Modest house in sought-after school zone soars past $1.8m in hot auctionMay 15, 2023
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- Five parties bid for a brick Bentleigh East house on a spacious block.
- A first-home buyer spent $1.3 million in Fitzroy North, the sole bidder at the auction.
- A retiree paid $1.07 million for a ground floor apartment.
A family dropped $1,821,000 to buy a modest Bentleigh East home on a spacious block of land ripe for redevelopment in an hour-long auction on Saturday.
The 1950s classic brick three-bedroom home at 11 Gladwyn Avenue drew five bidders, was on the market for the first time in 60 years and came with decorative ceilings, a sunny back courtyard and a well-kept kitchen that had scope to update.
Listed with a price guide of between $1.55 million and $1.6 million, the house was set on a sizable 600 square metre block with a 16.5-metre-wide street-facing frontage and set in the McKinnon Primary and Secondary school zones.
In a suburb where the median house price over the past year to March was $1,425,000 on Domain data, Buxton Real Estate Bentleigh director and auctioneer Simon Pintado was blown away by the final result.
“It was a crazy auction. We did have good interest during the campaign, but [the result] was a total surprise,” he said.
The auction dragged out for about an hour as five bidders cast roughly 100 bids, ranging from $1000 to $10,000. Proceedings opened at $1.5 million and quickly passed the $1.55 million reserve, before the hammer dropped at $1,821,000.
The property was sold to a family whose parents will live in it. The underbidders were also a family who intended to live there.
“The draw of the property was that it was in neat condition and ready to move in. It didn’t need any work aside from a good clean,” Pintado said.
There were 639 auctions scheduled across Melbourne on Saturday. By evening, Domain Group recorded a preliminary auction clearance rate of 72.6 percent from 507 reported results, while 43 auctions were withdrawn. Withdrawn auctions are counted as unsold properties when calculating the clearance rate.
In Fitzroy North, a first home buyer snapped up a Victorian house for $1.3 million after being the sole bidder at the auction.
The two-bedroom home at 11 Tait Street was owned and rented out by the same investor for 20 years before being listed with a price guide of $1.15 million to $1.25 million.
Nelson Alexander agent Sally Chase said about 70 groups viewed the property during the four-week campaign, during which a first home buyer placed a $1.3 million offer.
This offer exceeded the vendor’s expectations and the auction was bought forward a week and advertised with a $1.3 million reserve.
Three parties expressed interest before the auction, but the first home buyer was the only bidder on the day and secured the property for their initial offer.
Chase said prospective buyers snapped up good properties in the current market.
“Many buyers realise there isn’t a lot of stock available, so they’re quick to make a decision and jump on something they feel is suitable,” she said.
“Some properties are absolutely flying and getting really good results, while others are taking a little bit longer.”
AMP Capital’s chief economist Shane Oliver said the preliminary clearance rate was lower than boom time levels, but it was a solid result consistent with strong demand and low numbers of homes for sale.
“Prices are still down, while interest rates are higher, so vendors might be reluctant to sell and trade up for another property,” Oliver said.
He said conflicting forces continued to influence the property market. High demand fuelled by immigration and a low supply of houses contrasted with higher interest rates and the risk of an economic downturn and increased unemployment.
“The question is how long the solid clearance rate remains and whether it further strengthens or weakens.”
In Port Melbourne, a retiree paid $1.07 million – $220,000 above reserve – for a ground-floor apartment with its own entry onto the popular Lagoon Reserve parkland at a competitive auction.
A crowd of about 25 people watched as four bidders, all Baby Boomers or downsizers, fought for the two-bedroom residence at 10/8 Graham Street.
The bidding opened at $825,000 and the price quickly pushed past the $850,000 reserve in mostly $10,000 increments.
Kay and Burton agent Campbell Kilsby said the apartment was in a popular area and while it was ready to move in, it did need some cosmetic upgrades.
“It was a bit tired, and in need of a lick of paint and some love put back into it,” he said.
Kilsby said there was hot competition for good homes in the midst of the supply crunch, despite interest rate hikes.
“If a property ticks the boxes, people go for it.”
Across the city in Bundoora, an investor beat four other bidders and snapped up a humble brick house on a 664 square metre block for $860,000, a sale price $140,000 above reserve.
Bids for the three-bedroom home at 109 Cameron Parade started at $700,000 and jumped in $10,000 increments until the hammer fell.
Ray White Bundoora auctioneer Andrew Mizzi said the investor buyer had rough plans to redevelop the property in future.
Aside from needing new carpet and fresh paint, Mizzi said the property was ready to move in and the investor would rent it out in the meantime.
“The underbidders were a local family that unfortunately missed out. It’s back to the drawing board for them,” he said.
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