The property last traded for $1,525,000 in 2007, records show, and it had been an investment for the owners since they relocated interstate.
It was among 1117 Melbourne properties scheduled for auction on Saturday. By evening, Domain Group recorded a preliminary auction clearance rate of 57.2 per cent from 844 reported results, while 162 auctions were withdrawn. Withdrawn auctions are counted as unsold properties when calculating the clearance rate.
It is the third Saturday in a row where the rate has been below 60 per cent – a benchmark that typically reflects a balanced market. When it dips below that, prices are likely to be falling.
However, some strong results were still recorded across the city, particularly for A-grade homes.
In Brunswick East, a two-person race pushed the price for a modern family home with a pool a whopping $1 million above the reserve.
The near new four-bedroom house at 8 Hamer Street drew 11 registered bidders, but only two had a chance to take part after bidding opened at $3.2 million – topping the price guide of $2.75 million to $2.95 million, and the $2.95 million reserve.
The strong start knocked out multiple bidders from the get-go, said Ray White Brunswick’s Jamil Allouche. Rapid-fire bidding ensued from there, with the price climbing in $100,000 and $50,000 jumps as a Queensland family, looking to relocate back to Melbourne, and a local family went head-to-head.
“No one else could actually put their hand up, that’s how fast it was going,” Allouche said.
Bidding eventually slowed to smaller increments once it reached about $3.8 million, and the home went on to sell to the local family.
“All the interested buyers were families looking to upsize, nearly all were locals except for the couple from Queensland who flew down for the auction,” Allouche said.
The vendors, who had set a realistic reserve, were blown away with the result, Allouche said. It was also above his expectations, and he attributed the result to strong ongoing demand for fully renovated homes.
“It’s just a property that you can’t replicate very easily, to buy a block of land, and build a home like that … takes a lot of time. Every finish was impeccable.”
Records show the 444-square-metre block lasted traded for $1,265,000 in 2017, when a two-bedroom brick home sat on the site. The current house was completed in 2019.
In Essendon, a three-bedroom Victorian home held by the one family for 66 years, sold for $1.22 million to an investor who had never inspected the property before auction day and was looking to purchase a future home for his young children.
The auction for the deceased estate at 18 Daisy Street began with a vendor bid of $1 million, which was topped by an offer of $1,025,000 from the investor, before a second vendor bid of $1.05 million was placed.
From there bidding climbed in a mix of mostly $20,000 and $10,000 increments as two other buyers joined the competition, pushing the price passed the $1.1 million reserve. The home had been guided at $1 million to $1.1 million.
Selling agent Ryan Currie, of Nelson Alexander Essendon, said the investor was buying the property as a future home for his young children.
“He had never seen the house, he rang me yesterday and said ‘send my a copy of the contract, I’m looking at buying something for the future for the kids,’ and then rocked up today … and he outbid everyone,” Currie said.
While the market had been patchy of late, buyers were keen to transact before the end of the year, which was helping to drive some good results.
“I’m finding that ilk of property at the moment – anything really between $900,000 and $1.2 million – seems quite strong, and it was a very tidy house … and I think that was the appeal to a lot of people.”
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