Melbourne auction market defies expectations to post strong results, properties above reserve
Melbourne’s property market was surprisingly buoyant at the weekend, despite agent expectations the market would ease amid cooler weather and a slowing in the city’s post-COVID rush to buy.
Some were surprised by the strong results at auction, with buyers still looking for their dream home.
This included a four-bedroom home in Melbourne’s north-east which sold under the hammer on Saturday for $3,050,000.
Jellis Craig Doncaster Chris Savvides said the vendors of 67 Deep Creek Drive, Doncaster East, were prepared to sell when the price reached $2.7 million, and the home was called on the market.
But bids from five buyers kept the sale price rising, with a family from Forest Hill the victors.
Mr Savvides said the vendors owned the property for 25 years and had undertaken a full renovation before deciding to sell.
The home had both a swimming pool and tennis court, and needed no upgrades, making it highly desirable for buyers wanting to just move in.
“The lifestyle properties have gained a lot of attention over the past six months because of COVID-19,” Mr Savvides said. “Buyers of this home were looking for the extra space.”
The strength of results saw Melbourne’s preliminary clearance rate sit at 78.2 per cent by the end of Saturday, after 835 auctions were scheduled and 601 results were reported.
There were 35 properties withdrawn from auction which were counted as not being sold as part of the clearance rate.
Fletchers Balwyn Daiman Kane said crowds and interest in some properties were sporadic at the weekend. Some attracted plenty of interest, but others were much quieter.
“There were still some pretty strong results overall,” Mr Kane said.
That included the sale of a four-bedroom investment property at 43 Viewhill Road, Balwyn North.
The home sold under the hammer for $2.28 million – $80,000 above the reserve. Three bidders, all families wanting to knock down and rebuild the home, competed to buy.
“It was pretty competitive,” Mr Kane said.
The winning bidders were a family who plan to build a new home, he said.
Meanwhile, the vendor plans to take on a new project. He bought the home in 2016 and had planned to rebuild on the 731-square-metre block, Mr Kane said.
“He bought it with a view to building a home on it himself, but he decided to sell it after finding another project to take on,” he said.
A five-bedroom home in the bayside suburb of Brighton East became one of the biggest sales of the weekend when it sold under the hammer for$3,503,000 — well above the $3.2 million reserve.
The sale of 14 Landcox Street, Brighton East, was excellent, given agents were unsure what the result would be at the weekend because the market seemed to be quietening, Buxton Hampton East director and auctioneer Adam Gillon said.
“We really weren’t sure what was going to happen,” Mr Gillon said.
Four buyers raised their hands at the auction, with a couple from Elsternwick, who are expecting their third child, making the winning bid.
The home, an 1880s Victorian era style home, was particularly attractive to families because of its proximity to schools and had also had several renovations and extensions over the 25 years the vendors owned it, meaning there was little work that needed to be done.
“It’s really a landmark home,” Mr Gillon said.
A stylishly renovated four-bedroom home in Melbourne’s inner south, sold for close to $4 million after initially passing in at auction on Saturday.
The home at 4 Wright Street, Middle Park, initially passed in with a bid of $3.5 million, before selling for $3.96 million after some negotiation, Marshall White Port Phillip director and auctioneer Oliver Bruce said.
Two bidders competed before it passed in, with a family the buyers with their post-auction offer.
Like other agents, Mr Bruce said he was surprised by the turnout at the auction.
“It was quite a busy weekend, I was surprised by how many people were out and about,” Mr Bruce said. “The crowd at the auction was much bigger than I expected.”
In the much sought-after suburb of Albert Park, a four-bedroom home at 104 Bridport Street sold under the hammer for $3,005,000 — $355,000 above the reserve.
“It was a very strong result,” Belle Property Albert Park’s David Wood said.
The Victorian terrace, which was sold as part of a deceased estate, had been used as an office, but now would become a house for a family who had snapped it up at the auction. They beat one other bidder for the property, Mr Wood said.
“It really shows the underlying strength for heritage properties in this part of the Albert Park precinct,” he said.
In the city’s north-east, two separate auctions saw homes sell well above expectations.
A four-bedroom home at 7 Suzanne Court, Briar Hill, which had a price guide of $820,000 to $860,000, sold for $1,001,000 under the hammer.
Another at 26 Gallery Gate Road, Yallambie, had a price guide of $1.1 million to $1.15 million and sold for $1,435,000.
Jellis Craig Greensborough auctioneer Luke Coventry said the Briar Hill home was sold for the first time since 1965, when the vendor built it.
The vendor lived there ever since, deciding to sell recently, to move into a retirement home.
First-home buyers snapped up the home, bidding $1000 extra to secure the sale from the other bidder, Mr Coventry said.
The Yallambie home had five bidders fight it out, with two competing once bids reached $1.25 million.
“It was in the Viewbank College zone and the woman who bought it was there with her children. They really wanted to buy somewhere in the zone,” Mr Coventry said.
The vendors were thrilled with the result being “beyond their wildest dreams”, he said.
“Just when I thought the market was starting to get a little bit patchy, we got some amazing results on the weekend.”
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