More buyers, big results as exclusive suburbs lead auction recovery

Melbourne agents were all smiles as large crowds and bidders returned to auctions across the city for another weekend of strong sales.

A combination of buyer confidence and “fear of missing out” is returning to the market, according to those attending and leading auctioneers.

Marshall White Stonnington director John Bongiorno said there was a noticeable increase in the number of bidders in the crowd.

“Activity has really ramped up,” he said.

This follows news Melbourne’s biggest fall in property prices since the 1980s appears to be over. Domain data from the June quarter has shown a slight jump in house price medians for the first time since the peak at the end of 2017.

At the weekend, Melbourne’s preliminary clearance rate reflected the improved market, sitting at 74 per cent following 471 auctions and 356 reported results.

Domain economist Trent Wiltshire said Melbourne’s auction clearance rate for July averaged 68 per cent – the highest point since October 2017.

He said clearance rates were now highest in inner-east Melbourne, which included the suburbs of Burwood and Hawthorn, and the inner south, which included Brighton and Malvern.

“These more expensive suburbs tend to lead the overall market,” Mr Wiltshire said “We’re also seeing fewer properties being withdrawn before auction.”

One of the best weekend results was at 2B Beltane Avenue, Brighton East. The two-bedroom property was unique for more than one reason, according to Leon Gouzenfiter, director of Gary Peer.

Gouzenfiter said the unit was a freestanding unit without a body corporate attached, making it attractive to several buyers. It sold for $987,000, $107,000 above reserve.

The winning bidder was a young woman looking to move closer to the ocean. Money from the sale of the property – a deceased estate – will be donated to an unnamed charity.

Another Brighton East property – at 16 Studley Road – also sold well, although it was being sold more for its land than for its older-style home. 

The final price was $1,638,000 with the buyer wanting to tear down the existing two-bedroom, one-bathroom home to rebuild.

Ross Walker, of Buxton Real Estate Brighton, said there four bidders fought it out for the property.

“Buyers are definitely coming back to the market now,” Walker said.

Also selling above reserve, and near to the beach, was a four-bedroom, two-bathroom home at 100 Elsie Grove, Chelsea. The reserve on the property was $1.16 million but it sold for $1.23 million. 

Daniel Wright, director of Buxton Chelsea, said there were 100 people at the auction with seven registered bidders fighting it out for the keys. The successful bidders were a young couple from Cranbourne. 

A townhouse at 17a Park Street, Seaford, also sold well – with the property fetching $43,000 above reserve for a result of $823,000.

Four bidders fought it out for the townhouse with the final two bidders both retirees looking for a property close to the beach. 

Wright said both were “huge results for the area”.

A young, local family looking to upsize bought a property at 11 Gloaming Court, Mill Park, which had a price guide of between $550,000 and $640,000. 

The three-bedroom, two bathroom home sold under the hammer for $727,000 in front of Ray White Mill Park auctioneer Daniel Nardella.

Selling agent Marco Riggio, also with Ray White Mill Park, said 15 bidders fought it out for the property on the fringes of Bundoora.

“Young families were very keen on this address as it’s so close to the RMIT campus at Bundoora,” he said. “The education facilities are a big drawcard in this area plus the Uni Hill Factory Outlets.”

Closer to the CBD, an auction at 162 Gipps Street, Abbotsford, saw the three-bedroom, two-bathroom townhouse sell for $1.12 million, $120,000 above the reserve.

The property, which was about 15 years old, needed a renovation, according to Biggin & Scott Richmond’s Andrew Crotty.

There were two bidders throughout the sale. The winning bidder was an owner-occupier.