Prahran home that last sold for $63,500 fetches $1.31m at auction

A two-bedroom Prahran home that last sold for $63,500 in 1983 fetched $1,313,000 at auction on Saturday.

A young couple with plans to live in and eventually update 16 Vail Street beat three others in a competitive sell-off.

SOLD - $1,313,000

16 Vail Street, Prahran VIC 3181

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Biggin & Scott Stonnington auctioneer Michael Tynan kicked off the auction with a vendor bid of $1.05 million. One party offered a bid of $25,000 before another put forward a $10,000 bid.

A third party then upped the ante with a $115,000 bid, pushing the price above the reserve to $1.2 million.

Tynan said the home was declared on the market at $1.15 million, at the top end of the $1.05 million to $1.15 million price guide.

All four parties traded bids until the property sold under the hammer to the couple, in their 30s, for $163,000 above reserve, and some $1,249,500 more than what the vendors paid in 1983.

Tynan said the vendors were selling the family home on behalf of their mother.

He added that the buyers had been looking for a while and were thrilled to secure the single-fronted home in a prime location.

“We’re still seeing some really good prices for good family homes in the area. For this home, a little bit of work needs to be done inside, but it’s a fabulous location, and they could add a lot of value to it,” Ryan said.

“People are still willing to pay a good price for good homes in the area.”

It was one of 874 auctions scheduled in Melbourne on Saturday.

In Pascoe Vale South, a first home buyer paid $705,000 for a two-bedroom townhouse, beating three others.

Ray White auctioneer Jamil Allouche said competition was fierce for 7/277 Ohea Street. He placed a vendor bid of $610,000 before two bidders began trading offers, quickly rising above the $670,000 reserve.

SOLD - $705,000

7/277 Ohea Street, Pascoe Vale South VIC 3044

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“I had two bidders go pretty aggressively at each other until we reached $680,000,” Allouche said.

Two other parties then joined the race and bidding slowed to $5000 increments. The home, which was listed with a price guide of $610,000 to $670,000, sold under the hammer to a buyer local to the Pascoe Vale area.

Allouche said it was mainly first home buyers who had shown interest in the stylish home, which offered an attractive price point for buyers looking to break into the market.