ahead with further social distancing measures in place, even as some buyers are uneasy.
In Thornbury on Saturday, an unliveable deceased estate sold to a couple for $1.03 million, $130,000 more than its reserve price.
Upon entering the property buyers and spectators were greeted with Jellis Craig-branded signs informing them of the company’s new social distancing policy, up from a de facto ban on shaking hands at last week’s auctions.
Agents have been scrambling to adjust their operations amid the coronavirus outbreak, while buyers and sellers have been keen to get deals done quickly.
Three buyers pushed the price for 9 Kelvin Grove past the reserve of $900,000 with just six bids, then traded $10,000 increments until Jellis Craig auctioneer Nigel Harry was calling for a buyer past $1 million.
The buyers bought the two-bedroom home with the hopes of slowly renovating it while living there.
The couple said they were most concerned about the current economic situation, but had been searching for a property for more than six months and were ready to buy.
“You don’t always find a place that you like or see potential with, so I hope the economic situation improves,” the woman said.
Mr Harry said the property market was turning over for the time being because of buyers like the new owners of 9 Kelvin Grove.
“Those who are buying at the moment have been in the market for some time and have good job security,” he said. “It gives them confidence to purchase.”
Mr Harry was concerned about getting vendors to list their properties for sale amid the uncertainty of the pandemic, but said sales like Kelvin Grove would help keep things moving.
“In spite of all the uncertainty in the marketplace it just underpins that, with real estate like this, savvy buyers still see potential and are prepared to buy,” he said.
Later in Preston, a stunningly renovated weatherboard home sold under the hammer with five bidders taking part in the auction.
The three-bedroom house with city views from the master bedroom at 69 Wallace Street attracted a huge crowd for the sale, which began slowly.
The quoted price guide was $1.08 million to $1.18 million, and bidding didn’t pick up until Barry Plant auctioneer Jim Dimitropoulos announced the property was on the market at $1.2 million.
The house sold for $1.23 million. Mr Dimitropoulos said he was surprised so many people bid, as some had told him they wouldn’t put their hand up due to the economic uncertainty brought on by the coronavirus.
“There’s feedback out there that people are a bit apprehensive about putting their hands up, but that approach just isn’t going to work going into the winter months,” he said. “Stock is going to be tight out there.”
Elsewhere, a display preview event for a new owner-occupier apartment building in West Melbourne drew interest from buyers, particularly in the $1 million to $1.5 million range.
Eight groups came through the event for The Marker, of which three are genuine buyers including one who reserved a $1.5 million sub-penthouse, Lechte Corporation director Chris Paul said.
Mr Paul said buyers were seeing an opportunity, but were still “cautious”.
“The great unknown of how these current circumstances play out is at the forefront of people’s minds,” he said.
“There is going to be a lot less property out there… Now will be the obvious time to have been buying.”
The 45-unit block is the final of three buildings for the project, with the first two snapped up. For the latest building, set to be finished in February 2022, 30 per cent of apartments were sold before it opened to the public, Mr Paul said.
with Elizabeth Redman
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