Warehouse conversion enthusiasts snap up their first home at auction in Richmond

First-home buyers with a penchant for warehouse conversions bought a trendy two-bedroom unit at auction on Saturday, despite fears of the long weekend hurting vendors’ chances.

Biggin and Scott agent Talia Besser said the couple who bought the Richmond home had almost exclusively inspected warehouse conversions in the inner north.

The home they settled on, 107/28 Tanner Street, was a two-bedroom, one-bathroom conversion with soaring four-metre ceilings and floor-to-ceiling windows overlooking the suburb.

“They finally found one that suited them,” she said. “They’re going to do some renovations and maybe give it a bit of a freshen up.

“It was built in about the early 2000s and hasn’t been touched since then.”

It was one of 145 auctions listed across the city on Saturday of the long weekend. By evening, Domain Group had recorded a 48.2 per cent clearance rate from 94 reported results.

Both bidders, standing side-by-side through the auction, were owner-occupiers. The auction kicked off at $830,000 and hit reserve on the second bid of $840,000.

A dozen bids later and the home sold to the conversion enthusiasts for $911,000. The quoted price range was $880,000 to $950,000.

Ms Besser said the vendors had listened to feedback about the price of the their unit and set their reserve accordingly, which paid off on the day.

“They were a lovely couple and we’re lucky to work with them,” she said.

“They were obviously thrilled, with it being $71,000 over reserve. It doesn’t matter if it’s a public holiday, there will still be buyers there and it still will be a successful auction as it’s not Easter or Christmas. 

“When you follow your agent’s advice that’s when you get results.”

The auctioneer Andrew Crotty had also sold the unit to the vendors in 2013, for $748,500. 

Earlier in the CBD, a freshly renovated apartment passed in with one genuine bid from a frosty crowd.

After four bids in total, the property was passed in at $730,000. The price range was $730,000 to $800,000.

The two-bedroom unit at 1/143 Franklin Street was in an older block and had a large floorplan when compared to newer builds.

“Just the sheer 102 square metres of space. In an older apartment, they’re generally a lot bigger,” auctioneer and selling agent Lou Rendina said. “Being only one of 12 residences in the complex makes it very attractive.”

The apartment had been renovated in order to close a sale, and the home had not been lived in since the refurbishment.

“It is very uncommon to get an older block that has a renovated apartment,” Mr Rendina said. “The vendors chose to renovate it before selling it – it was an investment for them.”

Due to the apartment block’s small size, he said there was medium-term potential for the entire block to be redeveloped.

“If the owners all get together, and we’ve been liaising with a couple of them, and sell, it could sell to a developer for a big sum,” he said. 

“That’s great value in itself. Whoever is prepared to landbank could be sitting on TattsLotto numbers.

“It could happen in the next five to 10 years. It’s just too valuable to let go.”

Mr Rendina said the one bidder was an investor.

Later in South Melbourne, a two-bedroom unit in a tightly held block sold to an out-of-town buyer looking to upgrade their city crash-pad.

Buxton agent Rohan White said in the past decade, only 17 sales had taken place in the building.

“Everything was hanging on this sale. It’s a big sigh of relief for [the vendors],” he said. “It was important to get a good result in the building because there may be a few coming up soon.”

The auction of 508/78 Eastern Road ended with the home passing in at $820,000. The quoted price guide was $800,000 to $880,000.

“We managed to negotiate to $845,000,” Mr White said. “It sold to a local owner who lives literally around the corner. He was obviously keen to to stay in the area.”

The recently renovated home had a flexible floor plan, which Mr White said contributed to the unit’s attractiveness.

“It’s a corner property, with views back down Eastern Road. You can see the city and the Albert Park golf course,” he said.

“It’s just under 100 square metres and has two beds, two baths, and two cars.

“You could have a couple living there and add another person easily.”