Young man outbids seven others for $2.2m Thornbury retreat – $381,000 over reserve

A three-bedroom, one-bathroom clinker brick home in Thornbury ignited a fierce bidding war among eight buyers on Saturday, with the price soaring $381,000 over the reserve to reach $2,231,000.

A young man from Melbourne’s inner north muscled out two underbidder families to secure 116 Rennie Street, on a 743-square-metre block close to Merri Creek, featuring an open fireplace, vine-clad pergola and deck. It had a price guide of $1.75 million to $1.85 million and a reserve at the top of the range.

SOLD - Price Withheld

116 Rennie Street, Thornbury VIC 3071

3

1

2

View property

It was one of 1056 scheduled auctions in Melbourne on Saturday. By evening, Domain Group recorded a preliminary auction clearance rate of 63.5 per cent from 702 reported results, while 83 auctions were withdrawn. Withdrawn auctions are counted as unsold properties when calculating the clearance rate.

The Thornbury auction was a standout in a quieter-than-usual spring market. Defying the trend, 116 Rennie Street drew almost 20 registered bidders.

“It was competitive right from the start,” said co-selling agent Matthew McIntosh of Jellis Craig.

“Bidding started at $1.7 million and went in $20,000 increments before reaching the mid-$1.9 million mark where buyers began to drop out. By the time the price hit $2 million, only a few remained, with bids slowing to $10,000 and eventually shrinking to as little as $1000 and $500 bids.

“At $2.2 million, there were just three of them … but a young buyer upsizing from his current property got it. All the bidders were locals from the inner north, and they were all looking for that larger land size, and they liked the fact that the floorplan could be accommodated to introduce a fourth bedroom and a second bathroom.”

The vendors, who bought the property in 1994, spent between $20,000 and $30,000 on a pre-auction refresh, including new carpets and garden updates.

“I don’t think we would have achieved the price we did if we didn’t do that. I’m just so happy for the vendors. Now they can downsize to regional Victoria,” McIntosh said.

The result, he added, followed a recent uptick in the market with increased foot traffic at open homes.

“For Jellis Craig, we sold 93 out of 111 properties [under the hammer] across our offices this weekend.”

In Yarraville, another fierce auction unfolded at 176 Stephen Street where two families battled for an architect-designed Edwardian home before a crowd of about 70. The five-bedroom, three-bathroom property sold under the hammer for $2.23 million, above its reserve of $2.2 million. It had a price guide of $2 million to $2.2 million.

After opening on a vendor bid of $2 million, the buyers threw a flurry of $25,000 bids until it was called on the market at $2.2 million.

“The underbidder told me their max was $2.2 million, so they stretched themselves, but unfortunately, they just couldn’t go any further,” said selling agent Huss Saad of Village Real Estate.

SOLD - $2,230,000

176 Stephen Street, Yarraville VIC 3013

5

3

1

View property

He added the home’s elegance and location helped it nab a good result.

“Even though it was last renovated in 2013, it still looked fresh. A lot of buyers commented that it felt like it had been done just a few years ago,” Saad said.

The vendors bought the home in 2014 from the architect who designed it.

In Coburg, a first home-buyer couple outmuscled two families and an investor to a charming three-bedroom centenary home at 157 Nicholson Street – paying $1.36 million. The home had a price guide of $1.1 million to $1.2 million and a reserve of $1.25 million.

SOLD - Price Withheld

157 Nicholson Street, Coburg VIC 3058

3

2

3

View property

Lead agent Raphael Calik-Houston, of Ray White Coburg, said the buyers, who happened to be away in Noosa, had their parents step in to bid – ending their six-month home hunt.

Calik-Houston said the home had been in the same family for 15 years and needed a $50,000 makeover – including restumping – before the campaign.

“That restumping alone was a bit of extra cost, but we advised the vendors to make it as turnkey as possible – and it paid off,” he said.

Bidding kicked off at $1.1 million with increments of largely $10,000 and $15,000.

While the sole investor was outbid, Houston added investor interest was on the rise.

“It’s weird, but the phone is ringing with investors who are seeing Melbourne as good value now,” he said.

Ray White chief economist Nerida Conisbee said the Victorian capital’s market remained balanced, but warned the favourable conditions for buyers could slightly wane in the lead-up to Christmas.

“At the affordable end, Melbourne is a good market for first home buyers. It’s not moving quickly, and there’s a decent level of stock available,” she said.

“And average active bidders per auction have dropped slightly from 2.53 last month to 2.31.

“But the market is still seeing properties clear, and we can see that buyers are motivated.”