Results good but not great

Melbourne’s auction market appears to have held its ground, despite a big increase in the number of properties up for sale this week.

The Real Estate Institute of Victoria reports the clearance rate was 66 per cent for the 842 auction results reported so far. The outcome of another 144 sales — about 14.6 per cent of those scheduled — is still unknown and could cause the figure to drop.

While the result marks an improvement on the 64 per cent sales level recorded for 720 auctions last week, the market’s performance is still far weaker than at the same time last year when the clearance rate hit 87 per cent on a similarly busy day.

Across the city, agents and buyer’s advocates reported large turnouts at many inner city and bayside auctions, with crowd numbers swelling to more than 100 in some instances.

The Hocking Stuart network sold 68 of the 100 properties they auctioned yesterday, including 12 of the 15 that went to market with a reserve price over $1 million. One stand-out result was 15 Sargood Street in Hampton, a three-bedroom art deco house that sold for $1,095,000 after being declared on the market at $850,000.

Hocking Stuart said seven bidders were responsible for driving the price nearly $250,000 above expectations. It was quoted at $790,000 to $850,000.

Eight bidders fought over a former stable converted into a two-storey, two-bedroom home at 2/247 Union Road, Moonee Ponds, with the winner paying $710,000.

A crowd of more than 60 people turned out for the sale of the property, which was declared on the market at $635,000. “Who said it was a flat market?” commented Karin Mackay, of Australian Property Buyers.

In East Melbourne, the double-storey Edwardian terrace house overlooking Yarra Park and the MCG at 18 Jolimont Terrace sold for $3 million after being declared on the market at $2.4 million.

Marshall White fielded a series of strong $100,000 rises from four bidders before a crowd of more than 75 people. The three-bedroom property was quoted at $2 million.

More than 100 people turned out for the auction of the modern five-bedroom house at 33 Middle Crescent in Brighton, which had been quoted at $4 million. Hodges said four bidders pushed the price from an opening at $3.4 million to a sale at $4.3 million, $100,000 above where it was declared on the market.

But Kim Easterbrook, of Elite Buyer Advocates, said that while some properties drew big crowds, not all of them were translating into sales under the hammer. Four of the five auctions the group observed in Surrey Hills, Canterbury, St Kilda East and Windsor passed in.

However, judging by the results reported elsewhere around the city, it seems likely that many were snapped up in after-auction negotiations.

In Northcote, the four-bedroom Victorian at 118 Gladstone Avenue opened and passed in on a vendor bid of $900,000 in front of more than 40 people. “There was not a bid, not a sound.

The auctioneer went in to confer with the vendor, but when they came out there was still not a bid, not a sound,” said Sean Thomson, of WBP Property Group. But Nelson Alexander reports the property, which had been quoted at $900,000 to $990,000, sold through later negotiations for $955,000.

Two bidders took the price of 41 St Phillips Street, Abbotsford, from an opening at $700,000 to $760,000 before the three-bedroom townhouse passed in. Michael Ramsay Property bought the property for $795,000; it had been quoted by Biggin & Scott at $740,000-plus.

The three-bedroom Victorian house on a subdivided block at 153A New Street, Brighton, opened on a vendor bid of $1.3 million but then stalled.

Renowden Buyers Advocates said the auctioneer asked for a $50,000 rise but had to settle for a genuine offer of just $10,000 more. With no other takers, the property passed in at $1.31 million. Buxton quoted it at $1.3 million-$1.43 million.

In Surrey Hills, the two-bedroom townhouse at 1/23 Ross Street opened on a vendor bid of $510,000, received another at $520,000, but didn’t attract any interest. JPP Buyer Advocates reports that one genuine bid was eventually made at $521,000, where it passed in.

Hocking Stuart, who quoted it at $500,000- $550,000, said a later offer of $555,000 was received. The reserve is $580,000 and negotiations are continuing.

There are 975 auctions scheduled next weekend.