Pent-up demand from buyers and sellers hits the Melbourne auction market
A four-bedroom home in Fitzroy North in need of some serious renovations sold for an enormous $751,000 above the reserve on the weekend – for $2,351,000.
Thirty-three bidders signed up to bid at the online auction for 248 Rae Street, a deceased estate, with fast and furious bidding seeing the price rise quickly.
“The bidding opened at $1.65 million and before you could blink it was at $2 million, knocking out the other 31 registered bidders, as two went back and forth in fierce competition,” Ray White Oakleigh agent Leigh Kelepouris said.
The opening bid had smashed the $1.6 million reserve, Mr Kelepouris, said with several different buyers interested in the property.
“It ticked all of the boxes for owner-occupiers, developers, and people wanting to knock down and rebuild – and the local winning bidders plan on building their dream family home there,” he said.
The sale was one of the biggest reported in Melbourne at the weekend, where auction results bounced back above 70 per cent.
The preliminary clearance rate sat at 73.9 per cent after 395 scheduled auctions and 306 reported results on Saturday. There were 34 properties withdrawn from auction.
AMP Capital chief economist Shane Oliver said the bounce was probably due to the pent-up demand of buyers and sellers back on the market after the city and property market was locked down during the worst of the coronavirus pandemic.
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“With these kinds of results, we’re normally looking at price gains of 5 per cent to 10 per cent,” Dr Oliver said. “But the indications are that this is a function of pent up supply and demand.
“It’s a reflection of the market reopening rather than Melbourne prices continuing to rise,” he said.
In Melbourne’s east, a Surrey Hills home passed in on a huge $4.3 million bid, but sold immediately after negotiations for $4.45 million.
It was the third time this year the five-bedroom house at 12 The Avenue had been listed for sale, with coronavirus and Melbourne’s lockdowns continuously interrupting the sale.
Marshall White Boroondara partner Chris Barrett said six bidders registered, but only two competed at the onsite auction.
Both bidders were families looking for a home in the area.
“The buyers are a family moving from Hawthorn,” Mr Barrett said.
In the inner city, a three-bedroom home at 9 Fallon Street, Brunswick, sold after passing in at auction on Saturday.
A bid of $1,194,000 was not enough to clinch the deal, with the property selling after negotiation for $1,235,000.
The property originally had an asking price range of between $1.15 million and $1,255,000.
Nelson Alexander selling agent Jonathan West said four bidders competed for the keys at an onsite auction.
“Both the buyers, who are a young local couple moving in, and the owners were very happy with the result,” Mr West said.
The vendors had owned the property since 2002 and used it as an investment property, he said.
Mr West said a significant number of buyers were out and about on the weekend, with many making prior-to-auction offers on properties in the area.
“A lot of houses have been on the market for three days or a week and are selling well above expectations,” Mr West said. “There’s a lot of activity on that front.”
In the east, a four-bedroom home at 12 Deepdene Road, Balwyn, sold under the hammer for $2.39 million – $140,000 above the reserve.
Marshall White Boroondara selling agent Kathy Malcolm said 10 registered bidders competed at the onsite auction, with a family from the eastern suburbs, buying the home to be closer to the city.
The sale had been brought forward because there was so much interest, Ms Malcolm said.
“The vendors bought the property in 2017 for the schools, but their children have now gone through [and finished] so they’re off down to the seaside,” she said.
Also in Melbourne’s eastern suburbs, a four-bedroom home at 5 Conder Avenue, Burwood, sold under the hammer for $1.45 million.
Fletchers Waverley director and auctioneer Tim Heavyside said the auction was a “licorice allsorts” sale with six registered bidders – three online and three onsite.
“The people who bought it were online and are a family,” Mr Heavyside said.
The property sold for just above original expectations of around $1,415,000, he said.
Buyers looking to develop a property for their family snapped up a three-bedroom home with 1455 square metres of land at 16 Broomhill Avenue, Blackburn.
The property sold for $2,155,000 at an online auction which had 10 registered bidders competing.
Buxton Box Hill agent Calvin Chan said the buyers would be renting out the property before looking to develop it down the track.
“They’re wanting to build properties for themselves,” Mr Chan said.
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